diff --git a/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/6_4_0/4348-meta-versionid-incremented-incorrectly-dstu3.yaml b/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/6_4_0/4348-meta-versionid-incremented-incorrectly-dstu3.yaml
new file mode 100644
index 00000000000..d4f5f23fc40
--- /dev/null
+++ b/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/6_4_0/4348-meta-versionid-incremented-incorrectly-dstu3.yaml
@@ -0,0 +1,6 @@
+---
+type: fix
+issue: 4348
+jira: SMILE-5651
+title: "Previously, if a DSTU3 Resource was updated and no changes were made, the `meta.versionId` value was 
+incremented incorrectly. This has been fixed."
diff --git a/hapi-fhir-jpaserver-base/src/main/java/ca/uhn/fhir/jpa/dao/BaseHapiFhirDao.java b/hapi-fhir-jpaserver-base/src/main/java/ca/uhn/fhir/jpa/dao/BaseHapiFhirDao.java
index 48198ed12c3..e6288c8dc20 100644
--- a/hapi-fhir-jpaserver-base/src/main/java/ca/uhn/fhir/jpa/dao/BaseHapiFhirDao.java
+++ b/hapi-fhir-jpaserver-base/src/main/java/ca/uhn/fhir/jpa/dao/BaseHapiFhirDao.java
@@ -705,7 +705,10 @@ public abstract class BaseHapiFhirDao<T extends IBaseResource> extends BaseStora
 						}
 					}
 				}
-
+				boolean allExtensionsRemoved = extensions.isEmpty();
+				if(allExtensionsRemoved){
+					hasExtensions = false;
+				}
 			}
 		}
 
diff --git a/hapi-fhir-jpaserver-test-dstu3/src/test/java/ca/uhn/fhir/jpa/provider/dstu3/ResourceProviderDstu3Test.java b/hapi-fhir-jpaserver-test-dstu3/src/test/java/ca/uhn/fhir/jpa/provider/dstu3/ResourceProviderDstu3Test.java
index 7b07c15b765..f3b827a2ab1 100644
--- a/hapi-fhir-jpaserver-test-dstu3/src/test/java/ca/uhn/fhir/jpa/provider/dstu3/ResourceProviderDstu3Test.java
+++ b/hapi-fhir-jpaserver-test-dstu3/src/test/java/ca/uhn/fhir/jpa/provider/dstu3/ResourceProviderDstu3Test.java
@@ -4576,6 +4576,22 @@ public class ResourceProviderDstu3Test extends BaseResourceProviderDstu3Test {
 		}
 	}
 
+	@Test
+	public void testUpdateResourceAfterReadOperationAndNoChangesShouldNotChangeVersion(){
+		// Create Patient
+		Patient patient = new Patient();
+		patient = (Patient) myClient.create().resource(patient).execute().getResource();
+		assertEquals(1, patient.getIdElement().getVersionIdPartAsLong());
+
+		// Read Patient
+		patient = (Patient) myClient.read().resource("Patient").withId(patient.getIdElement()).execute();
+		assertEquals(1, patient.getIdElement().getVersionIdPartAsLong());
+
+		// Update Patient with no changes
+		patient = (Patient) myClient.update().resource(patient).execute().getResource();
+		assertEquals(1, patient.getIdElement().getVersionIdPartAsLong());
+	}
+
 	@Test
 	public void testValidateBadInputViaGet() throws IOException {
 
diff --git a/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/provider/r4/ResourceProviderR4Test.java b/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/provider/r4/ResourceProviderR4Test.java
index 2490ed2825d..f8fa65efae8 100644
--- a/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/provider/r4/ResourceProviderR4Test.java
+++ b/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/provider/r4/ResourceProviderR4Test.java
@@ -762,6 +762,22 @@ public class ResourceProviderR4Test extends BaseResourceProviderR4Test {
 
 	}
 
+	@Test
+	public void testUpdateResourceAfterReadOperationAndNoChangesShouldNotChangeVersion(){
+		// Create Patient
+		Patient patient = new Patient();
+		patient = (Patient) myClient.create().resource(patient).execute().getResource();
+		assertEquals(1, patient.getIdElement().getVersionIdPartAsLong());
+
+		// Read Patient
+		patient = (Patient) myClient.read().resource("Patient").withId(patient.getIdElement()).execute();
+		assertEquals(1, patient.getIdElement().getVersionIdPartAsLong());
+
+		// Update Patient with no changes
+		patient = (Patient) myClient.update().resource(patient).execute().getResource();
+		assertEquals(1, patient.getIdElement().getVersionIdPartAsLong());
+	}
+
 	@Test
 	public void testCreateWithNoBody() throws IOException {