diff --git a/custom_components/hacs/update.py b/custom_components/hacs/update.py
index ec4014302db..3bf7edd8468 100644
--- a/custom_components/hacs/update.py
+++ b/custom_components/hacs/update.py
@@ -90,6 +90,10 @@ async def async_install(self, version: str | None, backup: bool, **kwargs: Any)
         except HacsException as exception:
             raise HomeAssistantError(exception) from exception
 
+        # Persist the new installed state, otherwise a restart of
+        # Home Assistant before the next write reverts it.
+        await self.hacs.data.async_write()
+
     async def async_release_notes(self) -> str | None:
         """Return the release notes."""
         if self.repository.pending_restart:
diff --git a/tests/repositories/test_update_repository.py b/tests/repositories/test_update_repository.py
index 12d7a2cc73a..b2dfb3f4883 100644
--- a/tests/repositories/test_update_repository.py
+++ b/tests/repositories/test_update_repository.py
@@ -8,6 +8,7 @@
 import pytest
 
 from custom_components.hacs.const import DOMAIN
+from custom_components.hacs.utils.store import async_load_from_store
 
 from tests.common import (
     CategoryTestData,
@@ -93,6 +94,47 @@ async def test_update_repository_websocket(
     )
 
 
+async def test_update_repository_entity_persists_installed_version(
+    hass: HomeAssistant,
+    setup_integration: Generator,
+):
+    """Ensure an install through the update entity is written to storage."""
+    hacs = get_hacs(hass)
+    repo = hacs.repositories.get_by_full_name(
+        "hacs-test-org/integration-basic")
+
+    assert repo is not None
+
+    repo.data.installed = True
+    repo.data.installed_version = "1.0.0"
+
+    await hass.config_entries.async_reload(hacs.configuration.config_entry.entry_id)
+    await hass.async_block_till_done()
+
+    # Get a new HACS instance after reload
+    hacs = get_hacs(hass)
+    repo = hacs.repositories.get_by_full_name(
+        "hacs-test-org/integration-basic")
+
+    er = async_get_entity_registry(hacs.hass)
+    entity_id = er.async_get_entity_id("update", DOMAIN, repo.data.id)
+
+    await hass.services.async_call(
+        "update",
+        "install",
+        service_data={"entity_id": entity_id, "version": "2.0.0"},
+        blocking=True,
+    )
+
+    stored = await async_load_from_store(hass, "data")
+    stored_repo = next(
+        entry
+        for entry in stored["repositories"]["integration"]
+        if entry["full_name"] == "hacs-test-org/integration-basic"
+    )
+    assert stored_repo["version_installed"] == "2.0.0"
+
+
 async def test_update_repository_entity_no_manifest(
     hass: HomeAssistant,
     setup_integration: Generator,
diff --git a/tests/snapshots/api-usage/tests/repositories/test_update_repositorytest-update-repository-entity-persists-installed-version.json b/tests/snapshots/api-usage/tests/repositories/test_update_repositorytest-update-repository-entity-persists-installed-version.json
new file mode 100644
index 00000000000..08672f337d2
--- /dev/null
+++ b/tests/snapshots/api-usage/tests/repositories/test_update_repositorytest-update-repository-entity-persists-installed-version.json
@@ -0,0 +1,26 @@
+{
+    "tests/repositories/test_update_repository.py::test_update_repository_entity_persists_installed_version": {
+        "https://api.github.com/repos/hacs-test-org/integration-basic": 1,
+        "https://api.github.com/repos/hacs-test-org/integration-basic/branches/main": 1,
+        "https://api.github.com/repos/hacs-test-org/integration-basic/contents/custom_components/example/manifest.json": 1,
+        "https://api.github.com/repos/hacs-test-org/integration-basic/contents/hacs.json": 1,
+        "https://api.github.com/repos/hacs-test-org/integration-basic/git/trees/1.0.0": 1,
+        "https://api.github.com/repos/hacs-test-org/integration-basic/releases": 1,
+        "https://api.github.com/repos/hacs/integration": 1,
+        "https://api.github.com/repos/hacs/integration/contents/custom_components/hacs/manifest.json": 1,
+        "https://api.github.com/repos/hacs/integration/contents/hacs.json": 1,
+        "https://api.github.com/repos/hacs/integration/git/trees/main": 1,
+        "https://api.github.com/repos/hacs/integration/releases": 1,
+        "https://data-v2.hacs.xyz/appdaemon/data.json": 1,
+        "https://data-v2.hacs.xyz/critical/data.json": 1,
+        "https://data-v2.hacs.xyz/integration/data.json": 1,
+        "https://data-v2.hacs.xyz/plugin/data.json": 1,
+        "https://data-v2.hacs.xyz/python_script/data.json": 1,
+        "https://data-v2.hacs.xyz/removed/data.json": 1,
+        "https://data-v2.hacs.xyz/template/data.json": 1,
+        "https://data-v2.hacs.xyz/theme/data.json": 1,
+        "https://github.com/hacs-test-org/integration-basic/archive/refs/tags/2.0.0.zip": 1,
+        "https://raw.githubusercontent.com/hacs-test-org/integration-basic/1.0.0/README.md": 1,
+        "https://raw.githubusercontent.com/hacs-test-org/integration-basic/2.0.0/hacs.json": 1
+    }
+}