diff --git a/packages/core/src/clipboard.ts b/packages/core/src/clipboard.ts
index 97c9f9e37..e16acc0bb 100644
--- a/packages/core/src/clipboard.ts
+++ b/packages/core/src/clipboard.ts
@@ -8,7 +8,7 @@ import {
   sortChildren
 } from '@open-pencil/fig/node-change'
 import { initCodec, getCompiledSchema, getSchemaBytes } from '@open-pencil/kiwi/fig/codec'
-import type { NodeChange as KiwiNodeChange } from '@open-pencil/kiwi/fig/codec'
+import type { GUID, NodeChange as KiwiNodeChange } from '@open-pencil/kiwi/fig/codec'
 import { decodeBinarySchema, compileSchema, ByteBuffer } from '@open-pencil/kiwi/schema-runtime'
 import type { SceneGraph, SceneNode } from '@open-pencil/scene-graph'
 
@@ -283,7 +283,9 @@ export function importClipboardNodes(
 
   remapComponentIds(created, graph)
 
-  populateAndApplyOverrides(graph, guidMap as Map<string, InstanceNodeChange>, created, blobs)
+  graph.preserveSourceMetadataDuring(() => {
+    populateAndApplyOverrides(graph, guidMap as Map<string, InstanceNodeChange>, created, blobs)
+  })
 
   for (const figmaId of internalTopLevel) {
     const ourId = created.get(figmaId)
@@ -321,6 +323,8 @@ export async function buildFigmaClipboardHTML(
     }
   }
 
+  const nodeIdToGuid = new Map<string, GUID>()
+  const assignedGuidValues = new Set<string>()
   const blobs: Uint8Array[] = []
   for (let i = 0; i < nodes.length; i++) {
     collectTextNodes(nodes[i])
@@ -332,8 +336,12 @@ export async function buildFigmaClipboardHTML(
         localIdCounter,
         graph,
         blobs,
+        nodeIdToGuid,
+        fontDigestMap,
         undefined,
-        fontDigestMap
+        undefined,
+        undefined,
+        assignedGuidValues
       )
     )
   }
diff --git a/tests/engine/clipboard/figma/html.test.ts b/tests/engine/clipboard/figma/html.test.ts
index f8625026d..5800b52ff 100644
--- a/tests/engine/clipboard/figma/html.test.ts
+++ b/tests/engine/clipboard/figma/html.test.ts
@@ -141,6 +141,37 @@ describe('buildFigmaClipboardHTML', () => {
     expect(html).toContain('figmeta')
   })
 
+  it('preserves source metadata while importing instance overrides', async () => {
+    const source = new SceneGraph()
+    const sourcePage = source.getPages()[0]
+    const component = source.createNode('COMPONENT', sourcePage.id, { name: 'Button' })
+    source.createNode('TEXT', component.id, { name: 'Label', text: 'Effective label' })
+    const instance = source.createNode('INSTANCE', sourcePage.id, {
+      name: 'Button instance',
+      componentId: component.id
+    })
+    source.populateInstanceChildren(instance.id, component.id)
+
+    const html = await buildFigmaClipboardHTML([component, instance], source)
+    const parsed = await parseFigmaClipboard(expectDefined(html, 'Figma clipboard html'))
+    const clipboard = expectDefined(parsed, 'Figma clipboard')
+    const target = new SceneGraph()
+    const targetPage = target.getPages()[0]
+    importClipboardNodes(clipboard.nodes, target, targetPage.id)
+    const importedInstance = [...target.getAllNodes()].find(
+      (node) => node.type === 'INSTANCE' && node.name === 'Button instance'
+    )
+    const importedLabel = importedInstance
+      ? [...target.getAllNodes()].find(
+          (node) => node.type === 'TEXT' && node.parentId === importedInstance.id
+        )
+      : undefined
+
+    expect(importedInstance).toBeDefined()
+    expect(importedLabel?.text).toBe('Effective label')
+    expect(importedLabel?.source.editedFields).toEqual([])
+  })
+
   it('roundtrips: encode then decode back', async () => {
     const graph = new SceneGraph()
     const page = graph.getPages()[0]