diff --git a/src/peft/mixed_model.py b/src/peft/mixed_model.py
index 098bd0d4fd..e605110bd8 100644
--- a/src/peft/mixed_model.py
+++ b/src/peft/mixed_model.py
@@ -266,7 +266,7 @@ def set_modules_to_save(self, peft_config: PeftConfig, adapter_name: str) -> Non
             self.modules_to_save = set(modules_to_save)
         else:
             self.modules_to_save.update(modules_to_save)
-        _set_trainable(self, adapter_name)
+        _set_trainable(self, adapter_name, modules_to_save=peft_config.modules_to_save)
 
     def set_adapter(self, adapter_name: Union[str, list[str]]) -> None:
         """
diff --git a/src/peft/peft_model.py b/src/peft/peft_model.py
index 66eba17b3b..548b7a560b 100644
--- a/src/peft/peft_model.py
+++ b/src/peft/peft_model.py
@@ -967,7 +967,8 @@ def set_additional_trainable_modules(self, peft_config, adapter_name):
                 self.modules_to_save = set(peft_config.modules_to_save)
             else:
                 self.modules_to_save.update(peft_config.modules_to_save)
-            _set_trainable(self, adapter_name)  # this may add a new ModulesToSaveWrapper
+            # this may add a new ModulesToSaveWrapper
+            _set_trainable(self, adapter_name, modules_to_save=peft_config.modules_to_save)
 
     def get_layer_status(self) -> list[TunerLayerStatus]:
         """Get the status of each adapter layer in the model.
@@ -1457,7 +1458,7 @@ def __init__(
                 break
 
         # to make sure classifier layer is trainable; this may add a new ModulesToSaveWrapper
-        _set_trainable(self, adapter_name)
+        _set_trainable(self, adapter_name, modules_to_save=peft_config.modules_to_save)
 
     def add_adapter(self, adapter_name: str, peft_config: PeftConfig, low_cpu_mem_usage: bool = False) -> None:
         """
@@ -2190,7 +2191,7 @@ def __init__(
                 break
 
         # to make sure classifier layer is trainable; this may add a new ModulesToSaveWrapper
-        _set_trainable(self, adapter_name)
+        _set_trainable(self, adapter_name, modules_to_save=peft_config.modules_to_save)
 
     def add_adapter(self, adapter_name: str, peft_config: PeftConfig, low_cpu_mem_usage: bool = False) -> None:
         """
@@ -2411,7 +2412,7 @@ def __init__(
                 break
 
         # to make sure classifier layer is trainable; this may add a new ModulesToSaveWrapper
-        _set_trainable(self, adapter_name)
+        _set_trainable(self, adapter_name, modules_to_save=peft_config.modules_to_save)
 
     def add_adapter(self, adapter_name: str, peft_config: PeftConfig, low_cpu_mem_usage: bool = False) -> None:
         """
diff --git a/src/peft/utils/other.py b/src/peft/utils/other.py
index 8d0b7f7f06..43974c72ae 100644
--- a/src/peft/utils/other.py
+++ b/src/peft/utils/other.py
@@ -273,8 +273,10 @@ def update(self, adapter_name):
 
                 context_manager = deepspeed.zero.GatheredParameters(self.original_module.parameters(), modifier_rank=0)
                 break
-        with context_manager:
-            self.modules_to_save.update(torch.nn.ModuleDict({adapter_name: copy.deepcopy(self.original_module)}))
+
+        if adapter_name not in self.modules_to_save:
+            with context_manager:
+                self.modules_to_save[adapter_name] = copy.deepcopy(self.original_module)
 
         if hasattr(self.modules_to_save[adapter_name], "_hf_hook"):
             old_hook = self.modules_to_save[adapter_name]._hf_hook
@@ -414,10 +416,10 @@ def _freeze_adapter(model, adapter_name):
             p.requires_grad = False
 
 
-def _set_trainable(model, adapter_name):
+def _set_trainable(model, adapter_name, modules_to_save):
     key_list = [key for key, _ in model.named_modules()]
     for key in key_list:
-        target_module_found = any(key.endswith(target_key) for target_key in model.modules_to_save)
+        target_module_found = any(key.endswith(target_key) for target_key in modules_to_save)
         if target_module_found:
             parent, target, target_name = _get_submodules(model, key)
             if isinstance(target, ModulesToSaveWrapper):
diff --git a/tests/test_custom_models.py b/tests/test_custom_models.py
index 611b07bf97..654e8c2af4 100644
--- a/tests/test_custom_models.py
+++ b/tests/test_custom_models.py
@@ -1529,6 +1529,26 @@ def test_multiple_adapters_seq_cls_mixed_modules_to_save_merging_adapters(self):
         with pytest.raises(ValueError, match=msg):
             model.add_weighted_adapter(["default", "other"], weights=[1.0, 1.0], adapter_name="merged")
 
+    def test_multiple_adapters_no_needless_copy_modules_to_save(self):
+        # See 2206
+        # The problem was that we keep a "global" modules_to_save on the model which contains all possible
+        # modules_to_save for each adapter. When the first adapter targets embed_tokens with modules_to_save and the
+        # second adapter targets lm_head, then embed_tokens will create a copy of the original module for the second
+        # adapter, even though it's not needed. The copy still acts as expected but uses unnecessary memory.
+        model_id = "hf-internal-testing/tiny-random-OPTForCausalLM"
+        model = AutoModelForCausalLM.from_pretrained(model_id).to(self.torch_device)
+        config0 = LoraConfig(modules_to_save=["embed_tokens"])
+        config1 = LoraConfig(modules_to_save=["lm_head"])
+        model = get_peft_model(model, config0)
+        model.add_adapter("other", config1)
+
+        lm_head_keys = list(model.base_model.model.lm_head.modules_to_save.keys())
+        assert lm_head_keys == ["other"]
+
+        embed_token_keys = list(model.base_model.model.model.decoder.embed_tokens.modules_to_save.keys())
+        # before the fix, this would be: ['default', 'other']
+        assert embed_token_keys == ["default"]
+
     def test_existing_model_card(self):
         # ensure that if there is already a model card, it is not overwritten
         model = MLP()