diff --git a/app/Http/Controllers/Api/OtherController.php b/app/Http/Controllers/Api/OtherController.php
index 9fa18e3dc..46d0a1a84 100644
--- a/app/Http/Controllers/Api/OtherController.php
+++ b/app/Http/Controllers/Api/OtherController.php
@@ -292,13 +292,20 @@ class OtherController extends Controller
 
     #[OA\Get(
         summary: 'Healthcheck',
-        description: 'Healthcheck endpoint.',
+        description: 'Healthcheck endpoint. Includes the running Coolify version in the X-Coolify-Version header.',
         path: '/health',
         operationId: 'healthcheck',
         responses: [
             new OA\Response(
                 response: 200,
                 description: 'Healthcheck endpoint.',
+                headers: [
+                    new OA\Header(
+                        header: 'X-Coolify-Version',
+                        description: 'Currently running Coolify version.',
+                        schema: new OA\Schema(type: 'string', example: '4.3.1'),
+                    ),
+                ],
                 content: new OA\MediaType(
                     mediaType: 'text/html',
                     schema: new OA\Schema(type: 'string'),
@@ -316,6 +323,6 @@ class OtherController extends Controller
     )]
     public function healthcheck(Request $request)
     {
-        return 'OK';
+        return response('OK')->header('X-Coolify-Version', (string) config('constants.coolify.version'));
     }
 }
diff --git a/app/Livewire/Upgrade.php b/app/Livewire/Upgrade.php
index 0ccb06a08..aad02c780 100644
--- a/app/Livewire/Upgrade.php
+++ b/app/Livewire/Upgrade.php
@@ -5,6 +5,7 @@ namespace App\Livewire;
 use App\Actions\Server\UpdateCoolify;
 use App\Models\InstanceSettings;
 use App\Models\Server;
+use App\Services\CoolifyUpgradeStatus;
 use Livewire\Component;
 
 class Upgrade extends Component
@@ -69,7 +70,13 @@ class Upgrade extends Component
                 return;
             }
             $this->updateInProgress = true;
-            UpdateCoolify::run(manual_update: true);
+            dispatch(function () {
+                try {
+                    UpdateCoolify::run(manual_update: true);
+                } catch (\Throwable $e) {
+                    report($e);
+                }
+            })->afterResponse();
         } catch (\Throwable $e) {
             return handleError($e, $this);
         }
@@ -100,45 +107,10 @@ class Upgrade extends Component
             return ['status' => 'none'];
         }
 
-        if (empty($content)) {
-            return ['status' => 'none'];
-        }
-
-        $parts = explode('|', $content);
-        if (count($parts) < 3) {
-            return ['status' => 'none'];
-        }
-
-        [$step, $message, $timestamp] = $parts;
-
-        // Check if status is stale (older than 10 minutes)
-        try {
-            $statusTime = new \DateTime($timestamp);
-            $now = new \DateTime;
-            $diffMinutes = ($now->getTimestamp() - $statusTime->getTimestamp()) / 60;
-
-            if ($diffMinutes > 10) {
-                return ['status' => 'none'];
-            }
-        } catch (\Throwable $e) {
-            return ['status' => 'none'];
-        }
-
-        if ($step === 'error') {
-            return [
-                'status' => 'error',
-                'step' => 0,
-                'message' => $message,
-            ];
-        }
-
-        $stepInt = (int) $step;
-        $status = $stepInt >= 6 ? 'complete' : 'in_progress';
-
-        return [
-            'status' => $status,
-            'step' => $stepInt,
-            'message' => $message,
-        ];
+        return CoolifyUpgradeStatus::fromFile(
+            content: $content,
+            runningVersion: $this->currentVersion !== '' ? $this->currentVersion : (string) config('constants.coolify.version'),
+            targetVersion: $this->latestVersion !== '' ? $this->latestVersion : get_latest_version_of_coolify(),
+        );
     }
 }
diff --git a/app/Services/CoolifyUpgradeStatus.php b/app/Services/CoolifyUpgradeStatus.php
new file mode 100644
index 000000000..15f6c22ef
--- /dev/null
+++ b/app/Services/CoolifyUpgradeStatus.php
@@ -0,0 +1,88 @@
+<?php
+
+namespace App\Services;
+
+use DateTimeInterface;
+
+class CoolifyUpgradeStatus
+{
+    public const STALE_AFTER_MINUTES = 10;
+
+    /**
+     * @return array{status: string, step?: int, message?: string, running_version: string, target_version: string}
+     */
+    public static function fromFile(
+        string $content,
+        string $runningVersion,
+        string $targetVersion,
+        ?DateTimeInterface $now = null,
+        int $staleAfterMinutes = self::STALE_AFTER_MINUTES,
+    ): array {
+        $base = [
+            'running_version' => $runningVersion,
+            'target_version' => $targetVersion,
+        ];
+
+        $content = trim($content);
+        if ($content === '') {
+            return ['status' => 'none', ...$base];
+        }
+
+        $parts = explode('|', $content);
+        if (count($parts) < 3) {
+            return ['status' => 'none', ...$base];
+        }
+
+        [$step, $message, $timestamp] = $parts;
+
+        try {
+            $statusTime = new \DateTime($timestamp);
+            $now = $now ?? new \DateTime;
+            $diffMinutes = ($now->getTimestamp() - $statusTime->getTimestamp()) / 60;
+
+            if ($diffMinutes > $staleAfterMinutes) {
+                return ['status' => 'none', ...$base];
+            }
+        } catch (\Throwable) {
+            return ['status' => 'none', ...$base];
+        }
+
+        if ($step === 'error') {
+            return [
+                'status' => 'error',
+                'step' => 0,
+                'message' => $message,
+                ...$base,
+            ];
+        }
+
+        $stepInt = (int) $step;
+
+        if ($stepInt >= 6 && ! self::hasReachedTargetVersion($runningVersion, $targetVersion)) {
+            return [
+                'status' => 'in_progress',
+                'step' => $stepInt,
+                'message' => "Waiting for Coolify {$targetVersion} to come online...",
+                ...$base,
+            ];
+        }
+
+        $status = $stepInt >= 6 ? 'complete' : 'in_progress';
+
+        return [
+            'status' => $status,
+            'step' => $stepInt,
+            'message' => $message,
+            ...$base,
+        ];
+    }
+
+    public static function hasReachedTargetVersion(string $runningVersion, string $targetVersion): bool
+    {
+        if ($runningVersion === '' || $targetVersion === '') {
+            return false;
+        }
+
+        return version_compare($runningVersion, $targetVersion, '>=');
+    }
+}
diff --git a/resources/views/livewire/upgrade.blade.php b/resources/views/livewire/upgrade.blade.php
index cdcdc6134..81a1bce5d 100644
--- a/resources/views/livewire/upgrade.blade.php
+++ b/resources/views/livewire/upgrade.blade.php
@@ -171,6 +171,7 @@
             checkUpgradeStatusInterval: null,
             elapsedInterval: null,
             healthCheckAttempts: 0,
+            livewireFailures: 0,
             startTime: null,
             elapsedTime: 0,
             currentStep: 0,
@@ -254,6 +255,23 @@
                 return 4;
             },
 
+            hasReachedTargetVersion(running, target) {
+                if (!running || !target) {
+                    return false;
+                }
+                const normalize = (version) => String(version).replace(/^v/i, '');
+                running = normalize(running);
+                target = normalize(target);
+                if (running === target) {
+                    return true;
+                }
+
+                return running.localeCompare(target, undefined, {
+                    numeric: true,
+                    sensitivity: 'base',
+                }) >= 0;
+            },
+
             getReviveStatusMessage(elapsedMinutes, attempts) {
                 if (elapsedMinutes === 0) {
                     return `Waiting for Coolify to come back online... (attempt ${attempts})`;
@@ -278,8 +296,13 @@
                     const elapsedMinutes = Math.floor((Date.now() - this.startTime) / 60000);
                     fetch('/api/health')
                         .then(response => {
-                            if (response.ok) {
+                            const runningVersion = response.headers.get('X-Coolify-Version');
+                            if (response.ok && this.hasReachedTargetVersion(runningVersion, this.latestVersion)) {
                                 this.showSuccess();
+                            } else if (response.ok) {
+                                this.currentStatus = runningVersion
+                                    ? `Coolify is still on ${runningVersion}. Waiting for ${this.latestVersion}...`
