diff --git a/.changeset/olive-falcons-share.md b/.changeset/olive-falcons-share.md
new file mode 100644
index 0000000000..f047afa25c
--- /dev/null
+++ b/.changeset/olive-falcons-share.md
@@ -0,0 +1,6 @@
+---
+"@pnpm/resolve-dependencies": major
+"@pnpm/core": major
+---
+
+The update options are passed on per project basis. So the `update` and `updateMatching` options are options of importers/projects.
diff --git a/pkg-manager/core/src/index.ts b/pkg-manager/core/src/index.ts
index 44f2b15c8a..131446ec07 100644
--- a/pkg-manager/core/src/index.ts
+++ b/pkg-manager/core/src/index.ts
@@ -14,3 +14,4 @@ export { ProjectOptions, UnexpectedStoreError, UnexpectedVirtualStoreDirError }
 export { InstallOptions } from './install/extendInstallOptions'
 
 export { WorkspacePackages } from '@pnpm/resolver-base'
+export { UpdateMatchingFunction } from '@pnpm/resolve-dependencies'
diff --git a/pkg-manager/core/src/install/extendInstallOptions.ts b/pkg-manager/core/src/install/extendInstallOptions.ts
index 3938d5ff40..185c9d486c 100644
--- a/pkg-manager/core/src/install/extendInstallOptions.ts
+++ b/pkg-manager/core/src/install/extendInstallOptions.ts
@@ -54,9 +54,6 @@ export interface StrictInstallOptions {
   reporter: ReporterFunction
   force: boolean
   forcePublicHoistPattern: boolean
-  update: boolean
-  updateMatching?: (pkgName: string) => boolean
-  updatePackageManifest?: boolean
   depth: number
   lockfileDir: string
   modulesDir: string
@@ -196,7 +193,6 @@ const defaults = async (opts: InstallOptions) => {
       process.platform === 'cygwin' ||
       !process.setgid ||
       process.getuid() !== 0,
-    update: false,
     useLockfile: true,
     saveLockfile: true,
     useGitBranchLockfile: false,
diff --git a/pkg-manager/core/src/install/index.ts b/pkg-manager/core/src/install/index.ts
index fcb2dc4637..4811e77247 100644
--- a/pkg-manager/core/src/install/index.ts
+++ b/pkg-manager/core/src/install/index.ts
@@ -45,6 +45,7 @@ import {
   DependenciesGraphNode,
   PinnedVersion,
   resolveDependencies,
+  UpdateMatchingFunction,
   WantedDependency,
 } from '@pnpm/resolve-dependencies'
 import {
@@ -89,36 +90,50 @@ const BROKEN_LOCKFILE_INTEGRITY_ERRORS = new Set([
 
 const DEV_PREINSTALL = 'pnpm:devPreinstall'
 
-export type DependenciesMutation = (
-  {
-    mutation: 'install'
-    pruneDirectDependencies?: boolean
-  } | {
-    allowNew?: boolean
-    dependencySelectors: string[]
-    mutation: 'installSome'
-    peer?: boolean
-    pruneDirectDependencies?: boolean
-    pinnedVersion?: PinnedVersion
-    targetDependenciesField?: DependenciesField
-  } | {
-    mutation: 'uninstallSome'
-    dependencyNames: string[]
-    targetDependenciesField?: DependenciesField
-  } | {
-    mutation: 'unlink'
-  } | {
-    mutation: 'unlinkSome'
-    dependencyNames: string[]
-  }
-)
+interface InstallMutationOptions {
+  update?: boolean
+  updateMatching?: UpdateMatchingFunction
+  updatePackageManifest?: boolean
+}
+
+export interface InstallDepsMutation extends InstallMutationOptions {
+  mutation: 'install'
+  pruneDirectDependencies?: boolean
+}
+
+export interface InstallSomeDepsMutation extends InstallMutationOptions {
+  allowNew?: boolean
+  dependencySelectors: string[]
+  mutation: 'installSome'
+  peer?: boolean
+  pruneDirectDependencies?: boolean
+  pinnedVersion?: PinnedVersion
+  targetDependenciesField?: DependenciesField
+}
+
+export interface UninstallSomeDepsMutation {
+  mutation: 'uninstallSome'
+  dependencyNames: string[]
+  targetDependenciesField?: DependenciesField
+}
+
+export interface UnlinkDepsMutation {
+  mutation: 'unlink'
+}
+
+export interface UnlinkSomeDepsMutation {
+  mutation: 'unlinkSome'
+  dependencyNames: string[]
+}
+
+export type DependenciesMutation = InstallDepsMutation | InstallSomeDepsMutation | UninstallSomeDepsMutation | UnlinkDepsMutation | UnlinkSomeDepsMutation
 
