diff --git a/src/Aspire.Cli/DotNet/DotNetCliRunner.cs b/src/Aspire.Cli/DotNet/DotNetCliRunner.cs
index 9cad830834c..4989454366c 100644
--- a/src/Aspire.Cli/DotNet/DotNetCliRunner.cs
+++ b/src/Aspire.Cli/DotNet/DotNetCliRunner.cs
@@ -35,7 +35,8 @@ internal interface IDotNetCliRunner
     Task<(int ExitCode, string? TemplateVersion)> InstallTemplateAsync(string packageName, string version, FileInfo? nugetConfigFile, string? nugetSource, bool force, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
     Task<int> NewProjectAsync(string templateName, string name, string outputPath, string[] extraArgs, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
     Task<int> BuildAsync(FileInfo projectFilePath, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
-    Task<int> AddPackageAsync(FileInfo projectFilePath, string packageName, string packageVersion, string? nugetSource, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
+    Task<int> AddPackageAsync(FileInfo projectFilePath, string packageName, string? packageVersion, string? nugetSource, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
+    Task<int> RemovePackageAsync(FileInfo projectFilePath, string packageName, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
     Task<int> AddProjectToSolutionAsync(FileInfo solutionFile, FileInfo projectFile, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
     Task<(int ExitCode, NuGetPackage[]? Packages)> SearchPackagesAsync(DirectoryInfo workingDirectory, string query, bool prerelease, int take, int skip, FileInfo? nugetConfigFile, bool useCache, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
     Task<(int ExitCode, string[] ConfigPaths)> GetNuGetConfigPathsAsync(DirectoryInfo workingDirectory, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken);
@@ -770,7 +771,7 @@ public async Task<int> BuildAsync(FileInfo projectFilePath, DotNetCliRunnerInvoc
             options: options,
             cancellationToken: cancellationToken);
     }
-    public async Task<int> AddPackageAsync(FileInfo projectFilePath, string packageName, string packageVersion, string? nugetSource, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
+    public async Task<int> AddPackageAsync(FileInfo projectFilePath, string packageName, string? packageVersion, string? nugetSource, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
     {
         using var activity = telemetry.ActivitySource.StartActivity();
 
@@ -784,16 +785,23 @@ public async Task<int> AddPackageAsync(FileInfo projectFilePath, string packageN
         if (isSingleFileAppHost)
         {
             cliArgsList.AddRange(["package", "--file", projectFilePath.FullName]);
-            // For single-file AppHost, use packageName@version format
+            // For single-file AppHost, use packageName@version format (version required)
+            if (string.IsNullOrEmpty(packageVersion))
+            {
+                throw new ArgumentException("Package version is required for single-file AppHost projects.", nameof(packageVersion));
+            }
             cliArgsList.Add($"{packageName}@{packageVersion}");
         }
         else
         {
             cliArgsList.AddRange([projectFilePath.FullName, "package"]);
-            // For non single-file scenarios, use separate --version flag
             cliArgsList.Add(packageName);
-            cliArgsList.Add("--version");
-            cliArgsList.Add(packageVersion);
+            // Only add --version if a version is specified (for CPM, version comes from Directory.Packages.props)
+            if (!string.IsNullOrEmpty(packageVersion))
+            {
+                cliArgsList.Add("--version");
+                cliArgsList.Add(packageVersion);
+            }
         }
 
         if (string.IsNullOrEmpty(nugetSource))
@@ -831,6 +839,51 @@ public async Task<int> AddPackageAsync(FileInfo projectFilePath, string packageN
         return result;
     }
 
