diff --git a/packages/zowe-explorer/CHANGELOG.md b/packages/zowe-explorer/CHANGELOG.md
index 67fde5552..e53ea6dbf 100644
--- a/packages/zowe-explorer/CHANGELOG.md
+++ b/packages/zowe-explorer/CHANGELOG.md
@@ -14,6 +14,9 @@ All notable changes to the "vscode-extension-for-zowe" extension will be documen
 - Fixed an issue where the `Create Directory` and `Create File` features would continue processing when the first prompt was dismissed, causing an incorrect path to be generated. [#3183](https://github.com/zowe/zowe-explorer-vscode/pull/3183)
 - Fixed an issue where the `Create Directory` and `Create File` features would incorrectly handle user-specified locations with trailing slashes. [#3183](https://github.com/zowe/zowe-explorer-vscode/pull/3183)
 - Fixed an issue where renaming a data set with unsaved changes did not cancel the rename operation. Now, when renaming a data set with unsaved changes, you are prompted to resolve them before continuing. [#3328](https://github.com/zowe/zowe-explorer-vscode/pull/3328)
+- Fixed an issue where a migrated data set is unusable after it is recalled through Zowe Explorer. [#3294](https://github.com/zowe/zowe-explorer-vscode/issues/3294)
+- Fixed an issue where a recalled PDS is expandable after it is migrated through Zowe Explorer. [#3294](https://github.com/zowe/zowe-explorer-vscode/issues/3294)
+- Fixed an issue where data set nodes did not update if migrated or recalled outside of Zowe Explorer. [#3294](https://github.com/zowe/zowe-explorer-vscode/issues/3294)
 
 ## `2.18.0`
 
diff --git a/packages/zowe-explorer/__tests__/__unit__/dataset/ZoweDatasetNode.unit.test.ts b/packages/zowe-explorer/__tests__/__unit__/dataset/ZoweDatasetNode.unit.test.ts
index 2e1bd4915..cd76da246 100644
--- a/packages/zowe-explorer/__tests__/__unit__/dataset/ZoweDatasetNode.unit.test.ts
+++ b/packages/zowe-explorer/__tests__/__unit__/dataset/ZoweDatasetNode.unit.test.ts
@@ -29,6 +29,7 @@ import * as sharedUtils from "../../../src/shared/utils";
 import { Profiles } from "../../../src/Profiles";
 import { ZoweLogger } from "../../../src/utils/LoggerUtils";
 import { LocalFileManagement } from "../../../src/utils/LocalFileManagement";
+import { getIconById, IconId } from "../../../src/generators/icons";
 
 // Missing the definition of path module, because I need the original logic for tests
 jest.mock("fs");
@@ -435,3 +436,86 @@ describe("ZoweDatasetNode Unit Tests - Function node.setIcon()", () => {
         expect(mocked(vscode.commands.executeCommand)).toHaveBeenCalledWith("zowe.ds.refreshDataset", node);
     });
 });
+
+describe("ZoweDatasetNode Unit Tests - function datasetRecalled", () => {
+    it("changes the collapsible state", async () => {
+        const dsNode = new ZoweDatasetNode({
+            label: "MIGRATED.PDS",
+            collapsibleState: vscode.TreeItemCollapsibleState.None,
+            contextOverride: globals.DS_MIGRATED_FILE_CONTEXT,
+            profile: createIProfile(),
+        });
+        await (dsNode as any).datasetRecalled(true);
+        expect(dsNode.collapsibleState).toBe(vscode.TreeItemCollapsibleState.Collapsed);
+    });
+
+    it("adds the open command to the node - PS", async () => {
+        const dsNode = new ZoweDatasetNode({
+            label: "MIGRATED.PS",
+            collapsibleState: vscode.TreeItemCollapsibleState.None,
+            contextOverride: globals.DS_MIGRATED_FILE_CONTEXT,
+            profile: createIProfile(),
+        });
+        await (dsNode as any).datasetRecalled(false);
+        expect(dsNode.command).toStrictEqual({ command: "zowe.ds.ZoweNode.openPS", title: "", arguments: [dsNode] });
+    });
+
+    it("updates the icon to folder - PDS", async () => {
+        const dsNode = new ZoweDatasetNode({
+            label: "MIGRATED.PDS",
+            collapsibleState: vscode.TreeItemCollapsibleState.None,
+            contextOverride: globals.DS_MIGRATED_FILE_CONTEXT,
+            profile: createIProfile(),
+        });
+        await (dsNode as any).datasetRecalled(true);
+        expect(dsNode.iconPath).toBe(getIconById(IconId.folder).path);
+    });
+
+    it("updates the icon to file - PS", async () => {
+        const dsNode = new ZoweDatasetNode({
+            label: "MIGRATED.PS",
+            collapsibleState: vscode.TreeItemCollapsibleState.None,
+            contextOverride: globals.DS_MIGRATED_FILE_CONTEXT,
+            profile: createIProfile(),
+        });
+        await (dsNode as any).datasetRecalled(false);
+        expect(dsNode.iconPath).toBe(getIconById(IconId.document).path);
+    });
+});
+
+describe("ZoweDatasetNode Unit Tests - function datasetMigrated", () => {
+    it("changes the collapsible state", () => {
+        const dsNode = new ZoweDatasetNode({
+            label: "SOME.PDS",
+            collapsibleState: vscode.TreeItemCollapsibleState.Collapsed,
+            contextOverride: globals.DS_PDS_CONTEXT,
+            profile: createIProfile(),
+        });
