diff --git a/pkgs/racket-test/tests/pkg/tests-catalog-links.rkt b/pkgs/racket-test/tests/pkg/tests-catalog-links.rkt
index 99edd182df..19d3933ad8 100644
--- a/pkgs/racket-test/tests/pkg/tests-catalog-links.rkt
+++ b/pkgs/racket-test/tests/pkg/tests-catalog-links.rkt
@@ -7,13 +7,6 @@
 
 (this-test-is-run-by-the-main-test)
 
-(define (set-file path content)
-  (make-parent-directory* path)
-  (call-with-output-file* 
-   path
-   #:exists 'truncate/replace
-   (lambda (o) (displayln content o))))
-
 (define (make-cat-entry #:name name
                         #:source source
                         #:deps [deps null]
diff --git a/pkgs/racket-test/tests/pkg/tests-clone.rkt b/pkgs/racket-test/tests/pkg/tests-clone.rkt
index a224dd1b32..be06613a3a 100644
--- a/pkgs/racket-test/tests/pkg/tests-clone.rkt
+++ b/pkgs/racket-test/tests/pkg/tests-clone.rkt
@@ -9,12 +9,6 @@
 
 (this-test-is-run-by-the-main-test)
 
-(define (set-file path content)
-  (call-with-output-file* 
-   path
-   #:exists 'truncate/replace
-   (lambda (o) (displayln content o))))
-
 (pkg-tests
  (define git-exe (find-executable-path
                   (if (eq? 'windows (system-type)) "git.exe" "git")))
diff --git a/pkgs/racket-test/tests/pkg/tests-conflicts.rkt b/pkgs/racket-test/tests/pkg/tests-conflicts.rkt
index 885ee692e7..563836fa64 100644
--- a/pkgs/racket-test/tests/pkg/tests-conflicts.rkt
+++ b/pkgs/racket-test/tests/pkg/tests-conflicts.rkt
@@ -17,7 +17,7 @@
 (pkg-tests
  (shelly-begin
   (initialize-catalogs)
-
+  
   $ "raco pkg create --format plt test-pkgs/pkg-test1/"
   $ "raco pkg create --format plt test-pkgs/pkg-test1-not-conflict/"
   (shelly-install "only modules are considered for conflicts"
@@ -78,6 +78,40 @@
                    $ "racket -e '(require pkg-test1/conflict)'" =exit> 43
                    $ "raco pkg remove pkg-test1-conflict"))
 
+  (with-fake-root
+    (shelly-case
+     "update succeeds when module is moved to dependency"
+     (define tmp-dir (path->directory-path (make-temporary-file "pkg~a" 'directory)))
+     
+     (shelly-wind
+      (define a-dir (build-path tmp-dir "a"))
+      (make-directory a-dir)
+      (set-file (build-path a-dir "info.rkt") "#lang info\n(define collection \"a\")\n")
+      (set-file (build-path a-dir "apple.rkt") "#lang racket/base\n")
+
+      (define b-dir (build-path tmp-dir "b"))
+      (make-directory b-dir)
+      (set-file (build-path b-dir "info.rkt") "#lang info\n(define collection \"a\")\n")
+      (set-file (build-path b-dir "apple.rkt") "#lang racket/base\n")
+      
+      $ (~a "raco pkg install --copy " a-dir " " b-dir)
+      =exit> 1 
+      =stderr> #rx"packages conflict"
+      
+      $ (~a "raco pkg install --copy " a-dir)
+      (set-file (build-path a-dir "info.rkt") 
+                (~a "#lang info\n(define collection \"a\")\n"
+                    "(define deps '((" (~s (path->string b-dir)) ")))\n"))
+      $ (~a "raco pkg update --auto --copy " a-dir)
+      =exit> 1 
+      =stderr> #rx"packages conflict"
+      
+      (delete-file (build-path a-dir "apple.rkt"))
+      $ (~a "raco pkg update --auto --copy " a-dir)
+      
+      (finally
+       (delete-directory/files tmp-dir)))))
+
   (shelly-case
    "conflict extra installs"
    (for ([c '("test-pkgs/pkg-add-a"
diff --git a/pkgs/racket-test/tests/pkg/util.rkt b/pkgs/racket-test/tests/pkg/util.rkt
index 80f8360661..b855b28622 100644
--- a/pkgs/racket-test/tests/pkg/util.rkt
+++ b/pkgs/racket-test/tests/pkg/util.rkt
@@ -217,4 +217,10 @@
                      'dependencies
                      '("pkg-test1"))))
 
+(define (set-file path content)
+  (call-with-output-file* 
+   path
+   #:exists 'truncate/replace
+   (lambda (o) (displayln content o))))
+
 (provide (all-defined-out))
diff --git a/racket/collects/pkg/private/install.rkt b/racket/collects/pkg/private/install.rkt
index 94ce6f7f64..7484ee3e55 100644
--- a/racket/collects/pkg/private/install.rkt
+++ b/racket/collects/pkg/private/install.rkt
@@ -261,7 +261,7 @@
                      (file-exists? (get-compilation-bytecode-file f))
                      (file-exists? (get-compilation-bytecode-file (path-replace-suffix f #".ss"))))
                  (or (not updating?)
-                     (not (equal? pkg-name (path->pkg f #:cache path-pkg-cache)))))
+                     (not (hash-ref simultaneous-installs (path->pkg f #:cache path-pkg-cache)))))
             ;; This module is already installed
             (cons (path->pkg f #:cache path-pkg-cache) mp)]
            [else