diff --git a/apps/worker/services/processing/merging.py b/apps/worker/services/processing/merging.py
index bc5b63d4d..0e26d33f4 100644
--- a/apps/worker/services/processing/merging.py
+++ b/apps/worker/services/processing/merging.py
@@ -129,8 +129,8 @@ def update_uploads(
 
         if result["successful"]:
             update = {
-                "state_id": UploadState.PROCESSED.db_id,
-                "state": "processed",
+                "state_id": UploadState.MERGED.db_id,
+                "state": "merged",
             }
             report = reports.get(upload_id)
             if report is not None:
diff --git a/apps/worker/services/tests/test_merging.py b/apps/worker/services/tests/test_merging.py
new file mode 100644
index 000000000..eb8f99d33
--- /dev/null
+++ b/apps/worker/services/tests/test_merging.py
@@ -0,0 +1,68 @@
+import pytest
+
+from database.tests.factories.core import (
+    CommitFactory,
+    ReportFactory,
+    RepositoryFactory,
+    UploadFactory,
+)
+from services.processing.merging import update_uploads
+from services.processing.types import MergeResult, ProcessingResult
+from shared.reports.enums import UploadState
+from shared.yaml import UserYaml
+
+
+@pytest.mark.django_db(databases={"default"})
+class TestUpdateUploadsState:
+    def test_successful_uploads_set_to_merged(self, dbsession):
+        repository = RepositoryFactory.create()
+        commit = CommitFactory.create(repository=repository)
+        report = ReportFactory.create(commit=commit)
+        upload = UploadFactory.create(
+            report=report,
+            state="started",
+            state_id=UploadState.UPLOADED.db_id,
+        )
+        dbsession.add_all([repository, commit, report, upload])
+        dbsession.flush()
+
+        processing_results: list[ProcessingResult] = [
+            {"upload_id": upload.id_, "successful": True, "arguments": {}},
+        ]
+        merge_result = MergeResult(
+            session_mapping={upload.id_: 0}, deleted_sessions=set()
+        )
+
+        update_uploads(dbsession, UserYaml({}), processing_results, [], merge_result)
+
+        dbsession.refresh(upload)
+        assert upload.state_id == UploadState.MERGED.db_id
+        assert upload.state == "merged"
+
+    def test_failed_uploads_set_to_error(self, dbsession):
+        repository = RepositoryFactory.create()
+        commit = CommitFactory.create(repository=repository)
+        report = ReportFactory.create(commit=commit)
+        upload = UploadFactory.create(
+            report=report,
+            state="started",
+            state_id=UploadState.UPLOADED.db_id,
+        )
+        dbsession.add_all([repository, commit, report, upload])
+        dbsession.flush()
+
+        processing_results: list[ProcessingResult] = [
+            {
+                "upload_id": upload.id_,
+                "successful": False,
+                "arguments": {},
+                "error": {"code": "report_empty", "params": {}},
+            },
+        ]
+        merge_result = MergeResult(session_mapping={}, deleted_sessions=set())
+
+        update_uploads(dbsession, UserYaml({}), processing_results, [], merge_result)
+
+        dbsession.refresh(upload)
+        assert upload.state_id == UploadState.ERROR.db_id
+        assert upload.state == "error"
diff --git a/apps/worker/tasks/tests/unit/test_upload_finisher_task.py b/apps/worker/tasks/tests/unit/test_upload_finisher_task.py
index e325ef65b..1ea95c007 100644
--- a/apps/worker/tasks/tests/unit/test_upload_finisher_task.py
+++ b/apps/worker/tasks/tests/unit/test_upload_finisher_task.py
@@ -1252,11 +1252,11 @@ def mock_process_reports(
                 .first()
             )
             assert updated_upload is not None, "Upload should exist"
-            assert updated_upload.state == "processed", (
-                f"Upload state should be 'processed', got '{updated_upload.state}'"
+            assert updated_upload.state == "merged", (
+                f"Upload state should be 'merged', got '{updated_upload.state}'"
             )
-            assert updated_upload.state_id == UploadState.PROCESSED.db_id, (
-                f"Upload state_id should be {UploadState.PROCESSED.db_id}, got {updated_upload.state_id}"
+            assert updated_upload.state_id == UploadState.MERGED.db_id, (
+                f"Upload state_id should be {UploadState.MERGED.db_id}, got {updated_upload.state_id}"
             )
 
         mock_process = mocker.patch.object(