diff --git a/modules/desktop/src/components/install-result-overlay/install-result-overlay.svelte b/modules/desktop/src/components/install-result-overlay/install-result-overlay.svelte
index 6805766..79c9f12 100644
--- a/modules/desktop/src/components/install-result-overlay/install-result-overlay.svelte
+++ b/modules/desktop/src/components/install-result-overlay/install-result-overlay.svelte
@@ -4,6 +4,7 @@
   import { afterUpdate } from "svelte";
   import { packagesStore } from "$libs/stores";
   import Button from "@tea/ui/button/button.svelte";
+  import { packageHadError, packageWasInstalled } from "$libs/packages/pkg-utils";
 
   let root: HTMLElement | undefined;
 
@@ -28,7 +29,7 @@
       const myConfetti = confetti.create(canvas, { resize: true });
       await myConfetti({ particleCount: 500, spread: 360, startVelocity: 20, gravity: 0.5 });
 
-      root.removeChild(canvas);
+      root?.removeChild(canvas);
       isAnimating = false;
     }
   };
@@ -39,14 +40,14 @@
   };
 
   afterUpdate(() => {
-    if (pkg.displayState?.kind === "INSTALLED_SUCCESSFULLY") {
+    if (packageWasInstalled(pkg)) {
       playConfetti();
     }
   });
 </script>
 
 <div bind:this={root} class="z-60 pointer-events-none absolute left-0 top-0 h-full w-full">
-  {#if pkg.displayState?.kind === "INSTALLATION_ERROR"}
+  {#if packageHadError(pkg)}
     <div
       class="pointer-events-auto flex h-full w-full flex-col items-center justify-center bg-black/90"
     >
diff --git a/modules/desktop/src/components/package-card/package-card.svelte b/modules/desktop/src/components/package-card/package-card.svelte
index ef96765..088cbf9 100644
--- a/modules/desktop/src/components/package-card/package-card.svelte
+++ b/modules/desktop/src/components/package-card/package-card.svelte
@@ -2,7 +2,7 @@
   import "../../app.css";
   import ProgressCircle from "@tea/ui/progress-circle/progress-circle.svelte";
   import { PackageStates, type GUIPackage } from "$libs/types";
-  import { findRecentInstalledVersion } from "$libs/packages/pkg-utils";
+  import { findRecentInstalledVersion, packageWasUpdated } from "$libs/packages/pkg-utils";
   import BgImage from "./bg-image.svelte";
   import PackageInstallButton from "$components/package-install-button/package-install-button.svelte";
   import PackageInstalledBadge from "$components/package-install-button/package-installed-badge.svelte";
@@ -28,7 +28,11 @@
 </script>
 
 <div class="relative">
-  <section class="package-card relative h-auto border border-gray {layout}" class:active={isActive}>
+  <section
+    class="package-card relative h-auto border border-gray {layout}"
+    class:active={isActive}
+    class:updated={packageWasUpdated(pkg)}
+  >
     <BgImage class="absolute left-0 top-0 h-full w-full" {layout} {pkg} />
 
     <a href={link} on:mousedown={activate} on:mouseup={deactivate} on:mouseleave={deactivate}>
@@ -43,16 +47,26 @@
           </div>
         </div>
         <div class="content-container absolute bottom-0 w-full {layout}">
-          <article class="card-thumb-label relative">
+          <article class="card-thumb-label">
             {#if layout === "bottom"}
-              <h3 class="text-bold font-mona text-2xl font-bold text-white line-clamp-1">
-                {fixPackageName(pkg.name)}
-              </h3>
+              <div class="flex items-center">
+                <h3 class="text-bold font-mona text-2xl font-bold text-white line-clamp-1">
+                  {fixPackageName(pkg.name)}
+                </h3>
+                {#if pkg.state === PackageStates.INSTALLED}
+                  <i class="icon-check-circle-o mb-1 ml-2 flex text-2xl text-[#00ffd0]" />
+                {/if}
+              </div>
               <p class="h-[32px] text-xs font-thin lowercase line-clamp-2">{pkg.desc ?? ""}</p>
             {:else}
-              <h3 class="text-bold mb-4 font-mona text-3xl font-bold text-white line-clamp-1">
-                {fixPackageName(pkg.name)}
-              </h3>
+              <div class="mb-4 flex items-center">
+                <h3 class="text-bold font-mona text-3xl font-bold text-white line-clamp-1">
+                  {fixPackageName(pkg.name)}
+                </h3>
+                {#if pkg.state === PackageStates.INSTALLED}
+                  <i class="icon-check-circle-o mb-1 ml-2 flex text-3xl text-[#00ffd0]" />
+                {/if}
+              </div>
               <p class="line-clamp-[8] h-[160px] text-[14px] font-thin lowercase leading-[20px]">
                 {pkg.desc ?? ""}
               </p>
@@ -125,6 +139,15 @@
     box-shadow: 0px 0px 0px 2px rgba(128, 0, 255, 0.5);
   }
 
