diff --git a/package.json b/package.json
index dbd80b93b..a8af271b3 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
     "name": "zenstack-monorepo",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "description": "",
     "scripts": {
         "build": "pnpm -r build",
diff --git a/packages/ide/jetbrains/build.gradle.kts b/packages/ide/jetbrains/build.gradle.kts
index 2e7742364..578f2334e 100644
--- a/packages/ide/jetbrains/build.gradle.kts
+++ b/packages/ide/jetbrains/build.gradle.kts
@@ -9,7 +9,7 @@ plugins {
 }
 
 group = "dev.zenstack"
-version = "1.10.0"
+version = "1.10.1"
 
 repositories {
     mavenCentral()
diff --git a/packages/ide/jetbrains/package.json b/packages/ide/jetbrains/package.json
index b380dc39f..fcb014277 100644
--- a/packages/ide/jetbrains/package.json
+++ b/packages/ide/jetbrains/package.json
@@ -1,6 +1,6 @@
 {
     "name": "jetbrains",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "displayName": "ZenStack JetBrains IDE Plugin",
     "description": "ZenStack JetBrains IDE plugin",
     "homepage": "https://zenstack.dev",
diff --git a/packages/language/package.json b/packages/language/package.json
index 562ff434e..e0a904034 100644
--- a/packages/language/package.json
+++ b/packages/language/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@zenstackhq/language",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "displayName": "ZenStack modeling language compiler",
     "description": "ZenStack modeling language compiler",
     "homepage": "https://zenstack.dev",
diff --git a/packages/misc/redwood/package.json b/packages/misc/redwood/package.json
index 2c04bf073..ff15cb51b 100644
--- a/packages/misc/redwood/package.json
+++ b/packages/misc/redwood/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/redwood",
     "displayName": "ZenStack RedwoodJS Integration",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "description": "CLI and runtime for integrating ZenStack with RedwoodJS projects.",
     "repository": {
         "type": "git",
diff --git a/packages/plugins/openapi/package.json b/packages/plugins/openapi/package.json
index c13ecd0c0..0aff04595 100644
--- a/packages/plugins/openapi/package.json
+++ b/packages/plugins/openapi/package.json
@@ -1,7 +1,7 @@
 {
   "name": "@zenstackhq/openapi",
   "displayName": "ZenStack Plugin and Runtime for OpenAPI",
-  "version": "1.10.0",
+  "version": "1.10.1",
   "description": "ZenStack plugin and runtime supporting OpenAPI",
   "main": "index.js",
   "repository": {
diff --git a/packages/plugins/swr/package.json b/packages/plugins/swr/package.json
index 733cd6687..813b750f0 100644
--- a/packages/plugins/swr/package.json
+++ b/packages/plugins/swr/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/swr",
     "displayName": "ZenStack plugin for generating SWR hooks",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "description": "ZenStack plugin for generating SWR hooks",
     "main": "index.js",
     "repository": {
diff --git a/packages/plugins/tanstack-query/package.json b/packages/plugins/tanstack-query/package.json
index 05a401f30..49edb485d 100644
--- a/packages/plugins/tanstack-query/package.json
+++ b/packages/plugins/tanstack-query/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/tanstack-query",
     "displayName": "ZenStack plugin for generating tanstack-query hooks",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "description": "ZenStack plugin for generating tanstack-query hooks",
     "main": "index.js",
     "exports": {
diff --git a/packages/plugins/trpc/package.json b/packages/plugins/trpc/package.json
index 44422a105..8dbf8719b 100644
--- a/packages/plugins/trpc/package.json
+++ b/packages/plugins/trpc/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/trpc",
     "displayName": "ZenStack plugin for tRPC",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "description": "ZenStack plugin for tRPC",
     "main": "index.js",
     "repository": {
diff --git a/packages/runtime/package.json b/packages/runtime/package.json
index d4fb0b2a8..f77b44d13 100644
--- a/packages/runtime/package.json
+++ b/packages/runtime/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/runtime",
     "displayName": "ZenStack Runtime Library",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "description": "Runtime of ZenStack for both client-side and server-side environments.",
     "repository": {
         "type": "git",
diff --git a/packages/schema/package.json b/packages/schema/package.json
index 0edd09d95..cf6598db3 100644
--- a/packages/schema/package.json
+++ b/packages/schema/package.json
@@ -3,7 +3,7 @@
     "publisher": "zenstack",
     "displayName": "ZenStack Language Tools",
     "description": "Build scalable web apps with minimum code by defining authorization and validation rules inside the data schema that closer to the database",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "author": {
         "name": "ZenStack Team"
     },
diff --git a/packages/schema/src/plugins/zod/utils/schema-gen.ts b/packages/schema/src/plugins/zod/utils/schema-gen.ts
index 889ab1674..a13a316b4 100644
--- a/packages/schema/src/plugins/zod/utils/schema-gen.ts
+++ b/packages/schema/src/plugins/zod/utils/schema-gen.ts
@@ -4,6 +4,7 @@ import {
     getAttributeArg,
     getAttributeArgLiteral,
     getLiteral,
+    isDataModelFieldReference,
     isFromStdlib,
 } from '@zenstackhq/sdk';
 import {
@@ -205,10 +206,17 @@ export function makeValidationRefinements(model: DataModel) {
             const message = messageArg ? `, { message: ${JSON.stringify(messageArg)} }` : '';
 