+        dsNode.datasetMigrated();
+        expect(dsNode.collapsibleState).toBe(vscode.TreeItemCollapsibleState.None);
+    });
+
+    it("removes the node command", () => {
+        const dsNode = new ZoweDatasetNode({
+            label: "SOME.PDS",
+            collapsibleState: vscode.TreeItemCollapsibleState.Collapsed,
+            contextOverride: globals.DS_PDS_CONTEXT,
+            parentNode: createDatasetSessionNode(createISession(), createIProfile()),
+            profile: createIProfile(),
+        });
+        dsNode.datasetMigrated();
+        expect(dsNode.resourceUri).toBeUndefined();
+        expect(dsNode.command).toBeUndefined();
+    });
+
+    it("changes the icon to the migrated icon", () => {
+        const dsNode = new ZoweDatasetNode({
+            label: "MIGRATED.PDS",
+            collapsibleState: vscode.TreeItemCollapsibleState.None,
+            contextOverride: globals.DS_MIGRATED_FILE_CONTEXT,
+            profile: createIProfile(),
+        });
+        dsNode.datasetMigrated();
+        expect(dsNode.iconPath).toBe(getIconById(IconId.migrated).path);
+    });
+});
diff --git a/packages/zowe-explorer/src/dataset/ZoweDatasetNode.ts b/packages/zowe-explorer/src/dataset/ZoweDatasetNode.ts
index fdc020e50..21ff92cd1 100644
--- a/packages/zowe-explorer/src/dataset/ZoweDatasetNode.ts
+++ b/packages/zowe-explorer/src/dataset/ZoweDatasetNode.ts
@@ -131,6 +131,53 @@ export class ZoweDatasetNode extends ZoweTreeNode implements IZoweDatasetTreeNod
         }
     }
 
+    /**
+     * Updates an existing data set node that was recalled so it can be interacted with.
+     * @param isPds Whether the data set is a PDS
+     */
+    private datasetRecalled(isPds: boolean): void {
+        // Change context value to match dsorg, update collapsible state
+        // Preserve favorite context and any additional context values
+        this.contextValue = this.contextValue.replace(globals.DS_MIGRATED_FILE_CONTEXT, isPds ? globals.DS_PDS_CONTEXT : globals.DS_DS_CONTEXT);
+        this.collapsibleState = isPds ? vscode.TreeItemCollapsibleState.Collapsed : vscode.TreeItemCollapsibleState.None;
+
+        // For sequential data sets, re-apply the command so that they can be opened
+        if (!isPds) {
+            this.command = { command: "zowe.ds.ZoweNode.openPS", title: "", arguments: [this] };
+        }
+
+        // Replace icon on existing node with new one
+        const icon = getIconByNode(this);
+        if (icon) {
+            this.setIcon(icon.path);
+        }
+    }
+
+    /**
+     * Updates a data set node so it is marked as migrated.
+     */
+    public datasetMigrated(): void {
+        // Change the context value and collapsible state to represent a migrated data set
+        // Preserve favorite context and any additional context values
+        const isBinary = contextually.isBinary(this);
+        const isPds = this.collapsibleState !== vscode.TreeItemCollapsibleState.None;
+        let previousContext = isBinary ? globals.DS_DS_BINARY_CONTEXT : globals.DS_DS_CONTEXT;
+        if (isPds) {
+            previousContext = globals.DS_PDS_CONTEXT;
+        }
+        this.contextValue = this.contextValue.replace(previousContext, globals.DS_MIGRATED_FILE_CONTEXT);
+        this.collapsibleState = vscode.TreeItemCollapsibleState.None;
+
+        // Remove the node's command
+        this.command = undefined;
+
+        // Assign migrated icon to the data set node
+        const icon = getIconByNode(this);
+        if (icon) {
+            this.setIcon(icon.path);
+        }
+    }
+
     /**
      * Retrieves child nodes of this ZoweDatasetNode
      *
@@ -182,41 +229,46 @@ export class ZoweDatasetNode extends ZoweTreeNode implements IZoweDatasetTreeNod
                 const dsEntry = item.dsname ?? item.member;
                 const existing = this.children.find((element) => element.label.toString() === dsEntry);
                 if (existing) {
+                    if (contextually.isMigrated(existing) && item.migr?.toUpperCase() !== "YES") {
+                        existing.datasetRecalled(item.dsorg === "PO" || item.dsorg === "PO-E");
+                    } else if (!contextually.isMigrated(existing) && item.migr?.toUpperCase() === "YES") {
+                        existing.datasetMigrated();
+                    }
                     existing.updateStats(item);
                     elementChildren[existing.label.toString()] = existing;
-                    // Creates a ZoweDatasetNode for a PDS
-                } else if (item.dsorg === "PO" || item.dsorg === "PO-E") {
+                } else if (item.migr && item.migr.toUpperCase() === "YES") {
+                    // Creates a ZoweDatasetNode for a migrated dataset
                     const temp = new ZoweDatasetNode({
                         label: item.dsname,
-                        collapsibleState: vscode.TreeItemCollapsibleState.Collapsed,
+                        collapsibleState: vscode.TreeItemCollapsibleState.None,
