diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index 0fd0c7313..e59f80e56 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -4,6 +4,7 @@
 
 ### Fixed
 
+- Fixed npm package update checks treating older registry versions as available updates, preventing `pi update` from downgrading already-newer installed packages ([#8226](https://github.com/earendil-works/pi/issues/8226)).
 - Fixed built-in llama.cpp models disappearing from `/model` when `/llama` refreshed a configured server under `PI_OFFLINE`, and included idle-slept `sleeping` router models in the selectable catalog ([#8167](https://github.com/earendil-works/pi/issues/8167)).
 - Fixed `pi.registerFlag()` accepting default values that do not match the declared flag type ([#8064](https://github.com/earendil-works/pi/issues/8064)).
 - Fixed Z.AI Coding Plan defaults referencing the removed GLM-5.1 model ([#8096](https://github.com/earendil-works/pi/issues/8096)).
diff --git a/packages/coding-agent/src/core/package-manager.ts b/packages/coding-agent/src/core/package-manager.ts
index e221d2e7e..c2e9e73d5 100644
--- a/packages/coding-agent/src/core/package-manager.ts
+++ b/packages/coding-agent/src/core/package-manager.ts
@@ -27,7 +27,7 @@ import type { Readable } from "node:stream";
 import { globSync } from "glob";
 import ignore from "ignore";
 import { minimatch } from "minimatch";
-import { maxSatisfying, rcompare, satisfies, valid, validRange } from "semver";
+import { gt, maxSatisfying, rcompare, satisfies, valid, validRange } from "semver";
 import { CONFIG_DIR_NAME } from "../config.ts";
 import { spawnProcess, spawnProcessSync } from "../utils/child-process.ts";
 import { type GitSource, parseGitUrl } from "../utils/git.ts";
@@ -1129,7 +1129,7 @@ export class DefaultPackageManager implements PackageManager {
 
 		try {
 			const targetVersion = await this.getLatestNpmVersion(source.version ? source.spec : source.name, source.range);
-			return targetVersion !== installedVersion;
+			return gt(targetVersion, installedVersion);
 		} catch {
 			// Preserve existing update behavior when version lookup fails.
 			return true;
@@ -1463,7 +1463,7 @@ export class DefaultPackageManager implements PackageManager {
 
 		try {
 			const targetVersion = await this.getLatestNpmVersion(source.version ? source.spec : source.name, source.range);
-			return targetVersion !== installedVersion;
+			return gt(targetVersion, installedVersion);
 		} catch {
 			return false;
 		}
diff --git a/packages/coding-agent/test/package-manager.test.ts b/packages/coding-agent/test/package-manager.test.ts
index 31c89faff..86303aab9 100644
--- a/packages/coding-agent/test/package-manager.test.ts
+++ b/packages/coding-agent/test/package-manager.test.ts
@@ -2244,6 +2244,25 @@ export default function(api) { api.registerTool({ name: "test", description: "te
 			expect(runCommandSpy).not.toHaveBeenCalled();
 		});
 
+		it("should skip npm updates when the installed version is newer than the registry version", async () => {
+			const installedPath = join(tempDir, ".pi", "npm", "node_modules", "example");
+			mkdirSync(installedPath, { recursive: true });
+			writeFileSync(join(installedPath, "package.json"), JSON.stringify({ name: "example", version: "2.0.0" }));
+			settingsManager.setProjectPackages(["npm:example"]);
+
+			const runCommandCaptureSpy = vi.spyOn(packageManager as any, "runCommandCapture").mockResolvedValue('"1.9.0"');
+			const runCommandSpy = vi.spyOn(packageManager as any, "runCommand").mockResolvedValue(undefined);
+
+			await packageManager.update("npm:example");
+
+			expect(runCommandCaptureSpy).toHaveBeenCalledWith(
+				"npm",
+				["view", "example", "version", "--json"],
+				expect.objectContaining({ cwd: tempDir, timeoutMs: expect.any(Number) }),
+			);
+			expect(runCommandSpy).not.toHaveBeenCalled();
+		});
+
 		it("should migrate legacy user npm installs into the managed npm root during update", async () => {
 			const legacyRoot = join(tempDir, "legacy-global", "node_modules");
 			const legacyPath = join(legacyRoot, "legacy-pkg");
@@ -2504,6 +2523,18 @@ export default function(api) { api.registerTool({ name: "test", description: "te
 			]);
 		});
 
+		it("should not report npm updates when the installed version is newer than the registry version", async () => {
+			const installedPath = join(tempDir, ".pi", "npm", "node_modules", "example");
+			mkdirSync(installedPath, { recursive: true });
+			writeFileSync(join(installedPath, "package.json"), JSON.stringify({ name: "example", version: "2.0.0" }));
+			settingsManager.setProjectPackages(["npm:example"]);
+
+			vi.spyOn(packageManager as any, "runCommandCapture").mockResolvedValue('"1.9.0"');
+
+			const updates = await packageManager.checkForAvailableUpdates();
+			expect(updates).toEqual([]);
+		});
+
 		it("should skip pinned packages when checking for updates", async () => {
 			const installedNpmPath = join(tempDir, ".pi", "npm", "node_modules", "example");
 			mkdirSync(installedNpmPath, { recursive: true });