+                                    : this.getReviveStatusMessage(elapsedMinutes, this.healthCheckAttempts);
                             } else {
                                 this.currentStatus = this.getReviveStatusMessage(elapsedMinutes, this.healthCheckAttempts);
                             }
@@ -365,21 +388,33 @@
                 this.currentStep = 1;
                 this.currentStatus = 'Starting upgrade...';
                 this.serviceDown = false;
+                this.livewireFailures = 0;
 
                 // Poll upgrade status via Livewire
                 this.checkUpgradeStatusInterval = setInterval(async () => {
                     try {
                         const data = await this.$wire.getUpgradeStatus();
+                        this.livewireFailures = 0;
                         if (data.status === 'in_progress') {
                             this.currentStep = this.mapStepToUI(data.step);
                             this.currentStatus = data.message;
                         } else if (data.status === 'complete') {
-                            this.showSuccess();
+                            if (this.hasReachedTargetVersion(data.running_version || this.currentVersion, this.latestVersion)) {
+                                this.showSuccess();
+                            } else {
+                                this.currentStep = 4;
+                                this.currentStatus = `Waiting for Coolify ${this.latestVersion} to come online...`;
+                            }
                         } else if (data.status === 'error') {
                             this.showError(data.message);
                         }
                     } catch (error) {
-                        // Service is down - switch to health check mode
+                        this.livewireFailures++;
+                        if (this.livewireFailures < 3) {
+                            this.currentStatus = 'Lost contact with Coolify, retrying...';
+                            return;
+                        }
+                        // Repeated Livewire failures usually mean the instance is restarting
                         console.log('Livewire unavailable, switching to health check mode');
                         if (!this.serviceDown) {
                             this.serviceDown = true;
diff --git a/tests/Feature/HealthcheckVersionHeaderTest.php b/tests/Feature/HealthcheckVersionHeaderTest.php
new file mode 100644
index 000000000..7acf78c6f
--- /dev/null
+++ b/tests/Feature/HealthcheckVersionHeaderTest.php
@@ -0,0 +1,22 @@
+<?php
+
+use App\Http\Controllers\Api\OtherController;
+use Illuminate\Http\Request;
+
+it('adds the running version header on the healthcheck response', function () {
+    config(['constants.coolify.version' => '4.3.1']);
+
+    $response = (new OtherController)->healthcheck(Request::create('/api/health', 'GET'));
+
+    expect($response->getContent())->toBe('OK')
+        ->and($response->headers->get('X-Coolify-Version'))->toBe('4.3.1');
+});
+
+it('exposes the running Coolify version on the public health endpoint', function () {
+    config(['constants.coolify.version' => '4.3.1']);
+
+    $this->get('/api/health')
+        ->assertSuccessful()
+        ->assertSee('OK')
+        ->assertHeader('X-Coolify-Version', '4.3.1');
+});
diff --git a/tests/Unit/CoolifyUpgradeStatusTest.php b/tests/Unit/CoolifyUpgradeStatusTest.php
new file mode 100644
index 000000000..7d45b0445
--- /dev/null
+++ b/tests/Unit/CoolifyUpgradeStatusTest.php
@@ -0,0 +1,147 @@
+<?php
+
+use App\Services\CoolifyUpgradeStatus;
+use Carbon\Carbon;
+
+it('treats empty or malformed status as none', function (?string $content) {
+    expect(CoolifyUpgradeStatus::fromFile(
+        content: $content ?? '',
+        runningVersion: '4.3.0',
+        targetVersion: '4.3.1',
+    ))->toMatchArray([
+        'status' => 'none',
+        'running_version' => '4.3.0',
+        'target_version' => '4.3.1',
+    ]);
+})->with([
+    'empty' => '',
+    'whitespace' => '   ',
+    'missing fields' => '6|Upgrade complete',
+    'single token' => 'complete',
+]);
+
+it('returns in_progress for intermediate upgrade steps', function () {
+    $content = '4|Stopping containers|'.Carbon::parse('2026-08-13T12:00:00+00:00')->toIso8601String();
+
+    $result = CoolifyUpgradeStatus::fromFile(
+        content: $content,
