diff --git a/features/package-update.feature b/features/package-update.feature
index c5981277..afeec92c 100644
--- a/features/package-update.feature
+++ b/features/package-update.feature
@@ -98,3 +98,99 @@ Feature: Update WP-CLI packages
       """
       Success: Packages updated.
       """
+
+  Scenario: Update a specific package by name
+    Given an empty directory
+
+    When I run `wp package install wp-cli-test/updateable-package:v1.0.0`
+    Then STDOUT should contain:
+      """
+      Success: Package installed.
+      """
+
+    When I run `wp package install danielbachhuber/wp-cli-reset-post-date-command`
+    Then STDOUT should contain:
+      """
+      Success: Package installed.
+      """
+
+    When I run `sed -i.bak s/v1.0.0/\>=1.0.0/g {PACKAGE_PATH}/composer.json`
+    Then the return code should be 0
+
+    When I run `wp package update wp-cli-test/updateable-package`
+    Then STDOUT should contain:
+      """
+      Using Composer to update packages...
+      """
+    And STDOUT should contain:
+      """
+      Success: Package updated successfully.
+      """
+
+    When I run `wp package list --fields=name,update`
+    Then STDOUT should be a table containing rows:
+      | name                           | update  |
+      | wp-cli-test/updateable-package | none    |
+
+  Scenario: Update multiple specific packages by name
+    Given an empty directory
+
+    When I run `wp package install wp-cli-test/updateable-package:v1.0.0`
+    Then STDOUT should contain:
+      """
+      Success: Package installed.
+      """
+
+    When I run `wp package install danielbachhuber/wp-cli-reset-post-date-command`
+    Then STDOUT should contain:
+      """
+      Success: Package installed.
+      """
+
+    When I run `sed -i.bak s/v1.0.0/\>=1.0.0/g {PACKAGE_PATH}/composer.json`
+    Then the return code should be 0
+
+    When I run `wp package update wp-cli-test/updateable-package danielbachhuber/wp-cli-reset-post-date-command`
+    Then STDOUT should contain:
+      """
+      Using Composer to update packages...
+      """
+    And STDOUT should contain:
+      """
+      Success: Updated 1 of 2 packages.
+      """
+
+  Scenario: Update package that is already up to date
+    Given an empty directory
+
+    When I run `wp package install danielbachhuber/wp-cli-reset-post-date-command`
+    Then STDOUT should contain:
+      """
+      Success: Package installed.
+      """
+
+    When I run `wp package update danielbachhuber/wp-cli-reset-post-date-command`
+    Then STDOUT should contain:
+      """
+      Using Composer to update packages...
+      """
+    And STDOUT should contain:
+      """
+      Success: Package already at latest version.
+      """
+
+  Scenario: Error when trying to update a non-existent package
+    Given an empty directory
+
+    When I run `wp package install danielbachhuber/wp-cli-reset-post-date-command`
+    Then STDOUT should contain:
+      """
+      Success: Package installed.
+      """
+
+    When I try `wp package update non-existent/package`
+    Then STDERR should contain:
+      """
+      Error: Package 'non-existent/package' is not installed.
+      """
+    And the return code should be 1
diff --git a/src/Package_Command.php b/src/Package_Command.php
index 9e13c0d6..ebb4cc87 100644
--- a/src/Package_Command.php
+++ b/src/Package_Command.php
@@ -501,10 +501,16 @@ public function path( $args ) {
 	}
 
 	/**
-	 * Updates all installed WP-CLI packages to their latest version.
+	 * Updates installed WP-CLI packages to their latest version.
+	 *
+	 * ## OPTIONS
+	 *
+	 * [<package-name>...]
+	 * : One or more package names to update. If not specified, all packages will be updated.
 	 *
 	 * ## EXAMPLES
 	 *
+	 *     # Update all packages.
 	 *     $ wp package update
 	 *     Using Composer to update packages...
 	 *     ---
@@ -518,19 +524,63 @@ public function path( $args ) {
 	 *     Generating autoload files
 	 *     ---
 	 *     Success: Packages updated.
+	 *
+	 *     # Update a specific package.
+	 *     $ wp package update wp-cli/server-command
+	 *     Using Composer to update packages...
+	 *     ---
+	 *     Loading composer repositories with package information
+	 *     Updating dependencies
+	 *     Writing lock file
+	 *     Generating autoload files
+	 *     ---
+	 *     Success: Package updated successfully.
 	 */
-	public function update() {
+	public function update( $args = [] ) {
 		$this->set_composer_auth_env_var();
+
+		// Validate package names if provided
+		$packages_to_update = [];
+		if ( ! empty( $args ) ) {
+			foreach ( $args as $package_name ) {
+				$package = $this->get_installed_package_by_name( $package_name );
+				if ( false === $package ) {
+					WP_CLI::error( sprintf( "Package '%s' is not installed.", $package_name ) );
+				}
+				// Use the package's pretty name (case-sensitive) from composer
+				$packages_to_update[] = $package->getPrettyName();
+			}
+		}
+
 		$composer = $this->get_composer();
 
-		// Set up the EventSubscriber
+		// Set up the EventSubscriber with tracking for updates
+		$updated_packages = [];
 		$event_subscriber = new PackageManagerEventSubscriber();
 		$composer->getEventDispatcher()->addSubscriber( $event_subscriber );
 
+		// Add a listener to track actual package updates
+		$composer->getEventDispatcher()->addListener(
+			'post-package-update',
+			function ( $event ) use ( &$updated_packages ) {
+				$operation = $event->getOperation();
+				if ( method_exists( $operation, 'getTargetPackage' ) ) {
+					$package            = $operation->getTargetPackage();
+					$updated_packages[] = $package->getPrettyName();
+				}
+			}
+		);
+
 		// Set up the installer
 		$install = Installer::create( new ComposerIO(), $composer );
 		$install->setUpdate( true ); // Installer class will only override composer.lock with this flag
 		$install->setPreferSource( true ); // Use VCS when VCS for easier contributions.
+
+		// If specific packages are provided, use the allow list
+		if ( ! empty( $packages_to_update ) ) {
+			$install->setUpdateAllowList( $packages_to_update );
+		}
+
 		WP_CLI::log( 'Using Composer to update packages...' );
 		WP_CLI::log( '---' );
 		$res = false;
@@ -544,7 +594,28 @@ public function update() {
 		// TODO: The --insecure (to be added here) flag should cause another Composer run with verify disabled.
 
 		if ( 0 === $res ) {
-			WP_CLI::success( 'Packages updated.' );
+			$num_packages = count( $packages_to_update );
+			if ( $num_packages > 0 ) {
+				// When specific packages were requested, report on actual updates
+				$num_updated = count( $updated_packages );
+				if ( 0 === $num_updated ) {
+					if ( 1 === $num_packages ) {
+						WP_CLI::success( 'Package already at latest version.' );
+					} else {
+						WP_CLI::success( 'Packages already at latest versions.' );
+					}
+				} elseif ( $num_updated === $num_packages ) {
+					if ( 1 === $num_packages ) {
+						WP_CLI::success( 'Package updated successfully.' );
+					} else {
+						WP_CLI::success( sprintf( 'All %d packages updated successfully.', $num_packages ) );
+					}
+				} else {
+					WP_CLI::success( sprintf( 'Updated %d of %d packages.', $num_updated, $num_packages ) );
+				}
+			} else {
+				WP_CLI::success( 'Packages updated.' );
+			}
 		} else {
 			$res_msg = $res ? " (Composer return code {$res})" : ''; // $res may be null apparently.
 			WP_CLI::error( "Failed to update packages{$res_msg}." );