diff --git a/server/handlers/packages.go b/server/handlers/packages.go
index 8344a48..6850b85 100644
--- a/server/handlers/packages.go
+++ b/server/handlers/packages.go
@@ -897,3 +897,343 @@ func (h *PackageHandler) TestTool(c *gin.Context) {
 		"output": output,
 	})
 }
+
+// ── Package update (v0.5.4) ──────────────────────
+
+// UpdatePackage applies an in-place update to an existing package.
+// POST /api/v1/admin/packages/:id/update
+//
+// Validates version bump (semver), applies additive schema migration,
+// merges settings, replaces assets, and re-syncs permissions/triggers.
+func (h *PackageHandler) UpdatePackage(c *gin.Context) {
+	ctx := c.Request.Context()
+	pkgID := c.Param("id")
+
+	// 1. Lookup existing package
+	existing, err := h.stores.Packages.Get(ctx, pkgID)
+	if err != nil || existing == nil {
+		c.JSON(http.StatusNotFound, gin.H{"error": "package not found"})
+		return
+	}
+	if existing.Source == "core" {
+		c.JSON(http.StatusForbidden, gin.H{"error": "cannot update core packages"})
+		return
+	}
+
+	// 2. Accept file upload
+	file, header, err := c.Request.FormFile("file")
+	if err != nil {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "no file uploaded"})
+		return
+	}
+	defer file.Close()
+
+	validExt := strings.HasSuffix(header.Filename, ".pkg") ||
+		strings.HasSuffix(header.Filename, ".surface") ||
+		strings.HasSuffix(header.Filename, ".zip")
+	if !validExt {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "file must be a .pkg, .surface, or .zip archive"})
+		return
+	}
+	if header.Size > 50*1024*1024 {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "archive too large (max 50MB)"})
+		return
+	}
+
+	tmpFile, err := os.CreateTemp("", "package-update-*.zip")
+	if err != nil {
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "failed to create temp file"})
+		return
+	}
+	tmpPath := tmpFile.Name()
+	defer os.Remove(tmpPath)
+
+	if _, err := io.Copy(tmpFile, file); err != nil {
+		tmpFile.Close()
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "failed to read upload"})
+		return
+	}
+	tmpFile.Close()
+
+	zr, err := zip.OpenReader(tmpPath)
+	if err != nil {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "invalid zip archive"})
+		return
+	}
+	defer zr.Close()
+
+	// 3. Extract and validate manifest
+	manifest, err := extractManifest(zr)
+	if err != nil {
+		c.JSON(http.StatusBadRequest, gin.H{"error": err.Error()})
+		return
+	}
+
+	newID, _ := manifest["id"].(string)
+	if newID != pkgID {
+		c.JSON(http.StatusBadRequest, gin.H{"error": fmt.Sprintf("manifest id %q does not match package %q", newID, pkgID)})
+		return
+	}
+
+	newType, _ := manifest["type"].(string)
+	if newType == "" {
+		newType = "surface"
+	}
+	if newType != existing.Type {
+		c.JSON(http.StatusBadRequest, gin.H{"error": fmt.Sprintf("cannot change package type from %q to %q", existing.Type, newType)})
+		return
+	}
+
+	// 4. Version comparison — reject same or older
+	newVersion, _ := manifest["version"].(string)
+	if newVersion == "" {
+		newVersion = "0.0.0"
+	}
+	oldSemver, errOld := ParseSemver(existing.Version)
+	newSemver, errNew := ParseSemver(newVersion)
+	if errOld != nil || errNew != nil {
+		// If either version is unparseable, allow the update (legacy data)
+		if errNew != nil {
+			c.JSON(http.StatusBadRequest, gin.H{"error": "invalid version in manifest: " + errNew.Error()})
+			return
+		}
+	} else if newSemver.Compare(oldSemver) <= 0 {
+		c.JSON(http.StatusConflict, gin.H{
+			"error": fmt.Sprintf("version %s is not newer than installed %s", newVersion, existing.Version),
+		})
+		return
+	}
+
+	// 5. Unicode security scan
+	scanExts := map[string]bool{".star": true, ".json": true, ".js": true, ".html": true}
+	for _, f := range zr.File {
+		if f.FileInfo().IsDir() {
+			continue