+    public async Task<int> RemovePackageAsync(FileInfo projectFilePath, string packageName, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
+    {
+        using var activity = telemetry.ActivitySource.StartActivity();
+
+        var cliArgsList = new List<string>();
+
+        // For single-file AppHost (apphost.cs), use "dotnet package remove --file <file> <packageName>"
+        var isSingleFileAppHost = projectFilePath.Name.Equals("apphost.cs", StringComparison.OrdinalIgnoreCase);
+        if (isSingleFileAppHost)
+        {
+            cliArgsList.AddRange(["package", "remove", "--file", projectFilePath.FullName]);
+            cliArgsList.Add(packageName);
+        }
+        else
+        {
+            // For regular projects, use "dotnet remove <project> package <packageName>"
+            cliArgsList.AddRange(["remove", projectFilePath.FullName, "package"]);
+            cliArgsList.Add(packageName);
+        }
+
+        string[] cliArgs = [.. cliArgsList];
+
+        logger.LogInformation("Removing package {PackageName} from project {ProjectFilePath}", packageName, projectFilePath.FullName);
+
+        var result = await ExecuteAsync(
+            args: cliArgs,
+            env: null,
+            projectFile: projectFilePath,
+            workingDirectory: projectFilePath.Directory!,
+            backchannelCompletionSource: null,
+            options: options,
+            cancellationToken: cancellationToken);
+
+        if (result != 0)
+        {
+            logger.LogError("Failed to remove package {PackageName} from project {ProjectFilePath}. See debug logs for more details.", packageName, projectFilePath.FullName);
+        }
+        else
+        {
+            logger.LogInformation("Package {PackageName} removed from project {ProjectFilePath}", packageName, projectFilePath.FullName);
+        }
+
+        return result;
+    }
+
     public async Task<int> AddProjectToSolutionAsync(FileInfo solutionFile, FileInfo projectFile, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
     {
         using var activity = telemetry.ActivitySource.StartActivity();
diff --git a/src/Aspire.Cli/Packaging/PackageMigration.cs b/src/Aspire.Cli/Packaging/PackageMigration.cs
new file mode 100644
index 00000000000..5ea6fcaec92
--- /dev/null
+++ b/src/Aspire.Cli/Packaging/PackageMigration.cs
@@ -0,0 +1,137 @@
+// Licensed to the .NET Foundation under one or more agreements.
+// The .NET Foundation licenses this file to you under the MIT license.
+
+using Microsoft.Extensions.Logging;
+using Semver;
+
+namespace Aspire.Cli.Packaging;
+
+/// <summary>
+/// Provides package migration information for upgrading or downgrading packages
+/// when switching between different Aspire versions.
+/// </summary>
+internal interface IPackageMigration
+{
+    /// <summary>
+    /// Gets the replacement package ID for a package when migrating to a specific target Aspire hosting version.
+    /// </summary>
+    /// <param name="targetHostingVersion">The target Aspire hosting SDK version being migrated to.</param>
+    /// <param name="packageId">The package ID to check for migration.</param>
+    /// <returns>
+    /// The replacement package ID if a migration rule exists for the given package and version;
+    /// <c>null</c> if no migration is needed for this package.
+    /// </returns>
+    /// <exception cref="PackageMigrationException">Thrown when multiple migration rules match for the same package.</exception>
+    string? GetMigration(SemVersion targetHostingVersion, string packageId);
+}
+
+/// <summary>
+/// Implementation of <see cref="IPackageMigration"/> that provides package migration rules
+/// for migrating packages between different Aspire versions.
+/// </summary>
+internal sealed class PackageMigration : IPackageMigration
+{
+    private readonly ILogger<PackageMigration> _logger;
+    private readonly List<(Func<SemVersion, bool> VersionPredicate, string FromPackageId, string ToPackageId)> _migrationRules;
+
+    /// <summary>
+    /// Initializes a new instance of the <see cref="PackageMigration"/> class.
+    /// </summary>
+    /// <param name="logger">The logger instance.</param>
+    public PackageMigration(ILogger<PackageMigration> logger)
+    {
+        _logger = logger;
+        _migrationRules = CreateMigrationRules();
+    }
+
+    /// <summary>
+    /// Creates the list of migration rules.
+    /// Each rule contains a version predicate, the source package ID, and the target package ID.
+    /// Rules are evaluated based on the target hosting version.
+    /// </summary>
+    private static List<(Func<SemVersion, bool> VersionPredicate, string FromPackageId, string ToPackageId)> CreateMigrationRules()
+    {
+        // Migration rules are defined here. Each rule specifies:
+        // - A predicate that determines if the rule applies based on the target version
+        // - The package ID being migrated from
+        // - The package ID being migrated to
+        //
+        // Both upwards (stable -> daily) and downwards (daily -> stable) migrations should be defined
+        // to support users switching between channels.
+        //
+        // Example migration rules (placeholder - replace with actual migrations):
+        // - When upgrading to version >= 10.0.0, migrate Aspire.Hosting.OldPackage to Aspire.Hosting.NewPackage
+        // - When downgrading to version < 10.0.0, migrate Aspire.Hosting.NewPackage to Aspire.Hosting.OldPackage
+
+        var version13 = SemVersion.Parse("13.0.0", SemVersionStyles.Strict);
+
+        return
+        [
+            // Aspire.Hosting.NodeJs was renamed to Aspire.Hosting.JavaScript in 13.0.0
+            (v => v.ComparePrecedenceTo(version13) >= 0, "Aspire.Hosting.NodeJs", "Aspire.Hosting.JavaScript"),
+            (v => v.ComparePrecedenceTo(version13) >= 0, "CommunityToolkit.Aspire.Hosting.NodeJs.Extensions", "CommunityToolkit.Aspire.Hosting.JavaScript.Extensions"),
+            (v => v.ComparePrecedenceTo(version13) < 0, "Aspire.Hosting.JavaScript", "Aspire.Hosting.NodeJs"),
+            (v => v.ComparePrecedenceTo(version13) < 0, "CommunityToolkit.Aspire.Hosting.JavaScript.Extensions", "CommunityToolkit.Aspire.Hosting.NodeJs.Extensions")
+        ];
+    }
+
+    /// <inheritdoc />
+    public string? GetMigration(SemVersion targetHostingVersion, string packageId)
+    {
+        _logger.LogDebug("Checking migration rules for package '{PackageId}' targeting version '{TargetVersion}'", packageId, targetHostingVersion);
+
+        // Find all matching rules for the given package ID and version
+        var matchingRules = _migrationRules
+            .Where(rule => string.Equals(rule.FromPackageId, packageId, StringComparison.OrdinalIgnoreCase)
+                && rule.VersionPredicate(targetHostingVersion))
+            .ToList();
+
+        if (matchingRules.Count == 0)
+        {
+            _logger.LogDebug("No migration rules found for package '{PackageId}'", packageId);
+            return null;
+        }
+
+        if (matchingRules.Count > 1)
+        {
+            var toPackages = string.Join(", ", matchingRules.Select(r => r.ToPackageId));
+            _logger.LogError(
+                "Multiple migration rules found for package '{PackageId}' at version '{TargetVersion}'. Target packages: {ToPackages}",
+                packageId, targetHostingVersion, toPackages);
+
+            throw new PackageMigrationException(
+                $"Multiple migration rules match for package '{packageId}' at version '{targetHostingVersion}'. " +
+                $"This is a configuration error. Matching target packages: {toPackages}");
+        }
+
+        var matchingRule = matchingRules[0];
+        _logger.LogInformation(
+            "Migration rule found: '{FromPackageId}' -> '{ToPackageId}' for target version '{TargetVersion}'",
+            matchingRule.FromPackageId, matchingRule.ToPackageId, targetHostingVersion);
+
+        return matchingRule.ToPackageId;
+    }
+}
+
+/// <summary>
+/// Exception thrown when there is an error in package migration processing.
+/// </summary>
+internal sealed class PackageMigrationException : Exception
+{
+    /// <summary>
+    /// Initializes a new instance of the <see cref="PackageMigrationException"/> class.
+    /// </summary>
+    /// <param name="message">The error message.</param>
+    public PackageMigrationException(string message) : base(message)
+    {
+    }
+
+    /// <summary>
+    /// Initializes a new instance of the <see cref="PackageMigrationException"/> class.
+    /// </summary>
+    /// <param name="message">The error message.</param>
+    /// <param name="innerException">The inner exception.</param>
+    public PackageMigrationException(string message, Exception innerException) : base(message, innerException)
+    {
+    }
+}
diff --git a/src/Aspire.Cli/Program.cs b/src/Aspire.Cli/Program.cs
index bd763009c46..b32b2852221 100644
--- a/src/Aspire.Cli/Program.cs
+++ b/src/Aspire.Cli/Program.cs
@@ -167,6 +167,7 @@ private static async Task<IHost> BuildApplicationAsync(string[] args)
         builder.Services.AddHostedService(sp => sp.GetRequiredService<AuxiliaryBackchannelMonitor>());
         builder.Services.AddSingleton<ICliUpdateNotifier, CliUpdateNotifier>();
         builder.Services.AddSingleton<IPackagingService, PackagingService>();
+        builder.Services.AddSingleton<IPackageMigration, PackageMigration>();
         builder.Services.AddSingleton<ICliDownloader, CliDownloader>();
         builder.Services.AddMemoryCache();
 
