diff --git a/base/error.go b/base/error.go
index 1d36905357..cddf0a72fa 100644
--- a/base/error.go
+++ b/base/error.go
@@ -237,6 +237,26 @@ func IsDocNotFoundError(err error) bool {
 	}
 }
 
+// IsTemporaryKvError returns true if a kv operation has an error that is likely to be ephemeral. This represents
+// situations where Couchbase Server is under load and would be expected to return a success or failure in a future call.
+func IsTemporaryKvError(err error) bool {
+	if err == nil {
+		return false
+	}
+	// define list of temporary errors
+	temporaryKVError := []error{ErrTimeout, gocb.ErrAmbiguousTimeout, gocb.ErrUnambiguousTimeout,
+		gocb.ErrOverload, gocb.ErrTemporaryFailure, gocb.ErrCircuitBreakerOpen}
+
+	// iterate through to check incoming error is one of them
+	for _, tempKVErr := range temporaryKVError {
+		if errors.Is(err, tempKVErr) {
+			return true
+		}
+	}
+
+	return false
+}
+
 func IsXattrNotFoundError(err error) bool {
 	if unwrappedErr := pkgerrors.Cause(err); unwrappedErr == nil {
 		return false
diff --git a/base/leaky_bucket.go b/base/leaky_bucket.go
index ade1d07a1b..d5042b3b83 100644
--- a/base/leaky_bucket.go
+++ b/base/leaky_bucket.go
@@ -121,6 +121,8 @@ type LeakyBucketConfig struct {
 
 	ForceErrorSetRawKeys []string // Issuing a SetRaw call with a specified key will return an error
 
+	ForceTimeoutErrorOnUpdateKeys []string // Specified keys will return timeout error AFTER write is sent to server
+
 	// Returns a partial error the first time ViewCustom is called
 	FirstTimeViewCustomPartialError bool
 	PostQueryCallback               func(ddoc, viewName string, params map[string]interface{}) // Issues callback after issuing query when bucket.ViewQuery is called
diff --git a/base/leaky_datastore.go b/base/leaky_datastore.go
index 968266d155..ef21118b40 100644
--- a/base/leaky_datastore.go
+++ b/base/leaky_datastore.go
@@ -12,6 +12,7 @@ import (
 	"context"
 	"errors"
 	"fmt"
+	"slices"
 	"time"
 
 	sgbucket "github.com/couchbase/sg-bucket"
@@ -153,7 +154,11 @@ func (lds *LeakyDataStore) Update(k string, exp uint32, callback sgbucket.Update
 			lds.config.UpdateCallback(k)
 			return updated, expiry, isDelete, err
 		}
-		return lds.dataStore.Update(k, exp, wrapperCallback)
+		casOut, err = lds.dataStore.Update(k, exp, wrapperCallback)
+		if slices.Contains(lds.config.ForceTimeoutErrorOnUpdateKeys, k) {
+			return 0, ErrTimeout
+		}
+		return casOut, err
 	}
 
 	casOut, err = lds.dataStore.Update(k, exp, callback)
@@ -267,7 +272,11 @@ func (lds *LeakyDataStore) WriteUpdateWithXattrs(ctx context.Context, k string,
 			lds.config.UpdateCallback(k)
 			return updatedDoc, err
 		}
-		return lds.dataStore.WriteUpdateWithXattrs(ctx, k, xattrKeys, exp, previous, opts, wrapperCallback)
+		casOut, err = lds.dataStore.WriteUpdateWithXattrs(ctx, k, xattrKeys, exp, previous, opts, wrapperCallback)
+		if slices.Contains(lds.config.ForceTimeoutErrorOnUpdateKeys, k) {
+			return 0, ErrTimeout
+		}
+		return casOut, err
 	}
 	return lds.dataStore.WriteUpdateWithXattrs(ctx, k, xattrKeys, exp, previous, opts, callback)
 }
diff --git a/db/crud.go b/db/crud.go
index 06a1c6c1d0..2cc5c8ce1d 100644
--- a/db/crud.go
+++ b/db/crud.go
@@ -2096,15 +2096,17 @@ func (db *DatabaseCollectionWithUser) updateAndReturnDoc(ctx context.Context, do
 
 	// If the WriteUpdate didn't succeed, check whether there are unused, allocated sequences that need to be accounted for
 	if err != nil {
-		if docSequence > 0 {
-			if seqErr := db.sequences().releaseSequence(ctx, docSequence); seqErr != nil {
-				base.WarnfCtx(ctx, "Error returned when releasing sequence %d. Falling back to skipped sequence handling.  Error:%v", docSequence, seqErr)
-			}
+		if !base.IsTemporaryKvError(err) {
+			if docSequence > 0 {
+				if seqErr := db.sequences().releaseSequence(ctx, docSequence); seqErr != nil {
+					base.WarnfCtx(ctx, "Error returned when releasing sequence %d. Falling back to skipped sequence handling.  Error:%v", docSequence, seqErr)
+				}
 
