diff --git a/tests/components/squeezebox/conftest.py b/tests/components/squeezebox/conftest.py
index 1282594f7a87d1..4e2fb36feab49f 100644
--- a/tests/components/squeezebox/conftest.py
+++ b/tests/components/squeezebox/conftest.py
@@ -70,6 +70,7 @@
     STATUS_SENSOR_INFO_TOTAL_SONGS: 42,
     STATUS_SENSOR_PLAYER_COUNT: 10,
     STATUS_SENSOR_OTHER_PLAYER_COUNT: 0,
+    "_can": 1,
     "players_loop": [
         {
             "isplaying": 0,
diff --git a/tests/components/squeezebox/test_update.py b/tests/components/squeezebox/test_update.py
index 27ae3a59a9c32b..ba34ada9d0a216 100644
--- a/tests/components/squeezebox/test_update.py
+++ b/tests/components/squeezebox/test_update.py
@@ -1,14 +1,25 @@
 """Test squeezebox update platform."""
 
 import copy
+from datetime import timedelta
 from unittest.mock import patch
 
-from homeassistant.const import Platform
+from homeassistant.components.squeezebox.const import (
+    SENSOR_UPDATE_INTERVAL,
+    STATUS_SENSOR_NEWPLUGINS,
+)
+from homeassistant.components.update import (
+    ATTR_IN_PROGRESS,
+    DOMAIN as UPDATE_DOMAIN,
+    SERVICE_INSTALL,
+)
+from homeassistant.const import ATTR_ENTITY_ID, STATE_OFF, STATE_ON, Platform
 from homeassistant.core import HomeAssistant
+from homeassistant.util import dt as dt_util
 
 from .conftest import FAKE_QUERY_RESPONSE
 
-from tests.common import MockConfigEntry
+from tests.common import MockConfigEntry, async_fire_time_changed
 
 
 async def test_update_lms(
@@ -33,15 +44,16 @@ async def test_update_lms(
     state = hass.states.get("update.fakelib_lyrion_music_server")
 
     assert state is not None
-    assert state.state == "on"
+    assert state.state == STATE_ON
 
 
-async def test_update_plugins(
+async def test_update_plugins_install_fallback(
     hass: HomeAssistant,
     config_entry: MockConfigEntry,
 ) -> None:
     """Test binary sensor states and attributes."""
 
+    entity_id = "update.fakelib_updated_plugins"
     # Setup component
     with (
         patch(
@@ -55,7 +67,115 @@ async def test_update_plugins(
     ):
         await hass.config_entries.async_setup(config_entry.entry_id)
         await hass.async_block_till_done(wait_background_tasks=True)
-    state = hass.states.get("update.fakelib_updated_plugins")
 
+    state = hass.states.get(entity_id)
     assert state is not None
-    assert state.state == "on"
+    assert state.state == STATE_ON
+
+    polltime = 30
+    with (
+        patch(
+            "homeassistant.components.squeezebox.Server.async_query",
+            return_value=False,
+        ),
+        patch(
+            "homeassistant.components.squeezebox.update.POLL_AFTER_INSTALL",
+            polltime,
+        ),
+    ):
+        await hass.services.async_call(
+            UPDATE_DOMAIN,
+            SERVICE_INSTALL,
+            {
+                ATTR_ENTITY_ID: entity_id,
+            },
+            blocking=True,
+        )
+
+    state = hass.states.get(entity_id)
+    attrs = state.attributes
+    assert attrs[ATTR_IN_PROGRESS]
+
+    with (
+        patch(
+            "homeassistant.components.squeezebox.Server.async_status",
+            return_value=copy.deepcopy(FAKE_QUERY_RESPONSE),
+        ),
+    ):
+        async_fire_time_changed(
+            hass,
+            dt_util.utcnow() + timedelta(seconds=polltime + 1),
+        )
+        await hass.async_block_till_done(wait_background_tasks=True)
+
+    state = hass.states.get(entity_id)
+    assert state is not None
+    assert state.state == STATE_ON
+
+    attrs = state.attributes
+    assert not attrs[ATTR_IN_PROGRESS]
+
+
+async def test_update_plugins_install_ok(
+    hass: HomeAssistant,
+    config_entry: MockConfigEntry,
+) -> None:
+    """Test binary sensor states and attributes."""
+
+    entity_id = "update.fakelib_updated_plugins"
+    # Setup component
+    with (
+        patch(
+            "homeassistant.components.squeezebox.PLATFORMS",
+            [Platform.UPDATE],
+        ),
+        patch(
+            "homeassistant.components.squeezebox.Server.async_query",
+            return_value=copy.deepcopy(FAKE_QUERY_RESPONSE),
+        ),
+    ):
+        await hass.config_entries.async_setup(config_entry.entry_id)
+        await hass.async_block_till_done(wait_background_tasks=True)
+
+    with (
+        patch(
+            "homeassistant.components.squeezebox.Server.async_query",
+            return_value=False,
+        ),
+    ):
+        await hass.services.async_call(
+            UPDATE_DOMAIN,
+            SERVICE_INSTALL,
+            {
+                ATTR_ENTITY_ID: entity_id,
+            },
+            blocking=True,
+        )
+    state = hass.states.get(entity_id)
+    assert state is not None
+    assert state.state == STATE_ON
+
+    attrs = state.attributes
+    assert attrs[ATTR_IN_PROGRESS]
+
+    resp = copy.deepcopy(FAKE_QUERY_RESPONSE)
+    del resp[STATUS_SENSOR_NEWPLUGINS]
+
+    with (
+        patch(
+            "homeassistant.components.squeezebox.Server.async_status",
+            return_value=resp,
+        ),
+    ):
+        async_fire_time_changed(
+            hass,
+            dt_util.utcnow() + timedelta(seconds=SENSOR_UPDATE_INTERVAL + 1),
+        )
+        await hass.async_block_till_done(wait_background_tasks=True)
+
+    state = hass.states.get(entity_id)
+    assert state is not None
+    assert state.state == STATE_OFF
+
+    attrs = state.attributes
+    assert not attrs[ATTR_IN_PROGRESS]