diff --git a/lib/dao.js b/lib/dao.js
index 4b6fefa2..7a2aaf14 100644
--- a/lib/dao.js
+++ b/lib/dao.js
@@ -2548,6 +2548,7 @@ DataAccessObject.prototype.updateAttributes = function updateAttributes(data, op
             where: byIdQuery(Model, getIdValue(Model, inst)).where,
             data: context.data,
             currentInstance: inst,
+            isNewInstance: false,
             hookState: hookState,
             options: options
           };
diff --git a/test/persistence-hooks.suite.js b/test/persistence-hooks.suite.js
index 5c7dce5f..452472f6 100644
--- a/test/persistence-hooks.suite.js
+++ b/test/persistence-hooks.suite.js
@@ -1210,7 +1210,8 @@ module.exports = function(dataSource, should) {
               id: existingInstance.id,
               name: 'changed',
               extra: null
-            }
+            },
+            isNewInstance: false
           }));
 
           done();
@@ -1685,7 +1686,7 @@ module.exports = function(dataSource, should) {
           function(err, instance) {
             if (err) return done(err);
 
-            observedContexts.should.eql(aTestModelCtx({
+            var expectedContext = aTestModelCtx({
               where: { id: existingInstance.id },
               data: {
                 id: existingInstance.id,
@@ -1696,7 +1697,15 @@ module.exports = function(dataSource, should) {
                 name: 'updated name',
                 extra: undefined
               }
-            }));
+            });
+
+            if (!dataSource.connector.updateOrCreate) {
+              // When the connector does not provide updateOrCreate,
+              // DAO falls back to updateAttributes which sets this flag
+              expectedContext.isNewInstance = false;
+            }
+
+            observedContexts.should.eql(expectedContext);
             done();
           });
       });