diff --git a/packages/cli/src/commands/handlers/default.ts b/packages/cli/src/commands/handlers/default.ts
index de45766f2ad..dc7b1471216 100644
--- a/packages/cli/src/commands/handlers/default.ts
+++ b/packages/cli/src/commands/handlers/default.ts
@@ -4,7 +4,7 @@ import { run } from "@opencode-ai/tui"
 import { Commands } from "../commands"
 import { Runtime } from "../../framework/runtime"
 import { Config } from "../../config"
-import { Context, Effect, FileSystem, Option, Queue } from "effect"
+import { Context, Effect, Fiber, FileSystem, Option, Queue } from "effect"
 import { ServerConnection } from "../../services/server-connection"
 import { Updater } from "../../services/updater"
 import { UpdatePreflight } from "../../services/update-preflight"
@@ -47,6 +47,7 @@ export default Runtime.handler(Commands, (input) =>
       ),
     )
     const updater = yield* Updater.Service
+    const update = yield* updater.check().pipe(Effect.forkScoped)
     preflight.loading()
     const config = yield* Config.Service
     const npm = yield* Npm.Service
@@ -83,9 +84,12 @@ export default Runtime.handler(Commands, (input) =>
         update: (update) => runPromise(config.update(update)),
       },
       updater: {
-        monitor: (notify, signal) =>
+        remote: requestedServer !== undefined,
+        subscribe: (notify, signal) =>
           runPromise(
-            updater.monitor((version) => Effect.sync(() => notify(version))),
+            Fiber.join(update).pipe(
+              Effect.flatMap((result) => (result === undefined ? Effect.void : Effect.sync(() => notify(result)))),
+            ),
             { signal },
           ),
         apply: (version) => runPromise(updater.apply(version)),
diff --git a/packages/cli/src/server-process.ts b/packages/cli/src/server-process.ts
index 3a043c40a07..1365512705d 100644
--- a/packages/cli/src/server-process.ts
+++ b/packages/cli/src/server-process.ts
@@ -13,6 +13,7 @@ import { HttpServer } from "effect/unstable/http"
 import { Env } from "./env"
 import { ServiceConfig } from "./services/service-config"
 import { ServiceRegistration } from "./services/service-registration"
+import { Updater } from "./services/updater"
 import { WebUi } from "./services/web-ui"
 
 export type Mode = "default" | "service" | "stdio"
@@ -163,6 +164,21 @@ const processEffect = Effect.fnUntraced(function* (options: Options) {
       const url = HttpServer.formatAddress(server.address)
       console.log(options.mode === "stdio" ? JSON.stringify({ url }) : `server listening on ${url}`)
       if (foreground && !environmentPassword) console.log(`server password ${password}`)
+      yield* Updater.Service.pipe(
+        Effect.flatMap((updater) =>
+          Updater.pollUpdates({
+            check: updater.check().pipe(
+              Effect.flatMap((result) => {
+                if (!result) return Effect.void
+                if (result.type === "available") return server.updateAvailable(result.version)
+                return server.updated(result.version)
+              }),
+            ),
+          }),
+        ),
+        Effect.provide(Updater.layer),
+        Effect.forkScoped,
+      )
       return yield* options.mode === "service"
         ? server.shutdown
         : options.mode === "stdio"
diff --git a/packages/cli/src/services/updater-action.ts b/packages/cli/src/services/updater-action.ts
index d447b716692..e147f340683 100644
--- a/packages/cli/src/services/updater-action.ts
+++ b/packages/cli/src/services/updater-action.ts
@@ -1,5 +1,5 @@
-export type Policy = "disable" | "notify"
-export type Action = "none" | "notify"
+export type Policy = "disable" | "notify" | "auto"
+export type Action = "none" | "notify" | "auto"
 
 const maximumComponent = "9007199254740991"
 const versionPattern =
@@ -10,7 +10,7 @@ export function action(current: string, latest: string, policy: Policy): Action
   const currentVersion = parseReleaseVersion(current)
   const latestVersion = parseReleaseVersion(latest)
   if (!currentVersion || !latestVersion || sameRelease(currentVersion, latestVersion)) return "none"
-  return "notify"
+  return policy
 }
 
 export function parseReleaseVersion(input: string) {
diff --git a/packages/cli/src/services/updater.test.ts b/packages/cli/src/services/updater.test.ts
index 3d9bbeb5458..7a108f665d7 100644
--- a/packages/cli/src/services/updater.test.ts
+++ b/packages/cli/src/services/updater.test.ts
@@ -6,14 +6,14 @@ describe("updater", () => {
   test("reads update policy from JSONC", () => {
     expect(decodePolicy('{ // preference\n "update": "notify",\n}')).toBe("notify")
     expect(decodePolicy('{ "update": "disable" }')).toBe("disable")
-    expect(decodePolicy('{ "update": "auto" }')).toBe("notify")
+    expect(decodePolicy('{ "update": "auto" }')).toBe("auto")
     expect(decodePolicy('{ "update": "invalid" }')).toBeUndefined()
   })
 
   test("maps the v1 update policy", () => {
     expect(decodePolicy('{ "autoupdate": false }')).toBe("disable")
     expect(decodePolicy('{ "autoupdate": "notify" }')).toBe("notify")
-    expect(decodePolicy('{ "autoupdate": true }')).toBe("notify")
+    expect(decodePolicy('{ "autoupdate": true }')).toBe("auto")
   })
 
   test("reports every available release", () => {
@@ -23,6 +23,11 @@ describe("updater", () => {
     expect(action("1.2.3", "1.2.3", "notify")).toBe("none")
   })
 
+  test("automatically installs every available release when enabled", () => {
+    expect(action("1.2.3", "1.2.4", "auto")).toBe("auto")
+    expect(action("1.2.3", "1.2.3", "auto")).toBe("none")
+  })
+
   test("skips when updates are disabled", () => {
     expect(action("1.2.3", "1.2.4", "disable")).toBe("none")
   })
diff --git a/packages/cli/src/services/updater.ts b/packages/cli/src/services/updater.ts
index b769cb0ca6d..7cc94c54d36 100644
--- a/packages/cli/src/services/updater.ts
+++ b/packages/cli/src/services/updater.ts
@@ -1,7 +1,7 @@
 import { Global } from "@opencode-ai/util/global"
 import { AppProcess } from "@opencode-ai/util/process"
 import { OPENCODE_ARTIFACT, OPENCODE_CHANNEL, OPENCODE_LOCAL, OPENCODE_VERSION } from "../version"
-import { Context, Duration, Effect, FileSystem, Layer, Schedule } from "effect"
+import { Context, Duration, Effect, FileSystem, Layer, Ref, Schedule } from "effect"
 import { ChildProcess } from "effect/unstable/process"
 import { parse, type ParseError } from "jsonc-parser"
 import path from "node:path"
@@ -9,28 +9,26 @@ import { action, parseReleaseVersion, type Policy } from "./updater-action"
 
 export const methods = ["curl", "npm", "pnpm", "bun", "yarn"] as const
 export type Method = (typeof methods)[number]
+export type CheckResult = { readonly type: "available" | "installed"; readonly version: string }
 
 export interface Interface {
-  readonly monitor: (notify: (version: string) => Effect.Effect<void>) => Effect.Effect<void>
+  readonly check: () => Effect.Effect<CheckResult | undefined>
   readonly apply: (version: string) => Effect.Effect<void, Error>
   readonly method: () => Effect.Effect<Method | undefined>
   readonly latest: () => Effect.Effect<string, Error>
   readonly upgrade: (method: Method, version: string) => Effect.Effect<void, Error>
 }
 
