diff --git a/crates/iceberg/src/catalog/metadata_location.rs b/crates/iceberg/src/catalog/metadata_location.rs
index acd041d5e1..35e6453916 100644
--- a/crates/iceberg/src/catalog/metadata_location.rs
+++ b/crates/iceberg/src/catalog/metadata_location.rs
@@ -83,7 +83,7 @@ impl MetadataLocation {
     /// Updates the metadata location with compression settings from the new metadata.
     pub fn with_new_metadata(&self, new_metadata: &TableMetadata) -> Self {
         Self {
-            table_location: self.table_location.clone(),
+            table_location: new_metadata.location.clone(),
             version: self.version,
             id: self.id,
             compression_codec: Self::compression_from_properties(new_metadata.properties()),
diff --git a/crates/iceberg/src/catalog/mod.rs b/crates/iceberg/src/catalog/mod.rs
index d2dc1ac1a0..f2d03f8e6c 100644
--- a/crates/iceberg/src/catalog/mod.rs
+++ b/crates/iceberg/src/catalog/mod.rs
@@ -2470,7 +2470,7 @@ mod tests {
             updated_table
                 .metadata_location()
                 .unwrap()
-                .starts_with("s3://bucket/test/location/metadata/00001-")
+                .starts_with("s3://bucket/test/new_location/data/metadata/00001-")
         );
 
         assert_eq!(