diff --git a/paypal/controllers/FrmPayPalLiteHooksController.php b/paypal/controllers/FrmPayPalLiteHooksController.php
index eb93d7804d..706ba0d58e 100644
--- a/paypal/controllers/FrmPayPalLiteHooksController.php
+++ b/paypal/controllers/FrmPayPalLiteHooksController.php
@@ -33,6 +33,9 @@ public static function load_admin_hooks() {
 		add_filter( 'frm_add_settings_section', 'FrmPayPalLiteSettingsController::add_settings_section', 99 );
 		add_action( 'frm_update_settings', 'FrmPayPalLiteSettingsController::process_form' );
 
+		// Hook into update_option to preserve test_mode when add-on saves
+		add_action( 'update_option_frm_paypal_options', 'FrmPayPalLiteSettingsController::preserve_test_mode_on_update', 10, 2 );
+
 		add_filter( 'frm_before_save_payment_action', 'FrmPayPalLiteActionsController::before_save_settings', 20, 2 );
 
 		// Hook into after payment type to render Product Name and Product Type fields.
diff --git a/paypal/controllers/FrmPayPalLiteSettingsController.php b/paypal/controllers/FrmPayPalLiteSettingsController.php
index 16e5501e15..2cd7fab05d 100644
--- a/paypal/controllers/FrmPayPalLiteSettingsController.php
+++ b/paypal/controllers/FrmPayPalLiteSettingsController.php
@@ -55,4 +55,28 @@ public static function process_form() {
 		$settings->update( $_POST );
 		$settings->store();
 	}
+
+	/**
+	 * Preserve test_mode when the PayPal add-on updates frm_paypal_options.
+	 * This hooks into update_option to ensure test_mode isn't lost.
+	 *
+	 * @param mixed $old_value The old option value.
+	 * @param mixed $new_value The new option value.
+	 *
+	 * @return void
+	 */
+	public static function preserve_test_mode_on_update( $old_value, $new_value ) {
+		if ( ! is_object( $old_value ) || ! is_object( $new_value ) ) {
+			return;
+		}
+
+		// If old value had test_mode but new value doesn't, preserve it
+		if ( ! isset( $old_value->test_mode ) || isset( $new_value->test_mode ) ) {
+			return;
+		}
+
+		$new_value->test_mode = $old_value->test_mode;
+		// Update the option with the preserved test_mode
+		update_option( 'frm_paypal_options', $new_value );
+	}
 }
diff --git a/paypal/models/FrmPayPalLiteSettings.php b/paypal/models/FrmPayPalLiteSettings.php
index 3f90e5c70b..975ccec58b 100644
--- a/paypal/models/FrmPayPalLiteSettings.php
+++ b/paypal/models/FrmPayPalLiteSettings.php
@@ -85,14 +85,15 @@ public function get_options() {
 	 */
 	public function update( $params ) {
 		$settings = $this->default_options();
+		$param    = $this->param();
 
 		foreach ( $settings as $setting => $default ) {
-			if ( isset( $params[ 'frm_' . $this->param() . '_' . $setting ] ) ) {
-				$this->settings->{$setting} = sanitize_text_field( $params[ 'frm_' . $this->param() . '_' . $setting ] );
+			if ( isset( $params[ 'frm_' . $param . '_' . $setting ] ) ) {
+				$this->settings->{$setting} = sanitize_text_field( $params[ 'frm_' . $param . '_' . $setting ] );
 			}
 		}
 
-		$this->settings->test_mode = isset( $params[ 'frm_' . $this->param() . '_test_mode' ] ) ? absint( $params[ 'frm_' . $this->param() . '_test_mode' ] ) : 0;
+		$this->settings->test_mode = isset( $params[ 'frm_' . $param . '_test_mode' ] ) ? absint( $params[ 'frm_' . $param . '_test_mode' ] ) : 0;
 	}
 
 	/**
diff --git a/paypal/views/settings/connect-settings-container.php b/paypal/views/settings/connect-settings-container.php
index 2aade855bc..b6ff1ae6fa 100644
--- a/paypal/views/settings/connect-settings-container.php
+++ b/paypal/views/settings/connect-settings-container.php
@@ -11,6 +11,7 @@
 		</td>
 		<td>
 			<label>
+				<input type="hidden" name="frm_paypal_test_mode" value="0" />
 				<input type="checkbox" name="frm_paypal_test_mode" id="frm_paypal_test_mode" value="1" <?php checked( $settings->settings->test_mode, 1 ); ?> />
 				<?php esc_html_e( 'Use the PayPal test mode', 'formidable' ); ?>
 			</label>