diff --git a/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store.go b/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store.go
index e516cb7d819..422353a38d1 100644
--- a/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store.go
+++ b/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store.go
@@ -633,9 +633,12 @@ func (e *Store) Update(ctx context.Context, name string, objInfo rest.UpdatedObj
 	}
 
 	out := e.NewFunc()
+
+	// only ignore a not found error if this type allows creating on update, or we're forcing allowing create (like for server-side-apply)
+	ignoreNotFound := e.UpdateStrategy.AllowCreateOnUpdate() || forceAllowCreate
 	// deleteObj is only used in case a deletion is carried out
 	var deleteObj runtime.Object
-	err = e.Storage.GuaranteedUpdate(ctx, key, out, true, storagePreconditions, func(existing runtime.Object, res storage.ResponseMeta) (runtime.Object, *uint64, error) {
+	err = e.Storage.GuaranteedUpdate(ctx, key, out, ignoreNotFound, storagePreconditions, func(existing runtime.Object, res storage.ResponseMeta) (runtime.Object, *uint64, error) {
 		existingResourceVersion, err := e.Storage.Versioner().ObjectResourceVersion(existing)
 		if err != nil {
 			return nil, nil, err
diff --git a/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store_test.go b/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store_test.go
index 24ac2a6c7a4..cc50afede2a 100644
--- a/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store_test.go
+++ b/staging/src/k8s.io/apiserver/pkg/registry/generic/registry/store_test.go
@@ -773,6 +773,10 @@ func TestStoreUpdate(t *testing.T) {
 		ObjectMeta: metav1.ObjectMeta{Name: "foo", Namespace: "test", ResourceVersion: "7"},
 		Spec:       example.PodSpec{NodeName: "machine"},
 	}
+	podAWithResourceAndUID := &example.Pod{
+		ObjectMeta: metav1.ObjectMeta{Name: "foo", Namespace: "test", ResourceVersion: "7", UID: "A"},
+		Spec:       example.PodSpec{NodeName: "machine"},
+	}
 
 	testContext := genericapirequest.WithNamespace(genericapirequest.NewContext(), "test")
 	destroyFunc, registry := NewTestGenericStoreRegistry(t)
@@ -790,6 +794,12 @@ func TestStoreUpdate(t *testing.T) {
 		t.Errorf("Unexpected error: %v", err)
 	}
 
+	// try to update a non-existing node that was created previously
+	_, _, err = registry.Update(testContext, podA.Name, rest.DefaultUpdatedObjectInfo(podAWithResourceAndUID), rest.ValidateAllObjectFunc, rest.ValidateAllObjectUpdateFunc, false, &metav1.UpdateOptions{})
+	if !errors.IsNotFound(err) {
+		t.Errorf("Unexpected error: %v", err)
+	}
+
 	// allow creation
 	registry.UpdateStrategy.(*testRESTStrategy).allowCreateOnUpdate = true