diff --git a/CHANGELOG.md b/CHANGELOG.md
index e0b027d84c..e7c972d2cb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,7 @@ No changes to highlight.
 ## Bug Fixes:
 * Updated the minimum FastApi used in tests to version 0.87 [@freddyaboulton](https://github.com/freddyaboulton) in [PR 2647](https://github.com/gradio-app/gradio/pull/2647)
 * Fixed bug where interfaces with examples could not be loaded with `gr.Interface.load` by [@freddyaboulton](https://github.com/freddyaboulton) [PR 2640](https://github.com/gradio-app/gradio/pull/2640)
+* Fixed bug where the `interactive` property of a component could not be updated by [@freddyaboulton](https://github.com/freddyaboulton) in [PR 2639](https://github.com/gradio-app/gradio/pull/2639)
 
 ## Documentation Changes:
 No changes to highlight.
diff --git a/gradio/blocks.py b/gradio/blocks.py
index f82dcd0c92..4b2e7b00f8 100644
--- a/gradio/blocks.py
+++ b/gradio/blocks.py
@@ -421,10 +421,11 @@ def postprocess_update_dict(block: Block, update_dict: Dict, postprocess: bool =
         update_dict: The original update dictionary
         postprocess: Whether to postprocess the "value" key of the update dictionary.
     """
-    prediction_value = block.get_specific_update(update_dict)
-    if prediction_value.get("value") is components._Keywords.NO_VALUE:
-        prediction_value.pop("value")
-    prediction_value = delete_none(prediction_value, skip_value=True)
+    if update_dict.get("__type__", "") == "generic_update":
+        update_dict = block.get_specific_update(update_dict)
+    if update_dict.get("value") is components._Keywords.NO_VALUE:
+        update_dict.pop("value")
+    prediction_value = delete_none(update_dict, skip_value=True)
     if "value" in prediction_value and postprocess:
         prediction_value["value"] = block.postprocess(prediction_value["value"])
     return prediction_value
diff --git a/test/test_blocks.py b/test/test_blocks.py
index 26ccad7f73..03ae152b45 100644
--- a/test/test_blocks.py
+++ b/test/test_blocks.py
@@ -391,6 +391,35 @@ class TestComponentsInBlocks:
             "value": gr.media_data.BASE64_IMAGE,
         }
 
+    @pytest.mark.asyncio
+    async def test_blocks_update_interactive(
+        self,
+    ):
+        def specific_update():
+            return [
+                gr.Image.update(interactive=True),
+                gr.Textbox.update(interactive=True),
+            ]
+
+        def generic_update():
+            return [gr.update(interactive=True), gr.update(interactive=True)]
+
+        with gr.Blocks() as demo:
+            run = gr.Button(value="Make interactive")
+            image = gr.Image()
+            textbox = gr.Text()
+            run.click(specific_update, None, [image, textbox])
+            run.click(generic_update, None, [image, textbox])
+
+        for fn_index in range(2):
+            output = await demo.process_api(fn_index, [])
+            assert output["data"][0] == {
+                "interactive": True,
+                "__type__": "update",
+                "mode": "dynamic",
+            }
+            assert output["data"][1] == {"__type__": "update", "mode": "dynamic"}
+
 
 class TestCallFunction:
     @pytest.mark.asyncio
@@ -677,7 +706,7 @@ class TestSpecificUpdate:
 
     def test_with_update(self):
         specific_update = gr.Textbox.get_specific_update(
-            {"lines": 4, "__type__": "update"}
+            {"lines": 4, "__type__": "update", "interactive": False}
         )
         assert specific_update == {
             "lines": 4,
@@ -688,19 +717,41 @@ class TestSpecificUpdate:
             "visible": None,
             "value": gr.components._Keywords.NO_VALUE,
             "__type__": "update",
+            "mode": "static",
+        }
+
+        specific_update = gr.Textbox.get_specific_update(
+            {"lines": 4, "__type__": "update", "interactive": True}
+        )
+        assert specific_update == {
+            "lines": 4,
+            "max_lines": None,
+            "placeholder": None,
+            "label": None,
+            "show_label": None,
+            "visible": None,
+            "value": gr.components._Keywords.NO_VALUE,
+            "__type__": "update",
+            "mode": "dynamic",
         }
 
     def test_with_generic_update(self):
         specific_update = gr.Video.get_specific_update(
-            {"visible": True, "value": "test.mp4", "__type__": "generic_update"}
+            {
+                "visible": True,
+                "value": "test.mp4",
+                "__type__": "generic_update",
+                "interactive": True,
+            }
         )
         assert specific_update == {
             "source": None,
             "label": None,
             "show_label": None,
-            "interactive": None,
             "visible": True,
             "value": "test.mp4",
+            "mode": "dynamic",
+            "interactive": True,
             "__type__": "update",
         }
 
diff --git a/test/test_examples.py b/test/test_examples.py
index 5be426b506..6a06fb320d 100644
--- a/test/test_examples.py
+++ b/test/test_examples.py
@@ -151,7 +151,10 @@ class TestProcessExamples:
             cache_examples=True,
         )
         prediction = await io.examples_handler.load_from_cache(1)
-        assert prediction[0] == {"visible": False, "__type__": "update"}
+        assert prediction[0] == {
+            "visible": False,
+            "__type__": "update",
+        }
 
     @pytest.mark.asyncio
     async def test_caching_with_mix_update(self):
@@ -163,7 +166,11 @@ class TestProcessExamples:
             cache_examples=True,
         )
         prediction = await io.examples_handler.load_from_cache(1)
-        assert prediction[0] == {"lines": 4, "value": "hello", "__type__": "update"}
+        assert prediction[0] == {
+            "lines": 4,
+            "value": "hello",
+            "__type__": "update",
+        }
 
     @pytest.mark.asyncio
     async def test_caching_with_dict(self):
@@ -171,15 +178,18 @@ class TestProcessExamples:
         out = gr.Label()
 
         io = gr.Interface(
-            lambda _: {text: gr.update(lines=4), out: "lion"},
+            lambda _: {text: gr.update(lines=4, interactive=False), out: "lion"},
             "textbox",
             [text, out],
             examples=["abc"],
             cache_examples=True,
         )
         prediction = await io.examples_handler.load_from_cache(0)
-        assert prediction == [{"lines": 4, "__type__": "update"}, {"label": "lion"}]
         assert not any(d["trigger"] == "fake_event" for d in io.config["dependencies"])
+        assert prediction == [
+            {"lines": 4, "__type__": "update", "mode": "static"},
+            {"label": "lion"},
+        ]
 
     def test_raise_helpful_error_message_if_providing_partial_examples(self, tmp_path):
         def foo(a, b):