diff --git a/frappe/public/js/frappe/model/sync.js b/frappe/public/js/frappe/model/sync.js
index 86729947f2..104406b330 100644
--- a/frappe/public/js/frappe/model/sync.js
+++ b/frappe/public/js/frappe/model/sync.js
@@ -198,14 +198,13 @@ Object.assign(frappe.model, {
 			}
 		}
 
-		if (local_parent_doc?.on_paste_event && local_parent_doc?.__newname) {
+		if (
+			(local_parent_doc?.on_paste_event || updated_doc.__islocal) &&
+			local_parent_doc?.__newname
+		) {
 			updated_doc.__newname = local_parent_doc.__newname;
 		}
 
-		if (updated_doc.__islocal && local_parent_doc.__newname) {
-			updated_doc.__newname = local_parent_doc.__newname; // preserve set by user name
-		}
-
 		// clear keys on parent
 		clear_keys(updated_doc, local_parent_doc);
 	},