diff --git a/CHANGELOG.md b/CHANGELOG.md
index dbae1dd9c..257d81e33 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@
 - Bug #558: Fix `SoftDelete` with initiated custom date (@Tigrov)
 - Enh #564: Clarify `$relations` parameter type in `JoinWith::__construct()` from `array<string|Closure>` to
   `array<string|callable(ActiveQueryInterface):void>` (@vjik)
+- Bug #562: Fix `ActiveRecordInterface::upsert()` to prioritize passed associative values during updates (@Tigrov)
 - Bug #561: Fix `ActiveRecordInterface::upsert()` with `$updateProperties = false` (@Tigrov)
 - Bug #550: Relation query should be created by related class, not primary model class (@batyrmastyr)
 
diff --git a/src/ActiveRecord.php b/src/ActiveRecord.php
index bf708298a..1e073b08f 100644
--- a/src/ActiveRecord.php
+++ b/src/ActiveRecord.php
@@ -162,10 +162,7 @@ protected function upsertInternal(?array $insertProperties = null, array|bool $u
             $updateNames = array_filter($updateProperties, is_int(...), ARRAY_FILTER_USE_KEY);
 
             if (!empty($updateNames)) {
-                $updateProperties = array_merge(
-                    array_diff_key($updateProperties, $updateNames),
-                    $this->newPropertyValues($updateNames),
-                );
+                $updateProperties = array_diff_key($updateProperties, $updateNames) + $this->newValues($updateNames);
             }
             /** @psalm-var array<string, mixed> $updateProperties */
 
diff --git a/src/ActiveRecordInterface.php b/src/ActiveRecordInterface.php
index fcf37768a..8ad87bfae 100644
--- a/src/ActiveRecordInterface.php
+++ b/src/ActiveRecordInterface.php
@@ -697,10 +697,12 @@ public function updateAll(array $propertyValues, array|string $condition = [], a
      * ```
      *
      * @param array|null $insertProperties List of property names or name-values pairs that need to be inserted.
+     * If name-value pairs are specified, the values will be used for insertion.
      * Defaults to `null`, meaning all changed property values will be inserted.
      * @param array|bool $updateProperties List of property names or name-values pairs that need to be updated
-     * if the record already exists. Also available a boolean value:
-     * - `true` the record values will be updated to match the insert property values;
+     * if the record already exists. If name-value pairs are specified, the values will be used for update.
+     * Also available a boolean value:
+     * - `true` the record values will be updated to match the inserted property values;
      * - `false` no update will be performed if the record already exist.
      *
      * @throws InvalidConfigException
diff --git a/src/Event/BeforeUpsert.php b/src/Event/BeforeUpsert.php
index 526f29ab8..b9bfd94d8 100644
--- a/src/Event/BeforeUpsert.php
+++ b/src/Event/BeforeUpsert.php
@@ -16,9 +16,12 @@ final class BeforeUpsert extends AbstractEvent
 {
     /**
      * @param ActiveRecordInterface $model The model being upserted.
-     * @param array|null $insertProperties Properties to be inserted. If null, the properties will be taken from the model.
-     * @param array|bool $updateProperties Properties to be updated. If false, no properties will be updated.
-     * If true, `$insertProperties` will be used for update as well.
+     * @param array|null $insertProperties List of property names or name-values pairs that need to be inserted.
+     * If name-value pairs are specified, the values will be used for insertion.
+     * If `null`, the properties will be taken from the model.
+     * @param array|bool $updateProperties List of property names or name-values pairs that need to be updated
+     * if the record already exists. If name-value pairs are specified, the values will be used for update.
+     * If `true`, `$insertProperties` will be used for update as well. If `false`, no properties will be updated.
      */
     public function __construct(
         ActiveRecordInterface $model,
diff --git a/tests/ActiveRecordTest.php b/tests/ActiveRecordTest.php
index 60b721dda..1388db6ec 100644
--- a/tests/ActiveRecordTest.php
+++ b/tests/ActiveRecordTest.php
@@ -1291,7 +1291,7 @@ public static function dataUpsert(): array
                 'expected' => [
                     'id' => 3,
                     'email' => 'user3@example.com',
-                    'address' => 'insert address',
+                    'address' => 'update address',
                 ],
             ],
         ];