diff --git a/.changeset/fix-named-catalog-upgrade.md b/.changeset/fix-named-catalog-upgrade.md
new file mode 100644
index 0000000000..3e1b0a9efa
--- /dev/null
+++ b/.changeset/fix-named-catalog-upgrade.md
@@ -0,0 +1,6 @@
+---
+"@pnpm/installing.deps-installer": patch
+"pnpm": patch
+---
+
+Fix `pnpm upgrade --interactive --latest -r` not respecting named catalog groups. Previously, upgrading a dependency using a named catalog (e.g. `"catalog:foo"`) would incorrectly rewrite `package.json` to `"catalog:"` and place the updated version in the default catalog instead of the named one [#10115](https://github.com/pnpm/pnpm/issues/10115).
diff --git a/installing/deps-installer/src/install/index.ts b/installing/deps-installer/src/install/index.ts
index d1b94b23af..899865c1b9 100644
--- a/installing/deps-installer/src/install/index.ts
+++ b/installing/deps-installer/src/install/index.ts
@@ -711,8 +711,9 @@ export async function mutateModules (
       })
 
       if (opts.catalogMode !== 'manual') {
-        const catalogBareSpecifier = `catalog:${opts.saveCatalogName == null || opts.saveCatalogName === 'default' ? '' : opts.saveCatalogName}`
         for (const wantedDep of wantedDeps) {
+          const perDepCatalogName = getPerDepCatalogName(wantedDep, opts.saveCatalogName)
+          const catalogBareSpecifier = `catalog:${perDepCatalogName === 'default' ? '' : perDepCatalogName}`
           const catalog = resolveFromCatalog(opts.catalogs, { ...wantedDep, bareSpecifier: catalogBareSpecifier })
           const catalogDepSpecifier = matchCatalogResolveResult(catalog, pickCatalogSpecifier)
 
@@ -723,7 +724,7 @@ export async function mutateModules (
             semver.validRange(catalogDepSpecifier) &&
             semver.eq(wantedDep.bareSpecifier, catalogDepSpecifier)
           ) {
-            wantedDep.saveCatalogName = opts.saveCatalogName ?? 'default'
+            wantedDep.saveCatalogName = perDepCatalogName
             continue
           }
 
@@ -1097,6 +1098,27 @@ function isWantedDepBareSpecifierSame (
   return prevCatalogEntrySpec === nextCatalogEntrySpec
 }
 
+/**
+ * Determines the catalog name for a dependency during installSome.
+ *
+ * If the dependency's previous specifier already uses a named catalog
+ * (e.g. "catalog:foo"), that catalog name takes priority over the global
+ * saveCatalogName option. This ensures that interactive updates and
+ * `--latest` upgrades preserve the per-dependency catalog group.
+ */
+function getPerDepCatalogName (
+  wantedDep: { prevSpecifier?: string },
+  globalSaveCatalogName: string | undefined
+): string {
+  if (wantedDep.prevSpecifier) {
+    const catalogFromPrev = parseCatalogProtocol(wantedDep.prevSpecifier)
+    if (catalogFromPrev != null) {
+      return catalogFromPrev
+    }
+  }
+  return globalSaveCatalogName ?? 'default'
+}
+
 export async function addDependenciesToPackage (
   manifest: ProjectManifest,
   dependencySelectors: string[],
diff --git a/installing/deps-installer/test/catalogs.ts b/installing/deps-installer/test/catalogs.ts
index 732c6a6a24..f6feea0b6d 100644
--- a/installing/deps-installer/test/catalogs.ts
+++ b/installing/deps-installer/test/catalogs.ts
@@ -1755,6 +1755,119 @@ describe('update', () => {
     expect(Object.keys(readLockfile().snapshots)).toEqual(['@pnpm.e2e/foo@100.1.0'])
   })
 
