diff --git a/hedera-node/hedera-app/src/main/java/com/hedera/node/app/records/impl/BlockRecordManagerImpl.java b/hedera-node/hedera-app/src/main/java/com/hedera/node/app/records/impl/BlockRecordManagerImpl.java
index 170956e57f42..f7523a1841b9 100644
--- a/hedera-node/hedera-app/src/main/java/com/hedera/node/app/records/impl/BlockRecordManagerImpl.java
+++ b/hedera-node/hedera-app/src/main/java/com/hedera/node/app/records/impl/BlockRecordManagerImpl.java
@@ -187,7 +187,7 @@ public boolean startUserTransaction(@NonNull final Instant consensusTime, @NonNu
         // Also check to see if this is the first transaction we're handling after a freeze restart. If so, we also
         // start a new block.
         final var isFirstTransactionAfterFreezeRestart = platformState.freezeTime() != null
-                && platformState.freezeTimeOrThrow().equals(platformState.freezeTime());
+                && platformState.freezeTimeOrThrow().equals(platformState.lastFrozenTime());
         if (isFirstTransactionAfterFreezeRestart) {
             new WritablePlatformStateStore(state.getWritableStates(PlatformStateService.NAME)).setFreezeTime(null);
         }
diff --git a/hedera-node/test-clients/src/main/java/com/hedera/services/bdd/suites/regression/system/LifecycleTest.java b/hedera-node/test-clients/src/main/java/com/hedera/services/bdd/suites/regression/system/LifecycleTest.java
index 08cf5a1c80f3..69c6bb11a785 100644
--- a/hedera-node/test-clients/src/main/java/com/hedera/services/bdd/suites/regression/system/LifecycleTest.java
+++ b/hedera-node/test-clients/src/main/java/com/hedera/services/bdd/suites/regression/system/LifecycleTest.java
@@ -18,6 +18,8 @@
 
 import static com.hedera.services.bdd.junit.hedera.MarkerFile.EXEC_IMMEDIATE_MF;
 import static com.hedera.services.bdd.spec.queries.QueryVerbs.getVersionInfo;
+import static com.hedera.services.bdd.spec.transactions.TxnVerbs.cryptoTransfer;
+import static com.hedera.services.bdd.spec.transactions.crypto.HapiCryptoTransfer.tinyBarsFromTo;
 import static com.hedera.services.bdd.spec.utilops.UtilVerbs.blockingOrder;
 import static com.hedera.services.bdd.spec.utilops.UtilVerbs.buildUpgradeZipFrom;
 import static com.hedera.services.bdd.spec.utilops.UtilVerbs.doAdhoc;
@@ -33,6 +35,7 @@
 import static com.hedera.services.bdd.spec.utilops.UtilVerbs.waitForFrozenNetwork;
 import static com.hedera.services.bdd.spec.utilops.UtilVerbs.waitForMf;
 import static com.hedera.services.bdd.spec.utilops.upgrade.BuildUpgradeZipOp.FAKE_UPGRADE_ZIP_LOC;
+import static com.hedera.services.bdd.suites.HapiSuite.FUNDING;
 import static com.hedera.services.bdd.suites.HapiSuite.GENESIS;
 import static com.hedera.services.bdd.suites.freeze.CommonUpgradeResources.DEFAULT_UPGRADE_FILE_ID;
 import static com.hedera.services.bdd.suites.freeze.CommonUpgradeResources.FAKE_ASSETS_LOC;
@@ -132,7 +135,10 @@ default SpecOperation upgradeToNextConfigVersion() {
      */
     default SpecOperation restartAtNextConfigVersion() {
         return blockingOrder(
-                freezeOnly().startingIn(5).seconds().payingWith(GENESIS),
+                freezeOnly().startingIn(5).seconds().payingWith(GENESIS).deferStatusResolution(),
+                // Immediately submit a transaction in the same round to ensure freeze time is only
+                // reset when last frozen time matches it (i.e., in a post-upgrade transaction)
+                cryptoTransfer(tinyBarsFromTo(GENESIS, FUNDING, 1)),
                 confirmFreezeAndShutdown(),
                 sourcing(() -> FakeNmt.restartNetwork(CURRENT_CONFIG_VERSION.incrementAndGet())),
                 waitForActiveNetwork(RESTART_TIMEOUT));