diff --git a/CHANGELOG.md b/CHANGELOG.md
index 99d2ad24..d30b40d9 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -50,6 +50,7 @@
 - Enh #380: Support column's collation (@Tigrov)
 - New #385: Add `Connection::getColumnBuilderClass()` method (@Tigrov)
 - New #384: Implement `ArrayMergeBuilder`, `GreatestBuilder` and `LeastBuilder` classes (@Tigrov)
+- Enh #387: Refactor `DMLQueryBuilder::upsert()` method (@Tigrov)
 
 ## 1.2.0 March 21, 2024
 
diff --git a/src/DMLQueryBuilder.php b/src/DMLQueryBuilder.php
index 429fa2c0..b19eb9ee 100644
--- a/src/DMLQueryBuilder.php
+++ b/src/DMLQueryBuilder.php
@@ -5,7 +5,6 @@
 namespace Yiisoft\Db\Sqlite;
 
 use InvalidArgumentException;
-use Yiisoft\Db\Expression\Expression;
 use Yiisoft\Db\Query\QueryInterface;
 use Yiisoft\Db\QueryBuilder\AbstractDMLQueryBuilder;
 
@@ -73,24 +72,14 @@ public function upsert(
             return $insertSql;
         }
 
-        if ($updateColumns === false || $updateNames === []) {
+        if (empty($updateColumns) || $updateNames === []) {
             /** there are no columns to update */
             return "$insertSql ON CONFLICT DO NOTHING";
         }
 
-        if ($updateColumns === true) {
-            $updateColumns = [];
-
-            /** @psalm-var string[] $updateNames */
-            foreach ($updateNames as $name) {
-                $updateColumns[$name] = new Expression(
-                    'EXCLUDED.' . $this->quoter->quoteColumnName($name)
-                );
-            }
-        }
-
         $quotedUniqueNames = array_map($this->quoter->quoteColumnName(...), $uniqueNames);
-        $updates = $this->prepareUpdateSets($table, $updateColumns, $params);
+        /** @psalm-suppress PossiblyInvalidArgument */
+        $updates = $this->prepareUpsertSets($table, $updateColumns, $updateNames, $params);
 
         return $insertSql
             . ' ON CONFLICT (' . implode(', ', $quotedUniqueNames) . ')'
diff --git a/tests/Provider/QueryBuilderProvider.php b/tests/Provider/QueryBuilderProvider.php
index 65198551..6705c21b 100644
--- a/tests/Provider/QueryBuilderProvider.php
+++ b/tests/Provider/QueryBuilderProvider.php
@@ -226,7 +226,7 @@ public static function upsert(): array
             ],
             'regular values with update part' => [
                 3 => <<<SQL
-                INSERT INTO "T_upsert" ("email", "address", "status", "profile_id") VALUES (:qp0, :qp1, :qp2, :qp3) ON CONFLICT ("email") DO UPDATE SET "address"=:qp4, "status"=:qp5, "orders"=T_upsert.orders + 1
+                INSERT INTO "T_upsert" ("email", "address", "status", "profile_id") VALUES (:qp0, :qp1, :qp2, :qp3) ON CONFLICT ("email") DO UPDATE SET "address"=:qp4, "status"=2, "orders"=T_upsert.orders + 1
                 SQL,
             ],
             'regular values without update part' => [
@@ -241,7 +241,7 @@ public static function upsert(): array
             ],
             'query with update part' => [
                 3 => <<<SQL
-                INSERT INTO "T_upsert" ("email", "status") SELECT "email", 2 AS "status" FROM "customer" WHERE "name" = :qp0 LIMIT 1 ON CONFLICT ("email") DO UPDATE SET "address"=:qp1, "status"=:qp2, "orders"=T_upsert.orders + 1
+                INSERT INTO "T_upsert" ("email", "status") SELECT "email", 2 AS "status" FROM "customer" WHERE "name" = :qp0 LIMIT 1 ON CONFLICT ("email") DO UPDATE SET "address"=:qp1, "status"=2, "orders"=T_upsert.orders + 1
                 SQL,
             ],
             'query without update part' => [
@@ -266,7 +266,7 @@ public static function upsert(): array
             ],
             'query, values and expressions with update part' => [
                 3 => <<<SQL
-                INSERT INTO {{%T_upsert}} ("email", [[ts]]) SELECT :phEmail AS "email", CURRENT_TIMESTAMP AS [[ts]] ON CONFLICT ("email") DO UPDATE SET "ts"=:qp1, "orders"=T_upsert.orders + 1
+                INSERT INTO {{%T_upsert}} ("email", [[ts]]) SELECT :phEmail AS "email", CURRENT_TIMESTAMP AS [[ts]] ON CONFLICT ("email") DO UPDATE SET "ts"=0, "orders"=T_upsert.orders + 1
                 SQL,
             ],
             'query, values and expressions without update part' => [
diff --git a/tests/QueryBuilderTest.php b/tests/QueryBuilderTest.php
index 0aa14801..077dc9ca 100644
--- a/tests/QueryBuilderTest.php
+++ b/tests/QueryBuilderTest.php
@@ -601,7 +601,7 @@ public function testUpdate(
         array|string $condition,
         array $params,
         string $expectedSql,
-        array $expectedParams,
+        array $expectedParams = [],
     ): void {
         parent::testUpdate($table, $columns, $condition, $params, $expectedSql, $expectedParams);
     }