diff --git a/sequencer.c b/sequencer.c
index 92204a8c2e..98111e394d 100644
--- a/sequencer.c
+++ b/sequencer.c
@@ -36,6 +36,7 @@
 #include "rebase-interactive.h"
 #include "reset.h"
 #include "branch.h"
+#include "log-tree.h"
 
 #define GIT_REFLOG_ACTION "GIT_REFLOG_ACTION"
 
@@ -193,6 +194,21 @@ struct update_ref_record {
 	struct object_id after;
 };
 
+static struct update_ref_record *init_update_ref_record(const char *ref)
+{
+	struct update_ref_record *rec;
+
+	CALLOC_ARRAY(rec, 1);
+
+	oidcpy(&rec->before, null_oid());
+	oidcpy(&rec->after, null_oid());
+
+	/* This may fail, but that's fine, we will keep the null OID. */
+	read_ref(ref, &rec->before);
+
+	return rec;
+}
+
 static int git_sequencer_config(const char *k, const char *v, void *cb)
 {
 	struct replay_opts *opts = cb;
@@ -4106,11 +4122,97 @@ leave_merge:
 	return ret;
 }
 
-static int do_update_ref(struct repository *r, const char *ref_name)
+static int write_update_refs_state(struct string_list *refs_to_oids)
 {
+	int result = 0;
+	struct lock_file lock = LOCK_INIT;
+	FILE *fp = NULL;
+	struct string_list_item *item;
+	char *path;
+
+	if (!refs_to_oids->nr)
+		return 0;
+
+	path = rebase_path_update_refs(the_repository->gitdir);
+
+	if (safe_create_leading_directories(path)) {
+		result = error(_("unable to create leading directories of %s"),
+			       path);
+		goto cleanup;
+	}
+
+	if (hold_lock_file_for_update(&lock, path, 0) < 0) {
+		result = error(_("another 'rebase' process appears to be running; "
+				 "'%s.lock' already exists"),
+			       path);
+		goto cleanup;
+	}
+
+	fp = fdopen_lock_file(&lock, "w");
+	if (!fp) {
+		result = error_errno(_("could not open '%s' for writing"), path);
+		rollback_lock_file(&lock);
+		goto cleanup;
+	}
+
+	for_each_string_list_item(item, refs_to_oids) {
+		struct update_ref_record *rec = item->util;
+		fprintf(fp, "%s\n%s\n%s\n", item->string,
+			oid_to_hex(&rec->before), oid_to_hex(&rec->after));
+	}
+
+	result = commit_lock_file(&lock);
+
+cleanup:
+	free(path);
+	return result;
+}
+
+static int do_update_ref(struct repository *r, const char *refname)
+{
+	struct string_list_item *item;
+	struct string_list list = STRING_LIST_INIT_DUP;
+
+	if (sequencer_get_update_refs_state(r->gitdir, &list))
+		return -1;
+
+	for_each_string_list_item(item, &list) {
+		if (!strcmp(item->string, refname)) {
+			struct update_ref_record *rec = item->util;
+			if (read_ref("HEAD", &rec->after))
+				return -1;
+			break;
+		}
+	}
+
+	write_update_refs_state(&list);
+	string_list_clear(&list, 1);
 	return 0;
 }
 
+static int do_update_refs(struct repository *r)
+{
+	int res = 0;
+	struct string_list_item *item;
+	struct string_list refs_to_oids = STRING_LIST_INIT_DUP;
+	struct ref_store *refs = get_main_ref_store(r);
+
+	if ((res = sequencer_get_update_refs_state(r->gitdir, &refs_to_oids)))
+		return res;
+
+	for_each_string_list_item(item, &refs_to_oids) {
+		struct update_ref_record *rec = item->util;
+
+		res |= refs_update_ref(refs, "rewritten during rebase",
+				       item->string,
+				       &rec->after, &rec->before,
+				       0, UPDATE_REFS_MSG_ON_ERR);
+	}
+
+	string_list_clear(&refs_to_oids, 1);
+	return res;
+}
+
 static int is_final_fixup(struct todo_list *todo_list)
 {
 	int i = todo_list->current;
@@ -4627,6 +4729,9 @@ cleanup_head_ref:
 
 		strbuf_release(&buf);
 		strbuf_release(&head_ref);
+
+		if (do_update_refs(r))
+			return -1;
 	}
 
