diff --git a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Action.php b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Action.php
index 2a34c8979b..efd3f4ed6f 100644
--- a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Action.php
+++ b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Action.php
@@ -261,7 +261,9 @@ abstract class Action extends DatabasesAction
             $relationId = $relation->getAttribute('$id');
         } elseif (\is_string($relation)) {
             $relationId = $relation;
-        } elseif (!(\is_array($relation) && \array_values($relation) !== $relation)) {
+        } elseif (\is_array($relation) && \array_values($relation) !== $relation) {
+            $relationId = $relation['$id'] ?? null;
+        } else {
             throw new Exception(Exception::RELATIONSHIP_VALUE_INVALID, 'Relationship value must be an object or document ID string, not ' . \gettype($relation));
         }
 
diff --git a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Create.php b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Create.php
index 8927c6b27b..253cf8ec3c 100644
--- a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Create.php
+++ b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Create.php
@@ -309,10 +309,19 @@ class Create extends Action
                 );
 
                 foreach ($relations as &$relation) {
+                    // Generate unique ID for new relation without $id
+                    if (
+                        \is_array($relation)
+                        && \array_values($relation) !== $relation
+                        && !isset($relation['$id'])
+                    ) {
+                        $relation['$id'] = ID::unique();
+                    }
+
                     $this->validateRelationship($relation);
 
+                    // If the relation is an array it can be either update or create a child document.
                     if (\is_array($relation) && \array_values($relation) !== $relation) {
-                        $relation['$id'] = ID::unique();
                         $relation = new Document($relation);
                     }
 
diff --git a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Update.php b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Update.php
index 0f3eb9e026..34f2a45e15 100644
--- a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Update.php
+++ b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Update.php
@@ -201,10 +201,19 @@ class Update extends Action
                 );
 
                 foreach ($relations as &$relation) {
+                    // Generate unique ID for new relation without $id
+                    if (
+                        \is_array($relation)
+                        && \array_values($relation) !== $relation
+                        && !isset($relation['$id'])
+                    ) {
+                        $relation['$id'] = ID::unique();
+                    }
+
                     $this->validateRelationship($relation);
 
+                    // If the relation is an array it can be either update or create a child document.
                     if (\is_array($relation) && \array_values($relation) !== $relation) {
-                        $relation['$id'] = ID::unique();
                         $relation = new Document($relation);
                     }
 
diff --git a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Upsert.php b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Upsert.php
index cdff15c5ab..8b500a9e61 100644
--- a/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Upsert.php
+++ b/src/Appwrite/Platform/Modules/Databases/Http/Databases/Collections/Documents/Upsert.php
@@ -211,10 +211,19 @@ class Upsert extends Action
                 );
 
                 foreach ($relations as &$relation) {
+                    // Generate unique ID for new relation without $id
+                    if (
+                        \is_array($relation)
+                        && \array_values($relation) !== $relation
+                        && !isset($relation['$id'])
+                    ) {
+                        $relation['$id'] = ID::unique();
+                    }
+
                     $this->validateRelationship($relation);
 
+                    // If the relation is an array it can be either update or create a child document.
                     if (\is_array($relation) && \array_values($relation) !== $relation) {
-                        $relation['$id'] = ID::unique();
                         $relation = new Document($relation);
                     }
 
diff --git a/tests/e2e/Services/Databases/TablesDB/DatabasesBase.php b/tests/e2e/Services/Databases/TablesDB/DatabasesBase.php
index 4d0e9e76a2..2ea0c8c108 100644
--- a/tests/e2e/Services/Databases/TablesDB/DatabasesBase.php
+++ b/tests/e2e/Services/Databases/TablesDB/DatabasesBase.php
@@ -7680,7 +7680,7 @@ trait DatabasesBase
         ]);
 
         // Create one-to-many relationship
-        $this->client->call(Client::METHOD_POST, '/tablesdb/' . $databaseId . '/tables/' . $parentTableId . '/columns/relationship', array_merge([
+        $relationship = $this->client->call(Client::METHOD_POST, '/tablesdb/' . $databaseId . '/tables/' . $parentTableId . '/columns/relationship', array_merge([
             'content-type' => 'application/json',
             'x-appwrite-project' => $this->getProject()['$id'],
             'x-appwrite-key' => $this->getProject()['apiKey']
@@ -7690,8 +7690,22 @@ trait DatabasesBase
             'twoWay' => false,
             'key' => 'children',
         ]);
+        $this->assertEquals(202, $relationship['headers']['status-code']);
 
-        sleep(1);
+        // Wait for relationship column to be available
+        $maxAttempts = 10;
+        for ($i = 0; $i < $maxAttempts; $i++) {
+            $columns = $this->client->call(Client::METHOD_GET, '/tablesdb/' . $databaseId . '/tables/' . $parentTableId . '/columns', array_merge([
+                'content-type' => 'application/json',
+                'x-appwrite-project' => $this->getProject()['$id'],
+                'x-appwrite-key' => $this->getProject()['apiKey']
+            ]));
+            $columnKeys = array_column($columns['body']['columns'], 'key');
+            if (in_array('children', $columnKeys)) {
+                break;
+            }
+            usleep(200000);
+        }
 
         // ID too long (>36 chars) should fail
         $response = $this->client->call(Client::METHOD_POST, '/tablesdb/' . $databaseId . '/tables/' . $parentTableId . '/rows', array_merge([