diff --git a/packages/cli/src/commands/extensions/update.ts b/packages/cli/src/commands/extensions/update.ts
index bb200e58f9..bf28bbc90f 100644
--- a/packages/cli/src/commands/extensions/update.ts
+++ b/packages/cli/src/commands/extensions/update.ts
@@ -53,16 +53,13 @@ export async function handleUpdate(args: UpdateArgs) {
         console.log(`Extension "${args.name}" not found.`);
         return;
       }
-      let updateState: ExtensionUpdateState | undefined;
       if (!extension.installMetadata) {
         console.log(
           `Unable to install extension "${args.name}" due to missing install metadata`,
         );
         return;
       }
-      await checkForExtensionUpdate(extension, (newState) => {
-        updateState = newState;
-      });
+      const updateState = await checkForExtensionUpdate(extension);
       if (updateState !== ExtensionUpdateState.UPDATE_AVAILABLE) {
         console.log(`Extension "${args.name}" is already up to date.`);
         return;
@@ -92,14 +89,17 @@ export async function handleUpdate(args: UpdateArgs) {
   if (args.all) {
     try {
       const extensionState = new Map();
-      await checkForAllExtensionUpdates(extensions, (action) => {
-        if (action.type === 'SET_STATE') {
-          extensionState.set(action.payload.name, {
-            status: action.payload.state,
-            processed: true, // No need to process as we will force the update.
-          });
-        }
-      });
+      await checkForAllExtensionUpdates(
+        extensions,
+        (action) => {
+          if (action.type === 'SET_STATE') {
+            extensionState.set(action.payload.name, {
+              status: action.payload.state,
+            });
+          }
+        },
+        workingDir,
+      );
       let updateInfos = await updateAllUpdatableExtensions(
         workingDir,
         requestConsentNonInteractive,
diff --git a/packages/cli/src/config/extensions/github.test.ts b/packages/cli/src/config/extensions/github.test.ts
index a23e330612..232b0db0ff 100644
--- a/packages/cli/src/config/extensions/github.test.ts
+++ b/packages/cli/src/config/extensions/github.test.ts
@@ -132,11 +132,7 @@ describe('git extension helpers', () => {
           source: '',
         },
       };
-      let result: ExtensionUpdateState | undefined = undefined;
-      await checkForExtensionUpdate(
-        extension,
-        (newState) => (result = newState),
-      );
+      const result = await checkForExtensionUpdate(extension);
       expect(result).toBe(ExtensionUpdateState.NOT_UPDATABLE);
     });
 
@@ -152,11 +148,7 @@ describe('git extension helpers', () => {
         },
       };
       mockGit.getRemotes.mockResolvedValue([]);
-      let result: ExtensionUpdateState | undefined = undefined;
-      await checkForExtensionUpdate(
-        extension,
-        (newState) => (result = newState),
-      );
+      const result = await checkForExtensionUpdate(extension);
       expect(result).toBe(ExtensionUpdateState.ERROR);
     });
 
@@ -177,11 +169,7 @@ describe('git extension helpers', () => {
       mockGit.listRemote.mockResolvedValue('remote-hash\tHEAD');
       mockGit.revparse.mockResolvedValue('local-hash');
 
-      let result: ExtensionUpdateState | undefined = undefined;
-      await checkForExtensionUpdate(
-        extension,
-        (newState) => (result = newState),
-      );
+      const result = await checkForExtensionUpdate(extension);
       expect(result).toBe(ExtensionUpdateState.UPDATE_AVAILABLE);
     });
 
@@ -202,11 +190,7 @@ describe('git extension helpers', () => {
       mockGit.listRemote.mockResolvedValue('same-hash\tHEAD');
       mockGit.revparse.mockResolvedValue('same-hash');
 
-      let result: ExtensionUpdateState | undefined = undefined;
-      await checkForExtensionUpdate(
-        extension,
-        (newState) => (result = newState),
-      );
+      const result = await checkForExtensionUpdate(extension);
       expect(result).toBe(ExtensionUpdateState.UP_TO_DATE);
     });
 
@@ -223,11 +207,7 @@ describe('git extension helpers', () => {
       };
       mockGit.getRemotes.mockRejectedValue(new Error('git error'));
 
-      let result: ExtensionUpdateState | undefined = undefined;
-      await checkForExtensionUpdate(
-        extension,
-        (newState) => (result = newState),
-      );
+      const result = await checkForExtensionUpdate(extension);
       expect(result).toBe(ExtensionUpdateState.ERROR);
     });
   });
diff --git a/packages/cli/src/config/extensions/github.ts b/packages/cli/src/config/extensions/github.ts
index 9a54a29f9d..787fc570e6 100644
--- a/packages/cli/src/config/extensions/github.ts
+++ b/packages/cli/src/config/extensions/github.ts
@@ -119,10 +119,8 @@ async function fetchReleaseFromGithub(
 
 export async function checkForExtensionUpdate(
   extension: GeminiCLIExtension,
-  setExtensionUpdateState: (updateState: ExtensionUpdateState) => void,
   cwd: string = process.cwd(),
-): Promise<void> {
-  setExtensionUpdateState(ExtensionUpdateState.CHECKING_FOR_UPDATES);
+): Promise<ExtensionUpdateState> {
   const installMetadata = extension.installMetadata;
   if (installMetadata?.type === 'local') {
     const newExtension = loadExtension({
@@ -133,23 +131,19 @@ export async function checkForExtensionUpdate(
       console.error(
         `Failed to check for update for local extension "${extension.name}". Could not load extension from source path: ${installMetadata.source}`,
       );
-      setExtensionUpdateState(ExtensionUpdateState.ERROR);
-      return;
+      return ExtensionUpdateState.ERROR;
     }
     if (newExtension.config.version !== extension.version) {
-      setExtensionUpdateState(ExtensionUpdateState.UPDATE_AVAILABLE);
-      return;
+      return ExtensionUpdateState.UPDATE_AVAILABLE;
     }
-    setExtensionUpdateState(ExtensionUpdateState.UP_TO_DATE);
-    return;
+    return ExtensionUpdateState.UP_TO_DATE;
   }
   if (
     !installMetadata ||
     (installMetadata.type !== 'git' &&
       installMetadata.type !== 'github-release')
   ) {
-    setExtensionUpdateState(ExtensionUpdateState.NOT_UPDATABLE);
-    return;
+    return ExtensionUpdateState.NOT_UPDATABLE;
   }
   try {
     if (installMetadata.type === 'git') {
@@ -157,14 +151,12 @@ export async function checkForExtensionUpdate(
       const remotes = await git.getRemotes(true);
       if (remotes.length === 0) {
         console.error('No git remotes found.');
-        setExtensionUpdateState(ExtensionUpdateState.ERROR);
-        return;
+        return ExtensionUpdateState.ERROR;
       }
       const remoteUrl = remotes[0].refs.fetch;
       if (!remoteUrl) {
         console.error(`No fetch URL found for git remote ${remotes[0].name}.`);
-        setExtensionUpdateState(ExtensionUpdateState.ERROR);
-        return;
+        return ExtensionUpdateState.ERROR;
       }
 
       // Determine the ref to check on the remote.
@@ -174,8 +166,7 @@ export async function checkForExtensionUpdate(
 
       if (typeof lsRemoteOutput !== 'string' || lsRemoteOutput.trim() === '') {
         console.error(`Git ref ${refToCheck} not found.`);
-        setExtensionUpdateState(ExtensionUpdateState.ERROR);
-        return;
+        return ExtensionUpdateState.ERROR;
       }
 
       const remoteHash = lsRemoteOutput.split('\t')[0];
@@ -185,21 +176,17 @@ export async function checkForExtensionUpdate(
         console.error(
           `Unable to parse hash from git ls-remote output "${lsRemoteOutput}"`,
         );
-        setExtensionUpdateState(ExtensionUpdateState.ERROR);
-        return;
+        return ExtensionUpdateState.ERROR;
       }
       if (remoteHash === localHash) {
-        setExtensionUpdateState(ExtensionUpdateState.UP_TO_DATE);
-        return;
+        return ExtensionUpdateState.UP_TO_DATE;
       }
-      setExtensionUpdateState(ExtensionUpdateState.UPDATE_AVAILABLE);
-      return;
+      return ExtensionUpdateState.UPDATE_AVAILABLE;
     } else {
       const { source, releaseTag } = installMetadata;
       if (!source) {
         console.error(`No "source" provided for extension.`);
-        setExtensionUpdateState(ExtensionUpdateState.ERROR);
-        return;
+        return ExtensionUpdateState.ERROR;
       }
       const { owner, repo } = parseGitHubRepoForReleases(source);
 
@@ -209,18 +196,15 @@ export async function checkForExtensionUpdate(
         installMetadata.ref,
       );
       if (releaseData.tag_name !== releaseTag) {
-        setExtensionUpdateState(ExtensionUpdateState.UPDATE_AVAILABLE);
-        return;
+        return ExtensionUpdateState.UPDATE_AVAILABLE;
       }
-      setExtensionUpdateState(ExtensionUpdateState.UP_TO_DATE);
-      return;
+      return ExtensionUpdateState.UP_TO_DATE;
     }
   } catch (error) {
     console.error(
       `Failed to check for updates for extension "${installMetadata.source}": ${getErrorMessage(error)}`,
     );
-    setExtensionUpdateState(ExtensionUpdateState.ERROR);
-    return;
+    return ExtensionUpdateState.ERROR;
   }
 }
 export interface GitHubDownloadResult {
diff --git a/packages/cli/src/config/extensions/update.test.ts b/packages/cli/src/config/extensions/update.test.ts
index 54f6353340..82624868a3 100644
--- a/packages/cli/src/config/extensions/update.test.ts
+++ b/packages/cli/src/config/extensions/update.test.ts
@@ -302,7 +302,11 @@ describe('update tests', () => {
       mockGit.revparse.mockResolvedValue('localHash');
 
