diff --git a/nifi-nar-bundles/nifi-framework-bundle/nifi-framework/nifi-framework-core/src/main/java/org/apache/nifi/controller/serialization/VersionedFlowSynchronizer.java b/nifi-nar-bundles/nifi-framework-bundle/nifi-framework/nifi-framework-core/src/main/java/org/apache/nifi/controller/serialization/VersionedFlowSynchronizer.java
index 7f223b6449..b94f063201 100644
--- a/nifi-nar-bundles/nifi-framework-bundle/nifi-framework/nifi-framework-core/src/main/java/org/apache/nifi/controller/serialization/VersionedFlowSynchronizer.java
+++ b/nifi-nar-bundles/nifi-framework-bundle/nifi-framework/nifi-framework-core/src/main/java/org/apache/nifi/controller/serialization/VersionedFlowSynchronizer.java
@@ -115,6 +115,7 @@ import java.util.Map.Entry;
 import java.util.Objects;
 import java.util.Optional;
 import java.util.Set;
+import java.util.function.Function;
 import java.util.stream.Collectors;
 import java.util.zip.GZIPInputStream;
 
@@ -155,7 +156,7 @@ public class VersionedFlowSynchronizer implements FlowSynchronizer {
 
         // determine if the controller already had flow sync'd to it
         final boolean flowAlreadySynchronized = controller.isFlowSynchronized();
-        logger.info("Synching FlowController with proposed flow: Controller Already Synchronized = {}", flowAlreadySynchronized);
+        logger.info("Synchronizing FlowController with proposed flow: Controller Already Synchronized = {}", flowAlreadySynchronized);
 
         // If bundle update strategy is configured to allow for compatible bundles, update any components to use compatible bundles if
         // the exact bundle does not exist.
@@ -533,50 +534,71 @@ public class VersionedFlowSynchronizer implements FlowSynchronizer {
     }
 
     private void inheritParameterContexts(final FlowController controller, final VersionedDataflow dataflow) {
-        final ParameterContextManager parameterContextManager = controller.getFlowManager().getParameterContextManager();
-
-        // Add any parameter context that doesn't yet exist. We have to add all contexts before updating them because
-        // one context may reference another. We need that reference to exist before we try to create the reference.
-        final Map<String, ParameterContext> parameterContextsByName = parameterContextManager.getParameterContextNameMapping();
-
         controller.getFlowManager().withParameterContextResolution(() -> {
-            for (final VersionedParameterContext versionedParameterContext : dataflow.getParameterContexts()) {
-                inheritParameterContext(versionedParameterContext, controller.getFlowManager(), parameterContextsByName);
+            final List<VersionedParameterContext> parameterContexts = dataflow.getParameterContexts();
+
+            // Build mapping of name to context for resolution of inherited contexts
+            final Map<String, VersionedParameterContext> namedParameterContexts = parameterContexts.stream()
+                    .collect(
+                            Collectors.toMap(VersionedParameterContext::getName, Function.identity())
+                    );
+            for (final VersionedParameterContext versionedParameterContext : parameterContexts) {
+                inheritParameterContext(versionedParameterContext, controller.getFlowManager(), namedParameterContexts);
             }
         });
     }
 
-    private void inheritParameterContext(final VersionedParameterContext versionedParameterContext, final FlowManager flowManager, final Map<String, ParameterContext> parameterContextsByName) {
-        final ParameterContext existingContext = parameterContextsByName.get(versionedParameterContext.getName());
+    private void inheritParameterContext(
+            final VersionedParameterContext versionedParameterContext,
+            final FlowManager flowManager,
+            final Map<String, VersionedParameterContext> namedParameterContexts
+    ) {
+        final ParameterContextManager contextManager = flowManager.getParameterContextManager();
+        final ParameterContext existingContext = contextManager.getParameterContextNameMapping().get(versionedParameterContext.getName());
         if (existingContext == null) {
-            addParameterContext(versionedParameterContext, flowManager);
+            addParameterContext(versionedParameterContext, flowManager, namedParameterContexts);
         } else {
-            updateParameterContext(versionedParameterContext, existingContext, flowManager);
+            updateParameterContext(versionedParameterContext, existingContext, flowManager, namedParameterContexts);
         }
     }
 