             try {
-                const expr = new TypeScriptExpressionTransformer({
+                let expr = new TypeScriptExpressionTransformer({
                     context: ExpressionContext.ValidationRule,
                     fieldReferenceContext: 'value',
                 }).transform(valueArg);
+
+                if (isDataModelFieldReference(valueArg)) {
+                    // if the expression is a simple field reference, treat undefined
+                    // as true since the all fields are optional in validation context
+                    expr = `${expr} ?? true`;
+                }
+
                 return `.refine((value: any) => ${expr}${message})`;
             } catch (err) {
                 if (err instanceof TypeScriptExpressionTransformerError) {
diff --git a/packages/schema/src/utils/typescript-expression-transformer.ts b/packages/schema/src/utils/typescript-expression-transformer.ts
index cd868d76c..ee63b718a 100644
--- a/packages/schema/src/utils/typescript-expression-transformer.ts
+++ b/packages/schema/src/utils/typescript-expression-transformer.ts
@@ -17,7 +17,7 @@ import {
     ThisExpr,
     UnaryExpr,
 } from '@zenstackhq/language/ast';
-import { ExpressionContext, getLiteral, isFromStdlib, isFutureExpr } from '@zenstackhq/sdk';
+import { ExpressionContext, getLiteral, isDataModelFieldReference, isFromStdlib, isFutureExpr } from '@zenstackhq/sdk';
 import { match, P } from 'ts-pattern';
 import { getIdFields } from './ast-utils';
 
@@ -258,7 +258,13 @@ export class TypeScriptExpressionTransformer {
     }
 
     private ensureBoolean(expr: string) {
-        return `(${expr} ?? false)`;
+        if (this.options.context === ExpressionContext.ValidationRule) {
+            // all fields are optional in a validation context, so we treat undefined
+            // as boolean true
+            return `(${expr} ?? true)`;
+        } else {
+            return `(${expr} ?? false)`;
+        }
     }
 
     // #endregion
@@ -300,8 +306,18 @@ export class TypeScriptExpressionTransformer {
         }
     }
 
-    private unary(expr: UnaryExpr, normalizeUndefined: boolean): string {
-        return `(${expr.operator} ${this.transform(expr.operand, normalizeUndefined)})`;
+    private unary(expr: UnaryExpr, normalizeUndefined: boolean) {
+        const operand = this.transform(expr.operand, normalizeUndefined);
+        let result = `(${expr.operator} ${operand})`;
+        if (
+            expr.operator === '!' &&
+            this.options.context === ExpressionContext.ValidationRule &&
+            isDataModelFieldReference(expr.operand)
+        ) {
+            // in a validation context, we treat unary involving undefined as boolean true
+            result = `(${operand} !== undefined ? (${result}): true)`;
+        }
+        return result;
     }
 
     private isModelType(expr: Expression) {
@@ -316,16 +332,24 @@ export class TypeScriptExpressionTransformer {
             left = `(${left}?.id ?? null)`;
             right = `(${right}?.id ?? null)`;
         }
-        const _default = `(${left} ${expr.operator} ${right})`;
+
+        let _default = `(${left} ${expr.operator} ${right})`;
+
+        if (this.options.context === ExpressionContext.ValidationRule) {
+            // in a validation context, we treat binary involving undefined as boolean true
+            if (isDataModelFieldReference(expr.left)) {
+                _default = `(${left} !== undefined ? (${_default}): true)`;
+            }
+            if (isDataModelFieldReference(expr.right)) {
+                _default = `(${right} !== undefined ? (${_default}): true)`;
+            }
+        }
 