 export async function install (
   manifest: ProjectManifest,
   opts: Omit<InstallOptions, 'allProjects'> & {
     preferredVersions?: PreferredVersions
     pruneDirectDependencies?: boolean
-  }
+  } & InstallMutationOptions
 ) {
   const rootDir = opts.dir ?? process.cwd()
   const projects = await mutateModules(
@@ -127,6 +142,9 @@ export async function install (
         mutation: 'install',
         pruneDirectDependencies: opts.pruneDirectDependencies,
         rootDir,
+        update: opts.update,
+        updateMatching: opts.updateMatching,
+        updatePackageManifest: opts.updatePackageManifest,
       },
     ],
     {
@@ -165,10 +183,17 @@ export async function mutateModulesInSingleProject (
     rootDir: string
     modulesDir?: string
   },
-  maybeOpts: Omit<MutateModulesOptions, 'allProjects'>
+  maybeOpts: Omit<MutateModulesOptions, 'allProjects'> & InstallMutationOptions
 ): Promise<UpdatedProject> {
   const [updatedProject] = await mutateModules(
-    [project],
+    [
+      {
+        ...project,
+        update: maybeOpts.update,
+        updateMatching: maybeOpts.updateMatching,
+        updatePackageManifest: maybeOpts.updatePackageManifest,
+      } as MutatedProject,
+    ],
     {
       ...maybeOpts,
       allProjects: [{
@@ -195,7 +220,7 @@ export async function mutateModules (
     throw new PnpmError('OPTIONAL_DEPS_REQUIRE_PROD_DEPS', 'Optional dependencies cannot be installed without production dependencies')
   }
 