-export const monitorUpdates = Effect.fnUntraced(function* (input: {
-  readonly inspect: () => Effect.Effect<string | undefined, Error>
-  readonly notify: (version: string) => Effect.Effect<void>
+export const pollUpdates = Effect.fnUntraced(function* (input: {
+  readonly check: Effect.Effect<unknown>
   readonly initialDelay?: Duration.Input
   readonly interval?: Duration.Input
 }) {
   const interval = input.interval ?? "10 minutes"
-  const initialDelay = input.initialDelay ?? "90 seconds"
-  const check = Effect.gen(function* () {
-    const version = yield* input.inspect()
-    if (version !== undefined) yield* input.notify(version)
-  }).pipe(Effect.catch((error) => Effect.logWarning("update check failed", { error })))
-  return yield* check.pipe(Effect.repeat(Schedule.spaced(interval)), Effect.delay(initialDelay))
+  return yield* input.check.pipe(
+    Effect.repeat(Schedule.spaced(interval)),
+    Effect.delay(input.initialDelay ?? "1 minute"),
+  )
 })
 
 export class Service extends Context.Service<Service, Interface>()("@opencode/cli/Updater") {}
@@ -43,20 +41,20 @@ export function decodePolicy(text: string): Policy | undefined {
   if (errors.length || typeof input !== "object" || input === null) return
   if ("update" in input) {
     const value = input.update
-    if (value === "disable" || value === "notify") return value
-    if (value === "auto") return "notify"
+    if (value === "disable" || value === "notify" || value === "auto") return value
     return
   }
   if (!("autoupdate" in input)) return
   if (input.autoupdate === false) return "disable"
   if (input.autoupdate === "notify") return "notify"
-  if (input.autoupdate === true) return "notify"
+  if (input.autoupdate === true) return "auto"
 }
 
 const make = Effect.gen(function* () {
   const fs = yield* FileSystem.FileSystem
   const global = yield* Global.Service
   const appProcess = yield* AppProcess.Service
+  const installedVersion = yield* Ref.make(OPENCODE_VERSION)
   const channel = OPENCODE_CHANNEL.replace(/[^a-zA-Z0-9._-]/g, "-")
   const installedPackage = yield* Effect.gen(function* () {
     const executable = yield* fs.realPath(process.execPath)
@@ -75,7 +73,7 @@ const make = Effect.gen(function* () {
         Effect.orElseSucceed(() => undefined),
       ),
     )
-    return values.findLast((value) => value !== undefined) ?? "notify"
+    return values.findLast((value) => value !== undefined) ?? "auto"
   })
 
   const run = Effect.fnUntraced(function* (command: string[], timeout: Duration.Input = "10 seconds") {
@@ -200,18 +198,19 @@ const make = Effect.gen(function* () {
       return undefined
     }
 
+    const current = yield* Ref.get(installedVersion)
     const version = yield* latest()
     yield* Effect.logInfo("update check", {
-      current: OPENCODE_VERSION,
+      current,
       latest: version,
     })
-    const next = action(OPENCODE_VERSION, version, policy)
+    const next = action(current, version, policy)
     if (next === "none") {
       yield* Effect.logInfo("update check done", { action: "up-to-date" })
       return undefined
     }
-    yield* Effect.logInfo("OpenCode update available", { current: OPENCODE_VERSION, latest: version })
-    return version
+    yield* Effect.logInfo("OpenCode update available", { current, latest: version, action: next })
+    return { policy, version }
   })
 
   const install = Effect.fnUntraced(function* (version: string) {
@@ -220,8 +219,10 @@ const make = Effect.gen(function* () {
       yield* Effect.logWarning("update skipped: installation method not found")
       return false
     }
+    const current = yield* Ref.get(installedVersion)
     yield* upgrade(detected, version)
-    yield* Effect.logInfo("updated OpenCode", { from: OPENCODE_VERSION, to: version, method: detected })
+    yield* Ref.set(installedVersion, version)
+    yield* Effect.logInfo("updated OpenCode", { from: current, to: version, method: detected })
     return true
   })
 
@@ -229,9 +230,18 @@ const make = Effect.gen(function* () {
     if (!(yield* install(version))) return yield* Effect.fail(new Error("Installation method not found"))
   })
 
-  const monitor = (notify: (version: string) => Effect.Effect<void>) => monitorUpdates({ inspect, notify })
+  const check = Effect.fn("cli.updater.check")(
+    function* () {
+      const result = yield* inspect()
+      if (!result) return undefined
+      if (result.policy === "notify") return { type: "available" as const, version: result.version }
+      if (!(yield* install(result.version))) return yield* Effect.fail(new Error("Installation method not found"))
+      return { type: "installed" as const, version: result.version }
+    },
+    Effect.catch((error) => Effect.logWarning("update check failed", { error }).pipe(Effect.as(undefined))),
+  )
 
-  return Service.of({ monitor, apply, method, latest, upgrade })
+  return Service.of({ check, apply, method, latest, upgrade })
 })
 
 export const layer = Layer.effect(Service, make)
diff --git a/packages/cli/test/fixture/upgrade.ts b/packages/cli/test/fixture/upgrade.ts
index 5ed8b4bc479..9fdd6e62e61 100644
--- a/packages/cli/test/fixture/upgrade.ts
+++ b/packages/cli/test/fixture/upgrade.ts
@@ -12,7 +12,7 @@ await Effect.runPromise(
     process.argv.slice(2),
   ).pipe(
     Effect.provideService(Updater.Service, {
-      monitor: () => Effect.die("Manual upgrades must not monitor automatic updates"),
+      check: () => Effect.die("Manual upgrades must not check for automatic updates"),
       apply: () => Effect.die("Manual upgrades must not apply TUI updates"),
       method: () =>
         Effect.sync(() => {
diff --git a/packages/cli/test/updater-monitor.test.ts b/packages/cli/test/updater-monitor.test.ts
deleted file mode 100644
index 92ec7372aa0..00000000000
--- a/packages/cli/test/updater-monitor.test.ts
+++ /dev/null
@@ -1,40 +0,0 @@
-import { expect } from "bun:test"
-import { Effect, Layer, Queue } from "effect"
-import { TestClock } from "effect/testing"
-import { testEffect } from "../../core/test/lib/effect"
-import { Updater } from "../src/services/updater"
-
-const it = testEffect(Layer.empty)
-
-it.effect("checks after 90 seconds and every 10 minutes after that", () =>
-  Effect.gen(function* () {
-    const updates = yield* Queue.unbounded<string>()
-    yield* Updater.monitorUpdates({
-      inspect: () => Effect.succeed("2.0.0"),
-      notify: (version) => Queue.offer(updates, version).pipe(Effect.asVoid),
-    }).pipe(Effect.forkScoped)
-
-    yield* Effect.yieldNow
-    expect(yield* Queue.size(updates)).toBe(0)
-    yield* TestClock.adjust("89 seconds")
-    expect(yield* Queue.size(updates)).toBe(0)
-    yield* TestClock.adjust("1 second")
-    expect(yield* Queue.take(updates)).toBe("2.0.0")
-    yield* Effect.yieldNow
-    yield* TestClock.adjust("10 minutes")
-    expect(yield* Queue.take(updates)).toBe("2.0.0")
-  }),
-)
-
-it.effect("does not notify when no update is available", () =>
-  Effect.gen(function* () {
-    const updates = yield* Queue.unbounded<string>()
-    yield* Updater.monitorUpdates({
-      inspect: () => Effect.succeed(undefined),
-      notify: (version) => Queue.offer(updates, version).pipe(Effect.asVoid),
-    }).pipe(Effect.forkScoped)
-
-    yield* Effect.yieldNow
-    expect(yield* Queue.size(updates)).toBe(0)
-  }),
-)
diff --git a/packages/cli/test/updater-poll.test.ts b/packages/cli/test/updater-poll.test.ts
new file mode 100644
index 00000000000..640e32b0474
--- /dev/null
+++ b/packages/cli/test/updater-poll.test.ts
@@ -0,0 +1,24 @@
+import { expect } from "bun:test"
+import { Effect, Layer, Queue } from "effect"
+import { TestClock } from "effect/testing"
+import { testEffect } from "../../core/test/lib/effect"
+import { Updater } from "../src/services/updater"
+
+const it = testEffect(Layer.empty)
+
+it.effect("polls after 1 minute and every 10 minutes after that", () =>
+  Effect.gen(function* () {
+    const checks = yield* Queue.unbounded<void>()
+    yield* Updater.pollUpdates({ check: Queue.offer(checks, undefined).pipe(Effect.asVoid) }).pipe(Effect.forkScoped)
+
+    yield* Effect.yieldNow
+    expect(yield* Queue.size(checks)).toBe(0)
+    yield* TestClock.adjust("59 seconds")
+    expect(yield* Queue.size(checks)).toBe(0)
+    yield* TestClock.adjust("1 second")
+    yield* Queue.take(checks)
+    yield* Effect.yieldNow
+    yield* TestClock.adjust("10 minutes")
+    yield* Queue.take(checks)
+  }),
+)
diff --git a/packages/client/src/promise/generated/types.ts b/packages/client/src/promise/generated/types.ts
index 3638435548a..1717899493b 100644
--- a/packages/client/src/promise/generated/types.ts
+++ b/packages/client/src/promise/generated/types.ts
@@ -1892,7 +1892,7 @@ export type ConfigEntry =
         shell?: string
         model?: string | { providerID: string; model: string; variant?: string }
         default_agent?: string
-        update?: "disable" | "notify"
+        update?: "disable" | "notify" | "auto"
         share?: "manual" | "auto" | "disabled"
         enterprise?: { url?: string }
         username?: string
diff --git a/packages/core/src/config/normalize.ts b/packages/core/src/config/normalize.ts
index 7777eaa8b51..a53883cbbd1 100644
--- a/packages/core/src/config/normalize.ts
+++ b/packages/core/src/config/normalize.ts
@@ -74,9 +74,7 @@ export function normalize(input: unknown): Result {
     ? decodeValue(ConfigV1.Info.fields.autoupdate, input.autoupdate, ["autoupdate"], diagnostics)
     : undefined
   const nativeUpdate = own(input, "update")
-    ? input.update === "auto"
-      ? "notify"
-      : decodeEncoded(Info.fields.update, input.update, ["update"], diagnostics)
+    ? decodeEncoded(Info.fields.update, input.update, ["update"], diagnostics)
     : undefined
   const legacyShare = own(input, "autoshare")
     ? decodeValue(Schema.Boolean, input.autoshare, ["autoshare"], diagnostics) === true
diff --git a/packages/core/src/v1/config/migrate.ts b/packages/core/src/v1/config/migrate.ts
index 4ddfbe10c03..271689ce412 100644
--- a/packages/core/src/v1/config/migrate.ts
+++ b/packages/core/src/v1/config/migrate.ts
@@ -29,9 +29,11 @@ export function migrate(info: typeof ConfigV1.Info.Type) {
         update:
           info.autoupdate === false
             ? "disable"
-            : info.autoupdate === "notify" || info.autoupdate === true
+            : info.autoupdate === "notify"
               ? "notify"
-              : undefined,
+              : info.autoupdate === true
+                ? "auto"
+                : undefined,
         share: info.share ?? (info.autoshare ? "auto" : undefined),
         enterprise: info.enterprise,
         username: info.username,
diff --git a/packages/core/test/config/config.test.ts b/packages/core/test/config/config.test.ts
index d7f5270b70c..36c777aaf81 100644
--- a/packages/core/test/config/config.test.ts
+++ b/packages/core/test/config/config.test.ts
@@ -666,14 +666,14 @@ describe("Config", () => {
   test("migrates the v1 update policy", () => {
     expect(ConfigMigrateV1.migrate({ autoupdate: false }).update).toBe("disable")
     expect(ConfigMigrateV1.migrate({ autoupdate: "notify" }).update).toBe("notify")
-    expect(ConfigMigrateV1.migrate({ autoupdate: true }).update).toBe("notify")
+    expect(ConfigMigrateV1.migrate({ autoupdate: true }).update).toBe("auto")
     expect(ConfigMigrateV1.migrate({}).update).toBeUndefined()
   })
 
-  test("normalizes the previous native auto update policy", () => {
+  test("normalizes the native auto update policy", () => {
     expect(ConfigNormalize.normalize({ update: "auto" })).toEqual({
       type: "normalized",
-      encoded: { update: "notify" },
+      encoded: { update: "auto" },
       diagnostics: [],
     })
   })
diff --git a/packages/protocol/openapi.json b/packages/protocol/openapi.json
index 54fa594848c..21cb4954ccd 100644
--- a/packages/protocol/openapi.json
+++ b/packages/protocol/openapi.json
@@ -13904,7 +13904,7 @@
           },
           "update": {
             "type": "string",
-            "enum": ["disable", "notify"]
+            "enum": ["disable", "notify", "auto"]
           },
           "share": {
             "type": "string",
@@ -18221,6 +18221,12 @@
             "type": "string",
             "enum": ["auto", "manual"]
           },
+          "model": {
+            "$ref": "#/components/schemas/Model.Ref"
+          },
+          "providerState": {
+            "$ref": "#/components/schemas/Session.Message.ProviderState_5"
+          },
           "summary": {
             "type": "string"
           },
@@ -18448,6 +18454,9 @@
       "Session.Message.ProviderState_4": {
         "type": "object"
       },
+      "Session.Message.ProviderState_5": {
+        "type": "object"
+      },
       "Session.Message.Shell": {
         "type": "object",
         "properties": {
diff --git a/packages/schema/src/config.ts b/packages/schema/src/config.ts
index 33c0a4c6a81..7ffa170bb7d 100644
--- a/packages/schema/src/config.ts
+++ b/packages/schema/src/config.ts
@@ -34,8 +34,8 @@ export class Info extends Schema.Class<Info>("Config.Info")({
   default_agent: Schema.String.pipe(optional).annotate({
     description: "Default primary agent to use when no session agent is selected",
   }),
-  update: Schema.Literals(["disable", "notify"]).pipe(optional).annotate({
-    description: "Disable updates or notify when one is available",
+  update: Schema.Literals(["disable", "notify", "auto"]).pipe(optional).annotate({
+    description: "Disable updates, notify when one is available, or install updates automatically",
   }),
   share: Schema.Literals(["manual", "auto", "disabled"]).pipe(optional).annotate({
     description: "Control whether sessions may be shared manually, automatically, or not at all",
diff --git a/packages/server/src/process.ts b/packages/server/src/process.ts
index 99f3b37f1b4..87157304913 100644
--- a/packages/server/src/process.ts
+++ b/packages/server/src/process.ts
@@ -1,7 +1,9 @@
 export * as ServerProcess from "./process"
 
 import { NodeHttpServer } from "@effect/platform-node"
+import { Bus } from "@opencode-ai/core/bus"
 import { SessionRestart } from "@opencode-ai/core/session/execution/restart"
+import { InstallationEvent } from "@opencode-ai/schema/installation-event"
 import { hasPtyConnectTicketURL } from "@opencode-ai/protocol/groups/pty"
 import { hasPersistentPtyConnectTicketURL } from "@opencode-ai/protocol/groups/persistent-pty"
 import { Cause, Context, Effect, Exit, Latch, Layer, Option, Ref, Scope } from "effect"
@@ -114,7 +116,14 @@ export const start = Effect.fn("ServerProcess.start")(function* <E, R>(
       )
     yield* Ref.set(application, Option.some(transform ? transform(app) : app))
     yield* status.ready
-    return { address: bound.http.address, shutdown: shutdown.await }
+    const bus = Context.get(context, Bus.Service)
+    return {
+      address: bound.http.address,
+      shutdown: shutdown.await,
+      updateAvailable: (version: string) =>
+        bus.publish(InstallationEvent.UpdateAvailable, { version }).pipe(Effect.asVoid),
+      updated: (version: string) => bus.publish(InstallationEvent.Updated, { version }).pipe(Effect.asVoid),
+    }
   }).pipe(
     Effect.catchCause((cause) => {
       if (!lifecycle || Cause.hasInterruptsOnly(cause)) return Effect.failCause(cause)
diff --git a/packages/server/test/process.test.ts b/packages/server/test/process.test.ts
index 234bd255db8..c2ef6acb5c4 100644
--- a/packages/server/test/process.test.ts
+++ b/packages/server/test/process.test.ts
@@ -101,7 +101,13 @@ it.live("allows browser preflight requests without credentials", () =>
     expect(event.headers.get("content-encoding")).toBeNull()
     const body = event.body
     if (!body) return yield* Effect.die(new Error("Event response has no body"))
-    yield* Effect.promise(() => body.cancel())
+    const reader = body.getReader()
+    yield* Effect.promise(() => readUntil(reader, "server.connected"))
+    yield* server.updateAvailable("2.0.0")
+    yield* Effect.promise(() => readUntil(reader, "installation.update-available"))
+    yield* server.updated("2.0.0")
+    yield* Effect.promise(() => readUntil(reader, "installation.updated"))
+    yield* Effect.promise(() => reader.cancel())
 
