diff --git a/commands/root.go b/commands/root.go
index 1476729..97512b5 100644
--- a/commands/root.go
+++ b/commands/root.go
@@ -77,6 +77,7 @@ func setupCommands() {
 	rootCmd.AddCommand(NewLoginCmd())
 	rootCmd.AddCommand(NewGetCmd(c))
 	rootCmd.AddCommand(NewSetCmd())
+	rootCmd.AddCommand(NewUpdateCmd())
 	rootCmd.AddCommand(volumes.NewResetCmd(c))
 	rootCmd.AddCommand(volumes.NewCreateCmd(c))
 	rootCmd.AddCommand(volumes.NewUploadCmd(c))
diff --git a/commands/update.go b/commands/update.go
new file mode 100644
index 0000000..edcb6a3
--- /dev/null
+++ b/commands/update.go
@@ -0,0 +1,283 @@
+package commands
+
+import (
+	"encoding/json"
+	"fmt"
+	"io"
+	"net/http"
+	"os"
+	"runtime"
+	"strings"
+
+	"github.com/fatih/color"
+	"github.com/spf13/cobra"
+
+	"github.com/shipyard/shipyard-cli/version"
+)
+
+const (
+	githubAPIBaseURL = "https://api.github.com"
+	repoOwner        = "shipyard"
+	repoName         = "shipyard-cli"
+)
+
+type GitHubRelease struct {
+	TagName    string `json:"tag_name"`
+	Name       string `json:"name"`
+	Body       string `json:"body"`
+	Prerelease bool   `json:"prerelease"`
+	Assets     []struct {
+		Name               string `json:"name"`
+		BrowserDownloadURL string `json:"browser_download_url"`
+	} `json:"assets"`
+}
+
+func NewUpdateCmd() *cobra.Command {
+	cmd := &cobra.Command{
+		Use:   "update",
+		Short: "Update shipyard CLI to the latest version",
+		Long:  `Check for the latest release on GitHub and update the CLI binary if a newer version is available.`,
+		RunE:  runUpdate,
+	}
+
+	cmd.Flags().BoolP("force", "f", false, "Force update even if already on latest version")
+	cmd.Flags().BoolP("prerelease", "p", false, "Include prerelease versions")
+
+	return cmd
+}
+
+func runUpdate(cmd *cobra.Command, args []string) error {
+	force, _ := cmd.Flags().GetBool("force")
+	includePrerelease, _ := cmd.Flags().GetBool("prerelease")
+
+	green := color.New(color.FgHiGreen)
+	yellow := color.New(color.FgHiYellow)
+	blue := color.New(color.FgHiBlue)
+
+	blue.Println("Checking for updates...")
+
+	// Get current version
+	currentVersion := version.Version
+	if currentVersion == "undefined" {
+		return fmt.Errorf("unable to determine current version")
+	}
+
+	// Fetch latest release from GitHub
+	latestRelease, err := getLatestRelease(includePrerelease)
+	if err != nil {
+		return fmt.Errorf("failed to fetch latest release: %w", err)
+	}
+
+	blue.Printf("Current version: %s\n", currentVersion)
+	blue.Printf("Latest version: %s\n", latestRelease.TagName)
+
+	// Check if update is needed
+	if !force && !isNewerVersion(currentVersion, latestRelease.TagName) {
+		green.Println("✓ You're already running the latest version!")
+		return nil
+	}
+
+	// Find the appropriate asset for the current platform
+	assetURL, err := findAssetForPlatform(latestRelease.Assets)
+	if err != nil {
+		return fmt.Errorf("failed to find compatible release asset: %w", err)
+	}
+
+	yellow.Printf("Downloading %s...\n", latestRelease.TagName)
+
+	// Download the new binary
+	tempFile, err := downloadBinary(assetURL)
+	if err != nil {
+		return fmt.Errorf("failed to download binary: %w", err)
+	}
+	defer os.Remove(tempFile)
+
+	// Get the current executable path
+	execPath, err := os.Executable()
+	if err != nil {
+		return fmt.Errorf("failed to get executable path: %w", err)
+	}
+
+	// Make the downloaded binary executable
+	if err := os.Chmod(tempFile, 0755); err != nil {
+		return fmt.Errorf("failed to make binary executable: %w", err)
+	}
+
+	// Create backup of current binary
+	backupPath := execPath + ".backup"
+	if err := copyFile(execPath, backupPath); err != nil {
+		return fmt.Errorf("failed to create backup: %w", err)
+	}
+
+	// Replace the current binary
+	if err := copyFile(tempFile, execPath); err != nil {
+		// Restore backup on failure
+		copyFile(backupPath, execPath)
+		return fmt.Errorf("failed to update binary: %w", err)
+	}
+
+	// Remove backup file
+	os.Remove(backupPath)
+
+	green.Printf("✓ Successfully updated to %s!\n", latestRelease.TagName)
+	blue.Println("Please restart your terminal or run 'shipyard --version' to verify the update.")