-  const installsOnly = projects.every((project) => project.mutation === 'install')
+  const installsOnly = projects.every((project) => project.mutation === 'install' && !project.update && !project.updateMatching)
   if (!installsOnly) opts.strictPeerDependencies = false
   // @ts-expect-error
   opts['forceNewModules'] = installsOnly
@@ -306,7 +331,6 @@ export async function mutateModules (
       opts.frozenLockfileIfExists && ctx.existsWantedLockfile
     if (
       !ctx.lockfileHadConflicts &&
-      !opts.update &&
       !opts.fixLockfile &&
       !opts.dedupe &&
       installsOnly &&
@@ -396,7 +420,9 @@ export async function mutateModules (
           if (BROKEN_LOCKFILE_INTEGRITY_ERRORS.has(error.code)) {
             needsFullResolution = true
             // Ideally, we would not update but currently there is no other way to redownload the integrity of the package
-            opts.update = true
+            for (const project of projects) {
+              (project as InstallMutationOptions).update = true
+            }
           }
           // A broken lockfile may be caused by a badly resolved Git conflict
           logger.warn({
@@ -432,14 +458,14 @@ export async function mutateModules (
       case 'install': {
         await installCase({
           ...projectOpts,
-          updatePackageManifest: opts.updatePackageManifest ?? opts.update,
+          updatePackageManifest: (projectOpts as InstallDepsMutation).updatePackageManifest ?? (projectOpts as InstallDepsMutation).update,
         })
         break
       }
       case 'installSome': {
         await installSome({
           ...projectOpts,
-          updatePackageManifest: opts.updatePackageManifest !== false,
+          updatePackageManifest: (projectOpts as InstallSomeDepsMutation).updatePackageManifest !== false,
         })
         break
       }
@@ -510,7 +536,7 @@ export async function mutateModules (
       const wantedDependencies = getWantedDependencies(project.manifest, {
         autoInstallPeers: opts.autoInstallPeers,
         includeDirect: opts.includeDirect,
-        updateWorkspaceDependencies: opts.update,
+        updateWorkspaceDependencies: project.update,
         nodeExecPath: opts.nodeExecPath,
       })
         .map((wantedDependency) => ({ ...wantedDependency, updateSpec: true, preserveNonSemverVersionSpec: true }))
@@ -549,7 +575,7 @@ export async function mutateModules (
         devDependencies,
         optional: project.targetDependenciesField === 'optionalDependencies',
         optionalDependencies,
-        updateWorkspaceDependencies: opts.update,
+        updateWorkspaceDependencies: project.update,
         preferredSpecs,
         overrides: opts.overrides,
       })
@@ -684,7 +710,7 @@ export async function addDependenciesToPackage (
     peer?: boolean
     pinnedVersion?: 'major' | 'minor' | 'patch'
     targetDependenciesField?: DependenciesField
-  }
+  } & InstallMutationOptions
 ) {
   const rootDir = opts.dir ?? process.cwd()
   const projects = await mutateModules(
@@ -697,6 +723,9 @@ export async function addDependenciesToPackage (
         pinnedVersion: opts.pinnedVersion,
         rootDir,
         targetDependenciesField: opts.targetDependenciesField,
+        update: opts.update,
+        updateMatching: opts.updateMatching,
+        updatePackageManifest: opts.updatePackageManifest,
       },
     ],
     {
@@ -798,8 +827,9 @@ const _installInContext: InstallFunction = async (projects, ctx, opts) => {
     stage: 'resolution_started',
   })
 
+  const update = projects.some((project) => (project as InstallMutationOptions).update)
   const preferredVersions = opts.preferredVersions ?? (
-    !opts.update
+    !update
       ? getPreferredVersionsFromLockfileAndManifests(ctx.wantedLockfile.packages, Object.values(ctx.projects).map(({ manifest }) => manifest))
       : undefined
   )
@@ -853,7 +883,7 @@ const _installInContext: InstallFunction = async (projects, ctx, opts) => {
       allowNonAppliedPatches: opts.allowNonAppliedPatches,
       autoInstallPeers: opts.autoInstallPeers,
       currentLockfile: ctx.currentLockfile,
-      defaultUpdateDepth: (opts.update || (opts.updateMatching != null)) ? opts.depth : -1,
+      defaultUpdateDepth: opts.depth,
       dedupePeerDependents: opts.dedupePeerDependents,
       dryRun: opts.lockfileOnly,
       engineStrict: opts.engineStrict,
@@ -875,7 +905,6 @@ const _installInContext: InstallFunction = async (projects, ctx, opts) => {
       saveWorkspaceProtocol: opts.saveWorkspaceProtocol,
       storeController: opts.storeController,
       tag: opts.tag,
-      updateMatching: opts.updateMatching,
       virtualStoreDir: ctx.virtualStoreDir,
       wantedLockfile: ctx.wantedLockfile,
       workspacePackages: opts.workspacePackages,
@@ -1248,7 +1277,9 @@ const installInContext: InstallFunction = async (projects, ctx, opts) => {
     ) throw error
     opts.needsFullResolution = true
     // Ideally, we would not update but currently there is no other way to redownload the integrity of the package
-    opts.update = true
+    for (const project of projects) {
+      (project as InstallMutationOptions).update = true
+    }
     logger.warn({
       error,
       message: error.message,
diff --git a/pkg-manager/core/test/install/misc.ts b/pkg-manager/core/test/install/misc.ts
index 433fe8082e..35d3a0a3ec 100644
--- a/pkg-manager/core/test/install/misc.ts
+++ b/pkg-manager/core/test/install/misc.ts
@@ -1,6 +1,6 @@
 import * as path from 'path'
 import { promises as fs } from 'fs'
-import { prepareEmpty, preparePackages } from '@pnpm/prepare'
+import { prepareEmpty, prepare, preparePackages } from '@pnpm/prepare'
 import { PnpmError } from '@pnpm/error'
 import {
   PackageManifestLog,
@@ -716,6 +716,7 @@ test('lockfile locks npm dependencies', async () => {
   const reporter = sinon.spy()
 
