diff --git a/odoo/cli/neutralize.py b/odoo/cli/neutralize.py
index bc7b9a40b79..a466af8e6cf 100644
--- a/odoo/cli/neutralize.py
+++ b/odoo/cli/neutralize.py
@@ -35,6 +35,10 @@ class Neutralize(Command):
                 env = odoo.api.Environment(cr, odoo.SUPERUSER_ID, {})
                 for model in env.values():
                     model._neutralize()
+                env['ir.config_parameter'].set_param('database.is_neutralized', True)
+                # Signal changes so the config parameter we just set gets updated in a
+                # running database without requiring a restart.
+                env.registry.signal_changes()
                 with open(Path(__file__).parent / 'neutralize_watermarks.xml', 'rb') as f:
                     odoo.tools.convert_xml_import(cr, "__neutralize__", f)
         except Exception: