diff --git a/.changelog/25782.txt b/.changelog/25782.txt
new file mode 100644
index 00000000000..3f8e2941a89
--- /dev/null
+++ b/.changelog/25782.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+client: fixes issue where persisting allocation state stored wrong client status
+```
diff --git a/client/allocrunner/alloc_runner.go b/client/allocrunner/alloc_runner.go
index 478cff43905..50aac8e2178 100644
--- a/client/allocrunner/alloc_runner.go
+++ b/client/allocrunner/alloc_runner.go
@@ -1136,10 +1136,20 @@ func (ar *allocRunner) PersistState() error {
 		return err
 	}
 
-	// TODO: consider persisting deployment state along with task status.
-	// While we study why only the alloc is persisted, I opted to maintain current
-	// behavior and not risk adding yet more IO calls unnecessarily.
-	return ar.stateDB.PutAllocation(ar.Alloc(), cstate.WithBatchMode())
+	// Currently, the allocRunners alloc is never updated with the correct
+	// ClientStatus. Instead of directly mutating the alloc held by the
+	// allocRunner, we make a copy and persist that updated copy to the
+	// state store. In the event of a client restart, we will restore
+	// with the correct state.
+	arCopy := ar.Alloc().Copy()
+
+	state := ar.AllocState()
+
+	arCopy.ClientStatus = state.ClientStatus
+	arCopy.ClientDescription = state.ClientDescription
+	arCopy.DeploymentStatus = state.DeploymentStatus
+
+	return ar.stateDB.PutAllocation(arCopy, cstate.WithBatchMode())
 }
 
 // Destroy the alloc runner by stopping it if it is still running and cleaning
diff --git a/client/allocrunner/alloc_runner_test.go b/client/allocrunner/alloc_runner_test.go
index af967985463..0595c8c4199 100644
--- a/client/allocrunner/alloc_runner_test.go
+++ b/client/allocrunner/alloc_runner_test.go
@@ -2026,8 +2026,7 @@ func TestAllocRunner_TerminalUpdate_Destroy(t *testing.T) {
 	})
 }
 
-// TestAllocRunner_PersistState_Destroyed asserts that destroyed allocs don't persist anymore
-func TestAllocRunner_PersistState_Destroyed(t *testing.T) {
+func TestAllocRunner_PersistState(t *testing.T) {
 	ci.Parallel(t)
 
 	alloc := mock.BatchAlloc()
@@ -2050,12 +2049,18 @@ func TestAllocRunner_PersistState_Destroyed(t *testing.T) {
 		require.Fail(t, "timed out waiting for alloc to complete")
 	}
 
+	// force tasks into running state
+	for _, val := range ar.AllocState().TaskStates {
+		val.State = structs.TaskStateRunning
+	}
+
 	// test final persisted state upon completion
 	require.NoError(t, ar.PersistState())
 	allocs, _, err := conf.StateDB.GetAllAllocations()
 	require.NoError(t, err)
 	require.Len(t, allocs, 1)
 	require.Equal(t, alloc.ID, allocs[0].ID)
+	require.Equal(t, structs.TaskStateRunning, allocs[0].ClientStatus)
 	_, ts, err := conf.StateDB.GetTaskRunnerState(alloc.ID, taskName)
 	require.NoError(t, err)
 	require.Equal(t, structs.TaskStateDead, ts.State)