diff --git a/.changeset/rich-steaks-promise.md b/.changeset/rich-steaks-promise.md
new file mode 100644
index 0000000000000..20f8767a7b2c7
--- /dev/null
+++ b/.changeset/rich-steaks-promise.md
@@ -0,0 +1,7 @@
+---
+"@rocket.chat/meteor": patch
+"@rocket.chat/model-typings": patch
+"@rocket.chat/models": patch
+---
+
+Fixed contacts being marked as `known` after editing a custom field, or resolving conflicts by adding a new model function that only updates the `customFields` or `conflictingFields` prop.
diff --git a/apps/meteor/app/livechat/server/lib/custom-fields.ts b/apps/meteor/app/livechat/server/lib/custom-fields.ts
index ad82ea4dd7d74..07f96b5f4910f 100644
--- a/apps/meteor/app/livechat/server/lib/custom-fields.ts
+++ b/apps/meteor/app/livechat/server/lib/custom-fields.ts
@@ -30,7 +30,7 @@ export async function updateContactsCustomFields(contact: ILivechatContact, key:
 		contact.conflictingFields.push({ field: `customFields.${key}`, value });
 	}
 
-	await LivechatContacts.updateContact(contact._id, {
+	await LivechatContacts.updateContactCustomFields(contact._id, {
 		...(shouldUpdateCustomFields && { customFields: contact.customFields }),
 		...(contact.conflictingFields && { conflictingFields: contact.conflictingFields }),
 	});
diff --git a/apps/meteor/tests/unit/app/livechat/server/lib/custom-fields.spec.ts b/apps/meteor/tests/unit/app/livechat/server/lib/custom-fields.spec.ts
index 7b061f0e6068a..89bf138c1b723 100644
--- a/apps/meteor/tests/unit/app/livechat/server/lib/custom-fields.spec.ts
+++ b/apps/meteor/tests/unit/app/livechat/server/lib/custom-fields.spec.ts
@@ -5,7 +5,7 @@ import sinon from 'sinon';
 
 const modelsMock = {
 	LivechatContacts: {
-		updateContact: sinon.stub(),
+		updateContactCustomFields: sinon.stub(),
 	},
 };
 
@@ -15,7 +15,7 @@ const { updateContactsCustomFields } = proxyquire.noCallThru().load('../../../..
 
 describe('[Custom Fields] updateContactsCustomFields', () => {
 	beforeEach(() => {
-		modelsMock.LivechatContacts.updateContact.reset();
+		modelsMock.LivechatContacts.updateContactCustomFields.reset();
 	});
 
 	it('should not add conflictingFields to the update data when its nullish', async () => {
@@ -26,13 +26,13 @@ describe('[Custom Fields] updateContactsCustomFields', () => {
 			},
 		};
 
-		modelsMock.LivechatContacts.updateContact.resolves({ ...contact, customFields: { customField: 'newValue' } });
+		modelsMock.LivechatContacts.updateContactCustomFields.resolves({ ...contact, customFields: { customField: 'newValue' } });
 
 		await updateContactsCustomFields(contact, 'customField', 'newValue', true);
 
-		expect(modelsMock.LivechatContacts.updateContact.calledOnce).to.be.true;
-		expect(modelsMock.LivechatContacts.updateContact.getCall(0).args[0]).to.be.equal('contactId');
-		expect(modelsMock.LivechatContacts.updateContact.getCall(0).args[1]).to.deep.equal({
+		expect(modelsMock.LivechatContacts.updateContactCustomFields.calledOnce).to.be.true;
+		expect(modelsMock.LivechatContacts.updateContactCustomFields.getCall(0).args[0]).to.be.equal('contactId');
+		expect(modelsMock.LivechatContacts.updateContactCustomFields.getCall(0).args[1]).to.deep.equal({
 			customFields: { customField: 'newValue' },
 		});
 	});
@@ -45,16 +45,16 @@ describe('[Custom Fields] updateContactsCustomFields', () => {
 			},
 		};
 
