diff --git a/lib/dao.js b/lib/dao.js
index 257177b3..52a82641 100644
--- a/lib/dao.js
+++ b/lib/dao.js
@@ -285,21 +285,39 @@ DataAccessObject.create = function (data, options, cb) {
           }
           obj.__persisted = true;
 
-          saveDone.call(obj, function () {
-            createDone.call(obj, function () {
-              if (err) {
-                return cb(err, obj);
-              }
-              var context = {
-                Model: Model,
-                instance: obj,
-                isNewInstance: true,
-                hookState: hookState,
-                options: options
-              };
-              Model.notifyObserversOf('after save', context, function(err) {
-                cb(err, obj);
-                if(!err) Model.emit('changed', obj);
+          var context = {
+            Model: Model,
+            data: val,
+            isNewInstance: true,
+            hookState: hookState,
+            options: options
+          };
+          Model.notifyObserversOf('loaded', context, function(err) {
+
+            // By default, the instance passed to create callback is NOT updated 
+            // with the changes made through persist/loaded hooks. To preserve 
+            // backwards compatibility, we introduced a new setting updateOnLoad, 
+            // which if set, will apply these changes to the model instance too.
+            if(Model.settings.updateOnLoad) {
+              obj.setAttributes(context.data);
+            }
+            saveDone.call(obj, function () {
+              createDone.call(obj, function () {
+                if (err) {
+                  return cb(err, obj);
+                }
+                var context = {
+                  Model: Model,
+                  instance: obj,
+                  isNewInstance: true,
+                  hookState: hookState,
+                  options: options
+                };
+
+                Model.notifyObserversOf('after save', context, function(err) {
+                  cb(err, obj);
+                  if(!err) Model.emit('changed', obj);
+                });
               });
             });
           });
@@ -475,33 +493,42 @@ DataAccessObject.updateOrCreate = DataAccessObject.upsert = function upsert(data
           });
         }
         function done(err, data, info) {
-          var obj;
-          if (data && !(data instanceof Model)) {
-            inst._initProperties(data, { persisted: true });
-            obj = inst;
-          } else {
-            obj = data;
-          }
-          if (err) {
-            cb(err, obj);
-            if(!err) {
-              Model.emit('changed', inst);
+          var context = {
+            Model: Model,
+            data: data,
+            hookState: ctx.hookState,
+            options: options
+          };
+          Model.notifyObserversOf('loaded', context, function(err) {
+            var obj;
+            if (data && !(data instanceof Model)) {
+              inst._initProperties(data, { persisted: true });
+              obj = inst;
+            } else {
+              obj = data;
             }
-          } else {
-            var context = {
-              Model: Model,
-              instance: obj,
-              isNewInstance: info ? info.isNewInstance : undefined,
-              hookState: hookState,
-              options: options
-            };
-            Model.notifyObserversOf('after save', context, function(err) {
+            if (err) {
               cb(err, obj);
               if(!err) {
                 Model.emit('changed', inst);
               }
-            });
-          }
+            } else {
+              var context = {
+                Model: Model,
+                instance: obj,
+                isNewInstance: info ? info.isNewInstance : undefined,
+                hookState: hookState,
+                options: options
+              };
+
+              Model.notifyObserversOf('after save', context, function(err) {
+                cb(err, obj);
+                if(!err) {
+                  Model.emit('changed', inst);
+                }
+              });
+            }
+          });
         }
       });
     } else {
@@ -586,36 +613,46 @@ DataAccessObject.findOrCreate = function findOrCreate(query, data, options, cb)
   function _findOrCreate(query, data, currentInstance) {
     var modelName = self.modelName;
     function findOrCreateCallback(err, data, created) {
-      var obj, Model = self.lookupModel(data);
+      var context = {
+        Model: Model,
+        data: data,
+        isNewInstance: created,
+        hookState: hookState,
+        options: options
+      };
+      Model.notifyObserversOf('loaded', context, function(err) {
+        var obj, Model = self.lookupModel(data);
 