       const dispatch = vi.fn();
-      await checkForAllExtensionUpdates([extension], dispatch);
+      await checkForAllExtensionUpdates(
+        [extension],
+        dispatch,
+        tempWorkspaceDir,
+      );
       expect(dispatch).toHaveBeenCalledWith({
         type: 'SET_STATE',
         payload: {
@@ -340,7 +344,11 @@ describe('update tests', () => {
       mockGit.revparse.mockResolvedValue('sameHash');
 
       const dispatch = vi.fn();
-      await checkForAllExtensionUpdates([extension], dispatch);
+      await checkForAllExtensionUpdates(
+        [extension],
+        dispatch,
+        tempWorkspaceDir,
+      );
       expect(dispatch).toHaveBeenCalledWith({
         type: 'SET_STATE',
         payload: {
@@ -375,7 +383,11 @@ describe('update tests', () => {
         new ExtensionEnablementManager(ExtensionStorage.getUserExtensionsDir()),
       )[0];
       const dispatch = vi.fn();
-      await checkForAllExtensionUpdates([extension], dispatch);
+      await checkForAllExtensionUpdates(
+        [extension],
+        dispatch,
+        tempWorkspaceDir,
+      );
       expect(dispatch).toHaveBeenCalledWith({
         type: 'SET_STATE',
         payload: {
@@ -410,7 +422,11 @@ describe('update tests', () => {
         new ExtensionEnablementManager(ExtensionStorage.getUserExtensionsDir()),
       )[0];
       const dispatch = vi.fn();
-      await checkForAllExtensionUpdates([extension], dispatch);
+      await checkForAllExtensionUpdates(
+        [extension],
+        dispatch,
+        tempWorkspaceDir,
+      );
       expect(dispatch).toHaveBeenCalledWith({
         type: 'SET_STATE',
         payload: {
@@ -444,7 +460,11 @@ describe('update tests', () => {
       mockGit.getRemotes.mockRejectedValue(new Error('Git error'));
 
       const dispatch = vi.fn();
-      await checkForAllExtensionUpdates([extension], dispatch);
+      await checkForAllExtensionUpdates(
+        [extension],
+        dispatch,
+        tempWorkspaceDir,
+      );
       expect(dispatch).toHaveBeenCalledWith({
         type: 'SET_STATE',
         payload: {
diff --git a/packages/cli/src/config/extensions/update.ts b/packages/cli/src/config/extensions/update.ts
index af52000ef5..cb1fa70e03 100644
--- a/packages/cli/src/config/extensions/update.ts
+++ b/packages/cli/src/config/extensions/update.ts
@@ -154,6 +154,7 @@ export interface ExtensionUpdateCheckResult {
 export async function checkForAllExtensionUpdates(
   extensions: GeminiCLIExtension[],
   dispatch: (action: ExtensionUpdateAction) => void,
+  cwd: string = process.cwd(),
 ): Promise<void> {
   dispatch({ type: 'BATCH_CHECK_START' });
   const promises: Array<Promise<void>> = [];
@@ -168,13 +169,20 @@ export async function checkForAllExtensionUpdates(
       });
       continue;
     }
+    dispatch({
+      type: 'SET_STATE',
+      payload: {
+        name: extension.name,
+        state: ExtensionUpdateState.CHECKING_FOR_UPDATES,
+      },
+    });
     promises.push(
-      checkForExtensionUpdate(extension, (updatedState) => {
+      checkForExtensionUpdate(extension, cwd).then((state) =>
         dispatch({
           type: 'SET_STATE',
-          payload: { name: extension.name, state: updatedState },
-        });
-      }),
+          payload: { name: extension.name, state },
+        }),
+      ),
     );
   }
   await Promise.all(promises);
diff --git a/packages/cli/src/ui/commands/extensionsCommand.test.ts b/packages/cli/src/ui/commands/extensionsCommand.test.ts
index 332f7a1099..ee41668a74 100644
--- a/packages/cli/src/ui/commands/extensionsCommand.test.ts
+++ b/packages/cli/src/ui/commands/extensionsCommand.test.ts
@@ -5,43 +5,23 @@
  */
 
 import type { GeminiCLIExtension } from '@google/gemini-cli-core';
-import {
-  updateAllUpdatableExtensions,
-  updateExtension,
-} from '../../config/extensions/update.js';
 import { createMockCommandContext } from '../../test-utils/mockCommandContext.js';
 import { MessageType } from '../types.js';
 import { extensionsCommand } from './extensionsCommand.js';
 import { type CommandContext } from './types.js';
-import {
-  describe,
-  it,
-  expect,
-  vi,
-  beforeEach,
-  type MockedFunction,
-} from 'vitest';
-import { ExtensionUpdateState } from '../state/extensions.js';
+import { describe, it, expect, vi, beforeEach } from 'vitest';
+import { type ExtensionUpdateAction } from '../state/extensions.js';
 
 vi.mock('../../config/extensions/update.js', () => ({
   updateExtension: vi.fn(),
-  updateAllUpdatableExtensions: vi.fn(),
   checkForAllExtensionUpdates: vi.fn(),
 }));
 
-const mockUpdateExtension = updateExtension as MockedFunction<
-  typeof updateExtension
->;
-
-const mockUpdateAllUpdatableExtensions =
-  updateAllUpdatableExtensions as MockedFunction<
-    typeof updateAllUpdatableExtensions
-  >;
-
 const mockGetExtensions = vi.fn();
 
 describe('extensionsCommand', () => {
   let mockContext: CommandContext;
+  const mockDispatchExtensionState = vi.fn();
 
   beforeEach(() => {
     vi.resetAllMocks();
@@ -53,7 +33,7 @@ describe('extensionsCommand', () => {
         },
       },
       ui: {
-        dispatchExtensionStateUpdate: vi.fn(),
+        dispatchExtensionStateUpdate: mockDispatchExtensionState,
       },
     });
   });
@@ -93,7 +73,14 @@ describe('extensionsCommand', () => {
     });
 
     it('should inform user if there are no extensions to update with --all', async () => {
-      mockUpdateAllUpdatableExtensions.mockResolvedValue([]);
+      mockDispatchExtensionState.mockImplementationOnce(
+        (action: ExtensionUpdateAction) => {
+          if (action.type === 'SCHEDULE_UPDATE') {
+            action.payload.onComplete([]);
+          }
+        },
+      );
+
       await updateAction(mockContext, '--all');
       expect(mockContext.ui.addItem).toHaveBeenCalledWith(
         {
@@ -105,18 +92,24 @@ describe('extensionsCommand', () => {
     });
 
     it('should call setPendingItem and addItem in a finally block on success', async () => {
-      mockUpdateAllUpdatableExtensions.mockResolvedValue([
-        {
-          name: 'ext-one',
-          originalVersion: '1.0.0',
-          updatedVersion: '1.0.1',
+      mockDispatchExtensionState.mockImplementationOnce(
+        (action: ExtensionUpdateAction) => {
+          if (action.type === 'SCHEDULE_UPDATE') {
+            action.payload.onComplete([
+              {
+                name: 'ext-one',
+                originalVersion: '1.0.0',
+                updatedVersion: '1.0.1',
+              },
+              {
+                name: 'ext-two',
+                originalVersion: '2.0.0',
+                updatedVersion: '2.0.1',
+              },
+            ]);
+          }
         },
-        {
-          name: 'ext-two',
-          originalVersion: '2.0.0',
-          updatedVersion: '2.0.1',
-        },
-      ]);
+      );
       await updateAction(mockContext, '--all');
       expect(mockContext.ui.setPendingItem).toHaveBeenCalledWith({
         type: MessageType.EXTENSIONS_LIST,
@@ -131,9 +124,9 @@ describe('extensionsCommand', () => {
     });
 
     it('should call setPendingItem and addItem in a finally block on failure', async () => {
-      mockUpdateAllUpdatableExtensions.mockRejectedValue(
-        new Error('Something went wrong'),
-      );
+      mockDispatchExtensionState.mockImplementationOnce((_) => {
+        throw new Error('Something went wrong');
+      });
       await updateAction(mockContext, '--all');
       expect(mockContext.ui.setPendingItem).toHaveBeenCalledWith({
         type: MessageType.EXTENSIONS_LIST,
@@ -155,95 +148,58 @@ describe('extensionsCommand', () => {
     });
 
     it('should update a single extension by name', async () => {
-      const extension: GeminiCLIExtension = {
-        name: 'ext-one',
-        version: '1.0.0',
-        isActive: true,
-        path: '/test/dir/ext-one',
-        installMetadata: {
-          type: 'git',
-          autoUpdate: false,
-          source: 'https://github.com/some/extension.git',
+      mockDispatchExtensionState.mockImplementationOnce(
+        (action: ExtensionUpdateAction) => {
+          if (action.type === 'SCHEDULE_UPDATE') {
+            action.payload.onComplete([
+              {
+                name: 'ext-one',
+                originalVersion: '1.0.0',
+                updatedVersion: '1.0.1',
+              },
+            ]);
+          }
         },
-      };
-      mockUpdateExtension.mockResolvedValue({
-        name: extension.name,
-        originalVersion: extension.version,
-        updatedVersion: '1.0.1',
-      });
-      mockGetExtensions.mockReturnValue([extension]);
-      mockContext.ui.extensionsUpdateState.set(extension.name, {
-        status: ExtensionUpdateState.UPDATE_AVAILABLE,
-        processed: false,
-      });
-      await updateAction(mockContext, 'ext-one');
-      expect(mockUpdateExtension).toHaveBeenCalledWith(
-        extension,
-        '/test/dir',
-        expect.any(Function),
-        ExtensionUpdateState.UPDATE_AVAILABLE,
-        expect.any(Function),
       );
-    });
-
-    it('should handle errors when updating a single extension', async () => {
-      mockUpdateExtension.mockRejectedValue(new Error('Extension not found'));
-      mockGetExtensions.mockReturnValue([]);
       await updateAction(mockContext, 'ext-one');
-      expect(mockContext.ui.addItem).toHaveBeenCalledWith(
-        {
-          type: MessageType.ERROR,
-          text: 'Extension ext-one not found.',
+      expect(mockDispatchExtensionState).toHaveBeenCalledWith({
+        type: 'SCHEDULE_UPDATE',
+        payload: {
+          all: false,
+          names: ['ext-one'],
+          onComplete: expect.any(Function),
         },
-        expect.any(Number),
-      );
+      });
     });
 
