diff --git a/README.md b/README.md
index 8f24fbb..82fe0d9 100644
--- a/README.md
+++ b/README.md
@@ -393,6 +393,28 @@ Permissions are also configured in `.letta/settings.json`:
 }
 ```
 
+## Updates
+
+Letta Code automatically checks for updates on startup and installs them in the background.
+
+### Auto updates
+
+* **Update checks**: Performed on startup
+* **Update process**: Downloads and installs automatically in the background  
+* **Applying updates**: Updates take effect the next time you start Letta Code
+
+**Disable auto-updates:**
+Set the `DISABLE_AUTOUPDATER` environment variable in your shell:
+```bash
+export DISABLE_AUTOUPDATER=1
+```
+
+### Update manually
+
+```bash
+letta update
+```
+
 ## Self-hosting
 
 To use Letta Code with a self-hosted server, set `LETTA_BASE_URL` to your server IP, e.g. `export LETTA_BASE_URL="http://localhost:8283"`.
diff --git a/src/index.ts b/src/index.ts
index 2168f03..11f3a31 100755
--- a/src/index.ts
+++ b/src/index.ts
@@ -26,6 +26,9 @@ USAGE
   # headless
   letta -p "..."        One-off prompt in headless mode (no TTY UI)
 
+  # maintenance
+  letta update          Manually check for updates and install if available
+
 OPTIONS
   -h, --help            Show this help and exit
   -v, --version         Print version and exit
@@ -105,6 +108,12 @@ async function main() {
   await settingsManager.initialize();
   const settings = settingsManager.getSettings();
 
+  // Check for updates on startup (non-blocking)
+  const { checkAndAutoUpdate } = await import("./updater/auto-update");
+  checkAndAutoUpdate().catch(() => {
+    // Silently ignore update failures
+  });
+
   // set LETTA_API_KEY from environment if available
   if (process.env.LETTA_API_KEY && !settings.env?.LETTA_API_KEY) {
     settings.env = settings.env || {};
@@ -165,7 +174,7 @@ async function main() {
   }
 
   // Check for subcommands
-  const _command = positionals[2]; // First positional after node and script
+  const command = positionals[2]; // First positional after node and script
 
   // Handle help flag first
   if (values.help) {
@@ -180,6 +189,14 @@ async function main() {
     process.exit(0);
   }
 
+  // Handle update command
+  if (command === "update") {
+    const { manualUpdate } = await import("./updater/auto-update");
+    const result = await manualUpdate();
+    console.log(result.message);
+    process.exit(result.success ? 0 : 1);
+  }
+
   const shouldContinue = (values.continue as boolean | undefined) ?? false;
   const forceNew = (values.new as boolean | undefined) ?? false;
   const freshBlocks = (values["fresh-blocks"] as boolean | undefined) ?? false;
diff --git a/src/updater/auto-update.ts b/src/updater/auto-update.ts
new file mode 100644
index 0000000..8a4555b
--- /dev/null
+++ b/src/updater/auto-update.ts
@@ -0,0 +1,115 @@
+import { exec } from "node:child_process";
+import { promisify } from "node:util";
+import { getVersion } from "../version";
+
+const execAsync = promisify(exec);
+
+interface UpdateCheckResult {
+  updateAvailable: boolean;
+  latestVersion?: string;
+  currentVersion: string;
+}
+
+function isAutoUpdateEnabled(): boolean {
+  return process.env.DISABLE_AUTOUPDATER !== "1";
+}
+
+function isRunningLocally(): boolean {
+  const argv = process.argv[1] || "";
+
+  // If running from node_modules, it's npm installed (should auto-update)
+  // Otherwise it's local dev (source or built locally)
+  return !argv.includes("node_modules");
+}
+
+async function checkForUpdate(): Promise<UpdateCheckResult> {
+  const currentVersion = getVersion();
+
+  try {
+    const { stdout } = await execAsync(
+      "npm view @letta-ai/letta-code version",
+      { timeout: 5000 },
+    );
+    const latestVersion = stdout.trim();
+
+    if (latestVersion !== currentVersion) {
+      return {
+        updateAvailable: true,
+        latestVersion,
+        currentVersion,
+      };
+    }
+  } catch (_error) {
+    // Silently fail
+  }
+
+  return {
+    updateAvailable: false,
+    currentVersion,
+  };
+}
+
+async function performUpdate(): Promise<{ success: boolean; error?: string }> {
+  try {
+    await execAsync("npm install -g @letta-ai/letta-code@latest", {
+      timeout: 60000,
+    });
+    return { success: true };
+  } catch (error) {
+    return {
+      success: false,
+      error: error instanceof Error ? error.message : String(error),
+    };
+  }
+}
+
+export async function checkAndAutoUpdate() {
+  if (!isAutoUpdateEnabled() || isRunningLocally()) {
+    return;
+  }
+
+  const result = await checkForUpdate();
+
+  if (result.updateAvailable) {
+    await performUpdate();
+  }
+}
+
+export async function manualUpdate(): Promise<{
+  success: boolean;
+  message: string;
+}> {
+  if (isRunningLocally()) {
+    return {
+      success: false,
+      message: "Manual updates are disabled in development mode",
+    };
+  }
+
+  const result = await checkForUpdate();
+
+  if (!result.updateAvailable) {
+    return {
+      success: true,
+      message: `Already on latest version (${result.currentVersion})`,
+    };
+  }
+
+  console.log(
+    `Updating from ${result.currentVersion} to ${result.latestVersion}...`,
+  );
+
+  const updateResult = await performUpdate();
+
+  if (updateResult.success) {
+    return {
+      success: true,
+      message: `Updated to ${result.latestVersion}. Restart Letta Code to use the new version.`,
+    };
+  }
+
+  return {
+    success: false,
+    message: `Update failed: ${updateResult.error}`,
+  };
+}