-      if (data) {
-        obj = new Model(data, {fields: query.fields, applySetters: false,
-          persisted: true});
-      }
+        if (data) {
+          obj = new Model(data, {fields: query.fields, applySetters: false,
+            persisted: true});
+        }
 
-      if (created) {
-        var context = {
-          Model: Model,
-          instance: obj,
-          isNewInstance: true,
-          hookState: hookState,
-          options: options
-        };
-        Model.notifyObserversOf('after save', context, function(err) {
+        if (created) {
+          var context = {
+            Model: Model,
+            instance: obj,
+            isNewInstance: true,
+            hookState: hookState,
+            options: options
+          };
+          Model.notifyObserversOf('after save', context, function(err) {
+            if (cb.promise) {
+              cb(err, [obj, created]);
+            } else {
+              cb(err, obj, created);
+            }
+            if (!err) Model.emit('changed', obj);
+          });
+
+        } else {
           if (cb.promise) {
             cb(err, [obj, created]);
           } else {
             cb(err, obj, created);
           }
-          if (!err) Model.emit('changed', obj);
-        });
-      } else {
-        if (cb.promise) {
-          cb(err, [obj, created]);
-        } else {
-          cb(err, obj, created);
         }
-      }
+      });
     }
 
     data = removeUndefined(data);
@@ -1329,38 +1366,50 @@ DataAccessObject.find = function find(query, options, cb) {
         var Model = self.lookupModel(d);
         var obj = new Model(d, {fields: query.fields, applySetters: false, persisted: true});
 
-        if (query && query.include) {
-          if (query.collect) {
-            // The collect property indicates that the query is to return the
-            // standalone items for a related model, not as child of the parent object
-            // For example, article.tags
-            obj = obj.__cachedRelations[query.collect];
-            if (obj === null) {
-              obj = undefined;
-            }
-          } else {
-            // This handles the case to return parent items including the related
-            // models. For example, Article.find({include: 'tags'}, ...);
-            // Try to normalize the include
-            var includes = Inclusion.normalizeInclude(query.include || []);
-            includes.forEach(function(inc) {
-              var relationName = inc;
-              if (utils.isPlainObject(inc)) {
-                relationName = Object.keys(inc)[0];
-              }
+        context = {
+          Model: Model,
+          instance: obj,
+          isNewInstance: false,
+          hookState: hookState,
+          options: options
+        };
 
-              // Promote the included model as a direct property
-              var included = obj.__cachedRelations[relationName];
-              if (Array.isArray(included)) {
-                included = new List(included, null, obj);
+        if (query && query.include) {
+          Model.notifyObserversOf('loaded', context, function(err) {
+            if (query.collect) {
+              // The collect property indicates that the query is to return the
+              // standalone items for a related model, not as child of the parent object
+              // For example, article.tags
+              obj = obj.__cachedRelations[query.collect];
+              if (obj === null) {
+                obj = undefined;
               }
-              if (included) obj.__data[relationName] = included;
-            });
-            delete obj.__data.__cachedRelations;
-          }
+            } else {
+              // This handles the case to return parent items including the related
+              // models. For example, Article.find({include: 'tags'}, ...);
+              // Try to normalize the include
+              var includes = Inclusion.normalizeInclude(query.include || []);
+              includes.forEach(function(inc) {
+                var relationName = inc;
+                if (utils.isPlainObject(inc)) {
+                  relationName = Object.keys(inc)[0];
+                }
+
+                // Promote the included model as a direct property
+                var included = obj.__cachedRelations[relationName];
+                if (Array.isArray(included)) {
+                  included = new List(included, null, obj);
+                }
+                if (included) obj.__data[relationName] = included;
+              });
+              delete obj.__data.__cachedRelations;
+            }
+          });
         }
         if (obj !== undefined) {
-          results.push(obj);
+          Model.notifyObserversOf('loaded', context, function(err) {
+            results.push(obj);
+          });
         }
       }
 
