diff --git a/AUTHORS.rst b/AUTHORS.rst
index 6b44851..74c01ce 100644
--- a/AUTHORS.rst
+++ b/AUTHORS.rst
@@ -37,6 +37,7 @@ Code contributions:
 - Jesper Schlegel (jesperschlegel)
 - J vanBemmel (jbemmel)
 - m-janicki
+- AryanRG (AryanRG)
 
 
 Suggestions and bug reporting:
diff --git a/CHANGES.rst b/CHANGES.rst
index c4a347d..4b04e9e 100644
--- a/CHANGES.rst
+++ b/CHANGES.rst
@@ -1,6 +1,11 @@
 Changelog
 =========
 
+Unreleased
+----------
+
+* Fix ``Box.update`` rejecting a positional mapping or iterable when keyword updates are also supplied.
+
 Version 7.4.1
 -------------
 
diff --git a/box/box.py b/box/box.py
index 8252643..7e260b4 100644
--- a/box/box.py
+++ b/box/box.py
@@ -820,8 +820,8 @@ def to_dict(self) -> dict:
     def update(self, *args, **kwargs):
         if self._box_config["frozen_box"]:
             raise BoxError("Box is frozen")
-        if (len(args) + int(bool(kwargs))) > 1:
-            raise BoxTypeError(f"update expected at most 1 argument, got {len(args) + int(bool(kwargs))}")
+        if len(args) > 1:
+            raise BoxTypeError(f"update expected at most 1 argument, got {len(args)}")
         single_arg = next(iter(args), None)
         if single_arg:
             if hasattr(single_arg, "keys"):
diff --git a/test/test_box.py b/test/test_box.py
index e5c56e0..defbfef 100644
--- a/test/test_box.py
+++ b/test/test_box.py
@@ -268,6 +268,47 @@ def test_update(self):
         assert a.key1.gg == 4
         assert "new" not in a.key1.keys()
 
+    @pytest.mark.parametrize("source_type", [dict, list, iter])
+    def test_update_source_and_keywords(self, source_type):
+        pairs = [("mode", "source"), ("service", {"timeout": 10})]
+        overrides = {"mode": "override", "workers": [{"id": 1}]}
+        expected = {"keep": True}
+        expected.update(source_type(pairs), **overrides)
+        bx = Box(keep=True)
+
+        assert bx.update(source_type(pairs), **overrides) is None
+
+        assert bx.to_dict() == expected
+        assert isinstance(bx.service, Box)
+        assert bx.service.timeout == 10
+        assert isinstance(bx.workers, BoxList)
+        assert isinstance(bx.workers[0], Box)
+        assert bx.workers[0].id == 1
+
+    def test_update_empty_source_and_keywords(self):
+        bx = Box(keep=True)
+
+        assert bx.update({}, mode="override") is None
+
+        assert bx.to_dict() == {"keep": True, "mode": "override"}
+
+    @pytest.mark.parametrize("kwargs", [{}, {"mode": "override"}])
+    def test_update_rejects_multiple_sources(self, kwargs):
+        bx = Box(keep=True)
+
+        with pytest.raises(TypeError, match="update expected at most 1 argument"):
+            bx.update({"first": 1}, {"second": 2}, **kwargs)
+
+        assert bx.to_dict() == {"keep": True}
+
+    def test_update_source_and_keywords_frozen(self):
+        bx = Box(keep=True, frozen_box=True)
+
+        with pytest.raises(BoxError, match="Box is frozen"):
+            bx.update({"first": 1}, mode="override")
+
+        assert bx.to_dict() == {"keep": True}
+
     def test_merge_update(self):
         a = Box(test_dict)
         a.grand = 1000