diff --git a/refs.c b/refs.c
index 203a101988..acb153b6f8 100644
--- a/refs.c
+++ b/refs.c
@@ -1217,6 +1217,8 @@ void ref_transaction_free(struct ref_transaction *transaction)
 
 	for (i = 0; i < transaction->nr; i++) {
 		free(transaction->updates[i]->msg);
+		free((char *)transaction->updates[i]->new_target);
+		free((char *)transaction->updates[i]->old_target);
 		free(transaction->updates[i]);
 	}
 	free(transaction->updates);
@@ -1247,10 +1249,13 @@ struct ref_update *ref_transaction_add_update(
 
 	update->flags = flags;
 
-	if (flags & REF_HAVE_NEW)
+	update->new_target = xstrdup_or_null(new_target);
+	update->old_target = xstrdup_or_null(old_target);
+	if ((flags & REF_HAVE_NEW) && new_oid)
 		oidcpy(&update->new_oid, new_oid);
-	if (flags & REF_HAVE_OLD)
+	if ((flags & REF_HAVE_OLD) && old_oid)
 		oidcpy(&update->old_oid, old_oid);
+
 	update->msg = normalize_reflog_message(msg);
 	return update;
 }
@@ -1286,6 +1291,7 @@ int ref_transaction_update(struct ref_transaction *transaction,
 	flags &= REF_TRANSACTION_UPDATE_ALLOWED_FLAGS;
 
 	flags |= (new_oid ? REF_HAVE_NEW : 0) | (old_oid ? REF_HAVE_OLD : 0);
+	flags |= (new_target ? REF_HAVE_NEW : 0) | (old_target ? REF_HAVE_OLD : 0);
 
 	ref_transaction_add_update(transaction, refname, flags,
 				   new_oid, old_oid, new_target,
@@ -2814,3 +2820,8 @@ int copy_existing_ref(const char *oldref, const char *newref, const char *logmsg
 {
 	return refs_copy_existing_ref(get_main_ref_store(the_repository), oldref, newref, logmsg);
 }
+
+int ref_update_has_null_new_value(struct ref_update *update)
+{
+	return !update->new_target && is_null_oid(&update->new_oid);
+}
diff --git a/refs/files-backend.c b/refs/files-backend.c
index 74a713090c..e1f0ca74c0 100644
--- a/refs/files-backend.c
+++ b/refs/files-backend.c
@@ -2434,6 +2434,36 @@ static const char *original_update_refname(struct ref_update *update)
 	return update->refname;
 }
 
+/*
+ * Check whether the old_target values stored in update are consistent
+ * with current_target, which is the symbolic reference's current value.
+ * If everything is OK, return 0; otherwise, write an error message to
+ * err and return -1.
+ */
+static int check_old_target(struct ref_update *update,
+			    const char *current_target,
+			    struct strbuf *err)
+{
+	if (!update->old_target)
+		BUG("called without old_target set");
+
+	if (!strcmp(update->old_target, current_target))
+		return 0;
+
+	if (!strcmp(current_target, ""))
+		strbuf_addf(err, "cannot lock ref '%s': "
+			    "reference is missing but expected %s",
+			    original_update_refname(update),
+			    update->old_target);
+	else
+		strbuf_addf(err, "cannot lock ref '%s': "
+			    "is at %s but expected %s",
+			    original_update_refname(update),
+			    current_target, update->old_target);
+
+	return -1;
+}
+
 /*
  * Check whether the REF_HAVE_OLD and old_oid values stored in update
  * are consistent with oid, which is the reference's current value. If
@@ -2494,7 +2524,7 @@ static int lock_ref_for_update(struct files_ref_store *refs,
 
 	files_assert_main_repository(refs, "lock_ref_for_update");
 
