diff --git a/sn_node_manager/src/lib.rs b/sn_node_manager/src/lib.rs
index 24ac285ee6..08e7e312c9 100644
--- a/sn_node_manager/src/lib.rs
+++ b/sn_node_manager/src/lib.rs
@@ -544,6 +544,7 @@ mod tests {
     use mockall::{mock, predicate::*};
     use predicates::prelude::*;
     use service_manager::ServiceInstallCtx;
+    use sn_logging::LogFormat;
     use sn_service_management::{
         error::{Error as ServiceControlError, Result as ServiceControlResult},
         node::{NodeService, NodeServiceData},
@@ -2233,6 +2234,156 @@ mod tests {
         Ok(())
     }
 
+    #[tokio::test]
+    async fn upgrade_should_retain_the_log_format_flag() -> Result<()> {
+        let current_version = "0.1.0";
+        let target_version = "0.2.0";
+
+        let tmp_data_dir = assert_fs::TempDir::new()?;
+        let current_install_dir = tmp_data_dir.child("safenode_install");
+        current_install_dir.create_dir_all()?;
+
+        let current_node_bin = current_install_dir.child("safenode");
+        current_node_bin.write_binary(b"fake safenode binary")?;
+        let target_node_bin = tmp_data_dir.child("safenode");
+        target_node_bin.write_binary(b"fake safenode binary")?;
+
+        let mut mock_service_control = MockServiceControl::new();
+        let mut mock_rpc_client = MockRpcClient::new();
+
+        // before binary upgrade
+        mock_service_control
+            .expect_is_service_process_running()
+            .with(eq(1000))
+            .times(1)
+            .returning(|_| true);
+        mock_service_control
+            .expect_stop()
+            .with(eq("safenode1"), eq(false))
+            .times(1)
+            .returning(|_, _| Ok(()));
+
+        // after binary upgrade
+        mock_service_control
+            .expect_uninstall()
+            .with(eq("safenode1"), eq(false))
+            .times(1)
+            .returning(|_, _| Ok(()));
+        mock_service_control
+            .expect_install()
+            .with(
+                eq(ServiceInstallCtx {
+                    args: vec![
+                        OsString::from("--rpc"),
+                        OsString::from("127.0.0.1:8081"),
+                        OsString::from("--root-dir"),
+                        OsString::from("/var/safenode-manager/services/safenode1"),
+                        OsString::from("--log-output-dest"),
+                        OsString::from("/var/log/safenode/safenode1"),
+                        OsString::from("--log-format"),
+                        OsString::from("json"),
+                    ],
+                    contents: None,
+                    environment: None,
+                    label: "safenode1".parse()?,
+                    program: current_node_bin.to_path_buf(),
+                    username: Some("safe".to_string()),
+                    working_directory: None,
+                }),
+                eq(false),
+            )
+            .times(1)
+            .returning(|_, _| Ok(()));
+
+        // after service restart
+        mock_service_control
+            .expect_start()
+            .with(eq("safenode1"), eq(false))
+            .times(1)
+            .returning(|_, _| Ok(()));
+        mock_service_control
+            .expect_wait()
+            .with(eq(3000))
+            .times(1)
+            .returning(|_| ());
+        mock_service_control
+            .expect_get_process_pid()
+            .with(eq(current_node_bin.to_path_buf().clone()))
+            .times(1)
+            .returning(|_| Ok(100));
+        mock_rpc_client.expect_node_info().times(1).returning(|| {
+            Ok(NodeInfo {
+                pid: 2000,
+                peer_id: PeerId::from_str("12D3KooWS2tpXGGTmg2AHFiDh57yPQnat49YHnyqoggzXZWpqkCR")?,
+                data_path: PathBuf::from("/var/safenode-manager/services/safenode1"),
+                log_path: PathBuf::from("/var/log/safenode/safenode1"),
+                version: target_version.to_string(),
+                uptime: std::time::Duration::from_secs(1), // the service was just started
+            })
+        });
+        mock_rpc_client
+            .expect_network_info()
+            .times(1)
+            .returning(|| {
+                Ok(NetworkInfo {
+                    connected_peers: Vec::new(),
+                    listeners: Vec::new(),
+                })
+            });
+
+        let mut service_data = NodeServiceData {
+            connected_peers: None,
+            data_dir_path: PathBuf::from("/var/safenode-manager/services/safenode1"),
+            genesis: false,
+            home_network: false,
+            listen_addr: None,
+            local: false,
+            log_dir_path: PathBuf::from("/var/log/safenode/safenode1"),
+            log_format: Some(LogFormat::Json),
+            metrics_port: None,
+            node_port: None,
+            number: 1,
+            peer_id: Some(PeerId::from_str(
+                "12D3KooWS2tpXGGTmg2AHFiDh57yPQnat49YHnyqoggzXZWpqkCR",
+            )?),
+            pid: Some(1000),
+            reward_balance: Some(NanoTokens::zero()),
+            rpc_socket_addr: SocketAddr::new(IpAddr::V4(Ipv4Addr::new(127, 0, 0, 1)), 8081),
+            safenode_path: current_node_bin.to_path_buf(),
+            service_name: "safenode1".to_string(),
+            status: ServiceStatus::Running,
+            upnp: false,
+            user: Some("safe".to_string()),
+            user_mode: false,
+            version: current_version.to_string(),
+        };
+        let service = NodeService::new(&mut service_data, Box::new(mock_rpc_client));
+        let mut service_manager = ServiceManager::new(
+            service,
+            Box::new(mock_service_control),
+            VerbosityLevel::Normal,
+        );
+
+        service_manager
+            .upgrade(UpgradeOptions {
+                bootstrap_peers: Vec::new(),
+                env_variables: None,
+                force: false,
+                start_service: true,
+                target_bin_path: target_node_bin.to_path_buf(),
+                target_version: Version::parse(target_version).unwrap(),
+            })
+            .await?;
+
+        assert!(service_manager.service.service_data.log_format.is_some());
+        assert_eq!(
+            service_manager.service.service_data.log_format,
+            Some(LogFormat::Json)
+        );
+
+        Ok(())
+    }
+
     #[tokio::test]
     async fn upgrade_should_retain_the_home_network_flag() -> Result<()> {
         let current_version = "0.1.0";