   await addDistTag({ package: '@pnpm.e2e/dep-of-pkg-with-1-dep', version: '100.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/pkg-with-1-dep', version: '100.0.0', distTag: 'latest' })
 
   const manifest = await addDependenciesToPackage({}, ['@pnpm.e2e/pkg-with-1-dep'], await testDefaults({ save: true, reporter }))
 
@@ -815,7 +816,7 @@ test('should throw error when trying to install a package without name', async (
 
 // Covers https://github.com/pnpm/pnpm/issues/1193
 test('rewrites node_modules created by npm', async () => {
-  const project = prepareEmpty()
+  const project = prepare()
 
   await execa('npm', ['install', 'rimraf@2.5.1', '@types/node', '--save'])
 
@@ -1004,6 +1005,7 @@ test('all the subdeps of dependencies are linked when a node_modules is partiall
 
 test('subdep symlinks are updated if the lockfile has new subdep versions specified', async () => {
   await addDistTag({ package: '@pnpm.e2e/dep-of-pkg-with-1-dep', version: '100.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/pkg-with-1-dep', version: '100.0.0', distTag: 'latest' })
   const project = prepareEmpty()
 
   await mutateModulesInSingleProject({
diff --git a/pkg-manager/core/test/install/multipleImporters.ts b/pkg-manager/core/test/install/multipleImporters.ts
index b7569b578e..ec3bc0aec5 100644
--- a/pkg-manager/core/test/install/multipleImporters.ts
+++ b/pkg-manager/core/test/install/multipleImporters.ts
@@ -927,10 +927,12 @@ test('update workspace range', async () => {
       dependencySelectors: ['dep1', 'dep2', 'dep3', 'dep4', 'dep5', 'dep6'],
       mutation: 'installSome',
       rootDir: path.resolve('project-1'),
+      update: true,
     },
     {
       mutation: 'install',
       rootDir: path.resolve('project-2'),
+      update: true,
     },
   ], await testDefaults({
     allProjects: [
@@ -972,7 +974,6 @@ test('update workspace range', async () => {
         rootDir: path.resolve('project-2'),
       },
     ],
-    update: true,
     workspacePackages: {
       dep1: {
         '2.0.0': {
@@ -1071,10 +1072,12 @@ test('update workspace range when save-workspace-protocol is "rolling"', async (
       dependencySelectors: ['dep1', 'dep2', 'dep3', 'dep4', 'dep5', 'dep6'],
       mutation: 'installSome',
       rootDir: path.resolve('project-1'),
+      update: true,
     },
     {
       mutation: 'install',
       rootDir: path.resolve('project-2'),
+      update: true,
     },
   ], await testDefaults({
     allProjects: [
@@ -1113,7 +1116,6 @@ test('update workspace range when save-workspace-protocol is "rolling"', async (
       },
     ],
     saveWorkspaceProtocol: 'rolling',
-    update: true,
     workspacePackages: {
       dep1: {
         '2.0.0': {
diff --git a/pkg-manager/core/test/install/updatingPkgJson.ts b/pkg-manager/core/test/install/updatingPkgJson.ts
index f08e154f4e..d9ef1ccd3b 100644
--- a/pkg-manager/core/test/install/updatingPkgJson.ts
+++ b/pkg-manager/core/test/install/updatingPkgJson.ts
@@ -184,6 +184,7 @@ test('multiple save to package.json with `exact` versions (@rstacruz/tap-spec &
 })
 