         return match(expr.operator)
-            .with(
-                'in',
-                () =>
-                    `(${this.transform(expr.right, false)}?.includes(${this.transform(
-                        expr.left,
-                        normalizeUndefined
-                    )}) ?? false)`
+            .with('in', () =>
+                this.ensureBoolean(
+                    `${this.transform(expr.right, false)}?.includes(${this.transform(expr.left, normalizeUndefined)})`
+                )
             )
             .with(P.union('==', '!='), () => {
                 if (isThisExpr(expr.left) || isThisExpr(expr.right)) {
@@ -363,8 +387,8 @@ export class TypeScriptExpressionTransformer {
         const predicate = innerTransformer.transform(expr.right, normalizeUndefined);
 
         return match(operator)
-            .with('?', () => `!!((${operand})?.some((_item: any) => ${predicate}))`)
-            .with('!', () => `!!((${operand})?.every((_item: any) => ${predicate}))`)
+            .with('?', () => this.ensureBoolean(`(${operand})?.some((_item: any) => ${predicate})`))
+            .with('!', () => this.ensureBoolean(`(${operand})?.every((_item: any) => ${predicate})`))
             .with('^', () => `!((${operand})?.some((_item: any) => ${predicate}))`)
             .exhaustive();
     }
diff --git a/packages/sdk/package.json b/packages/sdk/package.json
index d09ea775c..71d0e1144 100644
--- a/packages/sdk/package.json
+++ b/packages/sdk/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@zenstackhq/sdk",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "description": "ZenStack plugin development SDK",
     "main": "index.js",
     "scripts": {
diff --git a/packages/server/package.json b/packages/server/package.json
index 37b7c4fd3..76a711e8c 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@zenstackhq/server",
-    "version": "1.10.0",
+    "version": "1.10.1",
     "displayName": "ZenStack Server-side Adapters",
     "description": "ZenStack server-side adapters",
     "homepage": "https://zenstack.dev",
diff --git a/packages/testtools/package.json b/packages/testtools/package.json
index 1ee34f784..ae102ca3d 100644
--- a/packages/testtools/package.json
+++ b/packages/testtools/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@zenstackhq/testtools",
-  "version": "1.10.0",
+  "version": "1.10.1",
   "description": "ZenStack Test Tools",
   "main": "index.js",
   "private": true,
diff --git a/packages/testtools/src/schema.ts b/packages/testtools/src/schema.ts
index c570c6a30..88ffa9ba8 100644
--- a/packages/testtools/src/schema.ts
+++ b/packages/testtools/src/schema.ts
@@ -105,7 +105,7 @@ plugin policy {
 
