The moves trimmed the Lakers' roster Tuesday to 17 players, two over the NBA maximum.
Upshaw played in four preseason games after showing promise in summer league games. The rangy, undrafted rookie from the University of Washington has ample potential, but apparently couldn't win a backup center job over Tarik Black or Robert Sacre.
Frazier was an undrafted rookie from Florida.
Metta World Peace and Jabari Brown are likely in competition for the final roster spot with the Lakers, who finish their preseason schedule Thursday in Anaheim. They open the regular season next week at home against Minnesota.
Lakers coach Byron Scott says the club hopes to sign Upshaw and Frazier to its D-League affiliate.