diff --git a/runtime/service/src/main/java/org/apache/polaris/service/catalog/policy/PolicyCatalog.java b/runtime/service/src/main/java/org/apache/polaris/service/catalog/policy/PolicyCatalog.java
index 9bd94716d77..557a1a68fe8 100644
--- a/runtime/service/src/main/java/org/apache/polaris/service/catalog/policy/PolicyCatalog.java
+++ b/runtime/service/src/main/java/org/apache/polaris/service/catalog/policy/PolicyCatalog.java
@@ -45,6 +45,7 @@
 import org.apache.polaris.core.entity.PolarisEntityCore;
 import org.apache.polaris.core.entity.PolarisEntitySubType;
 import org.apache.polaris.core.entity.PolarisEntityType;
+import org.apache.polaris.core.exceptions.CommitConflictException;
 import org.apache.polaris.core.persistence.PolarisMetaStoreManager;
 import org.apache.polaris.core.persistence.PolarisResolvedPathWrapper;
 import org.apache.polaris.core.persistence.PolicyMappingAlreadyExistsException;
@@ -249,12 +250,10 @@ public Policy updatePolicy(
                         newPolicyEntity)
                     .getEntity())
             .map(PolicyEntity::of)
-            .orElse(null);
-
-    if (newPolicyEntity == null) {
-      throw new IllegalStateException(
-          String.format("Failed to update policy %s", policyIdentifier));
-    }
+            .orElseThrow(
+                () ->
+                    new CommitConflictException(
+                        "Concurrent modification on policy '%s'; retry later", policyIdentifier));
 
     return constructPolicy(newPolicyEntity);
   }
diff --git a/runtime/service/src/test/java/org/apache/polaris/service/catalog/policy/AbstractPolicyCatalogTest.java b/runtime/service/src/test/java/org/apache/polaris/service/catalog/policy/AbstractPolicyCatalogTest.java
index 3a1152bd5e2..91013d2a826 100644
--- a/runtime/service/src/test/java/org/apache/polaris/service/catalog/policy/AbstractPolicyCatalogTest.java
+++ b/runtime/service/src/test/java/org/apache/polaris/service/catalog/policy/AbstractPolicyCatalogTest.java
@@ -58,9 +58,12 @@
 import org.apache.polaris.core.entity.CatalogEntity;
 import org.apache.polaris.core.entity.PolarisEntity;
 import org.apache.polaris.core.entity.PrincipalEntity;
+import org.apache.polaris.core.exceptions.CommitConflictException;
 import org.apache.polaris.core.identity.provider.ServiceIdentityProvider;
 import org.apache.polaris.core.persistence.PolarisMetaStoreManager;
 import org.apache.polaris.core.persistence.PolicyMappingAlreadyExistsException;
+import org.apache.polaris.core.persistence.dao.entity.BaseResult;
+import org.apache.polaris.core.persistence.dao.entity.EntityResult;
 import org.apache.polaris.core.persistence.resolver.ResolutionManifestFactory;
 import org.apache.polaris.core.persistence.resolver.ResolverFactory;
 import org.apache.polaris.core.policy.PredefinedPolicyTypes;
@@ -420,6 +423,31 @@ public void testUpdatePolicyWithWrongVersion() {
         .isInstanceOf(PolicyVersionMismatchException.class);
   }
 
+  @Test
+  public void testUpdatePolicyLosingConcurrentUpdateIsRetryableConflict() {
+    icebergCatalog.createNamespace(NS);
+    policyCatalog.createPolicy(
+        POLICY1, PredefinedPolicyTypes.DATA_COMPACTION.getName(), "test", "{\"enable\": false}");
+
+    // Simulate another writer winning the compare-and-swap on the policy entity.
+    PolarisMetaStoreManager concurrentlyModified = Mockito.spy(metaStoreManager);
+    Mockito.doReturn(
+            new EntityResult(
+                BaseResult.ReturnStatus.TARGET_ENTITY_CONCURRENTLY_MODIFIED, "simulated"))
+        .when(concurrentlyModified)
+        .updateEntityPropertiesIfNotChanged(Mockito.any(), Mockito.any(), Mockito.any());
+
+    PolicyCatalog catalog =
+        new PolicyCatalog(
+            concurrentlyModified,
+            polarisContext,
+            new PolarisPassthroughResolutionView(
+                resolutionManifestFactory, authenticatedRoot, CATALOG_NAME));
+
+    assertThatThrownBy(() -> catalog.updatePolicy(POLICY1, "updated", "{\"enable\": true}", 0))
+        .isInstanceOf(CommitConflictException.class);
+  }
+
   @Test
   public void testUpdatePolicyWithInvalidContent() {
     icebergCatalog.createNamespace(NS);
diff --git a/spec/generated/bundled-polaris-catalog-service.yaml b/spec/generated/bundled-polaris-catalog-service.yaml
index 27302100176..719dbb911c8 100644
--- a/spec/generated/bundled-polaris-catalog-service.yaml
+++ b/spec/generated/bundled-polaris-catalog-service.yaml
@@ -1766,7 +1766,7 @@ paths:
                 PolicyToUpdateDoesNotExist:
                   $ref: '#/components/examples/NoSuchPolicyError'
         '409':
-          description: The policy version doesn't match the current-policy-version; retry after fetching latest version
+          description: The policy version doesn't match the current-policy-version, or the policy was concurrently modified; retry after fetching latest version
           content:
             application/json:
               schema:
diff --git a/spec/polaris-catalog-apis/policy-apis.yaml b/spec/polaris-catalog-apis/policy-apis.yaml
index 9aa15620cf2..23a5ea87d85 100644
--- a/spec/polaris-catalog-apis/policy-apis.yaml
+++ b/spec/polaris-catalog-apis/policy-apis.yaml
@@ -195,7 +195,7 @@ paths:
                 PolicyToUpdateDoesNotExist:
                   $ref: '#/components/examples/NoSuchPolicyError'
         409:
-          description: "The policy version doesn't match the current-policy-version; retry after fetching latest version"
+          description: "The policy version doesn't match the current-policy-version, or the policy was concurrently modified; retry after fetching latest version"
           content:
             application/json:
               schema: