diff --git a/electrum/gui/qt/plugins_dialog.py b/electrum/gui/qt/plugins_dialog.py
index 7bda79cb4..83b88ae85 100644
--- a/electrum/gui/qt/plugins_dialog.py
+++ b/electrum/gui/qt/plugins_dialog.py
@@ -68,6 +68,10 @@ class PluginDialog(WindowModalDialog):
             install_button = QPushButton(_('Install...'))
             install_button.clicked.connect(self.accept)
             buttons.insert(0, install_button)
+        elif self.plugins.get_metadata(name).get('zip_hash_sha256') != zip_hash:
+            update_button = QPushButton(_('Update...'))
+            update_button.clicked.connect(self.accept)
+            buttons.insert(0, update_button)
         else:
             remove_button = QPushButton(_('Uninstall'))
             remove_button.clicked.connect(self.do_remove)
diff --git a/electrum/plugin.py b/electrum/plugin.py
index 068125f22..377b3fe93 100644
--- a/electrum/plugin.py
+++ b/electrum/plugin.py
@@ -403,6 +403,8 @@ class Plugins(DaemonThread):
         self.config.set_key(f'plugins.{name}.enabled', [])
 
     def install_external_plugin(self, name, path, privkey, manifest):
+        # uninstall old version first to get rid of old zip files when updating plugin
+        self.uninstall(name)
         self.external_plugin_metadata[name] = manifest
         self.authorize_plugin(name, path, privkey)