-    private void addParameterContext(final VersionedParameterContext versionedParameterContext, final FlowManager flowManager) {
+    private void addParameterContext(
+            final VersionedParameterContext versionedParameterContext,
+            final FlowManager flowManager,
+            final Map<String, VersionedParameterContext> namedParameterContexts
+    ) {
         final Map<String, Parameter> parameters = createParameterMap(versionedParameterContext);
 
         final ParameterContextManager contextManager = flowManager.getParameterContextManager();
-        final List<String> referenceIds = findReferencedParameterContextIds(versionedParameterContext, contextManager);
+        final List<String> referenceIds = findReferencedParameterContextIds(versionedParameterContext, contextManager, namedParameterContexts);
 
         flowManager.createParameterContext(versionedParameterContext.getInstanceIdentifier(), versionedParameterContext.getName(), parameters, referenceIds);
         logger.info("Added Parameter Context {}", versionedParameterContext.getName());
     }
 
-    private List<String> findReferencedParameterContextIds(final VersionedParameterContext versionedParameterContext, final ParameterContextManager contextManager) {
+    private List<String> findReferencedParameterContextIds(
+            final VersionedParameterContext versionedParameterContext,
+            final ParameterContextManager contextManager,
+            final Map<String, VersionedParameterContext> namedParameterContexts
+    ) {
         final List<String> referenceIds = new ArrayList<>();
         final Map<String, ParameterContext> parameterContextsByName = contextManager.getParameterContextNameMapping();
 
         if (versionedParameterContext.getInheritedParameterContexts() != null) {
             for (final String inheritedContextName : versionedParameterContext.getInheritedParameterContexts()) {
-                final ParameterContext existingContext = parameterContextsByName.get(inheritedContextName);
-                if (existingContext == null) {
-                    logger.warn("Parameter Context {} inherits from Parameter Context {} but cannot find a Parameter Context with name {}",
-                        versionedParameterContext.getName(), inheritedContextName, inheritedContextName);
+                // Lookup inherited Parameter Context Name in Versioned Data Flow
+                final VersionedParameterContext inheritedParameterContext = namedParameterContexts.get(inheritedContextName);
+                if (inheritedParameterContext == null) {
+                    // Lookup inherited Parameter Context Name in Parameter Context Manager
+                    final ParameterContext existingContext = parameterContextsByName.get(inheritedContextName);
+                    if (existingContext == null) {
+                        logger.warn("Parameter Context {} inherits from Parameter Context {} but cannot find a Parameter Context with name {}",
+                                versionedParameterContext.getName(), inheritedContextName, inheritedContextName);
+                    } else {
+                        referenceIds.add(existingContext.getIdentifier());
+                    }
                 } else {
-                    referenceIds.add(existingContext.getIdentifier());
+                    referenceIds.add(inheritedParameterContext.getInstanceIdentifier());
                 }
             }
         }
@@ -611,7 +633,12 @@ public class VersionedFlowSynchronizer implements FlowSynchronizer {
         return parameters;
     }
 
-    private void updateParameterContext(final VersionedParameterContext versionedParameterContext, final ParameterContext parameterContext, final FlowManager flowManager) {
+    private void updateParameterContext(
+            final VersionedParameterContext versionedParameterContext,
+            final ParameterContext parameterContext,
+            final FlowManager flowManager,
+            final Map<String, VersionedParameterContext> namedParameterContexts
+    ) {
         final Map<String, Parameter> parameters = createParameterMap(versionedParameterContext);
 
         final Map<String, String> currentValues = new HashMap<>();
@@ -652,7 +679,7 @@ public class VersionedFlowSynchronizer implements FlowSynchronizer {
         }
 
         final ParameterContextManager contextManager = flowManager.getParameterContextManager();
-        final List<String> inheritedContextIds = findReferencedParameterContextIds(versionedParameterContext, contextManager);
+        final List<String> inheritedContextIds = findReferencedParameterContextIds(versionedParameterContext, contextManager, namedParameterContexts);
         final List<ParameterContext> referencedContexts = inheritedContextIds.stream()
             .map(contextManager::getParameterContext)
             .collect(Collectors.toList());