diff --git a/packages/loot-core/src/server/api.ts b/packages/loot-core/src/server/api.ts
index 34a9730575b..b87d4b14bd2 100644
--- a/packages/loot-core/src/server/api.ts
+++ b/packages/loot-core/src/server/api.ts
@@ -443,7 +443,7 @@ handlers['api/transaction-update'] = withMutation(async function ({
     return [];
   }
 
-  const { diff } = updateTransaction(transactions, fields);
+  const { diff } = updateTransaction(transactions, { id, ...fields });
   return handlers['transactions-batch-update'](diff);
 });
 
diff --git a/upcoming-release-notes/2127.md b/upcoming-release-notes/2127.md
new file mode 100644
index 00000000000..d217cfebb58
--- /dev/null
+++ b/upcoming-release-notes/2127.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [mk-french]
+---
+
+Fix update transaction API bug