+  section.package-card.updated {
+    border-color: #00ffd0;
+  }
+
+  section.package-card.updated:active {
+    border-color: #00ffd0;
+    box-shadow: 0px 0px 0px 2px rgba(0, 255, 208, 0.5);
+  }
+
   .content-container {
     height: 50%;
     background: linear-gradient(180deg, rgba(26, 26, 26, 0.3) 0%, rgba(26, 26, 26, 0.75) 72.92%);
diff --git a/modules/desktop/src/components/package-install-button/package-install-button.svelte b/modules/desktop/src/components/package-install-button/package-install-button.svelte
index c083bc4..b721f46 100644
--- a/modules/desktop/src/components/package-install-button/package-install-button.svelte
+++ b/modules/desktop/src/components/package-install-button/package-install-button.svelte
@@ -1,7 +1,7 @@
 <script lang="ts">
   import { PackageStates, type GUIPackage } from "$libs/types";
   import Button from "@tea/ui/button/button.svelte";
-  import { t } from "$libs/translations";
+  import { getPackageBadgeText } from "$libs/packages/pkg-utils";
 
   export let buttonSize: "small" | "large" = "small";
 
@@ -44,7 +44,7 @@
 
   const hasVersionSelectorDropdown = !!$$slots.selector;
 
-  $: ctaLabel = $t(`package.cta-${pkg.state}`);
+  $: ctaLabel = getPackageBadgeText(pkg);
 </script>
 
 <Button
diff --git a/modules/desktop/src/components/package-install-button/package-installed-badge.svelte b/modules/desktop/src/components/package-install-button/package-installed-badge.svelte
index 9d6c475..e7e6f57 100644
--- a/modules/desktop/src/components/package-install-button/package-installed-badge.svelte
+++ b/modules/desktop/src/components/package-install-button/package-installed-badge.svelte
@@ -1,13 +1,13 @@
 <script lang="ts">
+  import { getPackageBadgeText } from "$libs/packages/pkg-utils";
   import type { GUIPackage } from "$libs/types";
 
-  export let pkg: GUIPackage | null = null;
+  export let pkg: GUIPackage;
 </script>
 
 <div class="container relative h-full" data-testid={`install-badge-${pkg?.slug}`}>
   <div class="content flex items-center justify-center gap-2 p-2">
-    <i class="icon-check-circle-o flex text-sm text-[#00ffd0]" />
-    <div class="text-xs">INSTALLED</div>
+    <div class="text-xs">{getPackageBadgeText(pkg)}</div>
     <div class="rounded-sm bg-white px-1 text-[10px] leading-[12px] text-black">
       v{pkg?.installed_versions?.[0]}
     </div>
diff --git a/modules/desktop/src/components/packages/packages.svelte b/modules/desktop/src/components/packages/packages.svelte
index 4ddd9e3..48230bb 100644
--- a/modules/desktop/src/components/packages/packages.svelte
+++ b/modules/desktop/src/components/packages/packages.svelte
@@ -12,6 +12,7 @@
   import NoUpdates from "./no-updates.svelte";
   import { packagesStore, scrollStore } from "$libs/stores";
   import { afterUpdate, beforeUpdate } from "svelte";
+  import { packageWasUpdated } from "$libs/packages/pkg-utils";
 
   const { packageList: allPackages } = packagesStore;
   export let packageFilter: SideMenuOptions = SideMenuOptions.all;
@@ -38,7 +39,10 @@
       ].includes(pkg.state);
     },
     [SideMenuOptions.installed_updates_available]: (pkg: GUIPackage) => {
-      return [PackageStates.UPDATING, PackageStates.NEEDS_UPDATE].includes(pkg.state);
+      return (
+        [PackageStates.UPDATING, PackageStates.NEEDS_UPDATE].includes(pkg.state) ||
+        packageWasUpdated(pkg)
+      );
     },
     [SideMenuOptions.recently_updated]: (pkg: GUIPackage) => {
       return moment(pkg.last_modified).isAfter(moment().subtract(30, "days"));
diff --git a/modules/desktop/src/libs/packages/pkg-utils.ts b/modules/desktop/src/libs/packages/pkg-utils.ts
index 8fb4791..fa5d2a7 100644
--- a/modules/desktop/src/libs/packages/pkg-utils.ts
+++ b/modules/desktop/src/libs/packages/pkg-utils.ts
@@ -1,6 +1,7 @@
 import log from "$libs/logger";
 import type { GUIPackage } from "$libs/types";
 import SemVer from "@teaxyz/lib/semver";
+import { t } from "$libs/translations";
 