@@ -1803,22 +1852,33 @@ DataAccessObject.prototype.save = function (options, cb) {
             if (err) {
               return cb(err, inst);
             }
-            inst._initProperties(data, { persisted: true });
+
             var context = {
               Model: Model,
-              instance: inst,
+              data: data,
               isNewInstance: result && result.isNewInstance,
               hookState: hookState,
               options: options
             };
-            Model.notifyObserversOf('after save', context, function(err) {
-              if (err) return cb(err, inst);
-              updateDone.call(inst, function () {
-                saveDone.call(inst, function () {
-                  cb(err, inst);
-                  if(!err) {
-                    Model.emit('changed', inst);
-                  }
+            Model.notifyObserversOf('loaded', context, function(err) {
+              inst._initProperties(data, { persisted: true });
+
+              var context = {
+                Model: Model,
+                instance: inst,
+                isNewInstance: result && result.isNewInstance,
+                hookState: hookState,
+                options: options
+              };
+              Model.notifyObserversOf('after save', context, function(err) {
+                if (err) return cb(err, inst);
+                updateDone.call(inst, function () {
+                  saveDone.call(inst, function () {
+                    cb(err, inst);
+                    if(!err) {
+                      Model.emit('changed', inst);
+                    }
+                  });
                 });
               });
             });
@@ -1956,6 +2016,7 @@ DataAccessObject.updateAll = function (where, data, options, cb) {
 
     function updateCallback(err, info) {
       if (err) return cb (err);
+
       var context = {
         Model: Model,
         where: where,
@@ -2291,20 +2352,37 @@ DataAccessObject.prototype.updateAttributes = function updateAttributes(data, op
           }
 
           function updateAttributesCallback(err) {
-            if (!err) inst.__persisted = true;
-            done.call(inst, function () {
-              saveDone.call(inst, function () {
-                if (err) return cb(err, inst);
-                var context = {
-                  Model: Model,
-                  instance: inst,
-                  isNewInstance: false,
-                  hookState: hookState,
-                  options: options
-                };
-                Model.notifyObserversOf('after save', context, function(err) {
-                  if(!err) Model.emit('changed', inst);
-                  cb(err, inst);
+            var context = {
+              Model: Model,
+              data: data,
+              hookState: hookState,
+              options: options
+            };
+            Model.notifyObserversOf('loaded', context, function(err) {
+              if (!err) inst.__persisted = true;
+
+              // By default, the instance passed to updateAttributes callback is NOT updated 
+              // with the changes made through persist/loaded hooks. To preserve 
+              // backwards compatibility, we introduced a new setting updateOnLoad, 
+              // which if set, will apply these changes to the model instance too.
+              if(Model.settings.updateOnLoad) {
+                inst.setAttributes(context.data);
+              }
+              done.call(inst, function () {
+                saveDone.call(inst, function () {
+                  if (err) return cb(err, inst);
+
+                  var context = {
+                    Model: Model,
+                    instance: inst,
+                    isNewInstance: false,
+                    hookState: hookState,
+                    options: options
+                  };
+                  Model.notifyObserversOf('after save', context, function(err) {
+                    if(!err) Model.emit('changed', inst);
+                    cb(err, inst);
+                  });
                 });
               });
             });
diff --git a/test/persistence-hooks.suite.js b/test/persistence-hooks.suite.js
index ffc2fff9..93f7f53f 100644
--- a/test/persistence-hooks.suite.js
+++ b/test/persistence-hooks.suite.js
@@ -6,6 +6,7 @@ module.exports = function(dataSource, should) {
     var observedContexts, expectedError, observersCalled;
     var TestModel, existingInstance;
     var migrated = false, lastId;
+    var triggered;
 
     var undefinedValue = undefined;
 
@@ -112,6 +113,24 @@ module.exports = function(dataSource, should) {
     });
 
     describe('PersistedModel.create', function() {
+      it('triggers hooks in the correct order', function(done) {
+        monitorHookExecution();
+
+        TestModel.create(
+          { name: 'created' },
+          function(err, record, created) {
+            if (err) return done(err);
+
+            triggered.should.eql([
+              'before save',
+              'persist',
+              'loaded',
+              'after save'
+            ]);
+            done();
+          });
+      });
+
       it('triggers `before save` hook', function(done) {
         TestModel.observe('before save', pushContextAndNext());
 