     const missing = yield* Effect.promise(() =>
       fetch(new URL("/missing", HttpServer.formatAddress(server.address)), {
@@ -126,3 +132,11 @@ it.live("allows browser preflight requests without credentials", () =>
     )
   }),
 )
+
+async function readUntil(reader: ReadableStreamDefaultReader<Uint8Array>, expected: string) {
+  while (true) {
+    const next = await reader.read()
+    if (next.done) throw new Error(`Event stream ended before ${expected}`)
+    if (new TextDecoder().decode(next.value).includes(expected)) return
+  }
+}
diff --git a/packages/tui/src/app.tsx b/packages/tui/src/app.tsx
index 39c7e11e918..10dd55664f6 100644
--- a/packages/tui/src/app.tsx
+++ b/packages/tui/src/app.tsx
@@ -64,7 +64,6 @@ import { DialogStatus } from "./component/dialog-status"
 import { DialogConfig } from "./component/dialog-config"
 import { DialogDebug } from "./component/dialog-debug"
 import { DialogPair, type DialogPairCredentials } from "./component/dialog-pair"
-import { DialogUpdate } from "./component/dialog-update"
 import { DialogThemeList } from "./component/dialog-theme-list"
 import { DialogHelp } from "./ui/dialog-help"
 import { DialogAgent } from "./component/dialog-agent"
@@ -88,6 +87,7 @@ import open from "open"
 import { PromptRefProvider, usePromptRef } from "./context/prompt"
 import { Config, ConfigProvider, useConfig } from "./config"
 import { newSessionLocation } from "./config/new-session-location"
+import { UpdateNotificationProvider, type UpdateSource } from "./context/update-notification"
 import { PluginProvider, usePlugin, type PackageSource } from "./plugin/context"
 import { localPluginDirectories } from "./plugin/discovery"
 import { PluginRoute, Slot } from "./plugin/render"
@@ -185,10 +185,7 @@ export type TuiInput = {
   }
   args: Args
   config: Config.Interface
-  updater?: {
-    monitor: (notify: (version: string) => void, signal: AbortSignal) => Promise<void>
-    apply: (version: string) => Promise<void>
-  }
+  updater?: UpdateSource
   packages: PackageSource
   environment?: Readonly<Record<string, string>>
   terminalHandoff?: () => Promise<
@@ -397,22 +394,25 @@ export const run = Effect.fn("Tui.run")(function* (input: TuiInput) {
                                                                     <PromptRefProvider>
                                                                       <EditorContextProvider>
                                                                         <AttentionProvider>
-                                                                          <PluginProvider
-                                                                            packages={input.packages}
-                                                                            directories={pluginDirectories}
+                                                                          <UpdateNotificationProvider
+                                                                            updater={input.updater}
                                                                           >
-                                                                            <App
-                                                                              updater={input.updater}
-                                                                              pair={
-                                                                                input.server.endpoint.auth
-                                                                                  ? input.server.endpoint.auth
-                                                                                  : {
-                                                                                      username: "opencode",
-                                                                                      password: "",
-                                                                                    }
-                                                                              }
-                                                                            />
-                                                                          </PluginProvider>
+                                                                            <PluginProvider
+                                                                              packages={input.packages}
+                                                                              directories={pluginDirectories}
+                                                                            >
+                                                                              <App
+                                                                                pair={
+                                                                                  input.server.endpoint.auth
+                                                                                    ? input.server.endpoint.auth
+                                                                                    : {
+                                                                                        username: "opencode",
+                                                                                        password: "",
+                                                                                      }
+                                                                                }
+                                                                              />
+                                                                            </PluginProvider>
+                                                                          </UpdateNotificationProvider>
                                                                         </AttentionProvider>
                                                                       </EditorContextProvider>
                                                                     </PromptRefProvider>
@@ -462,7 +462,7 @@ export const run = Effect.fn("Tui.run")(function* (input: TuiInput) {
   })
 })
 
