diff --git a/packages/assets-controllers/CHANGELOG.md b/packages/assets-controllers/CHANGELOG.md
index 79b8034bde..c4ae907d22 100644
--- a/packages/assets-controllers/CHANGELOG.md
+++ b/packages/assets-controllers/CHANGELOG.md
@@ -15,6 +15,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Fixed
 
 - Correct Somnia (`5031`/`0x13a7`)'s `SPOT_PRICES_SUPPORT_INFO` entry in `codefi-v2.ts` from the invented `slip44:111115031` placeholder to `slip44:5031`, now that Somnia has a real SLIP-44 registry entry ([#9811](https://github.com/MetaMask/core/pull/9811))
+- Fix `addNft` and `addNftVerifyOwnership` not restoring `isCurrentlyOwned` when re-adding an NFT that was previously flagged as not currently owned, which left re-acquired NFTs permanently hidden in the UI ([#9787](https://github.com/MetaMask/core/issues/9787))
 
 ## [111.1.0]
 
diff --git a/packages/assets-controllers/src/NftController.test.ts b/packages/assets-controllers/src/NftController.test.ts
index 9ebbc5e640..6198421d84 100644
--- a/packages/assets-controllers/src/NftController.test.ts
+++ b/packages/assets-controllers/src/NftController.test.ts
@@ -3483,6 +3483,53 @@ describe('NftController', () => {
         tokenURI,
       });
     });
+
+    it('should restore isCurrentlyOwned when re-adding an NFT that was previously flagged as not currently owned', async () => {
+      const tokenURI = 'https://url/';
+      const mockGetERC721TokenURI = jest.fn().mockResolvedValue(tokenURI);
+      const { nftController } = setupController({
+        getERC721TokenURI: mockGetERC721TokenURI,
+        options: {
+          state: {
+            allNfts: {
+              [OWNER_ACCOUNT.address]: {
+                [ChainId.mainnet]: [
+                  {
+                    address: '0x01',
+                    chainId: convertHexToDecimal(ChainId.mainnet),
+                    description: 'description',
+                    image: 'url',
+                    name: 'name',
+                    tokenId: '1234',
+                    standard: ERC721,
+                    favorite: false,
+                    isCurrentlyOwned: false,
+                    tokenURI,
+                  },
+                ],
+              },
+            },
+          },
+        },
+      });
+
+      jest.spyOn(nftController, 'isNftOwner').mockResolvedValue(true);
+
+      nock('https://url')
+        .get('/')
+        .reply(200, {
+          name: 'name',
+          image: 'url',
+          description: 'description',
+        })
+        .persist();
+      await nftController.addNftVerifyOwnership('0x01', '1234', 'mainnet');
+
+      expect(
+        nftController.state.allNfts[OWNER_ACCOUNT.address][ChainId.mainnet][0]
+          .isCurrentlyOwned,
+      ).toBe(true);
+    });
   });
 
   describe('removeNft', () => {
diff --git a/packages/assets-controllers/src/NftController.ts b/packages/assets-controllers/src/NftController.ts
index fd516e70e5..0d3654db27 100644
--- a/packages/assets-controllers/src/NftController.ts
+++ b/packages/assets-controllers/src/NftController.ts
@@ -951,6 +951,13 @@ export class NftController extends BaseController<
               allNftsForUserPerChain[chainId][indexToUpdate] = {
                 ...existingEntry,
                 ...nftMetadata,
+                // Ownership is re-confirmed on the manual import path
+                // (Source.Custom reaches this code only after ownership has
+                // been verified on-chain), so restore the flag instead of
+                // preserving a stale `isCurrentlyOwned: false`.
+                ...(source === Source.Custom
+                  ? { isCurrentlyOwned: true }
+                  : {}),
               };
             }
           } else {