diff --git a/server/jetstream_test.go b/server/jetstream_test.go
index f00f47d3a6d..9b911b617ea 100644
--- a/server/jetstream_test.go
+++ b/server/jetstream_test.go
@@ -20164,3 +20164,49 @@ func TestJetStreamDirectGetStartTimeSingleMsg(t *testing.T) {
 		})
 	}
 }
+
+func TestJetStreamStreamRetentionUpdatesConsumers(t *testing.T) {
+	s := RunBasicJetStreamServer(t)
+	defer s.Shutdown()
+
+	nc, js := jsClientConnect(t, s)
+	defer nc.Close()
+
+	for _, tc := range []struct {
+		from RetentionPolicy
+		to   RetentionPolicy
+	}{
+		{LimitsPolicy, InterestPolicy},
+		{InterestPolicy, LimitsPolicy},
+	} {
+		from, to, name := tc.from, tc.to, fmt.Sprintf("%sTo%s", tc.from, tc.to)
+		t.Run(name, func(t *testing.T) {
+			sc, err := jsStreamCreate(t, nc, &StreamConfig{
+				Name:      name,
+				Subjects:  []string{name},
+				Retention: from,
+				Storage:   FileStorage,
+			})
+			require_NoError(t, err)
+
+			_, err = js.AddConsumer(name, &nats.ConsumerConfig{
+				Name:      "test_consumer",
+				AckPolicy: nats.AckExplicitPolicy,
+			})
+			require_NoError(t, err)
+
+			mset, err := s.globalAccount().lookupStream(name)
+			require_NoError(t, err)
+
+			o := mset.lookupConsumer("test_consumer")
+			require_NotNil(t, err)
+			require_Equal(t, o.retention, from)
+
+			sc.Retention = to
+			_, err = jsStreamUpdate(t, nc, sc)
+			require_NoError(t, err)
+
+			require_Equal(t, o.retention, to)
+		})
+	}
+}
diff --git a/server/stream.go b/server/stream.go
index d7b840fe718..cb150fcd884 100644
--- a/server/stream.go
+++ b/server/stream.go
@@ -2177,7 +2177,7 @@ func (mset *stream) updateWithAdvisory(config *StreamConfig, sendAdvisory bool,
 
 	// If we're changing retention and haven't errored because of consumer
 	// replicas by now, whip through and update the consumer retention.
-	if ocfg.Retention != cfg.Retention && cfg.Retention == InterestPolicy {
+	if ocfg.Retention != cfg.Retention {
 		toUpdate := make([]*consumer, 0, len(mset.consumers))
 		for _, c := range mset.consumers {
 			toUpdate = append(toUpdate, c)