diff --git a/resources/js/components/updater/Updater.vue b/resources/js/components/updater/Updater.vue
index e78019ee218..aecffc16691 100644
--- a/resources/js/components/updater/Updater.vue
+++ b/resources/js/components/updater/Updater.vue
@@ -92,7 +92,7 @@ export default {
         },
 
         onLatestVersion() {
-            return this.currentVersion && this.currentVersion == this.latestVersion;
+            return this.currentVersion && !this.changelog.some((release) => release.type === 'upgrade');
         },
 
         securityUpdateAvailable() {
diff --git a/src/Addons/Addon.php b/src/Addons/Addon.php
index 64544ea7865..cefc03abaeb 100644
--- a/src/Addons/Addon.php
+++ b/src/Addons/Addon.php
@@ -419,7 +419,7 @@ public function isLatestVersion()
         $version = $versionParser->normalize($this->version);
         $latestVersion = $versionParser->normalize($this->latestVersion());
 
-        return version_compare($version, $latestVersion, '=');
+        return version_compare($version, $latestVersion, '>=');
     }
 
     public function license()
diff --git a/tests/Addons/AddonTest.php b/tests/Addons/AddonTest.php
index 5ef50a9be99..795b5a3fb7d 100644
--- a/tests/Addons/AddonTest.php
+++ b/tests/Addons/AddonTest.php
@@ -342,6 +342,11 @@ public static function isLatestVersionProvider()
             ['2.0.0', '2.0.0', true],
             ['1.0', '1.0.0', true],
             ['1.0', '1.0.1', false],
+
+            // Installed version is newer than the marketplace's indexed latest version
+            ['1.0.2', '1.0.1', true],
+            ['2.0.0', '1.0.0', true],
+            ['7.12.1', '7.12.0', true],
         ];
     }