 test('save to package.json with save prefix ~', async () => {
+  await addDistTag({ package: '@pnpm.e2e/pkg-with-1-dep', version: '100.0.0', distTag: 'latest' })
   prepareEmpty()
   const manifest = await addDependenciesToPackage({}, ['@pnpm.e2e/pkg-with-1-dep'], await testDefaults({ pinnedVersion: 'minor' }))
 
@@ -211,10 +212,9 @@ test('an update bumps the versions in the manifest', async () => {
     },
     mutation: 'install',
     rootDir: process.cwd(),
-  },
-  await testDefaults({
     update: true,
-  }))
+  },
+  await testDefaults())
 
   expect(manifest).toStrictEqual({
     dependencies: {
diff --git a/pkg-manager/plugin-commands-installation/src/recursive.ts b/pkg-manager/plugin-commands-installation/src/recursive.ts
index cc182f1c3e..aa6b7f43c4 100755
--- a/pkg-manager/plugin-commands-installation/src/recursive.ts
+++ b/pkg-manager/plugin-commands-installation/src/recursive.ts
@@ -28,6 +28,7 @@ import {
   MutatedProject,
   mutateModules,
   ProjectOptions,
+  UpdateMatchingFunction,
   WorkspacePackages,
 } from '@pnpm/core'
 import isSubdir from 'is-subdir'
@@ -79,6 +80,8 @@ type RecursiveOptions = CreateStoreControllerOptions & Pick<Config,
   forcePublicHoistPattern?: boolean
   ignoredPackages?: Set<string>
   update?: boolean
+  updatePackageManifest?: boolean
+  updateMatching?: UpdateMatchingFunction
   useBetaCli?: boolean
   allProjectsGraph: ProjectsGraph
   selectedProjectsGraph: ProjectsGraph
@@ -234,6 +237,9 @@ export async function recursive (
           }),
           rootDir,
           targetDependenciesField,
+          update: opts.update,
+          updateMatching: opts.updateMatching,
+          updatePackageManifest: opts.updatePackageManifest,
         } as MutatedProject)
         return
       case 'install':
@@ -242,6 +248,9 @@ export async function recursive (
           mutation,
           pruneDirectDependencies: opts.pruneDirectDependencies,
           rootDir,
+          update: opts.update,
+          updateMatching: opts.updateMatching,
+          updatePackageManifest: opts.updatePackageManifest,
         } as MutatedProject)
       }
     }))
diff --git a/pkg-manager/resolve-dependencies/src/index.ts b/pkg-manager/resolve-dependencies/src/index.ts
index dc5c4d2110..9b98263e55 100644
--- a/pkg-manager/resolve-dependencies/src/index.ts
+++ b/pkg-manager/resolve-dependencies/src/index.ts
@@ -26,7 +26,7 @@ import promiseShare from 'promise-share'
 import difference from 'ramda/src/difference'
 import { getWantedDependencies, WantedDependency } from './getWantedDependencies'
 import { depPathToRef } from './depPathToRef'
-import { createNodeIdForLinkedLocalPkg } from './resolveDependencies'
+import { createNodeIdForLinkedLocalPkg, UpdateMatchingFunction } from './resolveDependencies'
 import {
   Importer,
   LinkedDependency,
@@ -53,6 +53,7 @@ export {
   LinkedDependency,
   ResolvedPackage,
   PinnedVersion,
+  UpdateMatchingFunction,
   WantedDependency,
 }
 