@@ -210,16 +229,19 @@ module.exports = function(dataSource, should) {
           ctx.data.extra = 'hook data';
         }));
 
+        // By default, the instance passed to create callback is NOT updated 
+        // with the changes made through persist/loaded hooks. To preserve 
+        // backwards compatibility, we introduced a new setting updateOnLoad, 
+        // which if set, will apply these changes to the model instance too.
+        TestModel.settings.updateOnLoad = true;
         TestModel.create(
           { id: 'new-id', name: 'a name' },
           function(err, instance) {
             if (err) return done(err);
 
-            // the, instance returned by `create` context does not have the
-            // values updated from `persist` hook
-            instance.should.not.have.property('extra', 'hook data');
+            instance.should.have.property('extra', 'hook data');
 
-            // So, we must query the database here because on `create`
+            // Also query the database here to verify that, on `create` 
             // updates from `persist` hook are reflected into database
             TestModel.findById('new-id', function(err, dbInstance) {
               if (err) return done(err);
@@ -234,6 +256,48 @@ module.exports = function(dataSource, should) {
           });
       });
 
+      it('triggers `loaded` hook', function(done) {
+        TestModel.observe('loaded', pushContextAndNext());
+
+        // By default, the instance passed to create callback is NOT updated 
+        // with the changes made through persist/loaded hooks. To preserve 
+        // backwards compatibility, we introduced a new setting updateOnLoad, 
+        // which if set, will apply these changes to the model instance too.
+        TestModel.settings.updateOnLoad = true;
+        TestModel.create(
+          { id: 'new-id', name: 'a name' },
+          function(err, instance) {
+            if (err) return done(err);
+
+            observedContexts.should.eql(aTestModelCtx({
+              data: { id: 'new-id', name: 'a name' },
+              isNewInstance: true
+            }));
+
+            done();
+          });
+      });
+
+      it('applies updates from `loaded` hook', function(done) {
+        TestModel.observe('loaded', pushContextAndNext(function(ctx){
+          ctx.data.extra = 'hook data';
+        }));
+
+        // By default, the instance passed to create callback is NOT updated 
+        // with the changes made through persist/loaded hooks. To preserve 
+        // backwards compatibility, we introduced a new setting updateOnLoad, 
+        // which if set, will apply these changes to the model instance too.
+        TestModel.settings.updateOnLoad = true;
+        TestModel.create(
+          { id: 'new-id', name: 'a name' },
+          function(err, instance) {
+            if (err) return done(err);
+
+            instance.should.have.property('extra', 'hook data');
+            done();
+          });
+      });
+
       it('triggers `after save` hook', function(done) {
         TestModel.observe('after save', pushContextAndNext());
 
@@ -405,12 +469,7 @@ module.exports = function(dataSource, should) {
       });
 
       it('triggers hooks in the correct order when not found', function(done) {
-        var triggered = [];
-        TestModel._notify = TestModel.notifyObserversOf;
-        TestModel.notifyObserversOf = function(operation, context, callback) {
-          triggered.push(operation);
-          this._notify.apply(this, arguments);
-        };
+        monitorHookExecution();
 
         TestModel.findOrCreate(
           { where: { name: 'new-record' } },
@@ -421,12 +480,39 @@ module.exports = function(dataSource, should) {
               'access',
               'before save',
               'persist',
+              'loaded',
               'after save'
             ]);
             done();
           });
       });
 
