diff --git a/server/index.js b/server/index.js
index cbf68b2..4b70cd3 100755
--- a/server/index.js
+++ b/server/index.js
@@ -9,6 +9,8 @@ import { dirname } from 'path';
 const __filename = fileURLToPath(import.meta.url);
 const __dirname = dirname(__filename);
 
+const installMode = fs.existsSync(path.join(__dirname, '..', '.git')) ? 'git' : 'npm';
+
 // ANSI color codes for terminal output
 const colors = {
     reset: '\x1b[0m',
@@ -333,7 +335,8 @@ app.use(express.urlencoded({ limit: '50mb', extended: true }));
 app.get('/health', (req, res) => {
   res.json({
     status: 'ok',
-    timestamp: new Date().toISOString()
+    timestamp: new Date().toISOString(),
+    installMode
   });
 });
 
@@ -410,11 +413,13 @@ app.post('/api/system/update', authenticateToken, async (req, res) => {
 
         console.log('Starting system update from directory:', projectRoot);
 
-        // Run the update command
-        const updateCommand = 'git checkout main && git pull && npm install';
+        // Run the update command based on install mode
+        const updateCommand = installMode === 'git'
+            ? 'git checkout main && git pull && npm install'
+            : 'npm install -g @siteboon/claude-code-ui@latest';
 
         const child = spawn('sh', ['-c', updateCommand], {
-            cwd: projectRoot,
+            cwd: installMode === 'git' ? projectRoot : os.homedir(),
             env: process.env
         });
 
diff --git a/src/components/modals/VersionUpgradeModal.tsx b/src/components/modals/VersionUpgradeModal.tsx
index 4d09dcd..e5beeb0 100644
--- a/src/components/modals/VersionUpgradeModal.tsx
+++ b/src/components/modals/VersionUpgradeModal.tsx
@@ -2,6 +2,7 @@ import { useCallback, useState } from "react";
 import { useTranslation } from "react-i18next";
 import { authenticatedFetch } from "../../utils/api";
 import { ReleaseInfo } from "../../types/sharedTypes";
+import type { InstallMode } from "../../hooks/useVersionCheck";
 
 interface VersionUpgradeModalProps {
     isOpen: boolean;
@@ -9,6 +10,7 @@ interface VersionUpgradeModalProps {
     releaseInfo: ReleaseInfo | null;
     currentVersion: string;
     latestVersion: string | null;
+    installMode: InstallMode;
 }
 
 export default function VersionUpgradeModal({
@@ -16,9 +18,13 @@ export default function VersionUpgradeModal({
     onClose,
     releaseInfo,
     currentVersion,
-    latestVersion
+    latestVersion,
+    installMode
 }: VersionUpgradeModalProps) {
     const { t } = useTranslation('common');
+    const upgradeCommand = installMode === 'npm'
+        ? t('versionUpdate.npmUpgradeCommand')
+        : 'git checkout main && git pull && npm install';
     const [isUpdating, setIsUpdating] = useState(false);
     const [updateOutput, setUpdateOutput] = useState('');
     const [updateError, setUpdateError] = useState('');
@@ -150,7 +156,7 @@ export default function VersionUpgradeModal({
                         <h3 className="text-sm font-medium text-gray-900 dark:text-white">{t('versionUpdate.manualUpgrade')}</h3>
                         <div className="bg-gray-100 dark:bg-gray-800 rounded-lg p-3 border">
                             <code className="text-sm text-gray-800 dark:text-gray-200 font-mono">
-                                git checkout main && git pull && npm install
+                                {upgradeCommand}
                             </code>
                         </div>
                         <p className="text-xs text-gray-600 dark:text-gray-400">
@@ -171,7 +177,7 @@ export default function VersionUpgradeModal({
                         <>
                             <button
                                 onClick={() => {
-                                    navigator.clipboard.writeText('git checkout main && git pull && npm install');
+                                    navigator.clipboard.writeText(upgradeCommand);
                                 }}
                                 className="flex-1 px-4 py-2 text-sm font-medium text-gray-700 dark:text-gray-300 bg-gray-100 dark:bg-gray-700 hover:bg-gray-200 dark:hover:bg-gray-600 rounded-md transition-colors"
                             >
diff --git a/src/components/sidebar/view/Sidebar.tsx b/src/components/sidebar/view/Sidebar.tsx
index d8633c9..842bda8 100644
--- a/src/components/sidebar/view/Sidebar.tsx
+++ b/src/components/sidebar/view/Sidebar.tsx
@@ -38,7 +38,7 @@ function Sidebar({
 }: SidebarProps) {
   const { t } = useTranslation(['sidebar', 'common']);
   const { isPWA } = useDeviceSettings({ trackMobile: false });
-  const { updateAvailable, latestVersion, currentVersion, releaseInfo } = useVersionCheck(
+  const { updateAvailable, latestVersion, currentVersion, releaseInfo, installMode } = useVersionCheck(
     'siteboon',
     'claudecodeui',
   );
@@ -200,6 +200,7 @@ function Sidebar({
         releaseInfo={releaseInfo}
         currentVersion={currentVersion}
         latestVersion={latestVersion}
+        installMode={installMode}
         t={t}
       />
 
diff --git a/src/components/sidebar/view/subcomponents/SidebarModals.tsx b/src/components/sidebar/view/subcomponents/SidebarModals.tsx
index a93d11b..8a63321 100644
--- a/src/components/sidebar/view/subcomponents/SidebarModals.tsx
+++ b/src/components/sidebar/view/subcomponents/SidebarModals.tsx
@@ -8,6 +8,7 @@ import Settings from '../../../Settings';
 import VersionUpgradeModal from '../../../modals/VersionUpgradeModal';
 import type { Project } from '../../../../types/app';
 import type { ReleaseInfo } from '../../../../types/sharedTypes';
+import type { InstallMode } from '../../../../hooks/useVersionCheck';
 import { normalizeProjectForSettings } from '../../utils/utils';
 import type { DeleteProjectConfirmation, SessionDeleteConfirmation, SettingsProject } from '../../types/types';
 
