diff --git a/SpatialGDK/Source/SpatialGDK/Private/EngineClasses/SpatialActorChannel.cpp b/SpatialGDK/Source/SpatialGDK/Private/EngineClasses/SpatialActorChannel.cpp
index 2afa4811ff..8ce47032d7 100644
--- a/SpatialGDK/Source/SpatialGDK/Private/EngineClasses/SpatialActorChannel.cpp
+++ b/SpatialGDK/Source/SpatialGDK/Private/EngineClasses/SpatialActorChannel.cpp
@@ -73,6 +73,7 @@ USpatialActorChannel::USpatialActorChannel(const FObjectInitializer& ObjectIniti
 	, NetDriver(nullptr)
 	, LastSpatialPosition(FVector::ZeroVector)
 	, bCreatingNewEntity(false)
+	, bCreatedEntity(false)
 {
 }
 
@@ -160,6 +161,15 @@ void USpatialActorChannel::UpdateShadowData()
 {
 	check(Actor);
 
+	// If this channel was responsible for creating the channel, we do not want to initialize our shadow data
+	// to the latest state since there could have been state that has changed between creation of the entity
+	// and gaining of authority. Revisit this with UNR-1034
+	// TODO: UNR-1029 - log when the shadow data differs from the current state of the Actor.
+	if (bCreatedEntity)
+	{
+		return;
+	}
+
 	// Refresh shadow data when crossing over servers to prevent stale/out-of-date data.
 	ActorReplicator->RepLayout->InitShadowData(ActorReplicator->ChangelistMgr->GetRepChangelistState()->StaticBuffer, Actor->GetClass(), (uint8*)Actor);
 
@@ -714,6 +724,7 @@ void USpatialActorChannel::OnCreateEntityResponse(const Worker_CreateEntityRespo
 		return;
 	}
 
+	bCreatedEntity = true;
 	UE_LOG(LogSpatialActorChannel, Verbose, TEXT("Created entity (%lld) for: %s."), Op.entity_id, *Actor->GetName());
 }
 
diff --git a/SpatialGDK/Source/SpatialGDK/Private/Interop/SpatialReceiver.cpp b/SpatialGDK/Source/SpatialGDK/Private/Interop/SpatialReceiver.cpp
index 55e2af7ee3..5b34b1be93 100644
--- a/SpatialGDK/Source/SpatialGDK/Private/Interop/SpatialReceiver.cpp
+++ b/SpatialGDK/Source/SpatialGDK/Private/Interop/SpatialReceiver.cpp
@@ -268,6 +268,11 @@ void USpatialReceiver::HandleActorAuthority(Worker_AuthorityChangeOp& Op)
 				}
 				else if (Op.authority == WORKER_AUTHORITY_NOT_AUTHORITATIVE)
 				{
+					if (USpatialActorChannel* ActorChannel = NetDriver->GetActorChannelByEntityId(Op.entity_id))
+					{
+						ActorChannel->bCreatedEntity = false;
+					}
+
 					Actor->Role = ROLE_SimulatedProxy;
 					Actor->RemoteRole = ROLE_Authority;
 
diff --git a/SpatialGDK/Source/SpatialGDK/Private/Utils/ComponentFactory.cpp b/SpatialGDK/Source/SpatialGDK/Private/Utils/ComponentFactory.cpp
index 5c4a66fb37..234a49348b 100644
--- a/SpatialGDK/Source/SpatialGDK/Private/Utils/ComponentFactory.cpp
+++ b/SpatialGDK/Source/SpatialGDK/Private/Utils/ComponentFactory.cpp
@@ -188,6 +188,7 @@ void ComponentFactory::AddProperty(Schema_Object* Object, Schema_FieldId FieldId
 		FUnrealObjectRef ObjectRef = FUnrealObjectRef::NULL_OBJECT_REF;
 
 		UObject* ObjectValue = ObjectProperty->GetObjectPropertyValue(Data);
+
 		if (ObjectValue != nullptr && !ObjectValue->IsPendingKill())
 		{
 			FNetworkGUID NetGUID;
@@ -204,7 +205,8 @@ void ComponentFactory::AddProperty(Schema_Object* Object, Schema_FieldId FieldId
 				}
 			}
 
-			if (NetGUID.IsValid())
+			// The secondary part of the check is only necessary until we have bulk reservation of entity ids UNR-673
+			if (NetGUID.IsValid() || (ObjectValue->IsSupportedForNetworking() && !ObjectValue->IsFullNameStableForNetworking()))
 			{
 				ObjectRef = PackageMap->GetUnrealObjectRefFromNetGUID(NetGUID);
 			}
diff --git a/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialActorChannel.h b/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialActorChannel.h
index 7b7480f3cb..8d3ed82c22 100644
--- a/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialActorChannel.h
+++ b/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialActorChannel.h
@@ -132,6 +132,9 @@ class SPATIALGDK_API USpatialActorChannel : public UActorChannel
 	
 	void UpdateShadowData();
 
+	// If this actor channel is responsible for creating a new entity, this will be set to true once the entity is created.
+	bool bCreatedEntity;
+
 protected:
 	// UChannel Interface
 	virtual bool CleanUp(const bool bForDestroy) override;
diff --git a/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialNetDriver.h b/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialNetDriver.h
index ee09032cc7..95ea69989e 100644
--- a/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialNetDriver.h
+++ b/SpatialGDK/Source/SpatialGDK/Public/EngineClasses/SpatialNetDriver.h
@@ -163,7 +163,6 @@ class SPATIALGDK_API USpatialNetDriver : public UIpNetDriver
 
 	TMap<Worker_EntityId_Key, USpatialActorChannel*> EntityToActorChannel;
 
-	// Timer manager.
 	FTimerManager* TimerManager;
 
 	bool bAuthoritativeDestruction;