diff --git a/packages/pnpm/src/cmd/install.ts b/packages/pnpm/src/cmd/install.ts
index d7144fd156..de4119cb65 100644
--- a/packages/pnpm/src/cmd/install.ts
+++ b/packages/pnpm/src/cmd/install.ts
@@ -9,6 +9,11 @@ import requireHooks from '../requireHooks'
 import {PnpmOptions} from '../types'
 import {recursive} from './recursive'
 
+const OVERWRITE_UPDATE_OPTIONS = {
+  allowNew: true,
+  update: false,
+}
+
 /**
  * Perform installation.
  * @example
@@ -16,7 +21,9 @@ import {recursive} from './recursive'
  */
 export default async function installCmd (
   input: string[],
-  opts: PnpmOptions,
+  opts: PnpmOptions & {
+    allowNew?: boolean,
+  },
 ) {
   // `pnpm install ""` is going to be just `pnpm install`
   input = input.filter(Boolean)
@@ -53,6 +60,7 @@ export default async function installCmd (
     const allWorkspacePkgs = await findWorkspacePackages(opts.workspacePrefix)
     await recursive(allWorkspacePkgs, [], {
       ...opts,
+      ...OVERWRITE_UPDATE_OPTIONS,
       filterByEntryDirectory: prefix,
       inputForEntryDirectory: input,
     }, 'install', 'install')
diff --git a/packages/pnpm/src/cmd/recursive/index.ts b/packages/pnpm/src/cmd/recursive/index.ts
index 4eacb898c2..858a6f8a79 100644
--- a/packages/pnpm/src/cmd/recursive/index.ts
+++ b/packages/pnpm/src/cmd/recursive/index.ts
@@ -80,6 +80,7 @@ export async function recursive (
   allPkgs: Array<{path: string, manifest: PackageJson}>,
   input: string[],
   opts: PnpmOptions & {
+    allowNew?: boolean,
     filterByEntryDirectory?: string,
     inputForEntryDirectory?: string[],
   },
diff --git a/packages/pnpm/src/cmd/update.ts b/packages/pnpm/src/cmd/update.ts
index 8356fa08a0..86056d51df 100644
--- a/packages/pnpm/src/cmd/update.ts
+++ b/packages/pnpm/src/cmd/update.ts
@@ -1,26 +1,9 @@
-import {
-  install,
-  installPkgs,
-} from 'supi'
-import createStoreController from '../createStoreController'
-import requireHooks from '../requireHooks'
 import {PnpmOptions} from '../types'
+import installCmd from './install'
 
 export default async function (
   input: string[],
   opts: PnpmOptions,
 ) {
-  const store = await createStoreController(opts)
-  const updateOpts = Object.assign(opts, {
-    allowNew: false,
-    hooks: !opts.ignorePnpmfile && requireHooks(opts.prefix, opts),
-    store: store.path,
-    storeController: store.ctrl,
-    update: true,
-  })
-
-  if (!input || !input.length) {
-    return install(updateOpts)
-  }
-  return installPkgs(input, updateOpts)
+  return installCmd(input, {...opts, update: true, allowNew: false})
 }
diff --git a/packages/pnpm/test/monorepo/index.ts b/packages/pnpm/test/monorepo/index.ts
index 5a74644fd9..19aa586717 100644
--- a/packages/pnpm/test/monorepo/index.ts
+++ b/packages/pnpm/test/monorepo/index.ts
@@ -164,4 +164,11 @@ test('linking a package inside a monorepo with --link-workspace-packages', async
     const shr = await projects['project-1'].loadShrinkwrap()
     t.equal(shr.optionalDependencies['is-positive'], '1.0.0')
   }
+
+  await execPnpm('update', 'is-negative@2.0.0')
+
+  {
+    const shr = await projects['project-1'].loadShrinkwrap()
+    t.equal(shr.devDependencies['is-negative'], '2.0.0')
+  }
 })