-	if ((update->flags & REF_HAVE_NEW) && is_null_oid(&update->new_oid))
+	if ((update->flags & REF_HAVE_NEW) && ref_update_has_null_new_value(update))
 		update->flags |= REF_DELETING;
 
 	if (head_ref) {
@@ -2537,7 +2567,14 @@ static int lock_ref_for_update(struct files_ref_store *refs,
 					ret = TRANSACTION_GENERIC_ERROR;
 					goto out;
 				}
-			} else if (check_old_oid(update, &lock->old_oid, err)) {
+			}
+
+			if (update->old_target) {
+				if (check_old_target(update, referent.buf, err)) {
+					ret = TRANSACTION_GENERIC_ERROR;
+					goto out;
+				}
+			} else if  (check_old_oid(update, &lock->old_oid, err)) {
 				ret = TRANSACTION_GENERIC_ERROR;
 				goto out;
 			}
@@ -2558,7 +2595,17 @@ static int lock_ref_for_update(struct files_ref_store *refs,
 	} else {
 		struct ref_update *parent_update;
 
-		if (check_old_oid(update, &lock->old_oid, err)) {
+		/*
+		 * Even if the ref is a regular ref, if `old_target` is set, we
+		 * check the referent value. Ideally `old_target` should only
+		 * be set for symrefs, but we're strict about its usage.
+		 */
+		if (update->old_target) {
+			if (check_old_target(update, referent.buf, err)) {
+				ret = TRANSACTION_GENERIC_ERROR;
+				goto out;
+			}
+		} else if  (check_old_oid(update, &lock->old_oid, err)) {
 			ret = TRANSACTION_GENERIC_ERROR;
 			goto out;
 		}
@@ -2576,9 +2623,27 @@ static int lock_ref_for_update(struct files_ref_store *refs,
 		}
 	}
 
-	if ((update->flags & REF_HAVE_NEW) &&
-	    !(update->flags & REF_DELETING) &&
-	    !(update->flags & REF_LOG_ONLY)) {
+	if (update->new_target && !(update->flags & REF_LOG_ONLY)) {
+		if (create_symref_lock(refs, lock, update->refname, update->new_target, err)) {
+			ret = TRANSACTION_GENERIC_ERROR;
+			goto out;
+		}
+
+		if (close_ref_gently(lock)) {
+			strbuf_addf(err, "couldn't close '%s.lock'",
+				    update->refname);
+			ret = TRANSACTION_GENERIC_ERROR;
+			goto out;
+		}
+
+		/*
+		 * Once we have created the symref lock, the commit
+		 * phase of the transaction only needs to commit the lock.
+		 */
+		update->flags |= REF_NEEDS_COMMIT;
+	} else if ((update->flags & REF_HAVE_NEW) &&
+		   !(update->flags & REF_DELETING) &&
+		   !(update->flags & REF_LOG_ONLY)) {
 		if (!(update->type & REF_ISSYMREF) &&
 		    oideq(&lock->old_oid, &update->new_oid)) {
 			/*
@@ -2841,6 +2906,43 @@ static int files_transaction_prepare(struct ref_store *ref_store,
 	return ret;
 }
 
+static int parse_and_write_reflog(struct files_ref_store *refs,
+				  struct ref_update *update,
+				  struct ref_lock *lock,
+				  struct strbuf *err)
+{
+	if (update->new_target) {
+		/*
+		 * We want to get the resolved OID for the target, to ensure
+		 * that the correct value is added to the reflog.
+		 */
+		if (!refs_resolve_ref_unsafe(&refs->base, update->new_target,
+					     RESOLVE_REF_READING,
+					     &update->new_oid, NULL)) {
+			/*
+			 * TODO: currently we skip creating reflogs for dangling
+			 * symref updates. It would be nice to capture this as
+			 * zero oid updates however.
+			 */
+			return 0;
+		}
+	}
+
+	if (files_log_ref_write(refs, lock->ref_name, &lock->old_oid,
+				&update->new_oid, update->msg, update->flags, err)) {
+		char *old_msg = strbuf_detach(err, NULL);
+
+		strbuf_addf(err, "cannot update the ref '%s': %s",
+			    lock->ref_name, old_msg);
+		free(old_msg);
+		unlock_ref(lock);
+		update->backend_data = NULL;
+		return -1;
+	}
+
+	return 0;
+}
+
 static int files_transaction_finish(struct ref_store *ref_store,
 				    struct ref_transaction *transaction,
 				    struct strbuf *err)
@@ -2871,23 +2973,20 @@ static int files_transaction_finish(struct ref_store *ref_store,
 
