diff --git a/include/nlohmann/json.hpp b/include/nlohmann/json.hpp
index fc3e60828..8e2de8375 100644
--- a/include/nlohmann/json.hpp
+++ b/include/nlohmann/json.hpp
@@ -6009,6 +6009,9 @@ class basic_json // NOLINT(cppcoreguidelines-special-member-functions,hicpp-spec
         for (auto it = j.cbegin(); it != j.cend(); ++it)
         {
             m_value.object->operator[](it.key()) = it.value();
+#if JSON_DIAGNOSTICS
+            m_value.object->operator[](it.key()).m_parent = this;
+#endif
         }
     }
 
diff --git a/single_include/nlohmann/json.hpp b/single_include/nlohmann/json.hpp
index 8959265da..4bae31ac9 100644
--- a/single_include/nlohmann/json.hpp
+++ b/single_include/nlohmann/json.hpp
@@ -23414,6 +23414,9 @@ class basic_json // NOLINT(cppcoreguidelines-special-member-functions,hicpp-spec
         for (auto it = j.cbegin(); it != j.cend(); ++it)
         {
             m_value.object->operator[](it.key()) = it.value();
+#if JSON_DIAGNOSTICS
+            m_value.object->operator[](it.key()).m_parent = this;
+#endif
         }
     }
 
diff --git a/test/src/unit-regression2.cpp b/test/src/unit-regression2.cpp
index 8d0175e9d..2dba07976 100644
--- a/test/src/unit-regression2.cpp
+++ b/test/src/unit-regression2.cpp
@@ -679,6 +679,23 @@ TEST_CASE("regression tests 2")
         test3[json::json_pointer(p)] = json::object();
         CHECK(test3.dump() == "{\"/root\":{}}");
     }
+
+    SECTION("issue #3007 - Parent pointers properly set when using update()")
+    {
+      json j = json::object();
+      json lower = json::object();
+
+      {
+        json j2 = json::object();
+        j2["one"] = 1;
+
+        j.update(j2);
+      }
+
+      for (auto const & kv : j) {
+        CHECK(kv.m_parent == &j);
+      }
+    }
 }
 
 DOCTEST_CLANG_SUPPRESS_WARNING_POP