diff --git a/.changeset/beige-olives-dress.md b/.changeset/beige-olives-dress.md
new file mode 100644
index 0000000000..b975434c46
--- /dev/null
+++ b/.changeset/beige-olives-dress.md
@@ -0,0 +1,5 @@
+---
+"fuels-wallet": patch
+---
+
+fix: auto-update in background to wait for update to be downloaded
diff --git a/packages/app/src/systems/CRX/background/actions/autoUpdate.ts b/packages/app/src/systems/CRX/background/actions/autoUpdate.ts
index 109afd8f21..5713c837a7 100644
--- a/packages/app/src/systems/CRX/background/actions/autoUpdate.ts
+++ b/packages/app/src/systems/CRX/background/actions/autoUpdate.ts
@@ -11,28 +11,62 @@ async function isOpen() {
   return isOpen;
 }
 
-async function runVersionCheck() {
+async function getLatestVersion() {
   const latestVersion = await fetch(VITE_CRX_VERSION_API)
     .then((res) => res.json())
     // If fails to fetch the version return a empty object
     .catch(() => ({}));
-  const version = latestVersion[WALLET_NAME] || APP_VERSION;
+  return latestVersion[WALLET_NAME] || APP_VERSION;
+}
+
+async function runVersionCheck() {
+  const version = await getLatestVersion();
   // If app version is greater than the one on the release API ignores the check
   if (compareVersions(APP_VERSION, version) > -1) return;
   if (await isOpen()) return;
   // Request update check and reload if available
-  console.log('[FUEL WALLET] Checking for updates...');
+  console.debug('[FUEL WALLET] Checking for updates...');
   chrome.runtime.requestUpdateCheck((details) => {
     if (details === 'update_available') {
       console.log('[FUEL WALLET] Update available reload application...');
-      chrome.runtime.reload();
+      // Remove the alarm to check for updates until next reload
+      chrome.alarms.clear('autoUpdate');
+      return;
     }
+    console.debug('[FUEL WALLET] No update available', details);
   });
 }
 
-chrome.alarms.create('autoUpdate', { periodInMinutes: 5 });
+async function reloadWallet() {
+  if (await isOpen()) {
+    console.debug('[FUEL WALLET] Wallet is open, waiting 5 minutes...');
+    // If the wallet is open, wait 5 minutes and try again
+    chrome.alarms.create('reloadWallet', { delayInMinutes: 5 });
+    return;
+  }
+  // Check if reload already happened
+  const version = await getLatestVersion();
+  if (APP_VERSION === version) {
+    chrome.alarms.clear('reloadWallet');
+    return;
+  }
+  chrome.runtime.reload();
+}
+
+// Once the app is updated reload the wallet
+chrome.runtime.onUpdateAvailable.addListener(() => reloadWallet());
 chrome.alarms.onAlarm.addListener(async (alarm) => {
-  if (alarm.name === 'autoUpdate') {
-    runVersionCheck();
+  switch (alarm.name) {
+    case 'autoUpdate':
+      runVersionCheck();
+      break;
+    case 'reloadWallet':
+      reloadWallet();
+      break;
+    default:
+      break;
   }
 });
+
+// Register alarms to check for updates and reload the wallet
+chrome.alarms.create('autoUpdate', { periodInMinutes: 10 });