diff --git a/packages/payload/src/collections/operations/local/create.ts b/packages/payload/src/collections/operations/local/create.ts
index 1862bdfe132..c158f08a739 100644
--- a/packages/payload/src/collections/operations/local/create.ts
+++ b/packages/payload/src/collections/operations/local/create.ts
@@ -217,9 +217,10 @@ export async function createLocal<
 
   const req = await createLocalReq(options as CreateLocalReqOptions, payload)
 
+  const __originalReqFile = req.file
   req.file = file ?? (await getFileByPath(filePath!))
 
-  return createOperation<TSlug, TSelect>({
+  const operationResult = await createOperation<TSlug, TSelect>({
     collection,
     data: deepCopyObjectSimple(data), // Ensure mutation of data in create operation hooks doesn't affect the original data
     depth,
@@ -235,4 +236,9 @@ export async function createLocal<
     select,
     showHiddenFields,
   })
+  // Restore original request file if it existed before this operation
+  if (typeof __originalReqFile !== 'undefined') {
+    req.file = __originalReqFile
+  }
+  return operationResult
 }
diff --git a/packages/payload/src/collections/operations/local/update.ts b/packages/payload/src/collections/operations/local/update.ts
index abfc1db555e..abdbbbf77c6 100644
--- a/packages/payload/src/collections/operations/local/update.ts
+++ b/packages/payload/src/collections/operations/local/update.ts
@@ -250,6 +250,9 @@ async function updateLocal<
   }
 
   const req = await createLocalReq(options as CreateLocalReqOptions, payload)
+
+  // Preserve any existing file on the request (e.g., from outer hook) before overwriting
+  const __originalReqFile = req.file
   req.file = file ?? (await getFileByPath(filePath!))
 
   const args = {
@@ -276,12 +279,21 @@ async function updateLocal<
     where,
   }
 
+  let operationResult
   if (options.id) {
     // @ts-expect-error - vestiges of when tsconfig was not strict. Feel free to improve
-    return updateByIDOperation<TSlug, TSelect>(args)
+    operationResult = await updateByIDOperation<TSlug, TSelect>(args)
+  } else {
+    // @ts-expect-error - vestiges of when tsconfig was not strict. Feel free to improve
+    operationResult = await updateOperation<TSlug, TSelect>(args)
   }
-  // @ts-expect-error - vestiges of when tsconfig was not strict. Feel free to improve
-  return updateOperation<TSlug, TSelect>(args)
+
+  // Restore original request file if it existed before this operation
+  if (typeof __originalReqFile !== 'undefined') {
+    req.file = __originalReqFile
+  }
+
+  return operationResult
 }
 
 export { updateLocal }
diff --git a/test/uploads/seed.ts b/test/uploads/seed.ts
index a4ca6418c31..1786422b0bd 100644
--- a/test/uploads/seed.ts
+++ b/test/uploads/seed.ts
@@ -1,5 +1,7 @@
 import type { CollectionSlug, Payload, RequiredDataFromCollectionSlug } from 'payload'
 
+type File = any
+
 import path from 'path'
 import { getFileByPath } from 'payload'
 import { fileURLToPath } from 'url'