+        runningVersion: '4.3.0',
+        targetVersion: '4.3.1',
+        now: Carbon::parse('2026-08-13T12:01:00+00:00'),
+    );
+
+    expect($result)->toMatchArray([
+        'status' => 'in_progress',
+        'step' => 4,
+        'message' => 'Stopping containers',
+        'running_version' => '4.3.0',
+        'target_version' => '4.3.1',
+    ]);
+});
+
+it('does not mark the upgrade complete when the script finished but the running version is still old', function () {
+    $content = '6|Upgrade complete|'.Carbon::parse('2026-08-13T12:00:00+00:00')->toIso8601String();
+
+    $result = CoolifyUpgradeStatus::fromFile(
+        content: $content,
+        runningVersion: '4.3.0',
+        targetVersion: '4.3.1',
+        now: Carbon::parse('2026-08-13T12:01:00+00:00'),
+    );
+
+    expect($result['status'])->toBe('in_progress')
+        ->and($result['step'])->toBe(6)
+        ->and($result['running_version'])->toBe('4.3.0')
+        ->and($result['target_version'])->toBe('4.3.1')
+        ->and($result['message'])->toContain('Waiting for Coolify')
+        ->and($result['message'])->toContain('4.3.1');
+});
+
+it('marks the upgrade complete only after the running version matches the target', function () {
+    $content = '6|Upgrade complete|'.Carbon::parse('2026-08-13T12:00:00+00:00')->toIso8601String();
+
+    $result = CoolifyUpgradeStatus::fromFile(
+        content: $content,
+        runningVersion: '4.3.1',
+        targetVersion: '4.3.1',
+        now: Carbon::parse('2026-08-13T12:01:00+00:00'),
+    );
+
+    expect($result)->toMatchArray([
+        'status' => 'complete',
+        'step' => 6,
+        'message' => 'Upgrade complete',
+        'running_version' => '4.3.1',
+        'target_version' => '4.3.1',
+    ]);
+});
+
+it('treats a running version newer than the target as complete', function () {
+    $content = '6|Upgrade complete|'.Carbon::parse('2026-08-13T12:00:00+00:00')->toIso8601String();
+
+    $result = CoolifyUpgradeStatus::fromFile(
+        content: $content,
+        runningVersion: '4.3.2',
+        targetVersion: '4.3.1',
+        now: Carbon::parse('2026-08-13T12:01:00+00:00'),
+    );
+
+    expect($result['status'])->toBe('complete');
+});
+
+it('returns error status without requiring a version match', function () {
+    $content = 'error|Failed to pull image|'.Carbon::parse('2026-08-13T12:00:00+00:00')->toIso8601String();
+
+    $result = CoolifyUpgradeStatus::fromFile(
+        content: $content,
+        runningVersion: '4.3.0',
+        targetVersion: '4.3.1',
+        now: Carbon::parse('2026-08-13T12:01:00+00:00'),
+    );
+
+    expect($result)->toMatchArray([
+        'status' => 'error',
+        'step' => 0,
+        'message' => 'Failed to pull image',
+    ]);
+});
+
+it('ignores stale status files older than ten minutes', function () {
+    $content = '6|Upgrade complete|'.Carbon::parse('2026-08-13T11:00:00+00:00')->toIso8601String();
+
+    $result = CoolifyUpgradeStatus::fromFile(
+        content: $content,
+        runningVersion: '4.3.1',
+        targetVersion: '4.3.1',
+        now: Carbon::parse('2026-08-13T12:00:00+00:00'),
+    );
+
+    expect($result['status'])->toBe('none');
+});
+
+it('waits for the running version to match the target before showing reload', function () {
+    $upgradeView = file_get_contents(__DIR__.'/../../resources/views/livewire/upgrade.blade.php');
+
+    expect($upgradeView)
+        ->toContain('X-Coolify-Version')
+        ->toContain('hasReachedTargetVersion')
+        ->toContain('livewireFailures');
+});
+
+it('starts the upgrade after the Livewire response so status polling is not blocked', function () {
+    $upgradeComponent = file_get_contents(__DIR__.'/../../app/Livewire/Upgrade.php');
+
+    expect($upgradeComponent)
+        ->toContain('afterResponse()')
+        ->toContain('CoolifyUpgradeStatus::fromFile');
+});
+
+it('reports whether the running version has reached the target', function (string $running, string $target, bool $reached) {
+    expect(CoolifyUpgradeStatus::hasReachedTargetVersion($running, $target))->toBe($reached);
+})->with([
+    'old instance still serving' => ['4.3.0', '4.3.1', false],
+    'target reached' => ['4.3.1', '4.3.1', true],
+    'already newer' => ['4.3.2', '4.3.1', true],
+    'missing running version' => ['', '4.3.1', false],
+    'missing target version' => ['4.3.1', '', false],
+]);