     it('should update multiple extensions by name', async () => {
-      const extensionOne: GeminiCLIExtension = {
-        name: 'ext-one',
-        version: '1.0.0',
-        isActive: true,
-        path: '/test/dir/ext-one',
-        installMetadata: {
-          type: 'git',
-          autoUpdate: false,
-          source: 'https://github.com/some/extension.git',
+      mockDispatchExtensionState.mockImplementationOnce(
+        (action: ExtensionUpdateAction) => {
+          if (action.type === 'SCHEDULE_UPDATE') {
+            action.payload.onComplete([
+              {
+                name: 'ext-one',
+                originalVersion: '1.0.0',
+                updatedVersion: '1.0.1',
+              },
+              {
+                name: 'ext-two',
+                originalVersion: '1.0.0',
+                updatedVersion: '1.0.1',
+              },
+            ]);
+          }
         },
-      };
-      const extensionTwo: GeminiCLIExtension = {
-        name: 'ext-two',
-        version: '1.0.0',
-        isActive: true,
-        path: '/test/dir/ext-two',
-        installMetadata: {
-          type: 'git',
-          autoUpdate: false,
-          source: 'https://github.com/some/extension.git',
-        },
-      };
-      mockGetExtensions.mockReturnValue([extensionOne, extensionTwo]);
-      mockContext.ui.extensionsUpdateState.set(
-        extensionOne.name,
-        ExtensionUpdateState.UPDATE_AVAILABLE,
       );
-      mockContext.ui.extensionsUpdateState.set(
-        extensionTwo.name,
-        ExtensionUpdateState.UPDATE_AVAILABLE,
-      );
-      mockUpdateExtension
-        .mockResolvedValueOnce({
-          name: 'ext-one',
-          originalVersion: '1.0.0',
-          updatedVersion: '1.0.1',
-        })
-        .mockResolvedValueOnce({
-          name: 'ext-two',
-          originalVersion: '2.0.0',
-          updatedVersion: '2.0.1',
-        });
       await updateAction(mockContext, 'ext-one ext-two');
-      expect(mockUpdateExtension).toHaveBeenCalledTimes(2);
+      expect(mockDispatchExtensionState).toHaveBeenCalledWith({
+        type: 'SCHEDULE_UPDATE',
+        payload: {
+          all: false,
+          names: ['ext-one', 'ext-two'],
+          onComplete: expect.any(Function),
+        },
+      });
       expect(mockContext.ui.setPendingItem).toHaveBeenCalledWith({
         type: MessageType.EXTENSIONS_LIST,
       });
diff --git a/packages/cli/src/ui/commands/extensionsCommand.ts b/packages/cli/src/ui/commands/extensionsCommand.ts
index e4f2c8fbe3..87f126b161 100644
--- a/packages/cli/src/ui/commands/extensionsCommand.ts
+++ b/packages/cli/src/ui/commands/extensionsCommand.ts
@@ -4,15 +4,8 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
-import { requestConsentInteractive } from '../../config/extension.js';
-import {
-  updateAllUpdatableExtensions,
-  type ExtensionUpdateInfo,
-  updateExtension,
-  checkForAllExtensionUpdates,
-} from '../../config/extensions/update.js';
+import type { ExtensionUpdateInfo } from '../../config/extension.js';
 import { getErrorMessage } from '../../utils/errors.js';
-import { ExtensionUpdateState } from '../state/extensions.js';
 import { MessageType } from '../types.js';
 import {
   type CommandContext,
@@ -29,11 +22,10 @@ async function listAction(context: CommandContext) {
   );
 }
 
-async function updateAction(context: CommandContext, args: string) {
+function updateAction(context: CommandContext, args: string): Promise<void> {
   const updateArgs = args.split(' ').filter((value) => value.length > 0);
   const all = updateArgs.length === 1 && updateArgs[0] === '--all';
-  const names = all ? undefined : updateArgs;
-  let updateInfos: ExtensionUpdateInfo[] = [];
+  const names = all ? null : updateArgs;
 
   if (!all && names?.length === 0) {
     context.ui.addItem(
@@ -43,32 +35,48 @@ async function updateAction(context: CommandContext, args: string) {
       },
       Date.now(),
     );
-    return;
+    return Promise.resolve();
   }
 
-  try {
-    await checkForAllExtensionUpdates(
-      context.services.config!.getExtensions(),
-      context.ui.dispatchExtensionStateUpdate,
+  let resolveUpdateComplete: (updateInfo: ExtensionUpdateInfo[]) => void;
+  const updateComplete = new Promise<ExtensionUpdateInfo[]>(
+    (resolve) => (resolveUpdateComplete = resolve),
+  );
+  updateComplete.then((updateInfos) => {
+    if (updateInfos.length === 0) {
+      context.ui.addItem(
+        {
+          type: MessageType.INFO,
+          text: 'No extensions to update.',
+        },
+        Date.now(),
+      );
+    }
+    context.ui.addItem(
+      {
+        type: MessageType.EXTENSIONS_LIST,
+      },
+      Date.now(),
     );
+    context.ui.setPendingItem(null);
+  });
+
+  try {
     context.ui.setPendingItem({
       type: MessageType.EXTENSIONS_LIST,
     });
-    if (all) {
-      updateInfos = await updateAllUpdatableExtensions(
-        context.services.config!.getWorkingDir(),
-        // We don't have the ability to prompt for consent yet in this flow.
-        (description) =>
-          requestConsentInteractive(
-            description,
-            context.ui.addConfirmUpdateExtensionRequest,
-          ),
-        context.services.config!.getExtensions(),
-        context.ui.extensionsUpdateState,
-        context.ui.dispatchExtensionStateUpdate,
-      );
-    } else if (names?.length) {
-      const workingDir = context.services.config!.getWorkingDir();
+
+    context.ui.dispatchExtensionStateUpdate({
+      type: 'SCHEDULE_UPDATE',
+      payload: {
+        all,
+        names,
+        onComplete: (updateInfos) => {
+          resolveUpdateComplete(updateInfos);
+        },
+      },
+    });
+    if (names?.length) {
       const extensions = context.services.config!.getExtensions();
       for (const name of names) {
         const extension = extensions.find(
@@ -84,33 +92,10 @@ async function updateAction(context: CommandContext, args: string) {
           );
           continue;
         }
-        const updateInfo = await updateExtension(
-          extension,
-          workingDir,
-          (description) =>
-            requestConsentInteractive(
-              description,
-              context.ui.addConfirmUpdateExtensionRequest,
-            ),
-          context.ui.extensionsUpdateState.get(extension.name)?.status ??
-            ExtensionUpdateState.UNKNOWN,
-          context.ui.dispatchExtensionStateUpdate,
-        );
-        if (updateInfo) updateInfos.push(updateInfo);
       }
     }
-
-    if (updateInfos.length === 0) {
-      context.ui.addItem(
-        {
-          type: MessageType.INFO,
-          text: 'No extensions to update.',
-        },
-        Date.now(),
-      );
-      return;
-    }
   } catch (error) {
+    resolveUpdateComplete!([]);
     context.ui.addItem(
       {
         type: MessageType.ERROR,
@@ -118,15 +103,8 @@ async function updateAction(context: CommandContext, args: string) {
       },
       Date.now(),
     );
-  } finally {
-    context.ui.addItem(
-      {
-        type: MessageType.EXTENSIONS_LIST,
-      },
-      Date.now(),
-    );
-    context.ui.setPendingItem(null);
   }
+  return updateComplete.then((_) => {});
 }
 
 const listExtensionsCommand: SlashCommand = {
diff --git a/packages/cli/src/ui/hooks/useExtensionUpdates.test.ts b/packages/cli/src/ui/hooks/useExtensionUpdates.test.ts
index 56506f58ee..c7a1fd0cfd 100644
--- a/packages/cli/src/ui/hooks/useExtensionUpdates.test.ts
+++ b/packages/cli/src/ui/hooks/useExtensionUpdates.test.ts
@@ -76,7 +76,7 @@ describe('useExtensionUpdates', () => {
     const cwd = '/test/cwd';
 
     vi.mocked(checkForAllExtensionUpdates).mockImplementation(
-      async (extensions, dispatch) => {
+      async (_extensions, dispatch, _cwd) => {
         dispatch({
           type: 'SET_STATE',
           payload: {
@@ -122,7 +122,7 @@ describe('useExtensionUpdates', () => {
     const addItem = vi.fn();
 
     vi.mocked(checkForAllExtensionUpdates).mockImplementation(
-      async (extensions, dispatch) => {
+      async (_extensions, dispatch, _cwd) => {
         dispatch({
           type: 'SET_STATE',
           payload: {
@@ -195,7 +195,7 @@ describe('useExtensionUpdates', () => {
     const addItem = vi.fn();
 
     vi.mocked(checkForAllExtensionUpdates).mockImplementation(
-      async (extensions, dispatch) => {
+      async (_extensions, dispatch, _cwd) => {
         dispatch({
           type: 'SET_STATE',
           payload: {
@@ -280,7 +280,7 @@ describe('useExtensionUpdates', () => {
     const cwd = '/test/cwd';
 
