diff --git a/ytypes/node_cache.go b/ytypes/node_cache.go
index f1af617a..f7b12aa8 100644
--- a/ytypes/node_cache.go
+++ b/ytypes/node_cache.go
@@ -123,7 +123,8 @@ func (c *NodeCache) set(path *gpb.Path, val interface{}, opts ...SetNodeOpt) (se
 	}
 
 	// Set value in the config tree.
-	if (*schema).Parent != nil && (*schema).Parent.IsContainer() {
+	// Condition: not a node or the parent is a container.
+	if val.(*gpb.TypedValue).GetJsonIetfVal() == nil || ((*schema).Parent != nil && (*schema).Parent.IsContainer()) {
 		var encoding Encoding
 		var options []UnmarshalOpt
 		if hasSetNodePreferShadowPath(opts) {