-function App(props: { pair?: DialogPairCredentials; updater?: TuiInput["updater"] }) {
+function App(props: { pair?: DialogPairCredentials }) {
   const log = useLog({ component: "app" })
   const app = useTuiApp()
   const startup = useTuiStartup()
@@ -501,40 +501,6 @@ function App(props: { pair?: DialogPairCredentials; updater?: TuiInput["updater"
   const [layout, updateLayout] = useStorage().store<{ verticalTabsWidth?: number }>("layout", {
     initial: { verticalTabsWidth: SESSION_SIDEBAR_WIDTH },
   })
-  const [updateNotifications, markUpdateNotification] = useStorage().store<{ versions: string[] }>(
-    "update-notifications",
-    { initial: { versions: [] } },
-  )
-  const showUpdate = (version: string) => {
-    const updater = props.updater
-    if (!updater || updateNotifications.versions.includes(version)) return
-    void markUpdateNotification((draft) => {
-      draft.versions = [...draft.versions, version].slice(-100)
-    }).catch((error) => log.error("failed to persist update notification", { error }))
-    const key = `update:${version}`
-    dialog.replace(
-      () => (
-        <DialogUpdate
-          dialogKey={key}
-          version={version}
-          install={() => updater.apply(version)}
-          restart={client.restart}
-        />
-      ),
-      undefined,
-      { key },
-    )
-    dialog.setCentered(true)
-  }
-  onMount(() => {
-    const updater = props.updater
-    if (!updater) return
-    const controller = new AbortController()
-    onCleanup(() => controller.abort())
-    void updater.monitor(showUpdate, controller.signal).catch((error) => {
-      if (!controller.signal.aborted) log.error("update monitor failed", { error })
-    })
-  })
   const tabsResize = createPaneResize({
     value: () => layout.verticalTabsWidth ?? SESSION_SIDEBAR_WIDTH,
     defaultValue: () => SESSION_SIDEBAR_WIDTH,
diff --git a/packages/tui/src/component/dialog-update.tsx b/packages/tui/src/component/dialog-update.tsx
deleted file mode 100644
index 96f534250b8..00000000000
--- a/packages/tui/src/component/dialog-update.tsx
+++ /dev/null
@@ -1,160 +0,0 @@
-/** @jsxImportSource @opentui/solid */
-import { TextAttributes } from "@opentui/core"
-import { createSignal, For, Match, Show, Switch } from "solid-js"
-import { Keymap } from "../context/keymap"
-import { useTheme } from "../context/theme"
-import { errorMessage } from "../util/error"
-import { useDialog } from "../ui/dialog"
-import { Spinner } from "./spinner"
-
-type State =
-  | { type: "ready"; active: "update" | "skip" }
-  | { type: "installing" }
-  | { type: "restarting" }
-  | { type: "failed"; message: string }
-
-export function DialogUpdate(props: {
-  dialogKey: string
-  version: string
-  install: () => Promise<void>
-  restart?: () => Promise<void>
-}) {
-  const dialog = useDialog()
-  const theme = useTheme("elevated")
-  const [state, setState] = createSignal<State>({ type: "ready", active: "update" })
-  const close = () => {
-    if (dialog.key === props.dialogKey) dialog.clear()
-  }
-
-  const install = async () => {
-    setState({ type: "installing" })
-    await props.install()
-    if (props.restart) {
-      setState({ type: "restarting" })
-      await props.restart()
-    }
-    close()
-  }
-
-  const beginInstall = () => {
-    if (state().type !== "ready") return
-    void install().catch((error) => setState({ type: "failed", message: errorMessage(error) }))
-  }
-
-  const run = () => {
-    const current = state()
-    if (current.type !== "ready") return
-    if (current.active === "skip") return close()
-    beginInstall()
-  }
-
-  const toggle = () =>
-    setState((current) =>
-      current.type === "ready" ? { ...current, active: current.active === "update" ? "skip" : "update" } : current,
-    )
-
-  const selected = (action: "update" | "skip") => {
-    const current = state()
-    return current.type === "ready" && current.active === action
-  }
-
-  const failure = () => {
-    const current = state()
-    return current.type === "failed" ? current.message : ""
-  }
-
-  Keymap.createLayer(() => ({
-    mode: "modal",
-    commands: [
-      {
-        bind: "return",
-        title: "Confirm update action",
-        group: "Dialog",
-        run: () => (state().type === "failed" ? close() : run()),
-      },
-      {
-        bind: "left",
-        title: "Previous update action",
-        group: "Dialog",
-        run: toggle,
-      },
-      {
-        bind: "right",
-        title: "Next update action",
-        group: "Dialog",
-        run: toggle,
-      },
-    ],
-  }))
-
-  return (
-    <box paddingLeft={2} paddingRight={2} gap={1}>
-      <box flexDirection="row" justifyContent="space-between">
-        <text attributes={TextAttributes.BOLD} fg={theme.text.default}>
-          Update available
-        </text>
-        <text fg={theme.text.subdued} onMouseUp={close}>
-          esc
-        </text>
-      </box>
-      <box paddingBottom={1}>
-        <Switch>
-          <Match when={state().type === "ready"}>
-            <text fg={theme.text.subdued}>
-              An update is available. Applying will
-              {props.restart
-                ? " restart the server and active sessions will be resumed."
-                : " install the update but you will need to manually restart."}
-            </text>
-          </Match>
-          <Match when={state().type === "installing"}>
-            <Spinner shimmer={theme.text.default}>Installing OpenCode {props.version}…</Spinner>
-          </Match>
-          <Match when={state().type === "restarting"}>
-            <Spinner shimmer={theme.text.default}>Restarting the background service…</Spinner>
-          </Match>
-          <Match when={state().type === "failed"}>
-            <text fg={theme.text.feedback.error.default}>{failure()}</text>
-          </Match>
-        </Switch>
-      </box>
-      <Show
-        when={state().type === "ready"}
-        fallback={
-          <Show when={state().type === "failed"}>
-            <box flexDirection="row" justifyContent="flex-end" paddingBottom={1}>
-              <box
-                paddingLeft={3}
-                paddingRight={3}
-                backgroundColor={theme.background.action.primary.focused}
-                onMouseUp={close}
-              >
-                <text fg={theme.text.action.primary.focused}>close</text>
-              </box>
-            </box>
-          </Show>
-        }
-      >
-        <box flexDirection="row" justifyContent="flex-end" paddingBottom={1}>
-          <For each={["skip", "update"] as const}>
-            {(action) => (
-              <box
-                paddingLeft={1}
-                paddingRight={1}
-                backgroundColor={selected(action) ? theme.background.action.primary.focused : undefined}
-                onMouseUp={() => {
-                  if (action === "skip") return close()
-                  beginInstall()
-                }}
-              >
-                <text fg={selected(action) ? theme.text.action.primary.focused : theme.text.subdued}>
-                  {action === "update" ? "Update" : "Skip"}
-                </text>
-              </box>
-            )}
-          </For>
-        </box>
-      </Show>
-    </box>
-  )
-}
diff --git a/packages/tui/src/component/fade-in-text.tsx b/packages/tui/src/component/fade-in-text.tsx
new file mode 100644
index 00000000000..ebe5ef683d9
--- /dev/null
+++ b/packages/tui/src/component/fade-in-text.tsx
@@ -0,0 +1,151 @@
+import {
+  OptimizedBuffer,
+  RGBA,
+  TargetChannel,
+  TextRenderable,
+  type RenderContext,
+  type TextOptions,
+} from "@opentui/core"
+import { extend, type JSX } from "@opentui/solid"
+import { splitProps } from "solid-js"
+import { useConfig } from "../config"
+import { coast, smootherstep } from "./tab-pulse"
+
+type FadeInTextOptions = TextOptions & {
+  backdrop?: RGBA
+  enabled?: boolean
+  sweepOffset?: number
+  sweepWidth?: number
+}
+
+const DURATION = 200
+const FEATHER = 8
+const TRANSPARENT = RGBA.fromValues(0, 0, 0, 0)
+const CONTINUATION = 0xc0000000 | 0
+const clamp = (value: number) => Math.max(0, Math.min(1, value))
+
+class FadeInTextRenderable extends TextRenderable {
+  private _backdrop = RGBA.defaultBackground()
+  private _enabled = true
+  private _sweepOffset = 0
+  private _sweepWidth: number | undefined
+  private elapsed = 0
+  private scratch: OptimizedBuffer | undefined
+  private mask = new Float32Array(0)
+  private matrix = new Float32Array(16)
