diff --git a/dlt/destinations/impl/filesystem/sql_client.py b/dlt/destinations/impl/filesystem/sql_client.py
index dd1fc6a330..5a0582defd 100644
--- a/dlt/destinations/impl/filesystem/sql_client.py
+++ b/dlt/destinations/impl/filesystem/sql_client.py
@@ -214,14 +214,17 @@ def create_views_for_tables(self, tables: Dict[str, str]) -> None:
                 # unknown views will not be created
                 continue
 
-            # only create view if it does not exist in the current schema yet
-            existing_tables = [tname[0] for tname in self._conn.execute("SHOW TABLES").fetchall()]
-            if view_name in existing_tables:
-                continue
-
             # NOTE: if this is staging configuration then `prepare_load_table` will remove some info
             # from table schema, if we ever extend this to handle staging destination, this needs to change
             schema_table = self.fs_client.prepare_load_table(table_name)
+            table_format = schema_table.get("table_format")
+
+            # skip if view already exists and does not need to be replaced each time
+            existing_tables = [tname[0] for tname in self._conn.execute("SHOW TABLES").fetchall()]
+            needs_replace = table_format == "iceberg"
+            if view_name in existing_tables and not needs_replace:
+                continue
+
             # discover file type
             folder = self.fs_client.get_table_dir(table_name)
             files = self.fs_client.list_table_files(table_name)
@@ -258,9 +261,9 @@ def create_views_for_tables(self, tables: Dict[str, str]) -> None:
 
             # create from statement
             from_statement = ""
-            if schema_table.get("table_format") == "delta":
+            if table_format == "delta":
                 from_statement = f"delta_scan('{resolved_folder}')"
-            elif schema_table.get("table_format") == "iceberg":
+            elif table_format == "iceberg":
                 from dlt.common.libs.pyiceberg import _get_last_metadata_file
 
                 self._setup_iceberg(self._conn)
@@ -283,7 +286,9 @@ def create_views_for_tables(self, tables: Dict[str, str]) -> None:
 
             # create table
             view_name = self.make_qualified_table_name(view_name)
-            create_table_sql_base = f"CREATE VIEW {view_name} AS SELECT * FROM {from_statement}"
+            create_table_sql_base = (
+                f"CREATE OR REPLACE VIEW {view_name} AS SELECT * FROM {from_statement}"
+            )
             self._conn.execute(create_table_sql_base)
 
     @contextmanager
diff --git a/tests/load/filesystem/test_sql_client.py b/tests/load/filesystem/test_sql_client.py
index 1d5eaa9984..7025ef0e18 100644
--- a/tests/load/filesystem/test_sql_client.py
+++ b/tests/load/filesystem/test_sql_client.py
@@ -84,7 +84,7 @@ def double_items():
 
         @dlt.resource(table_format=table_format)
         def arrow_all_types():
-            yield arrow_table_all_data_types("arrow-table")[0]
+            yield arrow_table_all_data_types("arrow-table", num_rows=total_records)[0]
 
         return [items, double_items, arrow_all_types]
 
@@ -180,6 +180,21 @@ def _fs_sql_client_for_external_db(
     # views exist
     assert len(external_db.sql("SELECT * FROM second.referenced_items").fetchall()) == total_records
     assert len(external_db.sql("SELECT * FROM first.items").fetchall()) == 3
+
+    # test if view reflects source table accurately after it has changed
+    # conretely, this tests if an existing view is replaced with formats that need it, such as
+    # `iceberg` table format
+    with fs_sql_client as sql_client:
+        sql_client.create_views_for_tables({"arrow_all_types": "arrow_all_types"})
+    assert external_db.sql("FROM second.arrow_all_types;").arrow().num_rows == total_records
+    pipeline.run(  # run pipeline again to add rows to source table
+        source().with_resources("arrow_all_types"),
+        loader_file_format=destination_config.file_format,
+    )
+    with fs_sql_client as sql_client:
+        sql_client.create_views_for_tables({"arrow_all_types": "arrow_all_types"})
+    assert external_db.sql("FROM second.arrow_all_types;").arrow().num_rows == (2 * total_records)
+
     external_db.close()
 
     # in case we are not connecting to a bucket that needs secrets, views should still be here after connection reopen