 // Find a list of available versions for a package based on the bottles
 export const findAvailableVersions = (pkg: Pick<GUIPackage, "bottles" | "version">) => {
@@ -67,3 +68,21 @@ export const isPackageUpToDate = (pkg: GUIPackage) => {
   // if the installed version is equal or newer than the latest version, it's up to date
   return semverCompare(pkg.installed_versions[0], pkg.version) >= 0;
 };
+
+export const packageWasInstalled = (pkg: GUIPackage) => {
+  return pkg.displayState?.state === "INSTALLED";
+};
+
+export const packageWasUpdated = (pkg: GUIPackage) => {
+  return pkg.displayState?.state === "UPDATED";
+};
+
+export const packageHadError = (pkg: GUIPackage) => {
+  return pkg.displayState?.state === "ERROR";
+};
+
+export const getPackageBadgeText = (pkg: GUIPackage) => {
+  // UPDATED is a "pseudo-state" that overrides other states
+  const state = packageWasUpdated(pkg) ? "UPDATED" : pkg.state;
+  return t.get(`package.cta-${state}`);
+};
diff --git a/modules/desktop/src/libs/stores/pkgs.ts b/modules/desktop/src/libs/stores/pkgs.ts
index 73a96ef..f0a1f4e 100644
--- a/modules/desktop/src/libs/stores/pkgs.ts
+++ b/modules/desktop/src/libs/stores/pkgs.ts
@@ -21,7 +21,7 @@ import {
 import { getReadme, getContributors, getRepoAsPackage } from "$libs/github";
 import { NotificationType } from "@tea/ui/types";
 import { trackInstall, trackInstallFailed } from "$libs/analytics";
-import { addInstalledVersion, isInstalling } from "$libs/packages/pkg-utils";
+import { addInstalledVersion, isInstalling, packageWasUpdated } from "$libs/packages/pkg-utils";
 import withDebounce from "$libs/utils/debounce";
 import { trimGithubSlug } from "$libs/github";
 import { notificationStore } from "$libs/stores";
@@ -230,19 +230,18 @@ const installPkg = async (pkg: GUIPackage, version?: string) => {
     await installPackage(pkg, versionToInstall);
     trackInstall(pkg.full_name);
 
+    // If the package was AVAILABLE previously then it was just installed, otherwise it was updated
+    const state = pkg.state === PackageStates.AVAILABLE ? "INSTALLED" : "UPDATED";
+    updatePackage(pkg.full_name, { displayState: { state, version: versionToInstall } });
+
     await refreshSinglePackage(pkg.full_name);
-    if (pkg.state === PackageStates.AVAILABLE) {
-      updatePackage(pkg.full_name, {
-        displayState: { kind: "INSTALLED_SUCCESSFULLY", version: versionToInstall }
-      });
-    }
   } catch (error) {
     log.error(error);
     let message = "Unknown Error";
     if (error instanceof Error) message = error.message;
     trackInstallFailed(pkg.full_name, message || "unknown");
     updatePackage(pkg.full_name, {
-      displayState: { kind: "INSTALLATION_ERROR", errorMessage: message, version: versionToInstall }
+      displayState: { state: "ERROR", errorMessage: message, version: versionToInstall }
     });
   } finally {
     updatePackage(pkg.full_name, { install_progress_percentage: 100 });
@@ -364,6 +363,19 @@ const resetPackageDisplayState = (pkg: GUIPackage) => {
   });
 };
 