@@ -30,6 +31,7 @@ type SidebarModalsProps = {
   releaseInfo: ReleaseInfo | null;
   currentVersion: string;
   latestVersion: string | null;
+  installMode: InstallMode;
   t: TFunction;
 };
 
@@ -65,6 +67,7 @@ export default function SidebarModals({
   releaseInfo,
   currentVersion,
   latestVersion,
+  installMode,
   t,
 }: SidebarModalsProps) {
   // Settings expects project identity/path fields to be present for dropdown labels and local-scope MCP config.
@@ -199,6 +202,7 @@ export default function SidebarModals({
         releaseInfo={releaseInfo}
         currentVersion={currentVersion}
         latestVersion={latestVersion}
+        installMode={installMode}
       />
     </>
   );
diff --git a/src/hooks/useVersionCheck.ts b/src/hooks/useVersionCheck.ts
index 9ce8e92..ba3a894 100644
--- a/src/hooks/useVersionCheck.ts
+++ b/src/hooks/useVersionCheck.ts
@@ -21,10 +21,28 @@ const compareVersions = (v1: string, v2: string) => {
   return 0;
 };
 
+export type InstallMode = 'git' | 'npm';
+
 export const useVersionCheck = (owner: string, repo: string) => {
   const [updateAvailable, setUpdateAvailable] = useState(false);
   const [latestVersion, setLatestVersion] = useState<string | null>(null);
   const [releaseInfo, setReleaseInfo] = useState<ReleaseInfo | null>(null);
+  const [installMode, setInstallMode] = useState<InstallMode>('git');
+
+  useEffect(() => {
+    const fetchInstallMode = async () => {
+      try {
+        const response = await fetch('/health');
+        const data = await response.json();
+        if (data.installMode === 'npm' || data.installMode === 'git') {
+          setInstallMode(data.installMode);
+        }
+      } catch {
+        // Default to git on error
+      }
+    };
+    fetchInstallMode();
+  }, []);
 
   useEffect(() => {
     const checkVersion = async () => {
@@ -66,5 +84,5 @@ export const useVersionCheck = (owner: string, repo: string) => {
     return () => clearInterval(interval);
   }, [owner, repo]);
 
-  return { updateAvailable, latestVersion, currentVersion: version, releaseInfo };
+  return { updateAvailable, latestVersion, currentVersion: version, releaseInfo, installMode };
 }; 
\ No newline at end of file
diff --git a/src/i18n/locales/en/common.json b/src/i18n/locales/en/common.json
index 18f2b80..ac64eda 100644
--- a/src/i18n/locales/en/common.json
+++ b/src/i18n/locales/en/common.json
@@ -200,6 +200,7 @@
     "viewFullRelease": "View full release",
     "updateProgress": "Update Progress:",
     "manualUpgrade": "Manual upgrade:",
+    "npmUpgradeCommand": "npm install -g @siteboon/claude-code-ui@latest",
     "manualUpgradeHint": "Or click \"Update Now\" to run the update automatically.",
     "updateCompleted": "Update completed successfully!",
     "restartServer": "Please restart the server to apply changes.",
diff --git a/src/i18n/locales/ja/common.json b/src/i18n/locales/ja/common.json
index 7a101eb..10d991d 100644
--- a/src/i18n/locales/ja/common.json
+++ b/src/i18n/locales/ja/common.json
@@ -200,6 +200,7 @@
     "viewFullRelease": "リリース全文を見る",
     "updateProgress": "アップデートの進捗:",
     "manualUpgrade": "手動アップグレード:",
+    "npmUpgradeCommand": "npm install -g @siteboon/claude-code-ui@latest",
     "manualUpgradeHint": "または「今すぐ更新」をクリックして自動的にアップデートを実行できます。",
     "updateCompleted": "アップデートが完了しました！",
     "restartServer": "変更を適用するにはサーバーを再起動してください。",
diff --git a/src/i18n/locales/ko/common.json b/src/i18n/locales/ko/common.json
index 01b2461..d3e95ac 100644
--- a/src/i18n/locales/ko/common.json
+++ b/src/i18n/locales/ko/common.json
@@ -200,6 +200,7 @@
     "viewFullRelease": "전체 릴리스 보기",
     "updateProgress": "업데이트 진행 상황:",
     "manualUpgrade": "수동 업그레이드:",
+    "npmUpgradeCommand": "npm install -g @siteboon/claude-code-ui@latest",
     "manualUpgradeHint": "또는 \"지금 업데이트\"를 클릭하여 자동으로 업데이트합니다.",
     "updateCompleted": "업데이트가 완료되었습니다!",
     "restartServer": "변경사항을 적용하려면 서버를 재시작하세요.",
diff --git a/src/i18n/locales/zh-CN/common.json b/src/i18n/locales/zh-CN/common.json
index c5db190..f02127e 100644
--- a/src/i18n/locales/zh-CN/common.json
+++ b/src/i18n/locales/zh-CN/common.json
@@ -200,6 +200,7 @@
     "viewFullRelease": "查看完整发布",
     "updateProgress": "更新进度：",
     "manualUpgrade": "手动升级：",
+    "npmUpgradeCommand": "npm install -g @siteboon/claude-code-ui@latest",
     "manualUpgradeHint": "或点击'立即更新'以自动运行更新。",
     "updateCompleted": "更新成功完成！",
     "restartServer": "请重启服务器以应用更改。",