diff --git a/contracts/HubPool.sol b/contracts/HubPool.sol
index c10d7fb4a..7befb9796 100644
--- a/contracts/HubPool.sol
+++ b/contracts/HubPool.sol
@@ -411,11 +411,15 @@ contract HubPool is HubPoolInterface, Testable, Lockable, MultiCaller, Ownable {
      * @param l1Token Token to provide liquidity for.
      */
     function enableL1TokenForLiquidityProvision(address l1Token) public override onlyOwner nonReentrant {
-        if (pooledTokens[l1Token].lpToken == address(0))
+        // If token is being enabled for the first time, create a new LP token and set the timestamp once. We don't
+        // want to ever reset this timestamp otherwise fees that have accrued will be lost since the last update. This
+        // could happen for example if an L1 token is enabled, disabled, and then enabled again.
+        if (pooledTokens[l1Token].lpToken == address(0)) {
             pooledTokens[l1Token].lpToken = lpTokenFactory.createLpToken(l1Token);
+            pooledTokens[l1Token].lastLpFeeUpdate = uint32(getCurrentTime());
+        }
 
         pooledTokens[l1Token].isEnabled = true;
-        pooledTokens[l1Token].lastLpFeeUpdate = uint32(getCurrentTime());
 
         emit L1TokenEnabledForLiquidityProvision(l1Token, pooledTokens[l1Token].lpToken);
     }
diff --git a/test/HubPool.Admin.ts b/test/HubPool.Admin.ts
index a718e591e..09e431d1d 100644
--- a/test/HubPool.Admin.ts
+++ b/test/HubPool.Admin.ts
@@ -36,8 +36,18 @@ describe("HubPool Admin functions", function () {
     await expect(hubPool.connect(other).enableL1TokenForLiquidityProvision(weth.address)).to.be.reverted;
   });
   it("Can disable L1 Tokens for liquidity provision", async function () {
+    await hubPool.enableL1TokenForLiquidityProvision(weth.address);
+    const pooledTokenStruct = await hubPool.callStatic.pooledTokens(weth.address);
+    const lpToken = pooledTokenStruct.lpToken;
+    const lastLpFeeUpdate = pooledTokenStruct.lastLpFeeUpdate;
+
     await hubPool.disableL1TokenForLiquidityProvision(weth.address);
     expect((await hubPool.callStatic.pooledTokens(weth.address)).isEnabled).to.equal(false);
+
+    // Can re-enable the L1 token now without creating a new LP token or resetting timestamp.
+    await hubPool.enableL1TokenForLiquidityProvision(weth.address);
+    expect((await hubPool.callStatic.pooledTokens(weth.address)).lpToken).to.equal(lpToken);
+    expect((await hubPool.callStatic.pooledTokens(weth.address)).lastLpFeeUpdate).to.equal(lastLpFeeUpdate);
   });
   it("Only owner can disable L1 Tokens for liquidity provision", async function () {
     await expect(hubPool.connect(other).disableL1TokenForLiquidityProvision(weth.address)).to.be.reverted;