diff --git a/src/bin/cargo/commands/update.rs b/src/bin/cargo/commands/update.rs
index 4c19bcb270d0..8c20ad923b52 100644
--- a/src/bin/cargo/commands/update.rs
+++ b/src/bin/cargo/commands/update.rs
@@ -13,7 +13,10 @@ pub fn cli() -> Command {
             .value_name("SPEC")
             .help_heading(heading::PACKAGE_SELECTION)
             .group("package-group")
-            .help("Package to update")])
+            .help("Package to update")
+            .add(clap_complete::ArgValueCandidates::new(
+                get_package_candidates,
+            ))])
         .arg(
             optional_multi_opt("package", "SPEC", "Package to update")
                 .short('p')
diff --git a/src/cargo/util/command_prelude.rs b/src/cargo/util/command_prelude.rs
index 3069a3799715..fb90592d0c3d 100644
--- a/src/cargo/util/command_prelude.rs
+++ b/src/cargo/util/command_prelude.rs
@@ -1,9 +1,11 @@
-use crate::core::compiler::{BuildConfig, MessageFormat, TimingOutput};
-use crate::core::resolver::CliFeatures;
-use crate::core::{shell, Edition, Target, TargetKind, Workspace};
+use crate::core::compiler::{
+    BuildConfig, CompileKind, MessageFormat, RustcTargetData, TimingOutput,
+};
+use crate::core::resolver::{CliFeatures, ForceAllTargets, HasDevUnits};
+use crate::core::{shell, Edition, Package, Target, TargetKind, Workspace};
 use crate::ops::lockfile::LOCKFILE_NAME;
 use crate::ops::registry::RegistryOrIndex;
-use crate::ops::{CompileFilter, CompileOptions, NewOptions, Packages, VersionControl};
+use crate::ops::{self, CompileFilter, CompileOptions, NewOptions, Packages, VersionControl};
 use crate::util::important_paths::find_root_manifest_for_wd;
 use crate::util::interning::InternedString;
 use crate::util::is_rustup;
@@ -20,6 +22,8 @@ use cargo_util_schemas::manifest::RegistryName;
 use cargo_util_schemas::manifest::StringOrVec;
 use clap::builder::UnknownArgumentValueParser;
 use home::cargo_home_with_cwd;
+use semver::Version;
+use std::collections::HashMap;
 use std::ffi::{OsStr, OsString};
 use std::path::Path;
 use std::path::PathBuf;
@@ -1174,6 +1178,122 @@ fn get_target_triples_from_rustc() -> CargoResult<Vec<clap_complete::CompletionC
         .collect())
 }
 
+pub fn get_package_candidates() -> Vec<clap_complete::CompletionCandidate> {
+    let package_map = HashMap::<&str, Vec<Package>>::new();
+
+    let package_map =
+        get_packages()
+            .unwrap_or_default()
+            .into_iter()
+            .fold(package_map, |mut map, package| {
+                map.entry(package.name().as_str())
+                    .or_insert_with(Vec::new)
+                    .push(package);
+                map
+            });
+
+    package_map
+        .into_iter()
+        .flat_map(|(name, packages)| {
+            // For unique package name
+            if packages.len() == 1 {
+                return vec![
+                    clap_complete::CompletionCandidate::new(name.to_string()).help(
+                        packages[0]
+                            .manifest()
+                            .metadata()
+                            .description
+                            .to_owned()
+                            .map(From::from),
+                    ),
+                ];
+            }
+
+            let version_map = HashMap::<Version, Vec<Package>>::new();
+            let version_map = packages.into_iter().fold(version_map, |mut map, package| {
+                map.entry(package.version().to_owned())
+                    .or_insert_with(Vec::new)
+                    .push(package);
+                map
+            });
+
+            version_map
+                .into_iter()
+                .flat_map(|(version, packages)| {
+                    // For package name with duplicates but unique version
+                    if packages.len() == 1 {
+                        return vec![clap_complete::CompletionCandidate::new(format!(
+                            "{}@{}",
+                            name, version
+                        ))
+                        .help(
+                            packages[0]
+                                .manifest()
+                                .metadata()
+                                .description
+                                .to_owned()
+                                .map(From::from),
+                        )];
+                    }
+
+                    // For package name with duplicates and duplicate version
+                    packages
+                        .into_iter()
+                        .map(|package| {
+                            clap_complete::CompletionCandidate::new(format!(
+                                "{}",
+                                package.package_id().to_spec()
+                            ))
+                            .help(
+                                package
+                                    .manifest()
+                                    .metadata()
+                                    .description
+                                    .to_owned()
+                                    .map(From::from),
+                            )
+                        })
+                        .collect::<Vec<_>>()
+                })
+                .collect::<Vec<_>>()
+        })
+        .collect::<Vec<_>>()
+}
+
+fn get_packages() -> CargoResult<Vec<Package>> {
+    let cwd = std::env::current_dir()?;
+    let mut gctx = GlobalContext::new(shell::Shell::new(), cwd.clone(), cargo_home_with_cwd(&cwd)?);
+    gctx.configure(0, true, None, false, true, false, &None, &[], &[])?;
+    let ws = Workspace::new(&find_root_manifest_for_wd(&cwd)?, &gctx)?;
+
+    let requested_kinds = CompileKind::from_requested_targets(ws.gctx(), &[])?;
+    let mut target_data = RustcTargetData::new(&ws, &requested_kinds)?;
+    // `cli_features.all_features` must be true in case that `specs` is empty.
+    let cli_features = CliFeatures::new_all(true);
+    let has_dev_units = HasDevUnits::Yes;
+    let force_all_targets = ForceAllTargets::No;
+    let dry_run = true;
+
+    let ws_resolve = ops::resolve_ws_with_opts(
+        &ws,
+        &mut target_data,
+        &requested_kinds,
+        &cli_features,
+        &[],
+        has_dev_units,
+        force_all_targets,
+        dry_run,
+    )?;
+
+    let packages = ws_resolve
+        .pkg_set
+        .packages()
+        .map(Clone::clone)
+        .collect::<Vec<_>>();
+
+    Ok(packages)
+}
+
 #[track_caller]
 pub fn ignore_unknown<T: Default>(r: Result<T, clap::parser::MatchesError>) -> T {
     match r {