@@ -81,6 +82,8 @@ export type ImporterToResolve = Importer<{
   binsDir: string
   manifest: ProjectManifest
   originalManifest?: ProjectManifest
+  update?: boolean
+  updateMatching?: UpdateMatchingFunction
   updatePackageManifest: boolean
   targetDependenciesField?: DependenciesField
 }
@@ -100,7 +103,6 @@ export async function resolveDependencies (
     defaultUpdateDepth: opts.defaultUpdateDepth,
     lockfileOnly: opts.dryRun,
     preferredVersions: opts.preferredVersions,
-    updateAll: Boolean(opts.updateMatching),
     virtualStoreDir: opts.virtualStoreDir,
     workspacePackages: opts.workspacePackages,
   })
diff --git a/pkg-manager/resolve-dependencies/src/resolveDependencies.ts b/pkg-manager/resolve-dependencies/src/resolveDependencies.ts
index 0c5e8e7afc..24a373c353 100644
--- a/pkg-manager/resolve-dependencies/src/resolveDependencies.ts
+++ b/pkg-manager/resolve-dependencies/src/resolveDependencies.ts
@@ -159,7 +159,6 @@ export interface ResolutionContext {
   registries: Registries
   resolutionMode?: 'highest' | 'time-based' | 'lowest-direct'
   virtualStoreDir: string
-  updateMatching?: (pkgName: string) => boolean
   useLockfileV6?: boolean
   workspacePackages?: WorkspacePackages
   missingPeersOfChildrenByPkgId: Record<string, { parentImporterId: string, missingPeersOfChildren: MissingPeersOfChildren }>
@@ -240,6 +239,8 @@ type ParentPkg = Pick<PkgAddress, 'nodeId' | 'installable' | 'depPath' | 'rootDi
 
 export type ParentPkgAliases = Record<string, PkgAddress | true>
 
+export type UpdateMatchingFunction = (pkgName: string) => boolean
+
 interface ResolvedDependenciesOptions {
   currentDepth: number
   parentPkg: ParentPkg
@@ -252,6 +253,7 @@ interface ResolvedDependenciesOptions {
   publishedBy?: Date
   pickLowestVersion?: boolean
   resolvedDependencies?: ResolvedDependencies
+  updateMatching?: UpdateMatchingFunction
   updateDepth: number
   prefix: string
 }
@@ -647,8 +649,8 @@ async function resolveDependenciesOfDependency (
   const update = ((extendedWantedDep.infoFromLockfile?.dependencyLockfile) == null) ||
   (
     updateShouldContinue && (
-      (ctx.updateMatching == null) ||
-      ctx.updateMatching(extendedWantedDep.infoFromLockfile.name!)
+      (options.updateMatching == null) ||
+      options.updateMatching(extendedWantedDep.infoFromLockfile.name!)
     )
   ) || Boolean(
     (ctx.workspacePackages != null) &&
@@ -672,6 +674,7 @@ async function resolveDependenciesOfDependency (
     publishedBy: options.publishedBy,
     update,
     updateDepth,
+    updateMatching: options.updateMatching,
   }
   const resolveDependencyResult = await resolveDependency(extendedWantedDep.wantedDependency, ctx, resolveDependencyOpts)
 
@@ -706,6 +709,7 @@ async function resolveDependenciesOfDependency (
     parentDepth: options.currentDepth,
     updateDepth,
     prefix: options.prefix,
+    updateMatching: options.updateMatching,
   })
   return {
     resolveDependencyResult,
@@ -751,6 +755,7 @@ async function resolveChildren (
     dependencyLockfile,
     parentDepth,
     updateDepth,
+    updateMatching,
     prefix,
   }: {
     parentPkg: PkgAddress
@@ -758,6 +763,7 @@ async function resolveChildren (
     parentDepth: number
     updateDepth: number
     prefix: string
+    updateMatching?: UpdateMatchingFunction
   },
   {
     parentPkgAliases,
@@ -802,6 +808,7 @@ async function resolveChildren (
       publishedBy,
       resolvedDependencies,
       updateDepth,
+      updateMatching,
     }
   )
   ctx.childrenByParentDepPath[parentPkg.depPath] = pkgAddresses.map((child) => ({
@@ -1001,6 +1008,7 @@ interface ResolveDependencyOptions {
   pickLowestVersion?: boolean
   update: boolean
   updateDepth: number
+  updateMatching?: UpdateMatchingFunction
 }
 