+
+  constructor(ctx: RenderContext, options: FadeInTextOptions) {
+    super(ctx, options)
+    this.matrix[15] = 1
+    this.updateBackdrop()
+    if (options.backdrop) this.backdrop = options.backdrop
+    if (options.enabled === false) this.enabled = false
+    this.live = this._enabled
+  }
+
+  set backdrop(value: RGBA) {
+    if (value.equals(this._backdrop)) return
+    this._backdrop = value
+    this.updateBackdrop()
+    this.requestRender()
+  }
+
+  set enabled(value: boolean) {
+    if (value === this._enabled) return
+    this._enabled = value
+    this.live = value && this.elapsed < DURATION
+    this.requestRender()
+  }
+
+  set sweepOffset(value: number | undefined) {
+    this._sweepOffset = value ?? 0
+    this.requestRender()
+  }
+
+  set sweepWidth(value: number | undefined) {
+    this._sweepWidth = value
+    this.requestRender()
+  }
+
+  private updateBackdrop() {
+    this.matrix[3] = this._backdrop.r
+    this.matrix[7] = this._backdrop.g
+    this.matrix[11] = this._backdrop.b
+  }
+
+  override render(buffer: OptimizedBuffer, deltaTime: number) {
+    if (!this._enabled || this.elapsed >= DURATION) return super.render(buffer, deltaTime)
+    if (!this.visible || this.isDestroyed || !Number.isFinite(this.width) || this.width <= 0 || this.height <= 0) return
+    this.elapsed = Math.min(DURATION, this.elapsed + deltaTime)
+    if (!this.scratch)
+      this.scratch = OptimizedBuffer.create(this.width, this.height, this._ctx.widthMethod, { respectAlpha: true })
+    if (this.scratch.width !== this.width || this.scratch.height !== this.height)
+      this.scratch.resize(this.width, this.height)
+
+    this.scratch.clear(TRANSPARENT)
+    this.scratch.drawTextBuffer(this.textBufferView, 0, 0)
+    const characters = this.scratch.buffers.char
+    let end = 0
+    for (let row = 0; row < this.height; row++) {
+      let column = this.width
+      while (
+        column > 0 &&
+        (characters[row * this.width + column - 1] === 32 || characters[row * this.width + column - 1] === 0)
+      )
+        column--
+      end = Math.max(end, column)
+    }
+    const progress = this.elapsed / DURATION
+    const front = -FEATHER + coast(progress) * ((this._sweepWidth ?? end) + FEATHER * 2)
+    if (this.mask.length !== this.width * this.height * 3) this.mask = new Float32Array(this.width * this.height * 3)
+    let strength = 1
+    for (let cell = 0; cell < characters.length; cell++) {
+      const column = cell % this.width
+      if ((characters[cell] & CONTINUATION) !== CONTINUATION)
+        strength = 1 - smootherstep(clamp((front - (this._sweepOffset + column)) / FEATHER))
+      this.mask[cell * 3] = column
+      this.mask[cell * 3 + 1] = Math.floor(cell / this.width)
+      this.mask[cell * 3 + 2] = strength
+    }
+    this.scratch.colorMatrix(this.matrix, this.mask, 1, TargetChannel.FG)
+    buffer.drawFrameBuffer(this.screenX, this.screenY, this.scratch)
+    this.markClean()
+    this._ctx.addToHitGrid(this.screenX, this.screenY, this.width, this.height, this.num)
+    if (this.elapsed >= DURATION) this.live = false
+  }
+
+  override destroy() {
+    this.scratch?.destroy()
+    this.scratch = undefined
+    super.destroy()
+  }
+}
+
+extend({ fade_in_text: FadeInTextRenderable })
+
+declare module "@opentui/solid" {
+  interface OpenTUIComponents {
+    fade_in_text: typeof FadeInTextRenderable
+  }
+}
+
+type Props = Omit<JSX.IntrinsicElements["text"], "ref"> & {
+  animate?: boolean
+  backdrop?: RGBA
+  sweepOffset?: number
+  sweepWidth?: number
+}
+
+export function FadeInText(props: Props) {
+  const config = useConfig().data
+  const [local, text] = splitProps(props, ["animate", "backdrop", "sweepOffset", "sweepWidth"])
+  return (
+    <fade_in_text
+      {...text}
+      backdrop={local.backdrop}
+      enabled={(local.animate ?? true) && (config.animations ?? true)}
+      sweepOffset={local.sweepOffset}
+      sweepWidth={local.sweepWidth}
+    />
+  )
+}
diff --git a/packages/tui/src/component/shimmer-text.tsx b/packages/tui/src/component/shimmer-text.tsx
deleted file mode 100644
index a1e06eade50..00000000000
--- a/packages/tui/src/component/shimmer-text.tsx
+++ /dev/null
@@ -1,104 +0,0 @@
-import {
-  OptimizedBuffer,
-  RGBA,
-  TargetChannel,
-  TextRenderable,
-  type RenderContext,
-  type TextOptions,
-} from "@opentui/core"
-import { extend, type JSX } from "@opentui/solid"
-import { splitProps } from "solid-js"
-import { coast, intensityAt } from "./tab-pulse"
-
-type ShimmerTextOptions = TextOptions & {
-  shimmer: RGBA
-}
-
-const DURATION = 1200
-const TRANSPARENT = RGBA.fromValues(0, 0, 0, 0)
-const CONTINUATION = 0xc0000000 | 0
-
-class ShimmerTextRenderable extends TextRenderable {
-  private _shimmer = RGBA.defaultForeground()
-  private elapsed = 0
-  private scratch: OptimizedBuffer | undefined
-  private mask = new Float32Array(0)
-  private matrix = new Float32Array(16)
-
-  constructor(ctx: RenderContext, options: ShimmerTextOptions) {
-    super(ctx, options)
-    this.matrix[3] = this._shimmer.r
-    this.matrix[7] = this._shimmer.g
-    this.matrix[11] = this._shimmer.b
-    this.matrix[15] = 1
-    if (options.shimmer) this.shimmer = options.shimmer
-    this.live = true
-  }
-
-  set shimmer(value: RGBA) {
-    if (value.equals(this._shimmer)) return
-    this._shimmer = value
-    this.matrix[3] = value.r
-    this.matrix[7] = value.g
-    this.matrix[11] = value.b
-    this.requestRender()
-  }
-
-  override render(buffer: OptimizedBuffer, deltaTime: number) {
-    if (!this.visible || this.isDestroyed || !Number.isFinite(this.width) || this.width <= 0 || this.height <= 0) return
-    this.elapsed = (this.elapsed + deltaTime) % DURATION
-    if (!this.scratch)
-      this.scratch = OptimizedBuffer.create(this.width, this.height, this._ctx.widthMethod, { respectAlpha: true })
-    if (this.scratch.width !== this.width || this.scratch.height !== this.height)
-      this.scratch.resize(this.width, this.height)
-
-    this.scratch.clear(TRANSPARENT)
-    this.scratch.drawTextBuffer(this.textBufferView, 0, 0)
-    const characters = this.scratch.buffers.char
-    let end = 0
-    for (let row = 0; row < this.height; row++) {
-      let column = this.width
-      while (
-        column > 0 &&
-        (characters[row * this.width + column - 1] === 32 || characters[row * this.width + column - 1] === 0)
-      )
-        column--
-      end = Math.max(end, column)
-    }
-    const front = -4 + coast(this.elapsed / DURATION) * (end + 22)
-    if (this.mask.length !== this.width * this.height * 3) this.mask = new Float32Array(this.width * this.height * 3)
-    let strength = 0
-    for (let cell = 0; cell < characters.length; cell++) {
-      const column = cell % this.width
-      if ((characters[cell] & CONTINUATION) !== CONTINUATION) strength = intensityAt(column, front, 4, 18)
-      this.mask[cell * 3] = column
-      this.mask[cell * 3 + 1] = Math.floor(cell / this.width)
-      this.mask[cell * 3 + 2] = strength
-    }
-    this.scratch.colorMatrix(this.matrix, this.mask, 1, TargetChannel.FG)
-    buffer.drawFrameBuffer(this.screenX, this.screenY, this.scratch)
-    this.markClean()
-    this._ctx.addToHitGrid(this.screenX, this.screenY, this.width, this.height, this.num)
-  }
-
-  override destroy() {
-    this.scratch?.destroy()
-    this.scratch = undefined
-    super.destroy()
-  }
-}
-
-extend({ shimmer_text: ShimmerTextRenderable })
-
-declare module "@opentui/solid" {
-  interface OpenTUIComponents {
-    shimmer_text: typeof ShimmerTextRenderable
-  }
-}
-
-type Props = Omit<JSX.IntrinsicElements["text"], "ref"> & { shimmer: RGBA }
-
-export function ShimmerText(props: Props) {
-  const [local, text] = splitProps(props, ["shimmer"])
-  return <shimmer_text {...text} shimmer={local.shimmer} />
-}
diff --git a/packages/tui/src/component/spinner.tsx b/packages/tui/src/component/spinner.tsx
index 0bed53f45ac..1cca2f4bcff 100644
--- a/packages/tui/src/component/spinner.tsx
+++ b/packages/tui/src/component/spinner.tsx
@@ -1,48 +1,30 @@
-import { createEffect, createSignal, onCleanup, Show } from "solid-js"
+import { Show } from "solid-js"
 import { useTheme } from "../context/theme"
 import { useConfig } from "../config"
 import type { JSX } from "@opentui/solid"
 import type { RGBA } from "@opentui/core"
 import { registerOpencodeSpinner } from "./register-spinner"
 import { SPINNER_FRAMES } from "./spinner-frames"
-import { ShimmerText } from "./shimmer-text"
 
