diff --git a/pyvcloud/vcd/vapp.py b/pyvcloud/vcd/vapp.py
index f74489581..898ebb469 100644
--- a/pyvcloud/vcd/vapp.py
+++ b/pyvcloud/vcd/vapp.py
@@ -2028,11 +2028,17 @@ def update_product_section(self,
             if class_name == class_val and instance_name == instance_val:
                 properties = product_section.xpath(
                     'ovf:Property', namespaces=NSMAP)
-                for prop in properties:
-                    id = prop.get('{' + NSMAP['ovf'] + '}key')
-                    if key == id:
-                        prop.getparent().remove(prop)
-                product_section.append(property)
+                prop = self.find_prop(properties, key)
+                if prop is not None:
+                    if hasattr(prop, "Value"):
+                        _value = prop.Value
+                        _value.set("{" + NSMAP["ovf"] + "}value", str(value))
+                    else:
+                        _value = E_OVF.Value()
+                        _value.set("{" + NSMAP["ovf"] + "}value", str(value))
+                        prop.append(_value)
+                else:
+                    product_section.append(property)
                 is_updated = True
                 break
         if not is_updated:
@@ -2052,6 +2058,13 @@ def update_product_section(self,
             media_type=EntityType.PRODUCT_SECTIONS.value,
             contents=product_sections_res)
 
+    def find_prop(self, properties, key):
+        for prop in properties:
+            id = prop.get("{" + NSMAP["ovf"] + "}key")
+            if key == id:
+                return prop
+        return
+
     def list_vm_interface(self, network_name):
         """List vm interfaces of network.
 
diff --git a/tests/vcd_vapp_vm.py b/tests/vcd_vapp_vm.py
index 391e69e37..020a5eecd 100644
--- a/tests/vcd_vapp_vm.py
+++ b/tests/vcd_vapp_vm.py
@@ -199,5 +199,31 @@ def test_1005_reboot_vapp(self):
             callback=None)
         assert task.get('status') == TaskStatus.SUCCESS.value
 
+    def test_001_update_product_section(self):
+        _org=self.client.get_org_by_name(org_name=self.config['vcd']['org_to_use'])
+        org = Org(self.client, resource=_org)
+        v = org.get_vdc(self.config['vcd']['vdc'])
+        vdc = VDC(self.client, href=v.get('href'))
+        assert self.config['vcd']['vdc'] == vdc.get_resource().get('name')
+        vapp_resource = vdc.get_vapp(self.config['vcd']['vapp'])
+        assert vapp_resource.get('name') == self.config['vcd']['vapp']
+        vapp = VApp(self.client, resource=vapp_resource)
+        key_to_be_updated = "guestinfo.ignition.config.data.encoding"
+        value_to_be_updated_for_key = "base64"
+        result = vapp.update_product_section(key=key_to_be_updated, value=value_to_be_updated_for_key, instance_name=self.config['vcd']['vm'])
+        task = self.client.get_task_monitor().wait_for_status(
+            task=result,
+            timeout=60,
+            poll_frequency=2,
+            fail_on_statuses=None,
+            expected_target_statuses=[
+                TaskStatus.SUCCESS,
+                TaskStatus.ABORTED,
+                TaskStatus.ERROR,
+                TaskStatus.CANCELED],
+            callback=None)
+        assert task.get('status') == TaskStatus.SUCCESS.value
+
+
 if __name__ == '__main__':
     unittest.main()