                         parentNode: this,
+                        contextOverride: globals.DS_MIGRATED_FILE_CONTEXT,
                         profile: this.getProfile(),
                     });
                     elementChildren[temp.label.toString()] = temp;
-                    // Creates a ZoweDatasetNode for a dataset with imperative errors
-                } else if (item.error instanceof zowe.imperative.ImperativeError) {
+                } else if (item.dsorg === "PO" || item.dsorg === "PO-E") {
+                    // Creates a ZoweDatasetNode for a PDS
                     const temp = new ZoweDatasetNode({
                         label: item.dsname,
-                        collapsibleState: vscode.TreeItemCollapsibleState.None,
+                        collapsibleState: vscode.TreeItemCollapsibleState.Collapsed,
                         parentNode: this,
-                        contextOverride: globals.DS_FILE_ERROR_CONTEXT,
                         profile: this.getProfile(),
                     });
-                    temp.command = { command: "zowe.placeholderCommand", title: "" };
-                    temp.errorDetails = item.error; // Save imperative error to avoid extra z/OS requests
                     elementChildren[temp.label.toString()] = temp;
-                    // Creates a ZoweDatasetNode for a migrated dataset
-                } else if (item.migr && item.migr.toUpperCase() === "YES") {
+                } else if (item.error instanceof zowe.imperative.ImperativeError) {
+                    // Creates a ZoweDatasetNode for a dataset with imperative errors
                     const temp = new ZoweDatasetNode({
                         label: item.dsname,
                         collapsibleState: vscode.TreeItemCollapsibleState.None,
                         parentNode: this,
-                        contextOverride: globals.DS_MIGRATED_FILE_CONTEXT,
+                        contextOverride: globals.DS_FILE_ERROR_CONTEXT,
                         profile: this.getProfile(),
                     });
+                    temp.command = { command: "zowe.placeholderCommand", title: "" };
+                    temp.errorDetails = item.error; // Save imperative error to avoid extra z/OS requests
                     elementChildren[temp.label.toString()] = temp;
-                    // Creates a ZoweDatasetNode for a VSAM file
                 } else if (item.dsorg === "VS") {
+                    // Creates a ZoweDatasetNode for a VSAM file
                     let altLabel = item.dsname;
                     let endPoint = altLabel.indexOf(".DATA");
                     if (endPoint === -1) {
diff --git a/packages/zowe-explorer/src/dataset/actions.ts b/packages/zowe-explorer/src/dataset/actions.ts
index fe49b921c..86fc74d87 100644
--- a/packages/zowe-explorer/src/dataset/actions.ts
+++ b/packages/zowe-explorer/src/dataset/actions.ts
@@ -1357,11 +1357,9 @@ export async function hMigrateDataSet(
     if (Profiles.getInstance().validProfile !== api.ValidProfileEnum.INVALID) {
         const { dataSetName } = dsUtils.getNodeLabels(node);
         try {
-            const response = await ZoweExplorerApiRegister.getMvsApi(node.getProfile()).hMigrateDataSet(dataSetName);
             api.Gui.showMessage(localize("hMigrateDataSet.requestSent", "Migration of data set {0} requested.", dataSetName));
-            node.contextValue = globals.DS_MIGRATED_FILE_CONTEXT;
-            node.setIcon(getIconByNode(node).path);
-            datasetProvider.refresh();
+            const response = await ZoweExplorerApiRegister.getMvsApi(node.getProfile()).hMigrateDataSet(dataSetName);
+            datasetProvider.refreshElement(node.getParent());
             return response;
         } catch (err) {
             ZoweLogger.error(err);
@@ -1388,15 +1386,9 @@ export async function hRecallDataSet(
     if (Profiles.getInstance().validProfile !== api.ValidProfileEnum.INVALID) {
         const { dataSetName } = dsUtils.getNodeLabels(node);
         try {
-            const response = await ZoweExplorerApiRegister.getMvsApi(node.getProfile()).hRecallDataSet(dataSetName);
             api.Gui.showMessage(localize("hRecallDataSet.requestSent", "Recall of data set {0} requested.", dataSetName));
-            if (node.collapsibleState !== vscode.TreeItemCollapsibleState.None) {
-                node.contextValue = globals.DS_PDS_CONTEXT;
-            } else {
-                node.contextValue = node.binary ? globals.DS_DS_BINARY_CONTEXT : globals.DS_DS_CONTEXT;
-            }
-            node.setIcon(getIconByNode(node).path);
-            datasetProvider.refresh();
+            const response = await ZoweExplorerApiRegister.getMvsApi(node.getProfile()).hRecallDataSet(dataSetName);
+            datasetProvider.refreshElement(node.getSessionNode());
             return response;
         } catch (err) {
             ZoweLogger.error(err);