diff --git a/src/Aspire.Cli/Projects/ProjectUpdater.cs b/src/Aspire.Cli/Projects/ProjectUpdater.cs
index 12622e530fe..55347bd5c82 100644
--- a/src/Aspire.Cli/Projects/ProjectUpdater.cs
+++ b/src/Aspire.Cli/Projects/ProjectUpdater.cs
@@ -23,7 +23,7 @@ internal interface IProjectUpdater
     Task<ProjectUpdateResult> UpdateProjectAsync(FileInfo projectFile, PackageChannel channel, CancellationToken cancellationToken = default);
 }
 
-internal sealed partial class ProjectUpdater(ILogger<ProjectUpdater> logger, IDotNetCliRunner runner, IInteractionService interactionService, IMemoryCache cache, CliExecutionContext executionContext, FallbackProjectParser fallbackParser) : IProjectUpdater
+internal sealed partial class ProjectUpdater(ILogger<ProjectUpdater> logger, IDotNetCliRunner runner, IInteractionService interactionService, IMemoryCache cache, CliExecutionContext executionContext, FallbackProjectParser fallbackParser, IPackageMigration packageMigration) : IProjectUpdater
 {
     public async Task<ProjectUpdateResult> UpdateProjectAsync(FileInfo projectFile, PackageChannel channel, CancellationToken cancellationToken = default)
     {
@@ -42,7 +42,7 @@ public async Task<ProjectUpdateResult> UpdateProjectAsync(FileInfo projectFile,
 
