diff --git a/changelogs/fragments/atomic_update_perms_time.yml b/changelogs/fragments/atomic_update_perms_time.yml
new file mode 100644
index 00000000000..f776845e380
--- /dev/null
+++ b/changelogs/fragments/atomic_update_perms_time.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - module_utils atomic_move (used by most file based modules), now correctly handles permission copy and setting mtime correctly across all paths
diff --git a/lib/ansible/module_utils/basic.py b/lib/ansible/module_utils/basic.py
index 1cbb461a2ae..19dbb1d1541 100644
--- a/lib/ansible/module_utils/basic.py
+++ b/lib/ansible/module_utils/basic.py
@@ -1557,7 +1557,7 @@ class AnsibleModule(object):
         #   Similar to shutil.copy(), but metadata is copied as well - in fact,
         #   this is just shutil.copy() followed by copystat(). This is similar
         #   to the Unix command cp -p.
-        #
+
         # shutil.copystat(src, dst)
         #   Copy the permission bits, last access time, last modification time,
         #   and flags from src to dst. The file contents, owner, and group are
@@ -1660,8 +1660,10 @@ class AnsibleModule(object):
                                     b_tmp_dest_name, context, False)
                             try:
                                 tmp_stat = os.stat(b_tmp_dest_name)
-                                if keep_dest_attrs and dest_stat and (tmp_stat.st_uid != dest_stat.st_uid or tmp_stat.st_gid != dest_stat.st_gid):
-                                    os.chown(b_tmp_dest_name, dest_stat.st_uid, dest_stat.st_gid)
+                                if keep_dest_attrs:
+                                    if dest_stat and (tmp_stat.st_uid != dest_stat.st_uid or tmp_stat.st_gid != dest_stat.st_gid):
+                                        os.chown(b_tmp_dest_name, dest_stat.st_uid, dest_stat.st_gid)
+                                    os.utime(b_tmp_dest_name, times=(time.time(), time.time()))
                             except OSError as e:
                                 if e.errno != errno.EPERM:
                                     raise
diff --git a/test/integration/targets/copy/tasks/tests.yml b/test/integration/targets/copy/tasks/tests.yml
index 906c441541b..35c4cdf9414 100644
--- a/test/integration/targets/copy/tasks/tests.yml
+++ b/test/integration/targets/copy/tasks/tests.yml
@@ -2490,3 +2490,45 @@
         state: absent
       loop:
         - '{{ remote_file }}'
+
+- name: Verify atime and mtime update on content change (diff partition)
+  vars:
+    remote_file: "/var/tmp/foo.txt"
+    ansible_remote_tmp: "/tmp"
+  block:
+    - name: Create a dest file
+      shell: "echo Test content > {{ remote_file }}"
+      register: create_dest_result
+
+    - name: Check the stat results of the file before copying
+      stat:
+        path: "{{ remote_file }}"
+      register: stat_results_before_copy
+
+    - name: Overwrite the file using the content system
+      copy:
+        content: "modified"
+        dest: "{{ remote_file }}"
+        decrypt: no
+      register: copy_result
+
+    - name: Check the stat results of the file after copying
+      stat:
+        path: "{{ remote_file }}"
+      register: stat_results_after_copy
+
+    - name: Assert that the file has changed
+      assert:
+         that:
+           - "create_dest_result is changed"
+           - "copy_result is changed"
+           - "'content' not in copy_result"
+           - "stat_results_before_copy.stat.atime < stat_results_after_copy.stat.atime"
+           - "stat_results_before_copy.stat.mtime < stat_results_after_copy.stat.mtime"
+  always:
+    - name: clean up dest file
+      file:
+        path: '{{ item }}'
+        state: absent
+      loop:
+        - '{{ remote_file }}'