 	/*
@@ -5711,7 +5816,7 @@ static int add_decorations_to_list(const struct commit *commit,
 
 			sti = string_list_insert(&ctx->refs_to_oids,
 						 decoration->name);
-			sti->util = oiddup(the_hash_algo->null_oid);
+			sti->util = init_update_ref_record(decoration->name);
 		}
 
 		item->offset_in_buf = base_offset;
@@ -5731,7 +5836,7 @@ static int add_decorations_to_list(const struct commit *commit,
  */
 static int todo_list_add_update_ref_commands(struct todo_list *todo_list)
 {
-	int i;
+	int i, res;
 	static struct string_list decorate_refs_exclude = STRING_LIST_INIT_NODUP;
 	static struct string_list decorate_refs_exclude_config = STRING_LIST_INIT_NODUP;
 	static struct string_list decorate_refs_include = STRING_LIST_INIT_NODUP;
@@ -5767,7 +5872,16 @@ static int todo_list_add_update_ref_commands(struct todo_list *todo_list)
 		}
 	}
 
+	res = write_update_refs_state(&ctx.refs_to_oids);
+
 	string_list_clear(&ctx.refs_to_oids, 1);
+
+	if (res) {
+		/* we failed, so clean up the new list. */
+		free(ctx.items);
+		return res;
+	}
+
 	free(todo_list->items);
 	todo_list->items = ctx.items;
 	todo_list->nr = ctx.items_nr;
diff --git a/t/t2407-worktree-heads.sh b/t/t2407-worktree-heads.sh
index 8a03f14df8..50815acd3e 100755
--- a/t/t2407-worktree-heads.sh
+++ b/t/t2407-worktree-heads.sh
@@ -81,25 +81,16 @@ test_expect_success !SANITIZE_LEAK 'refuse to overwrite: worktree in rebase (mer
 	grep "cannot force update the branch '\''wt-2'\'' checked out at.*wt-2" err
 '
 
-test_expect_success 'refuse to overwrite: worktree in rebase with --update-refs' '
-	test_when_finished rm -rf .git/worktrees/wt-3/rebase-merge &&
+test_expect_success !SANITIZE_LEAK 'refuse to overwrite: worktree in rebase with --update-refs' '
+	test_when_finished git -C wt-3 rebase --abort &&
 
-	mkdir -p .git/worktrees/wt-3/rebase-merge &&
-	touch .git/worktrees/wt-3/rebase-merge/interactive &&
-
-	cat >.git/worktrees/wt-3/rebase-merge/update-refs <<-EOF &&
-	refs/heads/fake-3
-	$(git rev-parse HEAD~1)
-	$(git rev-parse HEAD)
-	refs/heads/fake-4
-	$(git rev-parse HEAD)
-	$(git rev-parse HEAD)
-	EOF
+	git branch -f can-be-updated wt-3 &&
+	test_must_fail git -C wt-3 rebase --update-refs conflict-3 &&
 
 	for i in 3 4
 	do
-		test_must_fail git branch -f fake-$i HEAD 2>err &&
-		grep "cannot force update the branch '\''fake-$i'\'' checked out at.*wt-3" err ||
+		test_must_fail git branch -f can-be-updated HEAD 2>err &&
+		grep "cannot force update the branch '\''can-be-updated'\'' checked out at.*wt-3" err ||
 			return 1
 	done
 '
diff --git a/t/t3404-rebase-interactive.sh b/t/t3404-rebase-interactive.sh
index 75c0b90fae..2fffcf5d5f 100755
--- a/t/t3404-rebase-interactive.sh
+++ b/t/t3404-rebase-interactive.sh
@@ -1817,6 +1817,23 @@ test_expect_success '--update-refs adds commands with --rebase-merges' '
 	)
 '
 
+test_expect_success '--update-refs updates refs correctly' '
+	git checkout -B update-refs no-conflict-branch &&
+	git branch -f base HEAD~4 &&
+	git branch -f first HEAD~3 &&
+	git branch -f second HEAD~3 &&
+	git branch -f third HEAD~1 &&
+	test_commit extra2 fileX &&
+	git commit --amend --fixup=L &&
+
+	git rebase -i --autosquash --update-refs primary &&
+
+	test_cmp_rev HEAD~3 refs/heads/first &&
+	test_cmp_rev HEAD~3 refs/heads/second &&
+	test_cmp_rev HEAD~1 refs/heads/third &&
+	test_cmp_rev HEAD refs/heads/no-conflict-branch
+'
+
 # This must be the last test in this file
 test_expect_success '$EDITOR and friends are unchanged' '
 	test_editor_unchanged