+      it('triggers hooks in the correct order when found', function(done) {
+        monitorHookExecution();
+
+        TestModel.findOrCreate(
+          { where: { name: existingInstance.name } },
+          { name: existingInstance.name },
+          function(err, record, created) {
+            if (err) return done(err);
+
+            if (dataSource.connector.findOrCreate) {
+              triggered.should.eql([
+                'access',
+                'before save',
+                'persist',
+                'loaded'
+              ]);
+            } else {
+              triggered.should.eql([
+                'access',
+                'loaded'
+              ]);
+            }
+            done();
+          });
+      });
+
       it('aborts when `access` hook fails', function(done) {
         TestModel.observe('access', nextWithError(expectedError));
 
@@ -596,6 +682,98 @@ module.exports = function(dataSource, should) {
           });
       });
 
+      if (dataSource.connector.findOrCreate) {
+        it('triggers `loaded` hook when found', function(done) {
+          TestModel.observe('loaded', pushContextAndNext());
+
+          TestModel.findOrCreate(
+            { where: { name: existingInstance.name } },
+            { name: existingInstance.name },
+            function(err, record, created) {
+              if (err) return done(err);
+
+              record.id.should.eql(existingInstance.id);
+
+               // After the call to `connector.findOrCreate`, since the record 
+               // already exists, `data.id` matches `existingInstance.id` 
+               // as against the behaviour noted for `persist` hook 
+              observedContexts.should.eql(aTestModelCtx({
+                data: {
+                  id: existingInstance.id,
+                  name: existingInstance.name
+                },
+                isNewInstance: false
+              }));
+
+              done();
+            });
+        });
+      }
+
+      it('triggers `loaded` hook when not found', function(done) {
+        TestModel.observe('loaded', pushContextAndNext());
+
+        TestModel.findOrCreate(
+          { where: { name: 'new-record' } },
+          { name: 'new-record' },
+          function(err, record, created) {
+            if (err) return done(err);
+
+            observedContexts.should.eql(aTestModelCtx({
+              data: {
+                id: record.id,
+                name: 'new-record'
+              },
+              isNewInstance: true
+            }));
+
+            done();
+          });
+      });
+
+      if (dataSource.connector.findOrCreate) {
+        it('applies updates from `loaded` hook when found', function(done) {
+          TestModel.observe('loaded', pushContextAndNext(function(ctx){
+            ctx.data.extra = 'hook data';
+          }));
+
+          TestModel.findOrCreate(
+            { where: { name: existingInstance.name } },
+            { name: existingInstance.name },
+            function(err, instance) {
+              if (err) return done(err);
+
+              instance.should.have.property('extra', 'hook data');
+
+              done();
+            });
+        });
+      }
+
+      it('applies updates from `loaded` hook when not found', function(done) {
+        TestModel.observe('loaded', pushContextAndNext(function(ctx){
+          ctx.data.extra = 'hook data';
+        }));
+
+        // Unoptimized connector gives a call to `create. But,
+        // by default, the instance passed to create callback is NOT updated 
+        // with the changes made through persist/loaded hooks. To preserve 
+        // backwards compatibility, we introduced a new setting updateOnLoad, 
+        // which if set, will apply these changes to the model instance too.
+        // Note - in case of findOrCreate, this setting is needed ONLY for
+        // unoptimized connector.
+        TestModel.settings.updateOnLoad = true;
+        TestModel.findOrCreate(
+          { where: { name: 'new-record' } },
+          { name: 'new-record' },
+          function(err, instance) {
+            if (err) return done(err);
+
+            instance.should.have.property('extra', 'hook data');
+            done();
+          });
+      });
+
       it('triggers `after save` hook when not found', function(done) {
         TestModel.observe('after save', pushContextAndNext());
 
@@ -658,6 +836,22 @@ module.exports = function(dataSource, should) {
     });
 
     describe('PersistedModel.prototype.save', function() {
+      it('triggers hooks in the correct order', function(done) {
+        monitorHookExecution();
+
+        existingInstance.save(
+          function(err, record, created) {
+            if (err) return done(err);
+            triggered.should.eql([
+              'before save',
+              'persist',
+              'loaded',
+              'after save'
+            ]);
+            done();
+          });
+      });
+
       it('triggers `before save` hook', function(done) {
         TestModel.observe('before save', pushContextAndNext());
 