     vi.mocked(checkForAllExtensionUpdates).mockImplementation(
-      async (extensions, dispatch) => {
+      async (_extensions, dispatch, _cwd) => {
         dispatch({ type: 'BATCH_CHECK_START' });
         dispatch({
           type: 'SET_STATE',
diff --git a/packages/cli/src/ui/hooks/useExtensionUpdates.ts b/packages/cli/src/ui/hooks/useExtensionUpdates.ts
index 2967fdb324..5908e298b1 100644
--- a/packages/cli/src/ui/hooks/useExtensionUpdates.ts
+++ b/packages/cli/src/ui/hooks/useExtensionUpdates.ts
@@ -18,7 +18,10 @@ import {
   checkForAllExtensionUpdates,
   updateExtension,
 } from '../../config/extensions/update.js';
-import { requestConsentInteractive } from '../../config/extension.js';
+import {
+  requestConsentInteractive,
+  type ExtensionUpdateInfo,
+} from '../../config/extension.js';
 import { checkExhaustive } from '../../utils/checks.js';
 
 type ConfirmationRequestWrapper = {
@@ -41,7 +44,6 @@ function confirmationRequestsReducer(
       return state.filter((r) => r !== action.request);
     default:
       checkExhaustive(action);
-      return state;
   }
 }
 
@@ -80,40 +82,77 @@ export const useExtensionUpdates = (
   );
 
   useEffect(() => {
-    (async () => {
-      await checkForAllExtensionUpdates(
-        extensions,
-        dispatchExtensionStateUpdate,
+    const extensionsToCheck = extensions.filter((extension) => {
+      const currentStatus = extensionsUpdateState.extensionStatuses.get(
+        extension.name,
       );
-    })();
-  }, [extensions, extensions.length, dispatchExtensionStateUpdate]);
+      if (!currentStatus) return true;
+      const currentState = currentStatus.status;
+      return !currentState || currentState === ExtensionUpdateState.UNKNOWN;
+    });
+    if (extensionsToCheck.length === 0) return;
+    checkForAllExtensionUpdates(
+      extensionsToCheck,
+      dispatchExtensionStateUpdate,
+      cwd,
+    );
+  }, [
+    extensions,
+    extensionsUpdateState.extensionStatuses,
+    cwd,
+    dispatchExtensionStateUpdate,
+  ]);
 
   useEffect(() => {
     if (extensionsUpdateState.batchChecksInProgress > 0) {
       return;
     }
+    const scheduledUpdate = extensionsUpdateState.scheduledUpdate;
+    if (scheduledUpdate) {
+      dispatchExtensionStateUpdate({
+        type: 'CLEAR_SCHEDULED_UPDATE',
+      });
+    }
+
+    function shouldDoUpdate(extension: GeminiCLIExtension): boolean {
+      if (scheduledUpdate) {
+        if (scheduledUpdate.all) {
+          return true;
+        }
+        return scheduledUpdate.names?.includes(extension.name) === true;
+      } else {
+        return extension.installMetadata?.autoUpdate === true;
+      }
+    }
 
     let extensionsWithUpdatesCount = 0;
+    // We only notify if we have unprocessed extensions in the UPDATE_AVAILABLE
+    // state.
+    let shouldNotifyOfUpdates = false;
+    const updatePromises: Array<Promise<ExtensionUpdateInfo | undefined>> = [];
     for (const extension of extensions) {
       const currentState = extensionsUpdateState.extensionStatuses.get(
         extension.name,
       );
       if (
         !currentState ||
-        currentState.processed ||
         currentState.status !== ExtensionUpdateState.UPDATE_AVAILABLE
       ) {
         continue;
       }
-
-      // Mark as processed immediately to avoid re-triggering.
-      dispatchExtensionStateUpdate({
-        type: 'SET_PROCESSED',
-        payload: { name: extension.name, processed: true },
-      });
-
-      if (extension.installMetadata?.autoUpdate) {
-        updateExtension(
+      const shouldUpdate = shouldDoUpdate(extension);
+      if (!shouldUpdate) {
+        extensionsWithUpdatesCount++;
+        if (!currentState.notified) {
+          // Mark as processed immediately to avoid re-triggering.
+          dispatchExtensionStateUpdate({
+            type: 'SET_NOTIFIED',
+            payload: { name: extension.name, notified: true },
+          });
+          shouldNotifyOfUpdates = true;
+        }
+      } else {
+        const updatePromise = updateExtension(
           extension,
           cwd,
           (description) =>
@@ -123,7 +162,9 @@ export const useExtensionUpdates = (
             ),
           currentState.status,
           dispatchExtensionStateUpdate,
-        )
+        );
+        updatePromises.push(updatePromise);
+        updatePromise
           .then((result) => {
             if (!result) return;
             addItem(
@@ -143,11 +184,9 @@ export const useExtensionUpdates = (
               Date.now(),
             );
           });
-      } else {
-        extensionsWithUpdatesCount++;
       }
     }
-    if (extensionsWithUpdatesCount > 0) {
+    if (shouldNotifyOfUpdates) {
       const s = extensionsWithUpdatesCount > 1 ? 's' : '';
       addItem(
         {
@@ -157,6 +196,18 @@ export const useExtensionUpdates = (
         Date.now(),
       );
     }
+    if (scheduledUpdate) {
+      Promise.all(updatePromises).then((results) => {
+        const nonNullResults = results.filter((result) => result != null);
+        scheduledUpdate.onCompleteCallbacks.forEach((callback) => {
+          try {
+            callback(nonNullResults);
+          } catch (e) {
+            console.error(getErrorMessage(e));
+          }
+        });
+      });
+    }
   }, [
     extensions,
     extensionsUpdateState,
diff --git a/packages/cli/src/ui/state/extensions.ts b/packages/cli/src/ui/state/extensions.ts
index a83745b5cb..49295f5c15 100644
--- a/packages/cli/src/ui/state/extensions.ts
+++ b/packages/cli/src/ui/state/extensions.ts
@@ -4,6 +4,7 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
+import type { ExtensionUpdateInfo } from '../../config/extension.js';
 import { checkExhaustive } from '../../utils/checks.js';
 
