diff --git a/apps/dashboard/pkg/migration/schemaversion/v38.go b/apps/dashboard/pkg/migration/schemaversion/v38.go
index 84171e287c9..2af4817788c 100644
--- a/apps/dashboard/pkg/migration/schemaversion/v38.go
+++ b/apps/dashboard/pkg/migration/schemaversion/v38.go
@@ -112,26 +112,22 @@ func processPanelsV38(panels []interface{}) {
 			continue
 		}
 
-		defaults, ok := fieldConfig["defaults"].(map[string]interface{})
-		if !ok {
-			continue
-		}
-
-		custom, ok := defaults["custom"].(map[string]interface{})
-		if !ok {
-			continue
-		}
-
-		// Migrate displayMode to cellOptions
-		if displayMode, exists := custom["displayMode"]; exists {
-			if displayModeStr, ok := displayMode.(string); ok {
-				custom["cellOptions"] = migrateTableDisplayModeToCellOptions(displayModeStr)
+		// Process defaults.custom if it exists
+		if defaults, ok := fieldConfig["defaults"].(map[string]interface{}); ok {
+			if custom, ok := defaults["custom"].(map[string]interface{}); ok {
+				// Migrate displayMode to cellOptions in defaults
+				if displayMode, exists := custom["displayMode"]; exists {
+					if displayModeStr, ok := displayMode.(string); ok {
+						custom["cellOptions"] = migrateTableDisplayModeToCellOptions(displayModeStr)
+					}
+					// Delete the legacy field
+					delete(custom, "displayMode")
+				}
 			}
-			// Delete the legacy field
-			delete(custom, "displayMode")
 		}
 
 		// Update any overrides referencing the cell display mode
+		// This must be called regardless of whether defaults.custom exists
 		migrateOverrides(fieldConfig)
 	}
 }
diff --git a/apps/dashboard/pkg/migration/schemaversion/v38_test.go b/apps/dashboard/pkg/migration/schemaversion/v38_test.go
index 1032b784c83..c24d1ec734d 100644
--- a/apps/dashboard/pkg/migration/schemaversion/v38_test.go
+++ b/apps/dashboard/pkg/migration/schemaversion/v38_test.go
@@ -440,6 +440,164 @@ func TestV38(t *testing.T) {
 				},
 			},
 		},
+		{
+			name: "table with missing defaults.custom but overrides with custom.displayMode",
+			input: map[string]interface{}{
+				"title":         "V38 Missing Defaults Custom Test",
+				"schemaVersion": 37,
+				"panels": []interface{}{
+					// Table with no custom in defaults but custom.displayMode in overrides
+					map[string]interface{}{
+						"type":  "table",
+						"title": "Table with Missing Defaults Custom",
+						"id":    1,
+						"fieldConfig": map[string]interface{}{
+							"defaults": map[string]interface{}{}, // No custom object
+							"overrides": []interface{}{
+								map[string]interface{}{
+									"matcher": map[string]interface{}{
+										"id":      "byName",
+										"options": "name",
+									},
+									"properties": []interface{}{
+										map[string]interface{}{
+											"id": "color",
+											"value": map[string]interface{}{
+												"fixedColor": "yellow",
+												"mode":       "fixed",
+											},
+										},
+										map[string]interface{}{
+											"id":    "custom.displayMode",
+											"value": "color-background",
+										},
+									},
+								},
+							},
+						},
+					},
+					// Table with empty custom in defaults but custom.displayMode in overrides
+					map[string]interface{}{
+						"type":  "table",
+						"title": "Table with Empty Custom",
+						"id":    2,
+						"fieldConfig": map[string]interface{}{
+							"defaults": map[string]interface{}{
+								"custom": map[string]interface{}{}, // Empty custom object
+							},
+							"overrides": []interface{}{
+								map[string]interface{}{
+									"matcher": map[string]interface{}{
+										"id":      "byName",
+										"options": "status",
+									},
+									"properties": []interface{}{
+										map[string]interface{}{
+											"id":    "custom.displayMode",
+											"value": "gradient-gauge",
+										},
+									},
+								},
+								map[string]interface{}{
+									"matcher": map[string]interface{}{
+										"id":      "byName",
+										"options": "value",
+									},
+									"properties": []interface{}{
+										map[string]interface{}{
+											"id":    "custom.displayMode",
+											"value": "lcd-gauge",
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+			expected: map[string]interface{}{
+				"title":         "V38 Missing Defaults Custom Test",
+				"schemaVersion": 38,
+				"panels": []interface{}{
+					// Table with no custom in defaults but custom.displayMode in overrides (migrated)
+					map[string]interface{}{
+						"type":  "table",
+						"title": "Table with Missing Defaults Custom",
+						"id":    1,
+						"fieldConfig": map[string]interface{}{
+							"defaults": map[string]interface{}{}, // Still no custom object
+							"overrides": []interface{}{
+								map[string]interface{}{
+									"matcher": map[string]interface{}{
+										"id":      "byName",
+										"options": "name",
+									},
+									"properties": []interface{}{
+										map[string]interface{}{
+											"id": "color",
+											"value": map[string]interface{}{
+												"fixedColor": "yellow",
+												"mode":       "fixed",
+											},
+										},
+										map[string]interface{}{
+											"id": "custom.cellOptions",
+											"value": map[string]interface{}{
+												"type": "color-background",
+												"mode": "gradient",
+											},
+										},
+									},
+								},
+							},
+						},
+					},
+					// Table with empty custom in defaults but custom.displayMode in overrides (migrated)
+					map[string]interface{}{
+						"type":  "table",
+						"title": "Table with Empty Custom",
+						"id":    2,
+						"fieldConfig": map[string]interface{}{
+							"defaults": map[string]interface{}{
+								"custom": map[string]interface{}{}, // Empty custom object
+							},
+							"overrides": []interface{}{
+								map[string]interface{}{
+									"matcher": map[string]interface{}{
+										"id":      "byName",
+										"options": "status",
+									},
+									"properties": []interface{}{
+										map[string]interface{}{
+											"id": "custom.cellOptions",
+											"value": map[string]interface{}{
+												"type": "gauge",
+												"mode": "gradient",
+											},
+										},
+									},
+								},
+								map[string]interface{}{
+									"matcher": map[string]interface{}{
+										"id":      "byName",
+										"options": "value",
+									},
+									"properties": []interface{}{
+										map[string]interface{}{
+											"id": "custom.cellOptions",
+											"value": map[string]interface{}{
+												"type": "gauge",
+												"mode": "lcd",
+											},
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
 	}
 	runMigrationTests(t, tests, schemaversion.V38)
 }