+
+	return nil
+}
+
+func getLatestRelease(includePrerelease bool) (*GitHubRelease, error) {
+	url := fmt.Sprintf("%s/repos/%s/%s/releases/latest", githubAPIBaseURL, repoOwner, repoName)
+
+	client := &http.Client{}
+	req, err := http.NewRequest("GET", url, nil)
+	if err != nil {
+		return nil, err
+	}
+
+	// Add User-Agent header to avoid rate limiting
+	req.Header.Set("User-Agent", "shipyard-cli-updater")
+
+	resp, err := client.Do(req)
+	if err != nil {
+		return nil, err
+	}
+	defer resp.Body.Close()
+
+	if resp.StatusCode != http.StatusOK {
+		return nil, fmt.Errorf("GitHub API returned status %d", resp.StatusCode)
+	}
+
+	var release GitHubRelease
+	if err := json.NewDecoder(resp.Body).Decode(&release); err != nil {
+		return nil, err
+	}
+
+	// If we don't want prereleases and the latest is a prerelease, try to get the latest stable
+	if !includePrerelease && release.Prerelease {
+		// Get all releases and find the latest non-prerelease
+		url = fmt.Sprintf("%s/repos/%s/%s/releases", githubAPIBaseURL, repoOwner, repoName)
+		req, err = http.NewRequest("GET", url, nil)
+		if err != nil {
+			return nil, err
+		}
+		req.Header.Set("User-Agent", "shipyard-cli-updater")
+
+		resp, err = client.Do(req)
+		if err != nil {
+			return nil, err
+		}
+		defer resp.Body.Close()
+
+		if resp.StatusCode != http.StatusOK {
+			return nil, fmt.Errorf("GitHub API returned status %d", resp.StatusCode)
+		}
+
+		var releases []GitHubRelease
+		if err := json.NewDecoder(resp.Body).Decode(&releases); err != nil {
+			return nil, err
+		}
+
+		// Find the first non-prerelease release
+		for _, r := range releases {
+			if !r.Prerelease {
+				release = r
+				break
+			}
+		}
+	}
+
+	return &release, nil
+}
+
+func findAssetForPlatform(assets []struct {
+	Name               string `json:"name"`
+	BrowserDownloadURL string `json:"browser_download_url"`
+}) (string, error) {
+	osName := runtime.GOOS
+	arch := runtime.GOARCH
+
+	// Map Go arch to common release asset arch names
+	archMap := map[string]string{
+		"amd64": "x86_64",
+		"arm64": "arm64",
+		"386":   "i386",
+	}
+
+	releaseArch := archMap[arch]
+	if releaseArch == "" {
+		releaseArch = arch
+	}
+
+	// Look for asset matching our platform
+	expectedName := fmt.Sprintf("shipyard-%s-%s", osName, releaseArch)
+
+	for _, asset := range assets {
+		if strings.Contains(asset.Name, expectedName) {
+			return asset.BrowserDownloadURL, nil
+		}
+	}
+
+	// Fallback: look for any asset with our OS
+	for _, asset := range assets {
+		if strings.Contains(asset.Name, osName) {
+			return asset.BrowserDownloadURL, nil
+		}
+	}
+
+	return "", fmt.Errorf("no compatible release asset found for %s/%s", osName, arch)
+}
+
+func downloadBinary(url string) (string, error) {
+	resp, err := http.Get(url)
+	if err != nil {
+		return "", err
+	}
+	defer resp.Body.Close()
+
+	if resp.StatusCode != http.StatusOK {
+		return "", fmt.Errorf("download failed with status %d", resp.StatusCode)
+	}
+
+	// Create temporary file
+	tempFile, err := os.CreateTemp("", "shipyard-update-*")
+	if err != nil {
+		return "", err
+	}
+	defer tempFile.Close()
+
+	// Download to temp file
+	_, err = io.Copy(tempFile, resp.Body)
+	if err != nil {
+		os.Remove(tempFile.Name())
+		return "", err
+	}
+
+	return tempFile.Name(), nil
+}
+
+func copyFile(src, dst string) error {
+	sourceFile, err := os.Open(src)
+	if err != nil {
+		return err
+	}
+	defer sourceFile.Close()
+
+	destFile, err := os.Create(dst)
+	if err != nil {
+		return err
+	}
+	defer destFile.Close()
+
+	_, err = io.Copy(destFile, sourceFile)
+	return err
+}
+
+func isNewerVersion(current, latest string) bool {
+	// Remove 'v' prefix if present
+	current = strings.TrimPrefix(current, "v")
+	latest = strings.TrimPrefix(latest, "v")
+
+	// Simple version comparison - this could be enhanced with proper semver parsing
+	// For now, we'll do a basic string comparison
+	return latest > current
+}