         // Group update steps by project for better visual organization
         var updateStepsByProject = updateSteps
-            .OfType<PackageUpdateStep>()
+            .OfType<ProjectUpdateStep>()
             .GroupBy(step => step.ProjectFile.FullName)
             .ToList();
 
@@ -258,6 +258,13 @@ private async Task AnalyzeAppHostSdkAsync(UpdateContext context, CancellationTok
 
         var latestSdkPackage = await GetLatestVersionOfPackageAsync(context, "Aspire.AppHost.Sdk", cancellationToken);
 
+        // Set the target hosting version in the context for package migration decisions
+        if (latestSdkPackage is not null && SemVersion.TryParse(latestSdkPackage.Version, SemVersionStyles.Strict, out var targetVersion))
+        {
+            context.TargetHostingVersion = targetVersion;
+            logger.LogDebug("Target hosting version set to: {TargetVersion}", targetVersion);
+        }
+
         // Treat unparseable versions (including range expressions) like wildcards - always update them
         // Only skip if the version is a valid semantic version that matches the latest
         if (!string.IsNullOrEmpty(sdkVersion) && IsValidSemanticVersion(sdkVersion) && sdkVersion == latestSdkPackage?.Version)
@@ -441,7 +448,7 @@ private async Task AnalyzeProjectAsync(FileInfo projectFile, UpdateContext conte
 
     private static bool IsUpdatablePackage(string packageId)
     {
-        return packageId.StartsWith("Aspire.");
+        return packageId.StartsWith("Aspire.") || packageId.StartsWith("CommunityToolkit.Aspire.");
     }
 
     private static CentralPackageManagementInfo DetectCentralPackageManagement(FileInfo projectFile)
@@ -461,6 +468,22 @@ private static CentralPackageManagementInfo DetectCentralPackageManagement(FileI
 
     private async Task AnalyzePackageForTraditionalManagementAsync(string packageId, string packageVersion, FileInfo projectFile, UpdateContext context, CancellationToken cancellationToken)
     {
+        // Check if this package needs migration to a different package
+        if (context.TargetHostingVersion is not null)
+        {
+            var migrationTarget = packageMigration.GetMigration(context.TargetHostingVersion, packageId);
+            if (migrationTarget is not null)
+            {
+                logger.LogInformation("Migration detected: '{FromPackage}' -> '{ToPackage}' for target version '{TargetVersion}'",
+                    packageId, migrationTarget, context.TargetHostingVersion);
+
+                // Add steps to remove old package and add new package
+                await AddMigrationStepsForTraditionalManagementAsync(
+                    packageId, packageVersion, migrationTarget, projectFile, context, cancellationToken);
+                return;
+            }
+        }
+
         var latestPackage = await GetLatestVersionOfPackageAsync(context, packageId, cancellationToken);
 
         // Treat unparseable versions (including range expressions) like wildcards - always update them
@@ -481,6 +504,29 @@ private async Task AnalyzePackageForTraditionalManagementAsync(string packageId,
         context.UpdateSteps.Enqueue(updateStep);
     }
 
+    private async Task AddMigrationStepsForTraditionalManagementAsync(
+        string fromPackageId, string fromVersion, string toPackageId,
+        FileInfo projectFile, UpdateContext context, CancellationToken cancellationToken)
+    {
+        // Get the latest version of the target package
+        var latestTargetPackage = await GetLatestVersionOfPackageAsync(context, toPackageId, cancellationToken);
+
+        // Create a single migration step that removes the old package and adds the new one
+        var migrationStep = new PackageMigrationStep(
+            string.Format(CultureInfo.InvariantCulture, UpdateCommandStrings.MigratePackageFormat, fromPackageId, toPackageId),
+            async () =>
+            {
+                await RemovePackageFromProject(projectFile, fromPackageId, cancellationToken);
+                await UpdatePackageReferenceInProject(projectFile, latestTargetPackage!, cancellationToken);
+            },
+            fromPackageId,
+            fromVersion,
+            toPackageId,
+            latestTargetPackage!.Version,
+            projectFile);
+        context.UpdateSteps.Enqueue(migrationStep);
+    }
+
     private async Task AnalyzePackageForCentralPackageManagementAsync(string packageId, FileInfo projectFile, FileInfo directoryPackagesPropsFile, UpdateContext context, CancellationToken cancellationToken)
     {
         var currentVersion = await GetPackageVersionFromDirectoryPackagesPropsAsync(packageId, directoryPackagesPropsFile, projectFile, cancellationToken);
@@ -491,6 +537,22 @@ private async Task AnalyzePackageForCentralPackageManagementAsync(string package
             return;
         }
 