@@ -745,6 +939,38 @@ module.exports = function(dataSource, should) {
         });
       });
 
+      it('triggers `loaded` hook', function(done) {
+        TestModel.observe('loaded', pushContextAndNext());
+
+        existingInstance.name = 'changed';
+        existingInstance.save(function(err, instance) {
+          if (err) return done(err);
+
+          observedContexts.should.eql(aTestModelCtx({
+            data: {
+              id: existingInstance.id,
+              name: 'changed'
+            },
+            isNewInstance: false,
+            options: { throws: false, validate: true }
+          }));
+
+          done();
+        });
+      });
+
+      it('applies updates from `loaded` hook', function(done) {
+        TestModel.observe('loaded', pushContextAndNext(function(ctx){
+          ctx.data.extra = 'hook data';
+        }));
+
+        existingInstance.save(function(err, instance) {
+          if (err) return done(err);
+          instance.should.have.property('extra', 'hook data');
+          done();
+        });
+      });
+
       it('triggers `after save` hook on update', function(done) {
         TestModel.observe('after save', pushContextAndNext());
 
@@ -811,6 +1037,23 @@ module.exports = function(dataSource, should) {
     });
 
     describe('PersistedModel.prototype.updateAttributes', function() {
+      it('triggers hooks in the correct order', function(done) {
+        monitorHookExecution();
+
+        existingInstance.updateAttributes(
+          { name: 'changed' },
+          function(err, record, created) {
+            if (err) return done(err);
+            triggered.should.eql([
+              'before save',
+              'persist',
+              'loaded',
+              'after save'
+            ]);
+            done();
+          });
+      });
+
       it('triggers `before save` hook', function(done) {
         TestModel.observe('before save', pushContextAndNext());
 
@@ -894,7 +1137,42 @@ module.exports = function(dataSource, should) {
           ctx.data.extra = 'hook data';
         }));
 
-        existingInstance.save(function(err, instance) {
+        // By default, the instance passed to updateAttributes callback is NOT updated 
+        // with the changes made through persist/loaded hooks. To preserve 
+        // backwards compatibility, we introduced a new setting updateOnLoad, 
+        // which if set, will apply these changes to the model instance too.
+        TestModel.settings.updateOnLoad = true;
+        existingInstance.updateAttributes({ name: 'changed' }, function(err, instance) {
+          if (err) return done(err);
+          instance.should.have.property('extra', 'hook data');
+          done();
+        });
+      });
+
+      it('triggers `loaded` hook', function(done) {
+        TestModel.observe('loaded', pushContextAndNext());
+        existingInstance.updateAttributes({ name: 'changed' }, function(err) {
+          if (err) return done(err);
+
+          observedContexts.should.eql(aTestModelCtx({
+            data: { name: 'changed' }
+          }));
+
+          done();
+        });
+      });
+
+      it('applies updates from `loaded` hook updateAttributes', function(done) {
+        TestModel.observe('loaded', pushContextAndNext(function(ctx){
+          ctx.data.extra = 'hook data';
+        }));
+
+        // By default, the instance passed to updateAttributes callback is NOT updated 
+        // with the changes made through persist/loaded hooks. To preserve 
+        // backwards compatibility, we introduced a new setting updateOnLoad, 
+        // which if set, will apply these changes to the model instance too.
+        TestModel.settings.updateOnLoad = true;
+        existingInstance.updateAttributes({ name: 'changed' }, function(err, instance) {
           if (err) return done(err);
           instance.should.have.property('extra', 'hook data');
           done();
@@ -944,6 +1222,53 @@ module.exports = function(dataSource, should) {
     });
 
