Current control approaches for solar sail station-keeping on libration point orbits have not considered the degradation of the sail’s optical properties. However, significant optical degradation could lead to poor station-keeping performance or even complete failure. This paper presents an integrated guidance and control strategy to address this problem by updating the reference orbit based on in situ estimation. An exponential optical degradation model is incorporated into the solar radiation acceleration model, and an on-line reference orbit update approach is incorporated into the station-keeping, coupled with an active disturbance rejection controller. The reflection coefficient is estimated on-line and the reference orbit is updated discretely when the optical properties have degraded by a prescribed amount. This strategy provides discrete updates to the reference orbits such that the perturbation due to the optical degradation is maintained within a small range. These smaller perturbations can be dealt with by the controller’s robustness and station-keeping can be sustained for long durations even in the presence of large optical degradation.