diff --git a/dandiapi/api/services/embargo/__init__.py b/dandiapi/api/services/embargo/__init__.py
index e7a8841ca..5299c156e 100644
--- a/dandiapi/api/services/embargo/__init__.py
+++ b/dandiapi/api/services/embargo/__init__.py
@@ -7,6 +7,7 @@
 
 from dandiapi.api.mail import send_dandiset_unembargoed_message
 from dandiapi.api.models import AssetBlob, Dandiset, Version
+from dandiapi.api.models.asset import Asset
 from dandiapi.api.services import audit
 from dandiapi.api.services.asset.exceptions import DandisetOwnerRequiredError
 from dandiapi.api.services.embargo.utils import _delete_object_tags, remove_dandiset_embargo_tags
@@ -47,6 +48,8 @@ def unembargo_dandiset(ds: Dandiset, user: User):
     logger.info('Removing tags...')
     remove_dandiset_embargo_tags(ds)
 
+    # Set all assets to pending
+    updated_assets = Asset.objects.filter(versions__dandiset=ds).update(status=Asset.Status.PENDING)
     # Update embargoed flag on asset blobs and zarrs
     updated_blobs = AssetBlob.objects.filter(embargoed=True, assets__versions__dandiset=ds).update(
         embargoed=False
@@ -54,6 +57,7 @@ def unembargo_dandiset(ds: Dandiset, user: User):
     updated_zarrs = ZarrArchive.objects.filter(
         embargoed=True, assets__versions__dandiset=ds
     ).update(embargoed=False)
+    logger.info('Set %s assets to PENDING', updated_assets)
     logger.info('Updated %s asset blobs', updated_blobs)
     logger.info('Updated %s zarrs', updated_zarrs)
 
diff --git a/dandiapi/api/tests/test_unembargo.py b/dandiapi/api/tests/test_unembargo.py
index 8fa6149f0..f8b9ce314 100644
--- a/dandiapi/api/tests/test_unembargo.py
+++ b/dandiapi/api/tests/test_unembargo.py
@@ -6,6 +6,7 @@
 from guardian.shortcuts import assign_perm
 import pytest
 
+from dandiapi.api.models.asset import Asset
 from dandiapi.api.models.dandiset import Dandiset
 from dandiapi.api.models.version import Version
 from dandiapi.api.services.embargo import (
@@ -249,7 +250,8 @@ def test_unembargo_dandiset(
         assign_perm('owner', user, ds)
 
     embargoed_blob: AssetBlob = embargoed_asset_blob_factory()
-    draft_version.assets.add(asset_factory(blob=embargoed_blob))
+    blob_asset = asset_factory(blob=embargoed_blob, status=Asset.Status.VALID)
+    draft_version.assets.add(blob_asset)
 
     zarr_archive: ZarrArchive = embargoed_zarr_archive_factory(
         dandiset=ds, status=ZarrArchiveStatus.UPLOADED
@@ -258,9 +260,11 @@ def test_unembargo_dandiset(
         zarr_file_factory(zarr_archive)
     ingest_zarr_archive(zarr_id=zarr_archive.zarr_id)
     zarr_archive.refresh_from_db()
-    draft_version.assets.add(asset_factory(zarr=zarr_archive, blob=None))
+    zarr_asset = asset_factory(zarr=zarr_archive, blob=None, status=Asset.Status.VALID)
+    draft_version.assets.add(zarr_asset)
 
     assert all(asset.is_embargoed for asset in draft_version.assets.all())
+    assert all(asset.status == Asset.Status.VALID for asset in draft_version.assets.all())
 
     # Patch this function to check if it's been called, since we can't test the tagging directly
     patched = mocker.patch('dandiapi.api.services.embargo.utils._delete_object_tags')
@@ -269,6 +273,7 @@ def test_unembargo_dandiset(
 
     assert patched.call_count == 1 + zarr_archive.file_count
     assert not any(asset.is_embargoed for asset in draft_version.assets.all())
+    assert all(asset.status == Asset.Status.PENDING for asset in draft_version.assets.all())
 
     ds.refresh_from_db()
     draft_version.refresh_from_db()