diff --git a/graph/db/graph_test.go b/graph/db/graph_test.go
index 49969ed7e..c8a5c54b2 100644
--- a/graph/db/graph_test.go
+++ b/graph/db/graph_test.go
@@ -3361,18 +3361,7 @@ func TestAddChannelEdgeShellNodes(t *testing.T) {
 	require.ErrorIs(t, err, ErrEdgeAlreadyExist)
 
 	// Show that updating the shell node to a full node record works.
-	err = graph.AddLightningNode(node2)
-	_, ok := graph.V1Store.(*KVStore)
-	if ok {
-		require.NoError(t, err)
-	} else {
-		// Currently the SQL UpsertNode query prevents us from updating
-		// the node record if the current record's last_update field
-		// is null (which is the case for node2). This is a bug that
-		// will be fixed in the following commit.
-		require.ErrorContains(t, graph.AddLightningNode(node2),
-			"sql: no rows in result set")
-	}
+	require.NoError(t, graph.AddLightningNode(node2))
 }
 
 // TestNodePruningUpdateIndexDeletion tests that once a node has been removed
diff --git a/sqldb/sqlc/graph.sql.go b/sqldb/sqlc/graph.sql.go
index 0823132a3..2c42e535a 100644
--- a/sqldb/sqlc/graph.sql.go
+++ b/sqldb/sqlc/graph.sql.go
@@ -542,7 +542,8 @@ ON CONFLICT (pub_key, version)
         last_update = EXCLUDED.last_update,
         color = EXCLUDED.color,
         signature = EXCLUDED.signature
-WHERE EXCLUDED.last_update > nodes.last_update
+WHERE nodes.last_update IS NULL
+    OR EXCLUDED.last_update > nodes.last_update
 RETURNING id
 `
 
diff --git a/sqldb/sqlc/queries/graph.sql b/sqldb/sqlc/queries/graph.sql
index dd96ac2f1..a11bc7d62 100644
--- a/sqldb/sqlc/queries/graph.sql
+++ b/sqldb/sqlc/queries/graph.sql
@@ -17,7 +17,8 @@ ON CONFLICT (pub_key, version)
         last_update = EXCLUDED.last_update,
         color = EXCLUDED.color,
         signature = EXCLUDED.signature
-WHERE EXCLUDED.last_update > nodes.last_update
+WHERE nodes.last_update IS NULL
+    OR EXCLUDED.last_update > nodes.last_update
 RETURNING id;
 
 -- name: GetNodeByPubKey :one