 		if (update->flags & REF_NEEDS_COMMIT ||
 		    update->flags & REF_LOG_ONLY) {
-			if (files_log_ref_write(refs,
-						lock->ref_name,
-						&lock->old_oid,
-						&update->new_oid,
-						update->msg, update->flags,
-						err)) {
-				char *old_msg = strbuf_detach(err, NULL);
-
-				strbuf_addf(err, "cannot update the ref '%s': %s",
-					    lock->ref_name, old_msg);
-				free(old_msg);
-				unlock_ref(lock);
-				update->backend_data = NULL;
+			if (parse_and_write_reflog(refs, update, lock, err)) {
 				ret = TRANSACTION_GENERIC_ERROR;
 				goto cleanup;
 			}
 		}
+
+		/*
+		 * We try creating a symlink, if that succeeds we continue to the
+		 * next update. If not, we try and create a regular symref.
+		 */
+		if (update->new_target && prefer_symlink_refs)
+			if (!create_ref_symlink(lock, update->new_target))
+				continue;
+
 		if (update->flags & REF_NEEDS_COMMIT) {
 			clear_loose_ref_cache(refs);
 			if (commit_ref(lock)) {
diff --git a/refs/refs-internal.h b/refs/refs-internal.h
index 108f4ec419..03eda70ea4 100644
--- a/refs/refs-internal.h
+++ b/refs/refs-internal.h
@@ -749,4 +749,11 @@ void base_ref_store_init(struct ref_store *refs, struct repository *repo,
  */
 struct ref_store *maybe_debug_wrap_ref_store(const char *gitdir, struct ref_store *store);
 
+/*
+ * Helper function to check if the new value is null, this
+ * takes into consideration that the update could be a regular
+ * ref or a symbolic ref.
+ */
+int ref_update_has_null_new_value(struct ref_update *update);
+
 #endif /* REFS_REFS_INTERNAL_H */
diff --git a/refs/reftable-backend.c b/refs/reftable-backend.c
index 6104471199..54c4d8b771 100644
--- a/refs/reftable-backend.c
+++ b/refs/reftable-backend.c
@@ -856,7 +856,7 @@ static int reftable_be_transaction_prepare(struct ref_store *ref_store,
 			 * There is no need to write the reference deletion
 			 * when the reference in question doesn't exist.
 			 */
-			 if (u->flags & REF_HAVE_NEW && !is_null_oid(&u->new_oid)) {
+			 if ((u->flags & REF_HAVE_NEW) && !ref_update_has_null_new_value(u)) {
 				 ret = queue_transaction_update(refs, tx_data, u,
 								&current_oid, err);
 				 if (ret)
@@ -907,8 +907,10 @@ static int reftable_be_transaction_prepare(struct ref_store *ref_store,
 				 * intertwined with the locking in files-backend.c.
 				 */
 				new_update = ref_transaction_add_update(
-						transaction, referent.buf, new_flags,
-						&u->new_oid, &u->old_oid, NULL, NULL, u->msg);
+					transaction, referent.buf, new_flags,
+					&u->new_oid, &u->old_oid, u->new_target,
+					u->old_target, u->msg);
+
 				new_update->parent_update = u;
 
