diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4f84f7ca50..ae6c18f379 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,13 +6,21 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
 **Note:** Version 0 of Semantic Versioning is handled differently from version 1 and above.
-The minor version will be incremented upon a breaking change and the patch version will be
-incremented for features.
+The minor version will be incremented upon a breaking change and the patch version will be incremented for features.
 
 ## [Unreleased]
 
 ### Features
 
+* avm: New `avm update` command to update the Anchor CLI to the latest version ([#1670](https://github.com/project-serum/anchor/pull/1670)).
+
+### Fixes
+
+* avm: `avm install` no longer downloads the version if already installed in the machine ([#1670](https://github.com/project-serum/anchor/pull/1670)).
+
+### Breaking
+
+* avm: `amv install` switches to the newly installed version after installation finishes ([#1670](https://github.com/project-serum/anchor/pull/1670)).
 * spl: Re-export the `spl_token` crate ([#1665](https://github.com/project-serum/anchor/pull/1665)).
 
 ## [0.23.0] - 2022-03-20
@@ -567,4 +575,4 @@ Initial release.
 * spl: `anchor-spl` crate providing CPI clients for Anchor programs.
 * client: `anchor-client` crate providing Rust clients for Anchor programs.
 * ts: `@project-serum/anchor` package for generating TypeScript clients.
-* cli: Command line interface for managing Anchor programs.
+* cli: Command line interface for managing Anchor programs.
\ No newline at end of file
diff --git a/avm/src/lib.rs b/avm/src/lib.rs
index 63c21653ca..6dc484c21f 100644
--- a/avm/src/lib.rs
+++ b/avm/src/lib.rs
@@ -70,8 +70,23 @@ pub fn use_version(version: &Version) -> Result<()> {
     Ok(())
 }
 
+/// Update to the latest version
+pub fn update() -> Result<()> {
+    // Find last stable version
+    let version = &get_latest_version();
+
+    install_version(version, false)
+}
+
 /// Install a version of anchor-cli
-pub fn install_version(version: &Version) -> Result<()> {
+pub fn install_version(version: &Version, force: bool) -> Result<()> {
+    // If version is already installed we ignore the request.
+    let installed_versions = read_installed_versions();
+    if installed_versions.contains(version) && !force {
+        println!("Version {} is already installed", version);
+        return Ok(());
+    }
+
     let exit = std::process::Command::new("cargo")
         .args(&[
             "install",
@@ -105,7 +120,8 @@ pub fn install_version(version: &Version) -> Result<()> {
         let mut current_version_file = fs::File::create(current_version_file_path().as_path())?;
         current_version_file.write_all(version.to_string().as_bytes())?;
     }
-    Ok(())
+
+    use_version(version)
 }
 
 /// Remove an installed version of anchor-cli
diff --git a/avm/src/main.rs b/avm/src/main.rs
index 853bdad104..97c53a0bcb 100644
--- a/avm/src/main.rs
+++ b/avm/src/main.rs
@@ -22,6 +22,10 @@ pub enum Commands {
     Install {
         #[clap(parse(try_from_str = parse_version))]
         version: Version,
+        #[clap(long)]
+        /// Flag to force installation even if the version
+        /// is already installed
+        force: bool,
     },
     #[clap(about = "Uninstall a version of Anchor")]
     Uninstall {
@@ -30,6 +34,8 @@ pub enum Commands {
     },
     #[clap(about = "List available versions of Anchor")]
     List {},
+    #[clap(about = "Update to the latest Anchor version")]
+    Update {},
 }
 
 // If `latest` is passed use the latest available version.
@@ -43,9 +49,10 @@ fn parse_version(version: &str) -> Result<Version, Error> {
 pub fn entry(opts: Cli) -> Result<()> {
     match opts.command {
         Commands::Use { version } => avm::use_version(&version),
-        Commands::Install { version } => avm::install_version(&version),
+        Commands::Install { version, force } => avm::install_version(&version, force),
         Commands::Uninstall { version } => avm::uninstall_version(&version),
         Commands::List {} => avm::list_versions(),
+        Commands::Update {} => avm::update(),
     }
 }