diff --git a/workbench_moderation.module b/workbench_moderation.module
index f510e2e..aab06bd 100644
--- a/workbench_moderation.module
+++ b/workbench_moderation.module
@@ -675,13 +675,30 @@ function workbench_moderation_node_update($node) {
     return;
   }
 
-  // Set default moderation state values.
+  // Set moderation state values.
   if (!isset($node->workbench_moderation_state_current)) {
-    $node->workbench_moderation_state_current = ($node->status ? workbench_moderation_state_published() : workbench_moderation_state_none());
-  };
+    $node->workbench_moderation_state_current = !empty($node->original->workbench_moderation['current']->state) ? $node->original->workbench_moderation['current']->state : workbench_moderation_state_none();
+  }
   if (!isset($node->workbench_moderation_state_new)) {
-    $node->workbench_moderation_state_new = variable_get('workbench_moderation_default_state_' . $node->type, workbench_moderation_state_none());
-  };
+    // Moving from published to unpublished.
+    if ($node->status == NODE_NOT_PUBLISHED && isset($node->original->status) && $node->original->status == NODE_PUBLISHED) {
+      $node->workbench_moderation_state_new = variable_get('workbench_moderation_default_state_' . $node->type, workbench_moderation_state_none());
+      $sync_live = true;
+
+    }
+    // Moving from unpublished to published.
+    elseif ($node->status == NODE_PUBLISHED && isset($node->original->status) && $node->original->status == NODE_NOT_PUBLISHED) {
+      $node->workbench_moderation_state_new = workbench_moderation_state_published();
+    }
+    else {
+      if (!empty($node->original->workbench_moderation['current']->state)) {
+        $node->workbench_moderation_state_new = $node->original->workbench_moderation['current']->state;
+      }
+      else {
+        $node->workbench_moderation_state_new = variable_get('workbench_moderation_default_state_' . $node->type, workbench_moderation_state_none());
+      }
+    }
+  }
 
   // If this is a new node, give it some information about 'my revision'.
   if (!isset($node->workbench_moderation)) {
@@ -705,6 +722,17 @@ function workbench_moderation_node_update($node) {
     field_attach_update('node', $node);
     // Moderate the node.
     workbench_moderation_moderate($node, $node->workbench_moderation_state_new);
+
+    if (isset($sync_live) && $sync_live) {
+      // Make sure the 'current' revision is the 'live' revision -- ie, the revision
+      // in {node}.
+      $live_revision = workbench_moderation_node_current_load($node);
+      $live_revision->status = 0;
+      $live_revision->revision = 0;
+      $live_revision->workbench_moderation['updating_live_revision'] = TRUE;
+      // @TODO: do we trust node_save() here?
+      node_save($live_revision);
+    }
   }
 
   return;