diff --git a/changelog.d/20231025_194118_michael.hanke_bf_7507.md b/changelog.d/20231025_194118_michael.hanke_bf_7507.md
new file mode 100644
index 0000000000..85bc45b80e
--- /dev/null
+++ b/changelog.d/20231025_194118_michael.hanke_bf_7507.md
@@ -0,0 +1,6 @@
+### 🐛 Bug Fixes
+
+- Update target detection for adjusted mode datasets has been improved.
+  Fixes [#7507](https://github.com/datalad/datalad/issues/7507) via
+  [PR #7522](https://github.com/datalad/datalad/pull/7522)
+  (by [@mih](https://github.com/mih))
diff --git a/datalad/distribution/update.py b/datalad/distribution/update.py
index 28a33bda39..2fc2235e33 100644
--- a/datalad/distribution/update.py
+++ b/datalad/distribution/update.py
@@ -481,7 +481,7 @@ def _choose_update_target(repo, branch, remote, cfg_remote):
         # branch.*.merge value, but that assumes a value for remote.*.fetch.
         target = repo.call_git_oneline(
             ["rev-parse", "--symbolic-full-name", "--abbrev-ref=strict",
-             "@{upstream}"],
+             f"{repo.get_corresponding_branch(branch) or ''}" "@{upstream}"],
             read_only=True)
     elif branch:
         remote_branch = "{}/{}".format(remote, branch)