diff --git a/src/core.jl b/src/core.jl
index 29b70c12..59452f2b 100644
--- a/src/core.jl
+++ b/src/core.jl
@@ -179,7 +179,19 @@ output and `ȳ` the reverse-mode sensitivity of `y`.
 ∇(y::Node, ȳ) = propagate(tape(y), reverse_tape(y, ȳ))
 @inline ∇(y::Node{<:∇Scalar}) = ∇(y, one(unbox(y)))
 
-@inline ∇(x̄, f, ::Type{Arg{N}}, args...) where N = x̄ + ∇(f, Arg{N}, args...)
+# This is a fallback method where we don't necessarily know what we'll be adding and whether
+# we can update the value in-place, so we'll try to be clever and dispatch.
+@inline ∇(x̄, f, ::Type{Arg{N}}, args...) where {N} = update!(x̄, ∇(f, Arg{N}, args...))
+
+# Update regular arrays in-place. Structured array types should not be updated in-place,
+# even though it technically "works" (https://github.com/JuliaLang/julia/issues/31674),
+# so we'll only permit mutating addition for `Array`s, e.g. `Vector` and `Matrix`.
+# Mixed array and scalar adds should not occur, as sensitivities should always have the
+# same shape, so we won't bother allowing e.g. updating an array with a scalar on the RHS.
+update!(x̄::Array{T,N}, y::AbstractArray{S,N}) where {T,S,N} = x̄ .+= y
+
+# Fall back to using regular addition
+update!(x̄, y) = x̄ + y
 
 """
     ∇(f; get_output::Bool=false)
diff --git a/test/core.jl b/test/core.jl
index 3de763c3..8f8eaed2 100644
--- a/test/core.jl
+++ b/test/core.jl
@@ -190,4 +190,26 @@ let
     @test oned_container(Dict("a"=>5.0, "b"=>randn(3))) == Dict("a"=>1.0, "b"=>ones(3))
 end
 
+# To ensure we end up using the fallback machinery for ∇(x̄, f, ...) we'll define a new
+# function and setup for it to use in the testset below
+quad(A::Matrix, B::Matrix) = B'A*B
+@explicit_intercepts quad Tuple{Matrix, Matrix}
+Nabla.∇(::typeof(quad), ::Type{Arg{1}}, p, Y, Ȳ, A::Matrix, B::Matrix) = B*Ȳ*B'
+Nabla.∇(::typeof(quad), ::Type{Arg{2}}, p, Y, Ȳ, A::Matrix, B::Matrix) = A*B*Ȳ' + A'B*Ȳ
+
+@testset "Mutating values in the tape" begin
+    rng = MersenneTwister(123456)
+    n = 5
+    A = Leaf(Tape(), randn(rng, n, n))
+    B = randn(rng, n, n)
+    Q = quad(A, B)
+    QQ = quad(Q, B)
+    rt = ∇(QQ, Matrix(1.0I, n, n))
+    oldvals = map(deepcopy∘unbox, getfield(rt, :tape))
+    Nabla.propagate(Q, rt)  # This triggers a mutating addition
+    newvals = map(unbox, getfield(rt, :tape))
+    @test !(oldvals[1] ≈ newvals[1])
+    @test oldvals[2:end] ≈ newvals[2:end]
+end
+
 end # testset "core"