 type ResolveDependencyResult = PkgAddress | LinkedDependency | null
diff --git a/pkg-manager/resolve-dependencies/src/resolveDependencyTree.ts b/pkg-manager/resolve-dependencies/src/resolveDependencyTree.ts
index 4caac381d6..029dd7db5f 100644
--- a/pkg-manager/resolve-dependencies/src/resolveDependencyTree.ts
+++ b/pkg-manager/resolve-dependencies/src/resolveDependencyTree.ts
@@ -52,6 +52,7 @@ export interface Importer<T> {
 
 export interface ImporterToResolveGeneric<T> extends Importer<T> {
   updatePackageManifest: boolean
+  updateMatching?: (pkgName: string) => boolean
   hasRemovedDependencies?: boolean
   preferredVersions?: PreferredVersions
   wantedDependencies: Array<T & WantedDependency & { updateDepth: number }>
@@ -79,7 +80,6 @@ export interface ResolveDependenciesOptions {
   preferWorkspacePackages?: boolean
   resolutionMode?: 'highest' | 'time-based' | 'lowest-direct'
   resolvePeersFromWorkspaceRoot?: boolean
-  updateMatching?: (pkgName: string) => boolean
   linkWorkspacePackagesDepth?: number
   lockfileDir: string
   storeController: StoreController
@@ -122,7 +122,6 @@ export async function resolveDependencyTree<T> (
     resolutionMode: opts.resolutionMode,
     skipped: wantedToBeSkippedPackageIds,
     storeController: opts.storeController,
-    updateMatching: opts.updateMatching,
     virtualStoreDir: opts.virtualStoreDir,
     wantedLockfile: opts.wantedLockfile,
     appliedPatches: new Set<string>(),
@@ -154,6 +153,7 @@ export async function resolveDependencyTree<T> (
         ...projectSnapshot.optionalDependencies,
       },
       updateDepth: -1,
+      updateMatching: importer.updateMatching,
       prefix: importer.rootDir,
     }
     return {
diff --git a/pkg-manager/resolve-dependencies/src/toResolveImporter.ts b/pkg-manager/resolve-dependencies/src/toResolveImporter.ts
index 387120fe90..87360156cf 100644
--- a/pkg-manager/resolve-dependencies/src/toResolveImporter.ts
+++ b/pkg-manager/resolve-dependencies/src/toResolveImporter.ts
@@ -15,7 +15,6 @@ export async function toResolveImporter (
     defaultUpdateDepth: number
     lockfileOnly: boolean
     preferredVersions?: PreferredVersions
-    updateAll: boolean
     virtualStoreDir: string
     workspacePackages: WorkspacePackages
   },
@@ -29,6 +28,7 @@ export async function toResolveImporter (
     virtualStoreDir: opts.virtualStoreDir,
     workspacePackages: opts.workspacePackages,
   })
+  const defaultUpdateDepth = (project.update === true || (project.updateMatching != null)) ? opts.defaultUpdateDepth : -1
   const existingDeps = nonLinkedDependencies
     .filter(({ alias }) => !project.wantedDependencies.some((wantedDep) => wantedDep.alias === alias))
   let wantedDependencies!: Array<WantedDependency & { isNew?: boolean, updateDepth: number }>
@@ -39,22 +39,22 @@ export async function toResolveImporter (
     ]
       .map((dep) => ({
         ...dep,
-        updateDepth: opts.defaultUpdateDepth,
+        updateDepth: defaultUpdateDepth,
       }))
   } else {
     // Direct local tarballs are always checked,
     // so their update depth should be at least 0
     const updateLocalTarballs = (dep: WantedDependency) => ({
       ...dep,
-      updateDepth: opts.updateAll
-        ? opts.defaultUpdateDepth
+      updateDepth: project.updateMatching != null
+        ? defaultUpdateDepth
         : (prefIsLocalTarball(dep.pref) ? 0 : -1),
     })
     wantedDependencies = [
       ...project.wantedDependencies.map(
-        opts.defaultUpdateDepth < 0
+        defaultUpdateDepth < 0
           ? updateLocalTarballs
-          : (dep) => ({ ...dep, updateDepth: opts.defaultUpdateDepth })),
+          : (dep) => ({ ...dep, updateDepth: defaultUpdateDepth })),
       ...existingDeps.map(updateLocalTarballs),
     ]
   }
diff --git a/pnpm/test/monorepo/dedupePeers.test.ts b/pnpm/test/monorepo/dedupePeers.test.ts
index 3d4b4d0d3f..e9d36acb56 100644
--- a/pnpm/test/monorepo/dedupePeers.test.ts
+++ b/pnpm/test/monorepo/dedupePeers.test.ts
@@ -6,6 +6,7 @@ import { preparePackages } from '@pnpm/prepare'
 import { addDistTag } from '@pnpm/registry-mock'
 import { sync as readYamlFile } from 'read-yaml-file'
 import { createPeersFolderSuffix } from '@pnpm/dependency-path'
+import { sync as loadJsonFile } from 'load-json-file'
 import { sync as writeYamlFile } from 'write-yaml-file'
 import { execPnpm } from '../utils'
 
