diff --git a/api/edge_api/identities/views.py b/api/edge_api/identities/views.py
index da93252720ca..aa7aaea7effb 100644
--- a/api/edge_api/identities/views.py
+++ b/api/edge_api/identities/views.py
@@ -342,14 +342,21 @@ def initial(self, request, *args, **kwargs):  # type: ignore[no-untyped-def]
         serializer = EdgeIdentityIdentifierSerializer(data=request.data)
         serializer.is_valid(raise_exception=True)
 
+        identifier = serializer.data["identifier"]
+        environment_api_key = self.kwargs["environment_api_key"]
+
         identity_document = EdgeIdentity.dynamo_wrapper.get_item(
-            f"{self.kwargs['environment_api_key']}_{serializer.data['identifier']}"
+            f"{environment_api_key}_{identifier}"
         )
 
-        if not identity_document:
-            raise NotFound()
-
-        self.identity = EdgeIdentity.from_identity_document(identity_document)
+        if identity_document:
+            self.identity = EdgeIdentity.from_identity_document(identity_document)
+        else:
+            self.identity = EdgeIdentity(
+                engine_identity_model=IdentityModel(
+                    identifier=identifier, environment_api_key=environment_api_key
+                )
+            )
 
     @swagger_auto_schema(
         request_body=EdgeIdentityWithIdentifierFeatureStateRequestBody,
diff --git a/api/tests/integration/edge_api/identities/test_edge_identity_featurestates_viewset.py b/api/tests/integration/edge_api/identities/test_edge_identity_featurestates_viewset.py
index e77cac9e753a..e7a10d5376cb 100644
--- a/api/tests/integration/edge_api/identities/test_edge_identity_featurestates_viewset.py
+++ b/api/tests/integration/edge_api/identities/test_edge_identity_featurestates_viewset.py
@@ -896,6 +896,58 @@ def test_edge_identities_with_identifier_update_featurestate(  # type: ignore[no
     )
 
 
+def test_put_identity_override_creates_identity_if_not_found(
+    dynamodb_wrapper_v2: DynamoEnvironmentV2Wrapper,
+    admin_client: APIClient,
+    environment: Environment,
+    environment_api_key: str,
+    feature: Feature,
+    webhook_mock: mock.MagicMock,
+    flagsmith_identities_table: Table,
+):
+    # Given
+    identifier = "some_new_identity"
+    url = reverse(
+        "api-v1:environments:edge-identities-with-identifier-featurestates",
+        args=[environment_api_key],
+    )
+    expected_feature_state_value = "new_feature_state_value"
+    expected_fs_enabled = True
+    data = {
+        "multivariate_feature_state_values": [],
+        "enabled": expected_fs_enabled,
+        "feature": feature,
+        "feature_state_value": expected_feature_state_value,
+        "identifier": identifier,
+    }
+
+    # When
+    response = admin_client.put(
+        url, data=json.dumps(data), content_type="application/json"
+    )
+
+    # Then
+    assert response.status_code == status.HTTP_200_OK
+    assert response.json()["feature"] == feature
+    assert response.json()["feature_state_value"] == expected_feature_state_value
+    assert response.json()["enabled"] == data["enabled"]
+
+    # Let's verify that the identity was added to the table
+    identity = flagsmith_identities_table.get_item(
+        Key={"composite_key": f"{environment_api_key}_{identifier}"}
+    )["Item"]
+    assert identity["identifier"] == identifier
+
+    # and that they have the relevant override
+    assert len(identity["identity_features"]) == 1
+    assert identity["identity_features"][0]["feature"]["id"] == feature
+    assert identity["identity_features"][0]["enabled"] == expected_fs_enabled
+    assert (
+        identity["identity_features"][0]["feature_state_value"]
+        == expected_feature_state_value
+    )
+
+
 @pytest.mark.parametrize(
     "segment_override_type, segment_override_value",
     (