 export { SPINNER_FRAMES } from "./spinner-frames"
 
 registerOpencodeSpinner()
 
-export function Spinner(props: { children?: JSX.Element; color?: RGBA; shimmer?: RGBA }) {
+export function Spinner(props: { children?: JSX.Element; color?: RGBA }) {
   const theme = useTheme()
   const config = useConfig().data
   const color = () => props.color ?? theme.text.subdued
-  const [frame, setFrame] = createSignal(0)
-  createEffect(() => {
-    if (!(config.animations ?? true) || !props.shimmer) return
-    const timer = setInterval(() => setFrame((value) => (value + 1) % SPINNER_FRAMES.length), 80)
-    onCleanup(() => clearInterval(timer))
-  })
   return (
     <Show
       when={config.animations ?? true}
       fallback={<text fg={color()}>{props.children ? <>⋯ {props.children}</> : "⋯"}</text>}
     >
-      <Show
-        when={props.shimmer}
-        fallback={
-          <box flexDirection="row" gap={1}>
-            <spinner frames={SPINNER_FRAMES} interval={80} color={color()} />
-            <Show when={props.children}>
-              <text fg={color()}>{props.children}</text>
-            </Show>
-          </box>
-        }
-      >
-        {(shimmer) => (
-          <ShimmerText fg={color()} shimmer={shimmer()}>
-            {SPINNER_FRAMES[frame()]} {props.children}
-          </ShimmerText>
-        )}
-      </Show>
+      <box flexDirection="row" gap={1}>
+        <spinner frames={SPINNER_FRAMES} interval={80} color={color()} />
+        <Show when={props.children}>
+          <text fg={color()}>{props.children}</text>
+        </Show>
+      </box>
     </Show>
   )
 }
diff --git a/packages/tui/src/context/update-notification.tsx b/packages/tui/src/context/update-notification.tsx
new file mode 100644
index 00000000000..cf2af29da2e
--- /dev/null
+++ b/packages/tui/src/context/update-notification.tsx
@@ -0,0 +1,127 @@
+import { createSignal, onCleanup, onMount } from "solid-js"
+import { createSimpleContext } from "./helper"
+import { useLog } from "./log"
+import { useStorage } from "./storage"
+import { useEvent } from "./event"
+import { errorMessage } from "../util/error"
+import { useExit } from "./exit"
+
+type ClientNotice = { readonly type: "available" | "installed"; readonly version: string }
+type Notice = ClientNotice & ({ readonly source: "client" } | { readonly source: "server"; readonly remote: boolean })
+export type UpdateNotificationState =
+  | Notice
+  | { readonly source: "client"; readonly type: "installing"; readonly version: string }
+  | { readonly source: "client"; readonly type: "install-success"; readonly version: string }
+  | { readonly source: "client"; readonly type: "failed"; readonly version: string; readonly message: string }
+
+export type UpdateSource = {
+  readonly remote: boolean
+  readonly subscribe: (notify: (notice: ClientNotice) => void, signal: AbortSignal) => Promise<void>
+  readonly apply: (version: string) => Promise<void>
+}
+
+export const { use: useUpdateNotification, provider: UpdateNotificationProvider } = createSimpleContext({
+  name: "UpdateNotification",
+  init: (props: { updater?: UpdateSource }) => {
+    const event = useEvent()
+    const exit = useExit()
+    const log = useLog({ component: "update-notification" })
+    const [state, setState] = createSignal<UpdateNotificationState>()
+    const [notifications, markNotification] = useStorage().store<{ versions: string[] }>("update-notifications", {
+      initial: { versions: [] },
+    })
+
+    const notify = (notice: Notice) => {
+      if (
+        !props.updater ||
+        notifications.versions.includes(`${notice.source}:${notice.version}`) ||
+        (notice.source === "client" && notifications.versions.includes(notice.version))
+      )
+        return
+      setState((current) => {
+        if (notice.source === "server" && current?.source === "client") return current
+        return notice
+      })
+    }
+
+    const seen = (source: Notice["source"], version: string) =>
+      markNotification((draft) => {
+        draft.versions = [...draft.versions, `${source}:${version}`].slice(-100)
+      }).catch((error) => log.error("failed to persist update notification", { error }))
+
+    const skip = () => {
+      const current = state()
+      if (!current || current.type !== "available" || (current.source === "server" && current.remote)) return
+      setState(undefined)
+      void seen(current.source, current.version)
+    }
+
+    const close = () => {
+      const current = state()
+      if (!current || current.source !== "server") return
+      setState(undefined)
+      void seen(current.source, current.version)
+    }
+
+    const install = async () => {
+      const updater = props.updater
+      const current = state()
+      if (!updater || !current || current.type !== "available" || (current.source === "server" && current.remote))
+        return
+      setState({ source: "client", type: "installing", version: current.version })
+      void seen(current.source, current.version)
+      await updater.apply(current.version).then(
+        () => setState({ source: "client", type: "install-success", version: current.version }),
+        (error) =>
+          setState({ source: "client", type: "failed", version: current.version, message: errorMessage(error) }),
+      )
+    }
+
+    const restart = () => {
+      const current = state()
+      if (!current || (current.type !== "installed" && current.type !== "install-success")) return
+      exit()
+    }
+
+    const later = () => {
+      const current = state()
+      if (!current || (current.type !== "installed" && current.type !== "install-success")) return
+      setState(undefined)
+    }
+
+    onMount(() => {
+      const updater = props.updater
+      if (!updater) return
+      const controller = new AbortController()
+      onCleanup(() => controller.abort())
+      void updater
+        .subscribe((notice) => notify({ ...notice, source: "client" }), controller.signal)
+        .catch((error) => {
+          if (!controller.signal.aborted) log.error("update check failed", { error })
+        })
+    })
+
+    onCleanup(
+      event.on("installation.update-available", (event) =>
+        notify({
+          source: "server",
+          remote: props.updater?.remote ?? false,
+          type: "available",
+          version: event.data.version,
+        }),
+      ),
+    )
+    onCleanup(
+      event.on("installation.updated", (event) =>
+        notify({
+          source: "server",
+          remote: props.updater?.remote ?? false,
+          type: "installed",
+          version: event.data.version,
+        }),
+      ),
+    )
+
+    return { state, skip, close, install, restart, later }
+  },
+})
diff --git a/packages/tui/src/routes/home.tsx b/packages/tui/src/routes/home.tsx
index 0180d9a5ffa..3601a0bd7c3 100644
--- a/packages/tui/src/routes/home.tsx
+++ b/packages/tui/src/routes/home.tsx
@@ -1,5 +1,5 @@
 import { Prompt, type PromptRef } from "../component/prompt"
-import { createEffect, createMemo, createSignal, onMount, Show, untrack } from "solid-js"
+import { createEffect, createMemo, createSignal, Match, onMount, Show, Switch, untrack } from "solid-js"
 import { Logo } from "../component/logo"
 import { useArgs } from "../context/args"
 import { useRouteData } from "../context/route"
@@ -11,6 +11,12 @@ import { useLocation } from "../context/location"
 import { FormPrompt } from "./session/form"
 import { Slot } from "../plugin/render"
 import { useTerminalDimensions } from "@opentui/solid"
+import { TextAttributes, type RGBA } from "@opentui/core"
+import { useTheme } from "../context/theme"
+import { useUpdateNotification } from "../context/update-notification"
+import { Spinner } from "../component/spinner"
+import { FadeInText } from "../component/fade-in-text"
+import { stringWidth } from "../util/string-width"
 