@@ -46,3 +47,46 @@ auto-install-peers=false`, 'utf8')
   expect(depPaths).toContain(`/@pnpm.e2e/abc/1.0.0${createPeersFolderSuffix([{ name: '@pnpm.e2e/peer-a', version: '1.0.0' }, { name: '@pnpm.e2e/peer-b', version: '1.0.0' }, { name: '@pnpm.e2e/peer-c', version: '1.0.0' }])}`)
   expect(depPaths).toContain(`/@pnpm.e2e/abc-parent-with-ab/1.0.0${createPeersFolderSuffix([{ name: '@pnpm.e2e/peer-c', version: '1.0.0' }])}`)
 })
+
+test('partial update in a workspace should work with dedupe-peer-dependents is true', async () => {
+  await addDistTag({ package: '@pnpm.e2e/abc-parent-with-ab', version: '1.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/abc', version: '1.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/peer-a', version: '1.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/peer-b', version: '1.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/peer-c', version: '1.0.0', distTag: 'latest' })
+
+  preparePackages([
+    {
+      location: 'project-1',
+      package: {
+        name: 'project-1',
+
+        dependencies: {
+          '@pnpm.e2e/abc-grand-parent-with-c': '^1.0.0',
+        },
+      },
+    },
+    {
+      location: 'project-2',
+      package: {
+        name: 'project-2',
+
+        dependencies: {
+          '@pnpm.e2e/abc-grand-parent-with-c': '^1.0.0',
+        },
+      },
+    },
+  ])
+
+  writeYamlFile('pnpm-workspace.yaml', { packages: ['**', '!store/**'] })
+  writeFileSync('.npmrc', `dedupe-peer-dependents=true
+auto-install-peers=false`, 'utf8')
+  await execPnpm(['install'])
+  await addDistTag({ package: '@pnpm.e2e/abc-parent-with-ab', version: '1.0.1', distTag: 'latest' })
+  process.chdir('project-2')
+  await execPnpm(['update'])
+  process.chdir('..')
+
+  expect(loadJsonFile<any>('project-1/package.json').dependencies['@pnpm.e2e/abc-grand-parent-with-c']).toBe('^1.0.0') // eslint-disable-line
+  expect(loadJsonFile<any>('project-2/package.json').dependencies['@pnpm.e2e/abc-grand-parent-with-c']).toBe('^1.0.1') // eslint-disable-line
+})