+		}
+		ext := strings.ToLower(filepath.Ext(f.Name))
+		if !scanExts[ext] {
+			continue
+		}
+		rc, err := f.Open()
+		if err != nil {
+			continue
+		}
+		data, err := io.ReadAll(rc)
+		rc.Close()
+		if err != nil {
+			continue
+		}
+		findings := sandbox.ScanSource(string(data), f.Name)
+		if len(findings) > 0 {
+			if blocked, reason := sandbox.Verdict(findings); blocked {
+				c.JSON(http.StatusUnprocessableEntity, gin.H{
+					"error":  "extension_blocked",
+					"reason": fmt.Sprintf("%s (file: %s)", reason, f.Name),
+				})
+				return
+			}
+		}
+	}
+
+	// 6. Additive schema migration
+	var schemaChanges []string
+	if tables, ok := ParseDBTables(manifest); ok {
+		changes, err := MigrateExtTables(ctx, database.DB, database.IsPostgres(), h.stores, pkgID, tables)
+		if err != nil {
+			c.JSON(http.StatusInternalServerError, gin.H{"error": "schema migration failed: " + err.Error()})
+			return
+		}
+		schemaChanges = changes
+	}
+
+	// 7. Settings merge — add new keys with defaults, preserve existing
+	mergedSettings := mergePackageSettings(existing, manifest)
+	if mergedSettings != nil {
+		if err := h.stores.Packages.SetPackageSettings(ctx, pkgID, mergedSettings); err != nil {
+			log.Printf("[packages] settings merge failed for %s: %v", pkgID, err)
+		}
+	}
+
+	// 8. Replace assets
+	if h.packagesDir != "" {
+		if err := extractPackageAssets(zr, h.packagesDir, pkgID); err != nil {
+			log.Printf("[packages] asset extraction failed for %s: %v", pkgID, err)
+		}
+	}
+
+	// 9. Update DB record
+	description, _ := manifest["description"].(string)
+	author, _ := manifest["author"].(string)
+	tier, _ := manifest["tier"].(string)
+	if tier == "" {
+		tier = "browser"
+	}
+
+	pkg := &store.PackageRegistration{
+		Title:       manifest["title"].(string),
+		Type:        newType,
+		Version:     newVersion,
+		Description: description,
+		Author:      author,
+		Tier:        tier,
+		IsSystem:    existing.IsSystem,
+		Enabled:     existing.Enabled,
+		Manifest:    manifest,
+	}
+	if err := h.stores.Packages.Update(ctx, pkgID, pkg); err != nil {
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "failed to update package record"})
+		return
+	}
+
+	// 10. Re-sync permissions, triggers, dependencies
+	SyncManifestPermissions(c, h.stores, pkgID, manifest)
+	SyncManifestTriggers(ctx, h.stores, triggers.GlobalEngine(), pkgID, manifest)
+
+	if deps, ok := manifest["dependencies"].(map[string]any); ok && len(deps) > 0 {
+		if h.stores.Dependencies != nil {
+			h.stores.Dependencies.DeleteAllForConsumer(ctx, pkgID)
+		}
+		for libID, vSpec := range deps {
+			lib, err := h.stores.Packages.Get(ctx, libID)
+			if err != nil || lib == nil {
+				log.Printf("[packages] update dependency %s not found for %s", libID, pkgID)
+				continue
+			}
+			versionSpec, _ := vSpec.(string)
+			if versionSpec == "" {
+				versionSpec = ">=0.0.0"
+			}
+			if h.stores.Dependencies != nil {
+				h.stores.Dependencies.Create(ctx, &models.ExtDependency{
+					ConsumerID:  pkgID,
+					LibraryID:   libID,
+					VersionSpec: versionSpec,
+					ResolvedVer: lib.Version,
+				})
+			}
+		}
+	}
+
+	// 11. Re-install workflow definition if applicable
+	if newType == "workflow" {
+		if err := InstallWorkflowFromManifest(c, h.stores, pkgID, manifest); err != nil {
+			log.Printf("[packages] workflow update failed for %s: %v", pkgID, err)
+		}
+	}
+
+	previousVersion := existing.Version
+	log.Printf("[packages] Updated %s from v%s to v%s", pkgID, previousVersion, newVersion)
+
+	c.JSON(http.StatusOK, gin.H{
+		"id":               pkgID,
+		"version":          newVersion,
+		"previous_version": previousVersion,
+		"changes":          schemaChanges,
+	})
+}
+
+// mergePackageSettings merges existing settings with a new manifest's settings schema.