-		modelsMock.LivechatContacts.updateContact.resolves({
+		modelsMock.LivechatContacts.updateContactCustomFields.resolves({
 			...contact,
 			conflictingFields: [{ field: 'customFields.customField', value: 'newValue' }],
 		});
 
 		await updateContactsCustomFields(contact, 'customField', 'newValue', false);
 
-		expect(modelsMock.LivechatContacts.updateContact.calledOnce).to.be.true;
-		expect(modelsMock.LivechatContacts.updateContact.getCall(0).args[0]).to.be.equal('contactId');
-		expect(modelsMock.LivechatContacts.updateContact.getCall(0).args[1]).to.deep.equal({
+		expect(modelsMock.LivechatContacts.updateContactCustomFields.calledOnce).to.be.true;
+		expect(modelsMock.LivechatContacts.updateContactCustomFields.getCall(0).args[0]).to.be.equal('contactId');
+		expect(modelsMock.LivechatContacts.updateContactCustomFields.getCall(0).args[1]).to.deep.equal({
 			conflictingFields: [{ field: 'customFields.customField', value: 'newValue' }],
 		});
 	});
diff --git a/packages/model-typings/src/models/ILivechatContactsModel.ts b/packages/model-typings/src/models/ILivechatContactsModel.ts
index b93ec3b304bef..6352ed9db94db 100644
--- a/packages/model-typings/src/models/ILivechatContactsModel.ts
+++ b/packages/model-typings/src/models/ILivechatContactsModel.ts
@@ -25,6 +25,7 @@ export interface ILivechatContactsModel extends IBaseModel<ILivechatContact> {
 	): Promise<ILivechatContact['_id']>;
 	updateContact(contactId: string, data: Partial<ILivechatContact>, options?: FindOneAndUpdateOptions): Promise<ILivechatContact>;
 	updateById(contactId: string, update: UpdateFilter<ILivechatContact>, options?: UpdateOptions): Promise<Document | UpdateResult>;
+	updateContactCustomFields(contactId: string, data: Partial<ILivechatContact>, options?: UpdateOptions): Promise<ILivechatContact | null>;
 	addChannel(contactId: string, channel: ILivechatContactChannel): Promise<void>;
 	findPaginatedContacts(
 		search: { searchText?: string; unknown?: boolean },
diff --git a/packages/models/src/models/LivechatContacts.ts b/packages/models/src/models/LivechatContacts.ts
index 927d7b82a6bef..20934dbe304c5 100644
--- a/packages/models/src/models/LivechatContacts.ts
+++ b/packages/models/src/models/LivechatContacts.ts
@@ -2,6 +2,7 @@ import type {
 	AtLeast,
 	ILivechatContact,
 	ILivechatContactChannel,
+	ILivechatContactConflictingField,
 	ILivechatContactVisitorAssociation,
 	ILivechatVisitor,
 	RocketChatRecordDeleted,
@@ -126,6 +127,24 @@ export class LivechatContactsRaw extends BaseRaw<ILivechatContact> implements IL
 		return this.updateOne({ _id: contactId }, update, options);
 	}
 
+	async updateContactCustomFields(
+		contactId: string,
+		dataToUpdate: { customFields: Record<string, unknown>; conflictingFields: ILivechatContactConflictingField[] },
+		options?: FindOneAndUpdateOptions,
+	): Promise<ILivechatContact | null> {
+		if (!dataToUpdate.customFields && !dataToUpdate.conflictingFields) {
+			throw new Error('At least one of customFields or conflictingFields must be provided');
+		}
+
+		return this.findOneAndUpdate(
+			{ _id: contactId },
+			{
+				$set: { ...dataToUpdate },
+			},
+			{ returnDocument: 'after', ...options },
+		);
+	}
+
 	findPaginatedContacts(
 		search: { searchText?: string; unknown?: boolean },
 		options?: FindOptions,