 plugin zod {
     provider = '@core/zod'
-    // preserveTsFiles = true
+    preserveTsFiles = true
     modelOnly = ${!options.fullZod}
 }
 `;
diff --git a/tests/integration/tests/cli/plugins.test.ts b/tests/integration/tests/cli/plugins.test.ts
index 716ac224e..6efb3bad4 100644
--- a/tests/integration/tests/cli/plugins.test.ts
+++ b/tests/integration/tests/cli/plugins.test.ts
@@ -116,6 +116,7 @@ describe('CLI Plugins Tests', () => {
                     strict: true,
                     lib: ['esnext', 'dom'],
                     esModuleInterop: true,
+                    skipLibCheck: true,
                 },
             })
         );
diff --git a/tests/integration/tests/enhancements/with-policy/field-validation.test.ts b/tests/integration/tests/enhancements/with-policy/field-validation.test.ts
index bb505ca55..d34c7183b 100644
--- a/tests/integration/tests/enhancements/with-policy/field-validation.test.ts
+++ b/tests/integration/tests/enhancements/with-policy/field-validation.test.ts
@@ -609,3 +609,157 @@ describe('With Policy: field validation', () => {
         expect(u.tasks[0]).toMatchObject({ slug: 'slug2' });
     });
 });
+
+describe('With Policy: model-level validation', () => {
+    it('create', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Int
+            y Int
+
+            @@validate(x > 0)
+            @@validate(x >= y)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { x: 0, y: 0 } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { x: 1, y: 2 } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { x: 2, y: 1 } })).toResolveTruthy();
+    });
+
+    it('update', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Int
+            y Int
+
+            @@validate(x >= y)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { x: 2, y: 1 } })).toResolveTruthy();
+        await expect(db.model.create({ data: { x: 1, y: 2 } })).toBeRejectedByPolicy();
+    });
+
+    it('int optionality', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Int?
+
+            @@validate(x > 0)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { x: 0 } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { x: 1 } })).toResolveTruthy();
+        await expect(db.model.create({ data: {} })).toResolveTruthy();
+    });
+
+    it('boolean optionality', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Boolean?
+
+            @@validate(x)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { x: false } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { x: true } })).toResolveTruthy();
+        await expect(db.model.create({ data: {} })).toResolveTruthy();
+    });
+
+    it('optionality with comparison', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Int?
+            y Int?
+
+            @@validate(x > y)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { x: 1, y: 2 } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { x: 1 } })).toResolveTruthy();
+        await expect(db.model.create({ data: { y: 1 } })).toResolveTruthy();
+        await expect(db.model.create({ data: {} })).toResolveTruthy();
+    });
+
+    it('optionality with complex expression', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Int?
+            y Int?
+
+            @@validate(y > 1 && x > y)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { y: 1 } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { y: 2 } })).toResolveTruthy();
+        await expect(db.model.create({ data: {} })).toResolveTruthy();
+        await expect(db.model.create({ data: { x: 1, y: 2 } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { x: 3, y: 2 } })).toResolveTruthy();
+    });
+
+    it('optionality with negation', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Boolean?
+
+            @@validate(!x)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { x: true } })).toBeRejectedByPolicy();
+        await expect(db.model.create({ data: { x: false } })).toResolveTruthy();
+        await expect(db.model.create({ data: {} })).toResolveTruthy();
+    });
+
+    it('update implied optionality', async () => {
+        const { enhance } = await loadSchema(`
+        model Model {
+            id Int @id @default(autoincrement())
+            x Int
+            y Int
+
+            @@validate(x > y)
+            @@allow('all', true)
+        }
+        `);
+
+        const db = enhance();
+
+        await expect(db.model.create({ data: { id: 1, x: 2, y: 1 } })).toResolveTruthy();
+        await expect(db.model.update({ where: { id: 1 }, data: { y: 1 } })).toResolveTruthy();
+        await expect(db.model.update({ where: { id: 1 }, data: {} })).toResolveTruthy();
+    });
+});
diff --git a/tests/integration/tests/regression/issue-1078.test.ts b/tests/integration/tests/regression/issue-1078.test.ts
new file mode 100644
index 000000000..4f8ad6527
--- /dev/null
+++ b/tests/integration/tests/regression/issue-1078.test.ts
@@ -0,0 +1,52 @@
+import { loadSchema } from '@zenstackhq/testtools';
+
+describe('issue 1078', () => {
+    it('regression', async () => {
+        const { prisma, enhance } = await loadSchema(
+            `
+            model Counter {
+                id String @id
+              
+                name String
+                value Int
+              
+                @@validate(value >= 0)
+                @@allow('all', true)
+              }
+            `
+        );
+
+        const db = enhance();
+
+        const counter = await db.counter.create({
+            data: { id: '1', name: 'It should create', value: 1 },
+        });
+
+        //! This query fails validation
+        const updated = await db.counter.update({
+            where: { id: '1' },
+            data: { name: 'It should update' },
+        });
+    });
+
+    it('read', async () => {
+        const { prisma, enhance } = await loadSchema(
+            `
+            model Post {
+                id Int @id() @default(autoincrement())
+                title String @allow('read', true, true)
+                content String
+            }
+            `,
+            { logPrismaQuery: true }
+        );
+
+        const db = enhance();
+
+        const post = await prisma.post.create({ data: { title: 'Post1', content: 'Content' } });
+        await expect(db.post.findUnique({ where: { id: post.id } })).toResolveNull();
+        await expect(db.post.findUnique({ where: { id: post.id }, select: { title: true } })).resolves.toEqual({
+            title: 'Post1',
+        });
+    });
+});