diff --git a/server/jetstream_cluster_2_test.go b/server/jetstream_cluster_2_test.go
index 36361f18..71e36125 100644
--- a/server/jetstream_cluster_2_test.go
+++ b/server/jetstream_cluster_2_test.go
@@ -6361,24 +6361,21 @@ func TestJetStreamClusterEncryptedDoubleSnapshotBug(t *testing.T) {
 	require_NoError(t, err)
 }
 
-func TestJetStreamClusterRePublishUpdateNotSupported(t *testing.T) {
+func TestJetStreamClusterRePublishUpdateSupported(t *testing.T) {
 	test := func(t *testing.T, s *Server, stream string, replicas int) {
-		nc := natsConnect(t, s.ClientURL())
+		nc, js := jsClientConnect(t, s)
 		defer nc.Close()
 
-		cfg := &StreamConfig{
+		cfg := &nats.StreamConfig{
 			Name:     stream,
-			Storage:  MemoryStorage,
+			Storage:  nats.MemoryStorage,
 			Replicas: replicas,
+			Subjects: []string{"foo.>"},
 		}
-		addStream(t, nc, cfg)
+		_, err := js.AddStream(cfg)
+		require_NoError(t, err)
 
-		cfg.RePublish = &RePublish{
-			Source:      ">",
-			Destination: "bar.>",
-		}
-		// We expect update to fail, do it manually:
-		expectFailUpdate := func() {
+		expectUpdate := func() {
 			t.Helper()
 
 			req, err := json.Marshal(cfg)
@@ -6391,41 +6388,77 @@ func TestJetStreamClusterRePublishUpdateNotSupported(t *testing.T) {
 			if resp.Type != JSApiStreamUpdateResponseType {
 				t.Fatalf("Invalid response type %s expected %s", resp.Type, JSApiStreamUpdateResponseType)
 			}
-			if !IsNatsErr(resp.Error, JSStreamInvalidConfigF) {
-				t.Fatalf("Expected error regarding config error, got %+v", resp.Error)
+			if IsNatsErr(resp.Error, JSStreamInvalidConfigF) {
+				t.Fatalf("Expected no error regarding config error, got %+v", resp.Error)
 			}
 		}
-		expectFailUpdate()
 
-		// Now try with a new stream with RePublish present and then try to change config
-		cfg = &StreamConfig{
-			Name:     stream + "_2",
-			Storage:  MemoryStorage,
-			Replicas: replicas,
-			RePublish: &RePublish{
-				Source:      ">",
-				Destination: "bar.>",
-			},
+		expectRepublished := func(expectedRepub bool) {
+			t.Helper()
+
+			nc, js := jsClientConnect(t, s)
+			defer nc.Close()
+
+			// Create a subscriber for foo.> so that we can see
+			// our published message being echoed back to us.
+			sf, err := nc.SubscribeSync("foo.>")
+			require_NoError(t, err)
+			defer sf.Unsubscribe()
+
+			// Create a subscriber for bar.> so that we can see
+			// any potentially republished messages.
+			sb, err := nc.SubscribeSync("bar.>")
+			require_NoError(t, err)
+			defer sf.Unsubscribe()
+
+			// Publish a message, it will hit the foo.> stream and
+			// may potentially be republished to the bar.> stream.
+			_, err = js.Publish("foo."+stream, []byte("HELLO!"))
+			require_NoError(t, err)
+
+			// Wait for a little while so that we have enough time
+			// to determine whether it's going to arrive on one or
+			// both streams.
+			checkSubsPending(t, sf, 1)
+			if expectedRepub {
+				checkSubsPending(t, sb, 1)
+			} else {
+				checkSubsPending(t, sb, 0)
+			}
 		}
-		addStream(t, nc, cfg)
-		cfg.RePublish.HeadersOnly = true
-		expectFailUpdate()
 
-		// One last test with existing first, then trying to remove
-		cfg.Name = stream + "_3"
-		addStream(t, nc, cfg)
+		// At this point there's no republish config, so we should
+		// only receive our published message on foo.>.
+		expectRepublished(false)
+
+		// Add a republish config so that everything on foo.> also
+		// gets republished to bar.>.
+		cfg.RePublish = &nats.RePublish{
+			Source:      "foo.>",
+			Destination: "bar.>",
+		}
+		expectUpdate()
+		expectRepublished(true)
+
+		// Now take the republish config away again, so we should go
+		// back to only getting them on foo.>.
 		cfg.RePublish = nil
-		expectFailUpdate()
+		expectUpdate()
+		expectRepublished(false)
 	}
 
-	s := RunBasicJetStreamServer(t)
-	defer s.Shutdown()
+	t.Run("Single", func(t *testing.T) {
+		s := RunBasicJetStreamServer(t)
+		defer s.Shutdown()
 
-	c := createJetStreamClusterExplicit(t, "JSC", 3)
-	defer c.shutdown()
+		test(t, s, "single", 1)
+	})
+	t.Run("Clustered", func(t *testing.T) {
+		c := createJetStreamClusterExplicit(t, "JSC", 3)
+		defer c.shutdown()
 
-	t.Run("Single", func(t *testing.T) { test(t, s, "single", 1) })
-	t.Run("Clustered", func(t *testing.T) { test(t, c.randomServer(), "clustered", 3) })
+		test(t, c.randomNonLeader(), "clustered", 3)
+	})
 }
 
 func TestJetStreamClusterDirectGetFromLeafnode(t *testing.T) {
diff --git a/server/stream.go b/server/stream.go
index b62c38fb..7c95cc1d 100644
--- a/server/stream.go
+++ b/server/stream.go
@@ -1348,10 +1348,6 @@ func (jsa *jsAccount) configUpdateCheck(old, new *StreamConfig, s *Server) (*Str
 	if !reflect.DeepEqual(cfg.Mirror, old.Mirror) {
 		return nil, NewJSStreamMirrorNotUpdatableError()
 	}
-	// Can't change RePublish
-	if !reflect.DeepEqual(cfg.RePublish, old.RePublish) {
-		return nil, NewJSStreamInvalidConfigError(fmt.Errorf("stream configuration update can not change RePublish"))
-	}
 
 	// Check on new discard new per subject.
 	if cfg.DiscardNewPer {
@@ -1555,6 +1551,23 @@ func (mset *stream) updateWithAdvisory(config *StreamConfig, sendAdvisory bool)
 		}
 	}
 
+	// Check for changes to RePublish.
+	if cfg.RePublish != nil {
+		// Empty same as all.
+		if cfg.RePublish.Source == _EMPTY_ {
+			cfg.RePublish.Source = fwcs
+		}
+		tr, err := newTransform(cfg.RePublish.Source, cfg.RePublish.Destination)
+		if err != nil {
+			jsa.mu.Unlock()
+			return fmt.Errorf("stream configuration for republish not valid")
+		}
+		// Assign our transform for republishing.
+		mset.tr = tr
+	} else {
+		mset.tr = nil
+	}
+
 	js := mset.js
 
 	if targetTier := tierName(cfg); mset.tier != targetTier {