+// New keys get their declared default value; existing keys are preserved.
+func mergePackageSettings(existing *store.PackageRegistration, manifest map[string]any) json.RawMessage {
+	newSchema, _ := manifest["settings"].([]any)
+	if len(newSchema) == 0 {
+		return nil
+	}
+
+	// Parse existing settings
+	var current map[string]any
+	if existing.PackageSettings != nil {
+		if err := json.Unmarshal(existing.PackageSettings, &current); err != nil {
+			current = make(map[string]any)
+		}
+	}
+	if current == nil {
+		current = make(map[string]any)
+	}
+
+	changed := false
+	for _, entry := range newSchema {
+		e, ok := entry.(map[string]any)
+		if !ok {
+			continue
+		}
+		key, _ := e["key"].(string)
+		if key == "" {
+			continue
+		}
+		if _, exists := current[key]; !exists {
+			current[key] = e["default"]
+			changed = true
+		}
+	}
+
+	if !changed {
+		return nil
+	}
+
+	data, _ := json.Marshal(current)
+	return data
+}
+
+// ── Package export (v0.5.4) ──────────────────────
+
+// ExportPackage exports an installed package as a downloadable .pkg archive.
+// GET /api/v1/admin/packages/:id/export
+func (h *PackageHandler) ExportPackage(c *gin.Context) {
+	ctx := c.Request.Context()
+	pkgID := c.Param("id")
+
+	pkg, err := h.stores.Packages.Get(ctx, pkgID)
+	if err != nil || pkg == nil {
+		c.JSON(http.StatusNotFound, gin.H{"error": "package not found"})
+		return
+	}
+
+	// Set response headers
+	filename := fmt.Sprintf("%s-%s.pkg", pkgID, pkg.Version)
+	c.Header("Content-Type", "application/zip")
+	c.Header("Content-Disposition", fmt.Sprintf("attachment; filename=%q", filename))
+
+	zw := zip.NewWriter(c.Writer)
+	defer zw.Close()
+
+	// Write manifest.json from DB
+	manifestJSON, err := json.MarshalIndent(pkg.Manifest, "", "  ")
+	if err != nil {
+		log.Printf("[packages] export: failed to marshal manifest for %s: %v", pkgID, err)
+		return
+	}
+	mw, err := zw.Create("manifest.json")
+	if err != nil {
+		return
+	}
+	mw.Write(manifestJSON)
+
+	// Walk packagesDir/{id}/ and add all asset files
+	if h.packagesDir == "" {
+		return
+	}
+	pkgDir := filepath.Join(h.packagesDir, pkgID)
+	filepath.Walk(pkgDir, func(path string, info os.FileInfo, err error) error {
+		if err != nil || info.IsDir() {
+			return nil
+		}
+		relPath, err := filepath.Rel(pkgDir, path)
+		if err != nil {
+			return nil
+		}
+		relPath = filepath.ToSlash(relPath) // normalize to forward slashes in zip
+
+		fw, err := zw.Create(relPath)
+		if err != nil {
+			return nil
+		}
+		f, err := os.Open(path)
+		if err != nil {
+			return nil
+		}
+		defer f.Close()
+		io.Copy(fw, f)
+		return nil
+	})
+}