diff --git a/src/cli/update-cli.test.ts b/src/cli/update-cli.test.ts
index f5d5f8ff78f9..02c4237d1184 100644
--- a/src/cli/update-cli.test.ts
+++ b/src/cli/update-cli.test.ts
@@ -2877,6 +2877,51 @@ describe("update-cli", () => {
     expect(updateCall?.beforeGitMutation).toEqual(expect.any(Function));
   });
 
+  it("stops a managed gateway rooted at the git checkout when switching package installs to dev", async () => {
+    const packageRoot = createCaseDir("openclaw-update-package-root");
+    const gitRoot = await createTrackedTempDir("openclaw-update-git-service-root-");
+    const serviceEntrypoint = path.join(gitRoot, "dist", "index.js");
+    await fs.mkdir(path.join(gitRoot, ".git"), { recursive: true });
+    await fs.mkdir(path.dirname(serviceEntrypoint), { recursive: true });
+    await fs.writeFile(
+      path.join(gitRoot, "package.json"),
+      JSON.stringify({ name: "openclaw", version: "2026.4.21" }),
+      "utf-8",
+    );
+    await fs.writeFile(serviceEntrypoint, "export {};\n", "utf-8");
+    mockPackageInstallStatus(packageRoot);
+    pathExists.mockImplementation(async (candidate: string) => candidate === gitRoot);
+    serviceReadCommand.mockResolvedValue({
+      programArguments: ["node", serviceEntrypoint, "gateway", "run"],
+      environment: {
+        OPENCLAW_SERVICE_MARKER: "openclaw",
+        OPENCLAW_SERVICE_KIND: "gateway",
+      },
+    });
+    serviceLoaded.mockResolvedValue(true);
+    serviceReadRuntime.mockResolvedValue({
+      status: "running",
+      pid: 4242,
+      state: "running",
+    });
+    mockGitUpdateAfterMutation(
+      makeOkUpdateResult({
+        mode: "git",
+        root: gitRoot,
+      }),
+    );
+
+    await withEnvAsync({ OPENCLAW_GIT_DIR: gitRoot }, async () => {
+      await updateCommand({ channel: "dev", yes: true });
+    });
+
+    expect(serviceStop).toHaveBeenCalledTimes(1);
+    expect(runGatewayUpdate).toHaveBeenCalledTimes(1);
+    const updateCall = vi.mocked(runGatewayUpdate).mock.calls[0]?.[0];
+    expect(updateCall?.cwd).toBe(gitRoot);
+    expect(updateCall?.beforeGitMutation).toEqual(expect.any(Function));
+  });
+
   it("does not stop or restart a managed gateway owned by another git checkout", async () => {
     const otherRoot = await createTrackedTempDir("openclaw-update-other-service-root-");
     const otherEntrypoint = path.join(otherRoot, "dist", "index.js");
diff --git a/src/cli/update-cli/update-command.ts b/src/cli/update-cli/update-command.ts
index 70ada82a317a..e036cf451f82 100644
--- a/src/cli/update-cli/update-command.ts
+++ b/src/cli/update-cli/update-command.ts
@@ -3469,14 +3469,16 @@ async function updateCommandInternal(opts: UpdateCommandOptions): Promise<void>
   const preUpdatePluginInstallRecords = await loadInstalledPluginIndexInstallRecords();
 
   let preManagedServiceStop: PreManagedServiceStop | undefined;
-  const stopManagedServiceBeforeMutableUpdate = async () => {
+  const gitMutationRoot =
+    updateInstallKind === "git" ? (switchToGit ? resolveGitInstallDir() : root) : null;
+  const stopManagedServiceBeforeMutableUpdate = async (mutationRoot: string = root) => {
     if (updateInstallKind !== "package" && updateInstallKind !== "git") {
       return;
     }
     try {
       preManagedServiceStop = await maybeStopManagedServiceBeforeMutableUpdate({
         updateInstallKind,
-        root,
+        root: mutationRoot,
         shouldRestart,
         jsonMode: Boolean(opts.json),
       });
@@ -3552,7 +3554,9 @@ async function updateCommandInternal(opts: UpdateCommandOptions): Promise<void>
             stop,
             devTargetRef,
             beforeGitMutation:
-              updateInstallKind === "git" ? stopManagedServiceBeforeMutableUpdate : undefined,
+              updateInstallKind === "git"
+                ? () => stopManagedServiceBeforeMutableUpdate(gitMutationRoot ?? root)
+                : undefined,
           });
   } catch (err) {
     stop();