-		}
-		for _, sequence := range unusedSequences {
-			if seqErr := db.sequences().releaseSequence(ctx, sequence); seqErr != nil {
-				base.WarnfCtx(ctx, "Error returned when releasing sequence %d. Falling back to skipped sequence handling.  Error:%v", sequence, seqErr)
+			}
+			for _, sequence := range unusedSequences {
+				if seqErr := db.sequences().releaseSequence(ctx, sequence); seqErr != nil {
+					base.WarnfCtx(ctx, "Error returned when releasing sequence %d. Falling back to skipped sequence handling.  Error:%v", sequence, seqErr)
+				}
 			}
 		}
 	}
diff --git a/db/crud_test.go b/db/crud_test.go
index 2a6d7f5fe6..191a690060 100644
--- a/db/crud_test.go
+++ b/db/crud_test.go
@@ -1680,3 +1680,88 @@ func TestAssignSequenceReleaseLoop(t *testing.T) {
 	releasedSequenceCount := db.DbStats.Database().SequenceReleasedCount.Value() - startReleasedSequenceCount
 	assert.Equal(t, int64(expectedReleasedSequenceCount), releasedSequenceCount)
 }
+
+// TestReleaseSequenceOnDocWrite:
+//   - Define a leaky bucket callback for a conflicting write + define key to return a timeout error for
+//   - Setup db with leaky bucket config
+//   - Init a channel cache by calling changes
+//   - Write a doc that will return timeout error but will successfully persist
+//   - Wait for it to arrive at change cache
+//   - Assert we don't release a sequence for it + we have it in changes cache
+//   - Write new doc with conflict error
+//   - Assert we release a sequence for this
+func TestReleaseSequenceOnDocWriteFailure(t *testing.T) {
+	defer SuspendSequenceBatching()()
+	base.SetUpTestLogging(t, base.LevelDebug, base.KeyAll)
+
+	var ctx context.Context
+	var db *Database
+	var forceDocConflict bool
+
+	const (
+		conflictDoc = "doc1"
+		timeoutDoc  = "doc"
+	)
+
+	// call back to create a conflict mid write and force a non timeout error upon write attempt
+	writeUpdateCallback := func(key string) {
+		if key == conflictDoc && forceDocConflict {
+			forceDocConflict = false
+			body := Body{"test": "doc"}
+			collection, ctx := GetSingleDatabaseCollectionWithUser(ctx, t, db)
+			_, _, err := collection.Put(ctx, conflictDoc, body)
+			require.NoError(t, err)
+		}
+	}
+
+	callbackConfig := base.LeakyBucketConfig{
+		UpdateCallback:                writeUpdateCallback,
+		ForceTimeoutErrorOnUpdateKeys: []string{timeoutDoc},
+	}
+
+	db, ctx = setupTestLeakyDBWithCacheOptions(t, DefaultCacheOptions(), callbackConfig)
+	defer db.Close(ctx)
+	collection, ctx := GetSingleDatabaseCollectionWithUser(ctx, t, db)
+
+	// init channel cache, this will make changes call after timeout doc is written below fail pre changes made in CBG-4067,
+	// due to duplicate sequence at the cache with an unused sequence. See steps in ticket CBG-4067 as example.
+	_, err := collection.GetChanges(ctx, base.SetOf("*"), getChangesOptionsWithZeroSeq(t))
+	require.NoError(t, err)
+
+	assert.Equal(t, int64(0), db.DbStats.Database().SequenceReleasedCount.Value())
+
+	// write doc that will return timeout but will actually be persisted successfully on server
+	// this mimics what was seen before
+	_, _, err = collection.Put(ctx, timeoutDoc, Body{"test": "doc"})
+	require.Error(t, err)
+
+	// wait for changes
+	require.NoError(t, collection.WaitForPendingChanges(ctx))
+
+	// assert that no sequences were released + a sequence was cached
+	require.EventuallyWithT(t, func(c *assert.CollectT) {
+		db.UpdateCalculatedStats(ctx)
+		assert.Equal(t, int64(0), db.DbStats.Database().SequenceReleasedCount.Value())
+		assert.Equal(t, int64(1), db.DbStats.Cache().HighSeqCached.Value())
+	}, time.Second*10, time.Millisecond*100)
+
+	// get cached changes + assert the document is present
+	changes, err := collection.GetChanges(ctx, base.SetOf("*"), getChangesOptionsWithZeroSeq(t))
+	require.NoError(t, err)
+	require.Len(t, changes, 1)
+	assert.Equal(t, timeoutDoc, changes[0].ID)
+
+	// write doc that will have a conflict error, we should expect the document sequence to be released
+	forceDocConflict = true
+	_, _, err = collection.Put(ctx, conflictDoc, Body{"test": "doc"})
+	require.Error(t, err)
+
+	// wait for changes
+	require.NoError(t, collection.WaitForPendingChanges(ctx))
+
+	// assert that a sequence was released after the above write error
+	require.EventuallyWithT(t, func(c *assert.CollectT) {
+		db.UpdateCalculatedStats(ctx)
+		assert.Equal(t, int64(1), db.DbStats.Database().SequenceReleasedCount.Value())
+	}, time.Second*10, time.Millisecond*100)
+}