diff --git a/source/blender/blenkernel/BKE_lib_override.hh b/source/blender/blenkernel/BKE_lib_override.hh
index 7b433472e54..f987052d20e 100644
--- a/source/blender/blenkernel/BKE_lib_override.hh
+++ b/source/blender/blenkernel/BKE_lib_override.hh
@@ -284,10 +284,14 @@ void BKE_lib_override_library_delete(Main *bmain, ID *id_root);
 /**
  * Make given ID fully local.
  *
+ * \param bmain If given, all liboverrides hierarchy roots will be re-validated/generated after
+ * clearing the liboverride data from given \a id. If nullptr, caller is responsible to perform
+ * this action (call #BKE_lib_override_library_main_hierarchy_root_ensure) itself.
+ *
  * \note Only differs from lower-level #BKE_lib_override_library_free in infamous embedded ID
  * cases.
  */
-void BKE_lib_override_library_make_local(ID *id);
+void BKE_lib_override_library_make_local(Main *bmain, ID *id);
 
 /**
  * Find override property from given RNA path, if it exists.
diff --git a/source/blender/blenkernel/intern/lib_id.cc b/source/blender/blenkernel/intern/lib_id.cc
index b181847e61c..ba8c00b90f0 100644
--- a/source/blender/blenkernel/intern/lib_id.cc
+++ b/source/blender/blenkernel/intern/lib_id.cc
@@ -506,7 +506,7 @@ void BKE_lib_id_make_local_generic(Main *bmain, ID *id, const int flags)
   if (force_local) {
     BKE_lib_id_clear_library_data(bmain, id, flags);
     if ((flags & LIB_ID_MAKELOCAL_LIBOVERRIDE_CLEAR) != 0) {
-      BKE_lib_override_library_make_local(id);
+      BKE_lib_override_library_make_local(bmain, id);
     }
     BKE_lib_id_expand_local(bmain, id, flags);
   }
@@ -1826,7 +1826,9 @@ void BKE_library_make_local(Main *bmain,
             ELEM(lib, nullptr, id->override_library->reference->lib) &&
             ((untagged_only == false) || !(id->tag & LIB_TAG_PRE_EXISTING)))
         {
-          BKE_lib_override_library_make_local(id);
+          /* Validating liboverride hierarchy root pointers will happen later in this function,
+           * rather than doing it for each and every localized ID. */
+          BKE_lib_override_library_make_local(nullptr, id);
         }
       }
       /* The check on the fourth line (LIB_TAG_PRE_EXISTING) is done so it's possible to tag data
@@ -1966,6 +1968,10 @@ void BKE_library_make_local(Main *bmain,
     }
   }
 
+  /* Making some liboverride local may have had some impact on validity of liboverrides hierarchy
+   * roots, these need to be re-validated/re-generated. */
+  BKE_lib_override_library_main_hierarchy_root_ensure(bmain);
+
 #ifdef DEBUG_TIME
   printf("Step 4: Remap local usages of old (linked) ID to new (local) ID: Done.\n");
   TIMEIT_VALUE_PRINT(make_local);
diff --git a/source/blender/blenkernel/intern/lib_override.cc b/source/blender/blenkernel/intern/lib_override.cc
index 33b5253e4f5..a97092b8b7e 100644
--- a/source/blender/blenkernel/intern/lib_override.cc
+++ b/source/blender/blenkernel/intern/lib_override.cc
@@ -3587,7 +3587,7 @@ void BKE_lib_override_library_delete(Main *bmain, ID *id_root)
   BKE_main_id_tag_all(bmain, LIB_TAG_DOIT, false);
 }
 
-void BKE_lib_override_library_make_local(ID *id)
+void BKE_lib_override_library_make_local(Main *bmain, ID *id)
 {
   if (!ID_IS_OVERRIDE_LIBRARY(id)) {
     return;
@@ -3617,6 +3617,10 @@ void BKE_lib_override_library_make_local(ID *id)
   if (node_tree != nullptr) {
     node_tree->id.flag &= ~LIB_EMBEDDED_DATA_LIB_OVERRIDE;
   }
+
+  /* In case a liboverride hierarchy root is 'made local', i.e. is not a liboverride anymore, all
+   * hierarchy roots of all liboverrides need to be validated/re-generated again. */
+  BKE_lib_override_library_main_hierarchy_root_ensure(bmain);
 }
 
 /* We only build override GHash on request. */
diff --git a/source/blender/editors/interface/interface_templates.cc b/source/blender/editors/interface/interface_templates.cc
index 055d049359b..9e5f0af7c6a 100644
--- a/source/blender/editors/interface/interface_templates.cc
+++ b/source/blender/editors/interface/interface_templates.cc
@@ -1017,7 +1017,7 @@ static void template_id_cb(bContext *C, void *arg_litem, void *arg_event)
           template_id_liboverride_hierarchy_make(C, bmain, template_ui, &idptr, &undo_push_label);
         }
         else {
-          BKE_lib_override_library_make_local(id);
+          BKE_lib_override_library_make_local(bmain, id);
           /* Reassign to get proper updates/notifiers. */
           idptr = RNA_property_pointer_get(&template_ui->ptr, template_ui->prop);
           RNA_property_pointer_set(&template_ui->ptr, template_ui->prop, idptr, nullptr);
diff --git a/source/blender/editors/space_outliner/outliner_tools.cc b/source/blender/editors/space_outliner/outliner_tools.cc
index 45eb8dd8d75..179a71f2985 100644
--- a/source/blender/editors/space_outliner/outliner_tools.cc
+++ b/source/blender/editors/space_outliner/outliner_tools.cc
@@ -1002,7 +1002,7 @@ static void id_local_fn(bContext *C,
     }
   }
   else if (ID_IS_OVERRIDE_LIBRARY_REAL(tselem->id)) {
-    BKE_lib_override_library_make_local(tselem->id);
+    BKE_lib_override_library_make_local(CTX_data_main(C), tselem->id);
   }
 }
 
diff --git a/source/blender/makesrna/intern/rna_ID.cc b/source/blender/makesrna/intern/rna_ID.cc
index a4836d2c113..7e1f0720093 100644
--- a/source/blender/makesrna/intern/rna_ID.cc
+++ b/source/blender/makesrna/intern/rna_ID.cc
@@ -1095,7 +1095,7 @@ static ID *rna_ID_make_local(ID *self, Main *bmain, bool /*clear_proxy*/)
     BKE_lib_id_make_local(bmain, self, 0);
   }
   else if (ID_IS_OVERRIDE_LIBRARY_REAL(self)) {
-    BKE_lib_override_library_make_local(self);
+    BKE_lib_override_library_make_local(bmain, self);
   }
 
   ID *ret_id = self->newid ? self->newid : self;