+        // Check if this package needs migration to a different package
+        if (context.TargetHostingVersion is not null)
+        {
+            var migrationTarget = packageMigration.GetMigration(context.TargetHostingVersion, packageId);
+            if (migrationTarget is not null)
+            {
+                logger.LogInformation("Migration detected: '{FromPackage}' -> '{ToPackage}' for target version '{TargetVersion}'",
+                    packageId, migrationTarget, context.TargetHostingVersion);
+
+                // Add steps to remove old package and add new package
+                await AddMigrationStepsForCentralPackageManagementAsync(
+                    packageId, currentVersion, migrationTarget, projectFile, directoryPackagesPropsFile, context, cancellationToken);
+                return;
+            }
+        }
+
         var latestPackage = await GetLatestVersionOfPackageAsync(context, packageId, cancellationToken);
 
         // Treat unparseable versions (including range expressions) like wildcards - always update them
@@ -511,6 +573,104 @@ private async Task AnalyzePackageForCentralPackageManagementAsync(string package
         context.UpdateSteps.Enqueue(updateStep);
     }
 
+    private async Task AddMigrationStepsForCentralPackageManagementAsync(
+        string fromPackageId, string fromVersion, string toPackageId,
+        FileInfo projectFile, FileInfo directoryPackagesPropsFile, UpdateContext context, CancellationToken cancellationToken)
+    {
+        // Get the latest version of the target package
+        var latestTargetPackage = await GetLatestVersionOfPackageAsync(context, toPackageId, cancellationToken);
+
+        // Create a single migration step that removes the old package and adds the new one
+        // For CPM, we need to update both Directory.Packages.props AND the project file's PackageReference
+        var migrationStep = new PackageMigrationStep(
+            string.Format(CultureInfo.InvariantCulture, UpdateCommandStrings.MigratePackageFormat, fromPackageId, toPackageId),
+            async () =>
+            {
+                // Update Directory.Packages.props
+                await RemovePackageFromDirectoryPackagesProps(fromPackageId, directoryPackagesPropsFile);
+                await AddPackageToDirectoryPackagesProps(toPackageId, latestTargetPackage!.Version, directoryPackagesPropsFile);
+
+                // Update the project file's PackageReference
+                await RemovePackageFromProject(projectFile, fromPackageId, cancellationToken);
+                await AddPackageReferenceToProject(projectFile, toPackageId, cancellationToken);
+            },
+            fromPackageId,
+            fromVersion,
+            toPackageId,
+            latestTargetPackage!.Version,
+            projectFile);
+        context.UpdateSteps.Enqueue(migrationStep);
+    }
+
+    private async Task<int> RemovePackageFromProject(FileInfo projectFile, string packageId, CancellationToken cancellationToken)
+    {
+        return await runner.RemovePackageAsync(projectFile, packageId, new(), cancellationToken);
+    }
+
+    private async Task AddPackageReferenceToProject(FileInfo projectFile, string packageId, CancellationToken cancellationToken)
+    {
+        // For CPM projects, we add a PackageReference without a version (version comes from Directory.Packages.props)
+        var exitCode = await runner.AddPackageAsync(
+            projectFilePath: projectFile,
+            packageName: packageId,
+            packageVersion: null,
+            nugetSource: null,
+            options: new(),
+            cancellationToken: cancellationToken);
+
+        if (exitCode != 0)
+        {
+            throw new ProjectUpdaterException(string.Format(CultureInfo.InvariantCulture, UpdateCommandStrings.FailedUpdatePackageReferenceFormat, packageId, projectFile.FullName));
+        }
+    }
+
+    private static Task RemovePackageFromDirectoryPackagesProps(string packageId, FileInfo directoryPackagesPropsFile)
+    {
+        var doc = new XmlDocument { PreserveWhitespace = true };
+        doc.Load(directoryPackagesPropsFile.FullName);
+
+        var packageVersionNode = doc.SelectSingleNode($"/Project/ItemGroup/PackageVersion[@Include='{packageId}']");
+        if (packageVersionNode?.ParentNode is not null)
+        {
+            packageVersionNode.ParentNode.RemoveChild(packageVersionNode);
+            doc.Save(directoryPackagesPropsFile.FullName);
+        }
+
+        return Task.CompletedTask;
+    }
+
+    private Task AddPackageToDirectoryPackagesProps(string packageId, string version, FileInfo directoryPackagesPropsFile)
+    {
+        var doc = new XmlDocument { PreserveWhitespace = true };
+        doc.Load(directoryPackagesPropsFile.FullName);
+
+        // Find the ItemGroup that contains PackageVersion elements
+        var itemGroup = doc.SelectSingleNode("/Project/ItemGroup[PackageVersion]");
+        if (itemGroup is null)
+        {
+            // Create a new ItemGroup if one doesn't exist
+            var project = doc.SelectSingleNode("/Project");
+            if (project is null)
+            {
+                logger.LogWarning("Could not find <Project> element in {DirectoryPackagesPropsFile}. Package '{PackageId}' will not be added.", 
+                    directoryPackagesPropsFile.FullName, packageId);
+                return Task.CompletedTask;
+            }
+
+            itemGroup = doc.CreateElement("ItemGroup");
+            project.AppendChild(itemGroup);
+        }
+
+        // Create the new PackageVersion element
+        var packageVersionElement = doc.CreateElement("PackageVersion");
+        packageVersionElement.SetAttribute("Include", packageId);
+        packageVersionElement.SetAttribute("Version", version);
+        itemGroup.AppendChild(packageVersionElement);
+
+        doc.Save(directoryPackagesPropsFile.FullName);
+        return Task.CompletedTask;
+    }
+
     private async Task<string?> GetPackageVersionFromDirectoryPackagesPropsAsync(string packageId, FileInfo directoryPackagesPropsFile, FileInfo projectFile, CancellationToken cancellationToken)
     {
         try
@@ -884,6 +1044,11 @@ internal sealed class UpdateContext(FileInfo appHostProjectFile, PackageChannel
     public ConcurrentQueue<AnalyzeStep> AnalyzeSteps { get; } = new();
     public HashSet<string> VisitedProjects { get; } = new();
     public bool FallbackParsing { get; set; }
+    /// <summary>
+    /// The target Aspire Hosting SDK version being updated to.
+    /// This is set during SDK analysis and used for package migration decisions.
+    /// </summary>
+    public SemVersion? TargetHostingVersion { get; set; }
 }
 
