diff --git a/test/Squirrel.Packaging.Tests/WindowsPackTests.cs b/test/Squirrel.Packaging.Tests/WindowsPackTests.cs
index b6c41fd59..0cb26ddab 100644
--- a/test/Squirrel.Packaging.Tests/WindowsPackTests.cs
+++ b/test/Squirrel.Packaging.Tests/WindowsPackTests.cs
@@ -266,6 +266,41 @@ public void PackBuildsPackageWhichIsInstallable()
         }
     }
 
+    [SkippableFact]
+    public void TestAppAutoUpdatesWhenLocalIsAvailable()
+    {
+        Skip.IfNot(SquirrelRuntimeInfo.IsWindows);
+        using var logger = _output.BuildLoggerFor<WindowsPackTests>();
+        using var _1 = Utility.GetTempDirectory(out var releaseDir);
+        using var _2 = Utility.GetTempDirectory(out var installDir);
+        string id = "SquirrelAutoUpdateTest";
+        var appPath = Path.Combine(installDir, "current", "TestApp.exe");
+
+        // pack v1
+        PackTestApp(id, "1.0.0", "version 1 test", releaseDir, logger);
+
+        // install app
+        var setupPath1 = Path.Combine(releaseDir, $"{id}-Setup-[win-x64].exe");
+        RunNoCoverage(setupPath1, new string[] { "--nocolor", "--silent", "--installto", installDir },
+            Environment.GetFolderPath(Environment.SpecialFolder.Desktop), logger);
+
+        // pack v2
+        PackTestApp(id, "2.0.0", "version 2 test", releaseDir, logger);
+
+        // move package into local packages dir
+        var fileName = $"{id}-2.0.0-win-x64-full.nupkg";
+        var mvFrom = Path.Combine(releaseDir, fileName);
+        var mvTo = Path.Combine(installDir, "packages", fileName);
+        File.Copy(mvFrom, mvTo);
+
+        RunCoveredDotnet(appPath, new string[] { "--autoupdate" }, installDir, logger, exitCode: null);
+
+        Thread.Sleep(2000);
+
+        var chk1version = RunCoveredDotnet(appPath, new string[] { "version" }, installDir, logger);
+        Assert.EndsWith(Environment.NewLine + "2.0.0", chk1version);
+    }
+
     [SkippableFact]
     public void TestAllApplicationHooks()
     {
@@ -281,7 +316,7 @@ public void TestAllApplicationHooks()
 
         // install app
         var setupPath1 = Path.Combine(releaseDir, $"{id}-Setup-[win-x64].exe");
-        RunNoCoverage(setupPath1, new string[] { "--nocolor", "--verbose", "--installto", installDir },
+        RunNoCoverage(setupPath1, new string[] { "--nocolor", "--installto", installDir },
             Environment.GetFolderPath(Environment.SpecialFolder.Desktop), logger);
 
         var argsPath = Path.Combine(installDir, "args.txt");
@@ -303,7 +338,7 @@ public void TestAllApplicationHooks()
 
         var logFile = Path.Combine(installDir, "Clowd.Squirrel.log");
         logger.Info("TEST: update log output - " + Environment.NewLine + File.ReadAllText(logFile));
-        
+
         Assert.Contains("--squirrel-obsolete 1.0.0", File.ReadAllText(argsPath).Trim());
         Assert.Contains("--squirrel-updated 2.0.0", File.ReadAllText(argsPath).Trim());
 
diff --git a/test/TestApp/Program.cs b/test/TestApp/Program.cs
index 6c0d2312f..6f7c705a6 100644
--- a/test/TestApp/Program.cs
+++ b/test/TestApp/Program.cs
@@ -6,8 +6,10 @@
 
 try {
     bool shouldExit = false;
+    bool shouldAutoUpdate = args.Any(a => a.Equals("--autoupdate", StringComparison.OrdinalIgnoreCase));
+
     SquirrelApp.Build()
-        .SetAutoApplyOnStartup(false)
+        .SetAutoApplyOnStartup(shouldAutoUpdate)
         .WithFirstRun((v) => {
             debugFile("firstrun", v.ToString());
             Console.WriteLine("was first run");
@@ -24,6 +26,11 @@
         .WithBeforeUninstallFastCallback((v) => debugFile("args.txt", String.Join(" ", args)))
         .Run(new ConsoleLogger());
 
+    if (shouldAutoUpdate) {
+        // this shouldn't be reached
+        return -1;
+    }
+
     if (shouldExit) {
         return 0;
     }