 				/*
@@ -938,7 +940,22 @@ static int reftable_be_transaction_prepare(struct ref_store *ref_store,
 		 * individual refs. But the error messages match what the files
 		 * backend returns, which keeps our tests happy.
 		 */
-		if (u->flags & REF_HAVE_OLD && !oideq(&current_oid, &u->old_oid)) {
+		if (u->old_target) {
+			if (strcmp(referent.buf, u->old_target)) {
+				if (!strcmp(referent.buf, ""))
+					strbuf_addf(err, "verifying symref target: '%s': "
+						    "reference is missing but expected %s",
+						    original_update_refname(u),
+						    u->old_target);
+				else
+					strbuf_addf(err, "verifying symref target: '%s': "
+						    "is at %s but expected %s",
+						    original_update_refname(u),
+						    referent.buf, u->old_target);
+				ret = -1;
+				goto done;
+			}
+		} else if ((u->flags & REF_HAVE_OLD) && !oideq(&current_oid, &u->old_oid)) {
 			if (is_null_oid(&u->old_oid))
 				strbuf_addf(err, _("cannot lock ref '%s': "
 					    "reference already exists"),
@@ -1043,7 +1060,7 @@ static int write_transaction_table(struct reftable_writer *writer, void *cb_data
 		 * - `core.logAllRefUpdates` tells us to create the reflog for
 		 *   the given ref.
 		 */
-		if (u->flags & REF_HAVE_NEW && !(u->type & REF_ISSYMREF) && is_null_oid(&u->new_oid)) {
+		if ((u->flags & REF_HAVE_NEW) && !(u->type & REF_ISSYMREF) && ref_update_has_null_new_value(u)) {
 			struct reftable_log_record log = {0};
 			struct reftable_iterator it = {0};
 
@@ -1084,24 +1101,50 @@ static int write_transaction_table(struct reftable_writer *writer, void *cb_data
 			   (u->flags & REF_FORCE_CREATE_REFLOG ||
 			    should_write_log(&arg->refs->base, u->refname))) {
 			struct reftable_log_record *log;
+			int create_reflog = 1;
+
+			if (u->new_target) {
+				if (!refs_resolve_ref_unsafe(&arg->refs->base, u->new_target,
+							     RESOLVE_REF_READING, &u->new_oid, NULL)) {
+					/*
+					 * TODO: currently we skip creating reflogs for dangling
+					 * symref updates. It would be nice to capture this as
+					 * zero oid updates however.
+					 */
+					create_reflog = 0;
+				}
+			}
 
-			ALLOC_GROW(logs, logs_nr + 1, logs_alloc);
-			log = &logs[logs_nr++];
-			memset(log, 0, sizeof(*log));
-
-			fill_reftable_log_record(log);
-			log->update_index = ts;
-			log->refname = xstrdup(u->refname);
-			memcpy(log->value.update.new_hash, u->new_oid.hash, GIT_MAX_RAWSZ);
-			memcpy(log->value.update.old_hash, tx_update->current_oid.hash, GIT_MAX_RAWSZ);
-			log->value.update.message =
-				xstrndup(u->msg, arg->refs->write_options.block_size / 2);
+			if (create_reflog) {
+				ALLOC_GROW(logs, logs_nr + 1, logs_alloc);
+				log = &logs[logs_nr++];
+				memset(log, 0, sizeof(*log));
+
+				fill_reftable_log_record(log);
+				log->update_index = ts;
+				log->refname = xstrdup(u->refname);
+				memcpy(log->value.update.new_hash, u->new_oid.hash, GIT_MAX_RAWSZ);
+				memcpy(log->value.update.old_hash, tx_update->current_oid.hash, GIT_MAX_RAWSZ);
+				log->value.update.message =
+					xstrndup(u->msg, arg->refs->write_options.block_size / 2);
+			}
 		}
 
 		if (u->flags & REF_LOG_ONLY)
 			continue;
 
-		if (u->flags & REF_HAVE_NEW && is_null_oid(&u->new_oid)) {
+		if (u->new_target) {
+			struct reftable_ref_record ref = {
+				.refname = (char *)u->refname,
+				.value_type = REFTABLE_REF_SYMREF,
+				.value.symref = (char *)u->new_target,
+				.update_index = ts,
+			};
+
+			ret = reftable_writer_add_ref(writer, &ref);
+			if (ret < 0)
+				goto done;
+		} else if ((u->flags & REF_HAVE_NEW) && ref_update_has_null_new_value(u)) {
 			struct reftable_ref_record ref = {
 				.refname = (char *)u->refname,
 				.update_index = ts,