     describe('PersistedModel.updateOrCreate', function() {
+      it('triggers hooks in the correct order on create', function(done) {
+        monitorHookExecution();
+
+        TestModel.updateOrCreate(
+          { id: 'not-found', name: 'not found' },
+          function(err, record, created) {
+            if (err) return done(err);
+            triggered.should.eql([
+              'access',
+              'before save',
+              'persist',
+              'loaded',
+              'after save'
+            ]);
+            done();
+          });
+      });
+
+      it('triggers hooks in the correct order on update', function(done) {
+        monitorHookExecution();
+
+        TestModel.updateOrCreate(
+          { id: existingInstance.id, name: 'new name' },
+          function(err, record, created) {
+            if (err) return done(err);
+            if (dataSource.connector.updateOrCreate) {
+              triggered.should.eql([
+                'access',
+                'before save',
+                'persist',
+                'loaded',
+                'after save'
+              ]);
+            } else {
+              triggered.should.eql([
+                'access',
+                'loaded',
+                'before save',
+                'persist',
+                'loaded',
+                'after save'
+              ]);
+            }
+            done();
+          });
+      });
+
       it('triggers `access` hook on create', function(done) {
         TestModel.observe('access', pushContextAndNext());
 
@@ -1225,6 +1550,71 @@ module.exports = function(dataSource, should) {
           });
       });
 
+      it('triggers `loaded` hook on create', function(done) {
+        TestModel.observe('loaded', pushContextAndNext());
+
+        TestModel.updateOrCreate(
+          { id: 'new-id', name: 'a name' },
+          function(err, instance) {
+            if (err) return done(err);
+
+            if (dataSource.connector.updateOrCreate) {
+              observedContexts.should.eql(aTestModelCtx({
+                data: { id: 'new-id', name: 'a name' }
+              }));
+            } else {
+              observedContexts.should.eql(aTestModelCtx({
+                data: {
+                  id: 'new-id',
+                  name: 'a name'
+                },
+                isNewInstance: true
+              }));
+            }
+            done();
+          });
+      });
+
+      it('triggers `loaded` hook on update', function(done) {
+        TestModel.observe('loaded', pushContextAndNext());
+
+        TestModel.updateOrCreate(
+          { id: existingInstance.id, name: 'updated name' },
+          function(err, instance) {
+            if (err) return done(err);
+
+            if (dataSource.connector.updateOrCreate) {
+              observedContexts.should.eql(aTestModelCtx({
+                data: {
+                  id: existingInstance.id,
+                  name: 'updated name'
+                }
+              }));
+            } else {
+              // For Unoptimized connector, the callback function `pushContextAndNext`  
+              // is called twice. As a result, observedContexts
+              // returns an array and NOT a single instance.
+              observedContexts.should.eql([
+                aTestModelCtx({
+                  instance: {
+                    id: existingInstance.id,
+                    name: 'first',
+                    extra: null
+                  },
+                  isNewInstance: false,
+                  options: { notify: false }
+                }),
+                aTestModelCtx({
+                  data: {
+                    id: existingInstance.id,
+                    name: 'updated name'
+                  }
+                })
+              ]);
+            }
+            done();
+          });
+      });
 
       it('triggers `after save` hook on update', function(done) {
         TestModel.observe('after save', pushContextAndNext());
@@ -1646,6 +2036,19 @@ module.exports = function(dataSource, should) {
           });
       });
 
+      it('does not trigger `loaded`', function(done) {
+        TestModel.observe('loaded', pushContextAndNext());
+
+        TestModel.updateAll(
+          { where: { id: existingInstance.id } },
+          { name: 'changed' },
+          function(err, instance) {
+            if (err) return done(err);
+            observedContexts.should.eql("hook not called");
+            done();
+          });
+      });
+
       it('triggers `after save` hook', function(done) {
         TestModel.observe('after save', pushContextAndNext());
 
@@ -1759,6 +2162,15 @@ module.exports = function(dataSource, should) {
     function getLastGeneratedUid() {
       return '' + lastId;
     }
+
+    function monitorHookExecution() {
+      triggered = [];
+      TestModel._notify = TestModel.notifyObserversOf;
+      TestModel.notifyObserversOf = function(operation, context, callback) {
+        triggered.push(operation);
+        this._notify.apply(this, arguments);
+      };
+    }
   });
 
   function deepCloneToObject(obj) {