 internal abstract record UpdateStep(string Description, Func<Task> Callback)
@@ -894,6 +1059,14 @@ internal abstract record UpdateStep(string Description, Func<Task> Callback)
     public virtual string GetFormattedDisplayText() => Description;
 }
 
+/// <summary>
+/// Represents an update step associated with a specific project file.
+/// </summary>
+internal abstract record ProjectUpdateStep(
+    string Description,
+    Func<Task> Callback,
+    FileInfo ProjectFile) : UpdateStep(Description, Callback);
+
 /// <summary>
 /// Represents an update step for a package reference, containing package and project information.
 /// </summary>
@@ -903,7 +1076,7 @@ internal record PackageUpdateStep(
     string PackageId,
     string CurrentVersion,
     string NewVersion,
-    FileInfo ProjectFile) : UpdateStep(Description, Callback)
+    FileInfo ProjectFile) : ProjectUpdateStep(Description, Callback, ProjectFile)
 {
     public override string GetFormattedDisplayText()
     {
@@ -911,6 +1084,24 @@ public override string GetFormattedDisplayText()
     }
 }
 
+/// <summary>
+/// Represents a migration step that replaces one package with another during package migration.
+/// </summary>
+internal record PackageMigrationStep(
+    string Description,
+    Func<Task> Callback,
+    string FromPackageId,
+    string FromVersion,
+    string ToPackageId,
+    string ToVersion,
+    FileInfo ProjectFile) : ProjectUpdateStep(Description, Callback, ProjectFile)
+{
+    public override string GetFormattedDisplayText()
+    {
+        return $"[bold yellow]{FromPackageId}[/] [bold green]{FromVersion.EscapeMarkup()}[/] to [bold yellow]{ToPackageId}[/] [bold green]{ToVersion.EscapeMarkup()}[/]";
+    }
+}
+
 internal record AnalyzeStep(string Description, Func<Task> Callback);
 