 export enum ExtensionUpdateState {
@@ -19,17 +20,34 @@ export enum ExtensionUpdateState {
 
 export interface ExtensionUpdateStatus {
   status: ExtensionUpdateState;
-  processed: boolean;
+  notified: boolean;
 }
 
 export interface ExtensionUpdatesState {
   extensionStatuses: Map<string, ExtensionUpdateStatus>;
   batchChecksInProgress: number;
+  // Explicitly scheduled updates.
+  scheduledUpdate: ScheduledUpdate | null;
 }
 
+export interface ScheduledUpdate {
+  names: string[] | null;
+  all: boolean;
+  onCompleteCallbacks: OnCompleteUpdate[];
+}
+
+export interface ScheduleUpdateArgs {
+  names: string[] | null;
+  all: boolean;
+  onComplete: OnCompleteUpdate;
+}
+
+type OnCompleteUpdate = (updateInfos: ExtensionUpdateInfo[]) => void;
+
 export const initialExtensionUpdatesState: ExtensionUpdatesState = {
   extensionStatuses: new Map(),
   batchChecksInProgress: 0,
+  scheduledUpdate: null,
 };
 
 export type ExtensionUpdateAction =
@@ -38,11 +56,13 @@ export type ExtensionUpdateAction =
       payload: { name: string; state: ExtensionUpdateState };
     }
   | {
-      type: 'SET_PROCESSED';
-      payload: { name: string; processed: boolean };
+      type: 'SET_NOTIFIED';
+      payload: { name: string; notified: boolean };
     }
   | { type: 'BATCH_CHECK_START' }
-  | { type: 'BATCH_CHECK_END' };
+  | { type: 'BATCH_CHECK_END' }
+  | { type: 'SCHEDULE_UPDATE'; payload: ScheduleUpdateArgs }
+  | { type: 'CLEAR_SCHEDULED_UPDATE' };
 
 export function extensionUpdatesReducer(
   state: ExtensionUpdatesState,
@@ -57,19 +77,19 @@ export function extensionUpdatesReducer(
       const newStatuses = new Map(state.extensionStatuses);
       newStatuses.set(action.payload.name, {
         status: action.payload.state,
-        processed: false,
+        notified: false,
       });
       return { ...state, extensionStatuses: newStatuses };
     }
-    case 'SET_PROCESSED': {
+    case 'SET_NOTIFIED': {
       const existing = state.extensionStatuses.get(action.payload.name);
-      if (!existing || existing.processed === action.payload.processed) {
+      if (!existing || existing.notified === action.payload.notified) {
         return state;
       }
       const newStatuses = new Map(state.extensionStatuses);
       newStatuses.set(action.payload.name, {
         ...existing,
-        processed: action.payload.processed,
+        notified: action.payload.notified,
       });
       return { ...state, extensionStatuses: newStatuses };
     }
@@ -83,6 +103,27 @@ export function extensionUpdatesReducer(
         ...state,
         batchChecksInProgress: state.batchChecksInProgress - 1,
       };
+    case 'SCHEDULE_UPDATE':
+      return {
+        ...state,
+        // If there is a pre-existing scheduled update, we merge them.
+        scheduledUpdate: {
+          all: state.scheduledUpdate?.all || action.payload.all,
+          names: [
+            ...(state.scheduledUpdate?.names ?? []),
+            ...(action.payload.names ?? []),
+          ],
+          onCompleteCallbacks: [
+            ...(state.scheduledUpdate?.onCompleteCallbacks ?? []),
+            action.payload.onComplete,
+          ],
+        },
+      };
+    case 'CLEAR_SCHEDULED_UPDATE':
+      return {
+        ...state,
+        scheduledUpdate: null,
+      };
     default:
       checkExhaustive(action);
   }