diff --git a/README.md b/README.md
index 71ac478bf..e2eb77770 100644
--- a/README.md
+++ b/README.md
@@ -303,7 +303,7 @@ You can run following commands to upgrade Webpacker to the latest stable version
 bundle update webpacker
 rails webpacker:binstubs
 yarn upgrade @rails/webpacker --latest
-yarn upgrade webpack-dev-server --latest
+yarn upgrade webpack-dev-server@^3
 
 # Or to install the latest release (including pre-releases)
 yarn add @rails/webpacker@next