 let once = false
 const placeholder = {
@@ -81,13 +87,16 @@ export function Home() {
         paddingRight={dimensions().width < 44 ? 1 : 2}
       >
         <box flexGrow={1} minHeight={0} />
-        <box height={4} minHeight={0} flexShrink={1} />
+        <box height={3} minHeight={0} flexShrink={1} />
         <box flexShrink={0}>
           <Logo />
         </box>
         <box height={1} minHeight={0} flexShrink={1} />
-        <box width="100%" maxWidth={75} zIndex={1000} paddingTop={1} flexShrink={0}>
+        <box width="100%" maxWidth={75} zIndex={1000} paddingTop={1} flexShrink={0} position="relative">
           <Prompt ref={bind} placeholders={placeholder} disabled={forms().length > 0} />
+          <box position="absolute" top="100%" left={0} right={0} alignItems="center">
+            <UpdateNotification />
+          </box>
         </box>
         <box flexGrow={1} minHeight={0} />
       </box>
@@ -109,3 +118,174 @@ export function Home() {
     </>
   )
 }
+
+function UpdateNotification() {
+  const update = useUpdateNotification()
+  const theme = useTheme()
+  const action = theme.text.action.primary.selected
+  const [hovered, setHovered] = createSignal<"primary" | "skip" | "later" | "close">()
+  createEffect(() => {
+    update.state()
+    setHovered(undefined)
+  })
+
+  return (
+    <Show when={update.state()} keyed>
+      {(state) => (
+        <box flexShrink={0} marginTop={4} alignItems="center">
+          <Switch>
+            <Match when={state.type === "available" && (state.source === "client" || !state.remote)}>
+              <box alignItems="center">
+                <box
+                  alignItems="center"
+                  paddingLeft={1}
+                  paddingRight={1}
+                  backgroundColor={hovered() === "primary" ? theme.background.action.primary.hovered : undefined}
+                  onMouseOver={() => setHovered("primary")}
+                  onMouseOut={() => setHovered(undefined)}
+                  onMouseUp={() => void update.install()}
+                >
+                  <UpdateMessage
+                    title="Update available"
+                    description={`Version ${state.version} is available. Click to install`}
+                    backdrop={
+                      hovered() === "primary" ? theme.background.action.primary.hovered : theme.background.default
+                    }
+                  />
+                </box>
+                <box width="100%" alignItems="center" marginTop={1}>
+                  <FadeInText
+                    fg={theme.text.subdued}
+                    backdrop={hovered() === "skip" ? theme.background.action.primary.hovered : theme.background.default}
+                    sweepWidth={stringWidth(`Version ${state.version} is available. Click to install`)}
+                    sweepOffset={Math.floor(
+                      (stringWidth(`Version ${state.version} is available. Click to install`) -
+                        stringWidth("Skip this version")) /
+                        2,
+                    )}
+                    paddingLeft={1}
+                    paddingRight={1}
+                    bg={hovered() === "skip" ? theme.background.action.primary.hovered : undefined}
+                    onMouseOver={() => setHovered("skip")}
+                    onMouseOut={() => setHovered(undefined)}
+                    onMouseUp={update.skip}
+                  >
+                    Skip this version
+                  </FadeInText>
+                </box>
+              </box>
+            </Match>
+            <Match when={state.type === "available" && state.source === "server" && state.remote}>
+              <box alignItems="center">
+                <UpdateMessage
+                  title="Server update available"
+                  description="A remote server cannot be updated from here. Updating it is recommended."
+                  backdrop={theme.background.default}
+                />
+                <FadeInText
+                  fg={theme.text.subdued}
+                  backdrop={hovered() === "close" ? theme.background.action.primary.hovered : theme.background.default}
+                  sweepWidth={stringWidth("A remote server cannot be updated from here. Updating it is recommended.")}
+                  sweepOffset={Math.floor(
+                    (stringWidth("A remote server cannot be updated from here. Updating it is recommended.") -
+                      stringWidth("Close")) /
+                      2,
+                  )}
+                  marginTop={1}
+                  paddingLeft={1}
+                  paddingRight={1}
+                  bg={hovered() === "close" ? theme.background.action.primary.hovered : undefined}
+                  onMouseOver={() => setHovered("close")}
+                  onMouseOut={() => setHovered(undefined)}
+                  onMouseUp={update.close}
+                >
+                  Close
+                </FadeInText>
+              </box>
+            </Match>
+            <Match when={state.type === "installing"}>
+              <Spinner color={theme.text.subdued}>Installing update…</Spinner>
+            </Match>
+            <Match when={state.type === "install-success" || state.type === "installed"}>
+              <box alignItems="center">
+                <box
+                  alignItems="center"
+                  paddingLeft={1}
+                  paddingRight={1}
+                  backgroundColor={hovered() === "primary" ? theme.background.action.primary.hovered : undefined}
+                  onMouseOver={() => setHovered("primary")}
+                  onMouseOut={() => setHovered(undefined)}
+                  onMouseUp={update.restart}
+                >
+                  <UpdateMessage
+                    title="Update installed"
+                    description={
+                      state.type === "install-success"
+                        ? "Click to restart. Active sessions will\nautomatically resume after restart"
+                        : `Version ${state.version} has been installed. Click to restart`
+                    }
+                    animate={state.type === "installed"}
+                    backdrop={
+                      hovered() === "primary" ? theme.background.action.primary.hovered : theme.background.default
+                    }
+                  />
+                </box>
+                <box width="100%" alignItems="center" marginTop={1}>
+                  <FadeInText
+                    fg={theme.text.subdued}
+                    backdrop={
+                      hovered() === "later" ? theme.background.action.primary.hovered : theme.background.default
+                    }
+                    animate={state.type === "installed"}
+                    sweepWidth={stringWidth(`Version ${state.version} has been installed. Click to restart`)}
+                    sweepOffset={Math.floor(
+                      (stringWidth(`Version ${state.version} has been installed. Click to restart`) -
+                        stringWidth("Restart later")) /
+                        2,
+                    )}
+                    paddingLeft={1}
+                    paddingRight={1}
+                    bg={hovered() === "later" ? theme.background.action.primary.hovered : undefined}
+                    onMouseOver={() => setHovered("later")}
+                    onMouseOut={() => setHovered(undefined)}
+                    onMouseUp={update.later}
+                  >
+                    Restart later
+                  </FadeInText>
+                </box>
+              </box>
+            </Match>
+            <Match when={state.type === "failed"}>
+              <text fg={theme.text.feedback.error.default}>{state.type === "failed" ? state.message : ""}</text>
+            </Match>
+          </Switch>
+        </box>
+      )}
+    </Show>
+  )
+}
+
+function UpdateMessage(props: { title: string; description: string; backdrop: RGBA; animate?: boolean }) {
+  const theme = useTheme()
+  const lines = props.description.split("\n")
+  const width = Math.max(stringWidth(props.title), ...lines.map((line) => stringWidth(line)))
+  const padding = " ".repeat(Math.floor((width - stringWidth(props.title)) / 2))
+  const description = lines.map((line) => " ".repeat(Math.floor((width - stringWidth(line)) / 2)) + line).join("\n")
+  return (
+    <FadeInText
+      width={width}
+      height={lines.length + 1}
+      wrapMode="none"
+      fg={theme.text.default}
+      backdrop={props.backdrop}
+      animate={props.animate}
+    >
+      <span style={{ fg: theme.text.action.primary.selected, attributes: TextAttributes.BOLD }}>
+        {padding}
+        {props.title}
+      </span>
+      {"\n"}
+      <span style={{ fg: theme.text.subdued }}>{description}</span>
+    </FadeInText>
+  )
+}
diff --git a/packages/www/openapi.json b/packages/www/openapi.json
index 54fa594848c..21cb4954ccd 100644
--- a/packages/www/openapi.json
+++ b/packages/www/openapi.json
@@ -13904,7 +13904,7 @@
           },
           "update": {
             "type": "string",
-            "enum": ["disable", "notify"]
+            "enum": ["disable", "notify", "auto"]
           },
           "share": {
             "type": "string",
@@ -18221,6 +18221,12 @@
             "type": "string",
             "enum": ["auto", "manual"]
           },
+          "model": {
+            "$ref": "#/components/schemas/Model.Ref"
+          },
+          "providerState": {
+            "$ref": "#/components/schemas/Session.Message.ProviderState_5"
+          },
           "summary": {
             "type": "string"
           },
@@ -18448,6 +18454,9 @@
       "Session.Message.ProviderState_4": {
         "type": "object"
       },
+      "Session.Message.ProviderState_5": {
+        "type": "object"
+      },
       "Session.Message.Shell": {
         "type": "object",
         "properties": {
diff --git a/packages/www/public/openapi.json b/packages/www/public/openapi.json
index 54fa594848c..21cb4954ccd 100644
--- a/packages/www/public/openapi.json
+++ b/packages/www/public/openapi.json
@@ -13904,7 +13904,7 @@
           },
           "update": {
             "type": "string",
-            "enum": ["disable", "notify"]
+            "enum": ["disable", "notify", "auto"]
           },
           "share": {
             "type": "string",
@@ -18221,6 +18221,12 @@
             "type": "string",
             "enum": ["auto", "manual"]
           },
+          "model": {
+            "$ref": "#/components/schemas/Model.Ref"
+          },
+          "providerState": {
+            "$ref": "#/components/schemas/Session.Message.ProviderState_5"
+          },
           "summary": {
             "type": "string"
           },
@@ -18448,6 +18454,9 @@
       "Session.Message.ProviderState_4": {
         "type": "object"
       },
+      "Session.Message.ProviderState_5": {
+        "type": "object"
+      },
       "Session.Message.Shell": {
         "type": "object",
         "properties": {
diff --git a/packages/www/src/docs/content/config.mdx b/packages/www/src/docs/content/config.mdx
index f0d93fd4ced..e2f138084bd 100644
--- a/packages/www/src/docs/content/config.mdx
+++ b/packages/www/src/docs/content/config.mdx
@@ -130,7 +130,10 @@ agents.
 ### Updates
 
 Control update checks from the global config. Set `update` to `"disable"` to
-skip them or `"notify"` to show available updates before installing them.
+skip them, `"notify"` to show available updates before installing them, or
+`"auto"` to install updates automatically. When omitted, `update` defaults to `"auto"`.
+
+Automatic installation does not restart a running server. Restart it manually to activate the installed update.
 Project-level values are ignored.
 
 ```jsonc
diff --git a/packages/www/src/docs/content/migrate-v1.mdx b/packages/www/src/docs/content/migrate-v1.mdx
index ac939218ea9..9d14cbd8490 100644
--- a/packages/www/src/docs/content/migrate-v1.mdx
+++ b/packages/www/src/docs/content/migrate-v1.mdx
@@ -409,8 +409,7 @@ The V1 provider filters do not have one-to-one native V2 config fields, but thei
 
 - `enabled_providers` becomes an internal deny-by-default provider policy followed by allows for the listed providers.
 - `disabled_providers` becomes internal deny policies for the listed providers.
-- `autoupdate` becomes `update`: `false` maps to `"disable"`, while `"notify"` and `true` map to `"notify"`.
-- The previous V2 value `update: "auto"` is treated as `update: "notify"`.
+- `autoupdate` becomes `update`: `false` maps to `"disable"`, `"notify"` maps to `"notify"`, and `true` maps to `"auto"`.
 - `small_model` becomes the `model` selection for the built-in `title` agent. Native V2 configuration should use
   `agents.title.model` instead.