 internal sealed class ProjectUpdaterException : System.Exception
diff --git a/src/Aspire.Cli/Resources/UpdateCommandStrings.Designer.cs b/src/Aspire.Cli/Resources/UpdateCommandStrings.Designer.cs
index 11324520d48..c0fb9742c87 100644
--- a/src/Aspire.Cli/Resources/UpdateCommandStrings.Designer.cs
+++ b/src/Aspire.Cli/Resources/UpdateCommandStrings.Designer.cs
@@ -105,6 +105,9 @@ internal static string ProjectArgumentDescription {
     internal static string ChannelOptionDescriptionWithStaging => ResourceManager.GetString("ChannelOptionDescriptionWithStaging", resourceCulture);
     internal static string QualityOptionDescription => ResourceManager.GetString("QualityOptionDescription", resourceCulture);
     internal static string QualityOptionDescriptionWithStaging => ResourceManager.GetString("QualityOptionDescriptionWithStaging", resourceCulture);
-    internal static string DotNetToolSelfUpdateMessage => ResourceManager.GetString("DotNetToolSelfUpdateMessage", resourceCulture);
+    internal static string DotNetToolSelfUpdateMessage => ResourceManager.GetString("DotNetToolSelfUpdateMessage", resourceCulture)!;
+    internal static string RemovePackageFormat => ResourceManager.GetString("RemovePackageFormat", resourceCulture)!;
+    internal static string AddPackageFormat => ResourceManager.GetString("AddPackageFormat", resourceCulture)!;
+    internal static string MigratePackageFormat => ResourceManager.GetString("MigratePackageFormat", resourceCulture)!;
     }
 }
diff --git a/src/Aspire.Cli/Resources/UpdateCommandStrings.resx b/src/Aspire.Cli/Resources/UpdateCommandStrings.resx
index 2b40fb44d18..541ddb549c0 100644
--- a/src/Aspire.Cli/Resources/UpdateCommandStrings.resx
+++ b/src/Aspire.Cli/Resources/UpdateCommandStrings.resx
@@ -135,4 +135,13 @@
   <data name="DotNetToolSelfUpdateMessage" xml:space="preserve">
     <value>To update the Aspire CLI when installed as a .NET tool, run:</value>
   </data>
+  <data name="RemovePackageFormat" xml:space="preserve">
+    <value>Remove package {0}</value>
+  </data>
+  <data name="AddPackageFormat" xml:space="preserve">
+    <value>Add package {0} version {1}</value>
+  </data>
+  <data name="MigratePackageFormat" xml:space="preserve">
+    <value>Migrate package {0} to {1}</value>
+  </data>
 </root>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.cs.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.cs.xlf
index 98a9616bf3e..d50573d81b1 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.cs.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.cs.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="cs" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Přidáno: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Mapování: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Nenašel se žádný projekt Aspire AppHost. Chcete místo toho aktualizovat rozhraní CLI Aspire?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Úroveň kvality, na kterou se má aktualizovat (stabilní, příprava, denní)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Odebráno: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.de.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.de.xlf
index 2908cd3090b..3a6e9d62409 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.de.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.de.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="de" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Hinzugefügt: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Zuordnung: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Es wurde kein Aspire-AppHost-Projekt gefunden. Möchten Sie stattdessen die Aspire-CLI aktualisieren?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Qualitätsstufe, auf die aktualisiert werden soll (stable, staging, daily)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Entfernt: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.es.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.es.xlf
index 4412cf5c975..52916e92e19 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.es.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.es.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="es" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Agregado: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Asignación: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">No se encontró ningún proyecto de AppHost. ¿Quiere actualizar la CLI de Aspire en su lugar?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Nivel de calidad al que se va a actualizar (estable, de ensayo, diario)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Quitado: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.fr.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.fr.xlf
index 333130a4982..b125dee1c77 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.fr.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.fr.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="fr" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Ajouté : {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Mappage : {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Aucun projet Aspire AppHost trouvé. Voulez-vous plutôt mettre à jour l’interface CLI Aspire ?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Niveau de qualité vers lequel effectuer une mise à jour (stable, gestion intermédiaire, quotidien)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Supprimé : {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.it.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.it.xlf
index ce822b23102..3949881fbec 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.it.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.it.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="it" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Aggiunto: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Mapping: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Nessun progetto Aspire AppHost trovato. Aggiornare invece l'interfaccia della riga di comando Aspire?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Livello di qualità da aggiornare a (stabile, staging, giornaliero)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Rimosso: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ja.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ja.xlf
index fad84c2aeca..8c4ee6dfde8 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ja.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ja.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="ja" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">追加済み: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   マッピング: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Aspire AppHost プロジェクトが見つかりませんでした。代わりに Aspire CLI を更新しますか?</target>
@@ -167,6 +177,11 @@
         <target state="translated">更新先の品質レベル (安定、ステージング、毎日)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">削除済み: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ko.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ko.xlf
index f13f9893e70..9f051698439 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ko.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ko.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="ko" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">추가됨: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   매핑: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Azure AppHost 프로젝트를 찾을 수 없습니다. 대신 Aspire CLI를 업데이트하시겠어요?</target>
