diff --git a/packages/react-native-gesture-handler/android/src/main/java/com/swmansion/gesturehandler/core/NativeViewGestureHandler.kt b/packages/react-native-gesture-handler/android/src/main/java/com/swmansion/gesturehandler/core/NativeViewGestureHandler.kt
index 42b65158b1..4800c5aa1a 100644
--- a/packages/react-native-gesture-handler/android/src/main/java/com/swmansion/gesturehandler/core/NativeViewGestureHandler.kt
+++ b/packages/react-native-gesture-handler/android/src/main/java/com/swmansion/gesturehandler/core/NativeViewGestureHandler.kt
@@ -201,6 +201,12 @@ class NativeViewGestureHandler : GestureHandler() {
     private fun tryIntercept(view: View, event: MotionEvent) = view is ViewGroup && view.onInterceptTouchEvent(event)
 
     private val defaultHook = object : NativeViewGestureHandlerHook {}
+
+    enum class ScrollDirection(val value: Int) {
+      UP(-1),
+      DOWN(1),
+      NONE(0),
+    }
   }
 
   interface NativeViewGestureHandlerHook {
@@ -304,6 +310,7 @@ class NativeViewGestureHandler : GestureHandler() {
     private val handler: NativeViewGestureHandler,
     private val swipeRefreshLayout: ReactSwipeRefreshLayout,
   ) : NativeViewGestureHandlerHook {
+    private var lastY: Float? = null
     override fun wantsToHandleEventBeforeActivation() = true
 
     override fun handleEventBeforeActivation(event: MotionEvent) {
@@ -323,11 +330,32 @@ class NativeViewGestureHandler : GestureHandler() {
           it is NativeViewGestureHandler
         }
 
-      // If handler was found, it's active and the ScrollView is not at the top, fail the RefreshControl
-      if (scrollHandler != null && scrollHandler.state == STATE_ACTIVE && scroll.scrollY > 0) {
+      // In old API ScrollView was detecting scroll even if RefreshControl hasn't been cancelled yet.
+      // This doesn't work on new API, therefore we check scroll direction. This shouldn't affect old APIs.
+      // To determine scroll direction, we will compare current event with previous one.
+      // Note: Scrolling up is handled by `canScrollVertically` method.
+      val scrollDirection = lastY?.let {
+        val dy = it - event.y
+
+        when {
+          dy < 0 -> ScrollDirection.UP
+          dy > 0 -> ScrollDirection.DOWN
+          else -> ScrollDirection.NONE
+        }
+      } ?: ScrollDirection.NONE
+
+      // We want to fail RefreshControl if we find active ScrollView handler and we either:
+      // 1. scroll down,
+      // 2. scroll up when we are not at the top of the list.
+      if (scrollHandler != null &&
+        scrollHandler.state == STATE_ACTIVE &&
+        (scrollDirection == ScrollDirection.DOWN || scroll.canScrollVertically(ScrollDirection.UP.value))
+      ) {
         handler.fail()
       }
 
+      lastY = event.y
+
       // The drawback is that the smooth transition from scrolling to refreshing in a single swipe
       // is impossible this way and two swipes are required:
       // - one to go back to top
diff --git a/packages/react-native-gesture-handler/src/v3/components/GestureComponents.tsx b/packages/react-native-gesture-handler/src/v3/components/GestureComponents.tsx
index 8c808e8a71..0c53dab2f4 100644
--- a/packages/react-native-gesture-handler/src/v3/components/GestureComponents.tsx
+++ b/packages/react-native-gesture-handler/src/v3/components/GestureComponents.tsx
@@ -77,7 +77,7 @@ export const ScrollView = (
     <GHScrollView
       {...rest}
       ref={props.ref}
-      updateGesture_CAN_CAUSE_INFINITE_RERENDER={updateGesture}
+      onGestureUpdate_CAN_CAUSE_INFINITE_RERENDER={updateGesture}
       // @ts-ignore we don't pass `refreshing` prop as we only want to override the ref
       refreshControl={
         refreshControl