diff --git a/invokeai/app/services/shared/sqlite/sqlite_util.py b/invokeai/app/services/shared/sqlite/sqlite_util.py
index 25006f5aba..7e27182f29 100644
--- a/invokeai/app/services/shared/sqlite/sqlite_util.py
+++ b/invokeai/app/services/shared/sqlite/sqlite_util.py
@@ -10,6 +10,7 @@ from invokeai.app.services.shared.sqlite_migrator.migrations.migration_4 import
 from invokeai.app.services.shared.sqlite_migrator.migrations.migration_5 import build_migration_5
 from invokeai.app.services.shared.sqlite_migrator.migrations.migration_6 import build_migration_6
 from invokeai.app.services.shared.sqlite_migrator.migrations.migration_7 import build_migration_7
+from invokeai.app.services.shared.sqlite_migrator.migrations.migration_8 import build_migration_8
 from invokeai.app.services.shared.sqlite_migrator.sqlite_migrator_impl import SqliteMigrator
 
 
@@ -37,6 +38,7 @@ def init_db(config: InvokeAIAppConfig, logger: Logger, image_files: ImageFileSto
     migrator.register_migration(build_migration_5())
     migrator.register_migration(build_migration_6())
     migrator.register_migration(build_migration_7())
+    migrator.register_migration(build_migration_8(app_config=config))
     migrator.run_migrations()
 
     return db
diff --git a/invokeai/app/services/shared/sqlite_migrator/migrations/migration_8.py b/invokeai/app/services/shared/sqlite_migrator/migrations/migration_8.py
new file mode 100644
index 0000000000..5885e61179
--- /dev/null
+++ b/invokeai/app/services/shared/sqlite_migrator/migrations/migration_8.py
@@ -0,0 +1,83 @@
+import sqlite3
+from pathlib import Path
+
+from invokeai.app.services.config.config_default import InvokeAIAppConfig
+from invokeai.app.services.shared.sqlite_migrator.sqlite_migrator_common import Migration
+
+
+class Migration8Callback:
+    def __init__(self, app_config: InvokeAIAppConfig) -> None:
+        self._app_config = app_config
+
+    def __call__(self, cursor: sqlite3.Cursor) -> None:
+        self._drop_model_config_table(cursor)
+        self._migrate_abs_models_to_rel(cursor)
+
+    def _drop_model_config_table(self, cursor: sqlite3.Cursor) -> None:
+        """Drops the old model_config table. This was missed in a previous migration."""
+
+        cursor.execute("DROP TABLE IF EXISTS model_config;")
+
+    def _migrate_abs_models_to_rel(self, cursor: sqlite3.Cursor) -> None:
+        """Check all model paths & legacy config paths to determine if they are inside Invoke-managed directories. If
+        they are, update the paths to be relative to the managed directories.
+
+        This migration is a no-op for normal users (their paths will already be relative), but is necessary for users
+        who have been testing the RCs with their live databases. The paths were made absolute in the initial RC, but this
+        change was reverted. To smooth over the revert for our tests, we can migrate the paths back to relative.
+        """
+
+        models_dir = self._app_config.models_path
+        legacy_conf_dir = self._app_config.legacy_conf_path
+
+        stmt = """---sql
+        SELECT
+            id,
+            path,
+            json_extract(config, '$.config_path') as config_path
+        FROM models;
+        """
+
+        all_models = cursor.execute(stmt).fetchall()
+
+        for model_id, model_path, model_config_path in all_models:
+            # If the model path is inside the models directory, update it to be relative to the models directory.
+            if model_path.startswith(str(models_dir)):
+                new_path = Path(model_path).relative_to(models_dir)
+                cursor.execute(
+                    """--sql
+                    UPDATE models
+                    SET config = json_set(config, '$.path', ?)
+                    WHERE id = ?;
+                    """,
+                    (str(new_path), model_id),
+                )
+            # If the model has a legacy config path and it is inside the legacy conf directory, update it to be
+            # relative to the legacy conf directory.
+            if model_config_path and model_config_path.startswith(str(legacy_conf_dir)):
+                new_config_path = Path(model_config_path).relative_to(legacy_conf_dir)
+                cursor.execute(
+                    """--sql
+                    UPDATE models
+                    SET config = json_set(config, '$.config_path', ?)
+                    WHERE id = ?;
+                    """,
+                    (str(new_config_path), model_id),
+                )
+
+
+def build_migration_8(app_config: InvokeAIAppConfig) -> Migration:
+    """
+    Build the migration from database version 7 to 8.
+
+    This migration does the following:
+    - Removes the `model_config` table.
+    - Migrates absolute model & legacy config paths to be relative to the models directory.
+    """
+    migration_8 = Migration(
+        from_version=7,
+        to_version=8,
+        callback=Migration8Callback(app_config),
+    )
+
+    return migration_8