+  test('update --latest works on named catalog dependency', async () => {
+    await addDistTag({ package: '@pnpm.e2e/foo', version: '100.1.0', distTag: 'latest' })
+
+    const { options, projects, readLockfile } = preparePackagesAndReturnObjects([{
+      name: 'project1',
+      dependencies: {
+        '@pnpm.e2e/foo': 'catalog:foo',
+      },
+    }])
+
+    const catalogs = {
+      foo: { '@pnpm.e2e/foo': '1.0.0' },
+    }
+
+    const mutateOpts = {
+      ...options,
+      lockfileOnly: true,
+      catalogs,
+    }
+
+    await mutateModules(installProjects(projects), mutateOpts)
+
+    expect(readLockfile().catalogs.foo).toEqual({
+      '@pnpm.e2e/foo': { specifier: '1.0.0', version: '1.0.0' },
+    })
+
+    const { updatedCatalogs, updatedManifest } = await addDependenciesToPackage(
+      projects['project1' as ProjectId],
+      ['@pnpm.e2e/foo'],
+      {
+        ...mutateOpts,
+        dir: path.join(process.cwd(), 'project1'),
+        allowNew: false,
+        update: true,
+        updateToLatest: true,
+      })
+
+    expect(updatedManifest).toEqual({
+      name: 'project1',
+      dependencies: {
+        '@pnpm.e2e/foo': 'catalog:foo',
+      },
+    })
+    expect(updatedCatalogs).toEqual({
+      foo: {
+        '@pnpm.e2e/foo': '100.1.0',
+      },
+    })
+
+    const lockfile = readLockfile()
+    expect(lockfile.catalogs).toEqual({
+      foo: { '@pnpm.e2e/foo': { specifier: '100.1.0', version: '100.1.0' } },
+    })
+    expect(Object.keys(lockfile.snapshots)).toEqual(['@pnpm.e2e/foo@100.1.0'])
+  })
+
+  test('update --latest works on named catalog dependency with catalogMode=prefer', async () => {
+    await addDistTag({ package: '@pnpm.e2e/foo', version: '100.1.0', distTag: 'latest' })
+
+    const { options, projects, readLockfile } = preparePackagesAndReturnObjects([{
+      name: 'project1',
+      dependencies: {
+        '@pnpm.e2e/foo': 'catalog:foo',
+      },
+    }])
+
+    const catalogs = {
+      foo: { '@pnpm.e2e/foo': '1.0.0' },
+    }
+
+    const mutateOpts = {
+      ...options,
+      lockfileOnly: true,
+      catalogs,
+    }
+
+    await mutateModules(installProjects(projects), mutateOpts)
+
+    expect(readLockfile().catalogs.foo).toEqual({
+      '@pnpm.e2e/foo': { specifier: '1.0.0', version: '1.0.0' },
+    })
+
+    const { updatedCatalogs, updatedManifest } = await addDependenciesToPackage(
+      projects['project1' as ProjectId],
+      ['@pnpm.e2e/foo'],
+      {
+        ...mutateOpts,
+        catalogMode: 'prefer',
+        dir: path.join(process.cwd(), 'project1'),
+        allowNew: false,
+        update: true,
+        updateToLatest: true,
+      })
+
+    expect(updatedManifest).toEqual({
+      name: 'project1',
+      dependencies: {
+        '@pnpm.e2e/foo': 'catalog:foo',
+      },
+    })
+    expect(updatedCatalogs).toEqual({
+      foo: {
+        '@pnpm.e2e/foo': '100.1.0',
+      },
+    })
+
+    const lockfile = readLockfile()
+    expect(lockfile.catalogs).toEqual({
+      foo: { '@pnpm.e2e/foo': { specifier: '100.1.0', version: '100.1.0' } },
+    })
+    expect(Object.keys(lockfile.snapshots)).toEqual(['@pnpm.e2e/foo@100.1.0'])
+  })
+
   // This test will update @pnpm.e2e/bar, but make sure @pnpm.e2e/foo is
   // untouched. On the registry-mock, the versions for @pnpm.e2e/bar are:
   //