+const resetAllPackagesUpdatedState = () => {
+  packageMap.update((pkgs) => {
+    Object.values(pkgs.packages).forEach((pkg) => {
+      // only reset the display state if the package was updated,
+      // installed and error display states should not be reset here
+      if (packageWasUpdated(pkg)) {
+        pkg.displayState = null;
+      }
+    });
+    return pkgs;
+  });
+};
+
 export default {
   packageList,
   search: searchPackages,
@@ -374,5 +386,6 @@ export default {
   deletePkg,
   destroy,
   cachePkgImage,
-  resetPackageDisplayState
+  resetPackageDisplayState,
+  resetAllPackagesUpdatedState
 };
diff --git a/modules/desktop/src/libs/translations/languages/en.json b/modules/desktop/src/libs/translations/languages/en.json
index 7cd44fe..9acba15 100644
--- a/modules/desktop/src/libs/translations/languages/en.json
+++ b/modules/desktop/src/libs/translations/languages/en.json
@@ -12,6 +12,7 @@
       "cta-UNINSTALL": "UNINSTALL",
       "cta-NEEDS_UPDATE": "UPDATE",
       "cta-UPDATING": "UPDATING",
+      "cta-UPDATED": "UPDATED",
       "cta-PRUNE": "PRUNE",
       "cta-PRUNING": "PRUNING"
     },
diff --git a/modules/desktop/src/libs/types.ts b/modules/desktop/src/libs/types.ts
index 6de77d0..48e746c 100644
--- a/modules/desktop/src/libs/types.ts
+++ b/modules/desktop/src/libs/types.ts
@@ -13,12 +13,13 @@ export enum PackageStates {
   UPDATING = "UPDATING"
 }
 
-// PackageDisplayState is for showing temporary UI elements when a package is installed or updated. It is not persisted.
+// PackageDisplayState is a TEMPORARY state for showing temporary UI elements when a package is
+// installed or updated. It is not persisted.
 export interface PackageDisplayState {
-  // INSTALLED_SUCCESSFULLY -> The pacakge was installed successfully show some confetti!
-  // UPDATED_SUCCESSFULLY -> The package was updated successfully change the badge temporarily
-  // INSTALLATION_ERROR -> The package failed to install show an error overlay temporarily
-  kind: "INSTALLED_SUCCESSFULLY" | "UPDATED_SUCCESSFULLY" | "INSTALLATION_ERROR";
+  // INSTALLED -> The package was installed successfully. Let's show some confetti!
+  // UPDATED -> The package was updated successfully so change the badge temporarily
+  // ERROR -> The package failed to install so show an error overlay temporarily
+  state: "INSTALLED" | "UPDATED" | "ERROR";
   errorMessage?: string;
   version: string;
 }
diff --git a/modules/desktop/src/routes/+layout.svelte b/modules/desktop/src/routes/+layout.svelte
index 7277e89..4404908 100644
--- a/modules/desktop/src/routes/+layout.svelte
+++ b/modules/desktop/src/routes/+layout.svelte
@@ -27,6 +27,9 @@
       const fromPath = from?.url.href.replace(from.url.origin, "");
       setNewPath(nextPath, fromPath || "/");
     }
+
+    // the updated state should be reset any time the user navigates
+    packagesStore.resetAllPackagesUpdatedState();
   });
 
   const syncPath = async () => {
diff --git a/modules/desktop/src/routes/+page.svelte b/modules/desktop/src/routes/+page.svelte
index 3f06d04..1f8ee9c 100644
--- a/modules/desktop/src/routes/+page.svelte
+++ b/modules/desktop/src/routes/+page.svelte
@@ -41,7 +41,6 @@
       }
     }
     updating = false;
-    sideMenuOption = SideMenuOptions.all;
   }
 
   $: needsUpdateCount = pkgsToUpdate.length;
diff --git a/modules/desktop/test/specs/app.e2e.ts b/modules/desktop/test/specs/app.e2e.ts
index 03d7bc3..79f6c15 100644
--- a/modules/desktop/test/specs/app.e2e.ts
+++ b/modules/desktop/test/specs/app.e2e.ts
@@ -83,7 +83,6 @@ describe("basic smoke test", () => {
     await expect(updateBtn).toExist();
     updateBtn.click();
 
-    // FIXME: This should test for the button saying "UPDATED", but that feature is not done yet so uncomment this when it is
-    //await utils.verifyInstalledBadge(slug, "UPDATED");
+    await utils.verifyInstalledBadge(slug, "UPDATED");
   });
 });
diff --git a/modules/desktop/test/specs/utils.ts b/modules/desktop/test/specs/utils.ts
index 253a109..679c438 100644
--- a/modules/desktop/test/specs/utils.ts
+++ b/modules/desktop/test/specs/utils.ts
@@ -91,7 +91,7 @@ export function setupUtils(browser: WebdriverIO.Browser) {
 
   const verifyInstalledBadge = async (
     slug: string,
-    state: "INSTALLED" | "UPDATE" = "INSTALLED"
+    state: "INSTALLED" | "UPDATE" | "UPDATED" = "INSTALLED"
   ) => {
     // wait 30 seconds for the badge to show up
     for (let i = 0; i < 30; i++) {