@@ -167,6 +177,11 @@
         <target state="translated">업데이트할 품질 수준(안정, 스테이징, 데일리)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">제거됨: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pl.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pl.xlf
index 62293be966c..05b929ff6c0 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pl.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pl.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="pl" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Dodano: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Mapowanie: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Nie znaleziono projektu Aspire AppHost. Czy chcesz zamiast tego zaktualizować narzędzie Aspire CLI?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Poziom jakości, do którego należy zaktualizować (stabilny, przejściowy, dzienny)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Usunięto: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pt-BR.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pt-BR.xlf
index bfc7e7358b7..d42833d8ef6 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pt-BR.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.pt-BR.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="pt-BR" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Adicionado: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Mapeamento: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Não foram encontrados projetos AppHost do Aspire. Você quer atualizar a CLI do Aspire em vez disso?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Nível de qualidade para o qual atualizar (estável, preparo, diariamente)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Removido: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ru.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ru.xlf
index 0b96df9baee..8394b9b3f82 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ru.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.ru.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="ru" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Добавлено: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Сопоставление: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Проект Aspire AppHost не найден. Хотите вместо этого обновить Aspire CLI?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Уровень качества для обновления (стабильный, промежуточный, ежедневный)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Удалено: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.tr.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.tr.xlf
index 6c9851d5974..d67d8d6f60d 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.tr.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.tr.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="tr" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">Eklendi: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   Eşleme: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">Aspire AppHost projesi bulunamadı. Bunun yerine Aspire CLI'yı güncelleştirmek ister misiniz?</target>
@@ -167,6 +177,11 @@
         <target state="translated">Güncelleştirilecek kalite seviyesi (kararlı, hazırlama, günlük)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">Kaldırıldı: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hans.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hans.xlf
index b29ce7b9284..ca900fdb01a 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hans.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hans.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="zh-Hans" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">已添加: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   映射: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">找不到 Aspire AppHost 项目。是否改为更新 Aspire CLI?</target>
@@ -167,6 +177,11 @@
         <target state="translated">要更新到的质量级别(稳定、暂存、每日)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">已移除: {0}</target>
diff --git a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hant.xlf b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hant.xlf
index 2be7eaa110a..466d3e616f0 100644
--- a/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hant.xlf
+++ b/src/Aspire.Cli/Resources/xlf/UpdateCommandStrings.zh-Hant.xlf
@@ -2,6 +2,11 @@
 <xliff xmlns="urn:oasis:names:tc:xliff:document:1.2" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.2" xsi:schemaLocation="urn:oasis:names:tc:xliff:document:1.2 xliff-core-1.2-transitional.xsd">
   <file datatype="xml" source-language="en" target-language="zh-Hant" original="../UpdateCommandStrings.resx">
     <body>
+      <trans-unit id="AddPackageFormat">
+        <source>Add package {0} version {1}</source>
+        <target state="new">Add package {0} version {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="AddedFeedFormat">
         <source>Added: {0}</source>
         <target state="translated">已新增: {0}</target>
@@ -112,6 +117,11 @@
         <target state="translated">   對應: {0}</target>
         <note />
       </trans-unit>
+      <trans-unit id="MigratePackageFormat">
+        <source>Migrate package {0} to {1}</source>
+        <target state="new">Migrate package {0} to {1}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="NoAppHostFoundUpdateCliPrompt">
         <source>No Aspire AppHost project found. Would you like to update the Aspire CLI instead?</source>
         <target state="translated">找不到任何 Aspire AppHost 專案。您是否要改為更新 Aspire CLI？</target>
@@ -167,6 +177,11 @@
         <target state="translated">要更新的品質等級 (穩定、暫存、每日)</target>
         <note />
       </trans-unit>
+      <trans-unit id="RemovePackageFormat">
+        <source>Remove package {0}</source>
+        <target state="new">Remove package {0}</target>
+        <note />
+      </trans-unit>
       <trans-unit id="RemovedFeedFormat">
         <source>Removed: {0}</source>
         <target state="translated">已移除: {0}</target>
diff --git a/tests/Aspire.Cli.Tests/Packaging/PackageMigrationTests.cs b/tests/Aspire.Cli.Tests/Packaging/PackageMigrationTests.cs
new file mode 100644
index 00000000000..cdbfb4b2d01
--- /dev/null
+++ b/tests/Aspire.Cli.Tests/Packaging/PackageMigrationTests.cs
@@ -0,0 +1,477 @@
+// Licensed to the .NET Foundation under one or more agreements.
+// The .NET Foundation licenses this file to you under the MIT license.
+
+using Aspire.Cli.Packaging;
+using Microsoft.Extensions.Logging;
+using Microsoft.Extensions.Logging.Abstractions;
+using Semver;
+
+namespace Aspire.Cli.Tests.Packaging;
+
+public class PackageMigrationTests
+{
+    private static ILogger<PackageMigration> CreateTestLogger()
+    {
+        return NullLogger<PackageMigration>.Instance;
+    }
+
+    /// <summary>
+    /// Helper method to create a version predicate for versions &gt;= threshold
+    /// </summary>
+    private static Func<SemVersion, bool> VersionAtLeast(string threshold)
+    {
+        var thresholdVersion = SemVersion.Parse(threshold, SemVersionStyles.Strict);
+        return v => SemVersion.ComparePrecedence(v, thresholdVersion) >= 0;
+    }
+
+    /// <summary>
+    /// Helper method to create a version predicate for versions &lt; threshold
+    /// </summary>
+    private static Func<SemVersion, bool> VersionBelow(string threshold)
+    {
+        var thresholdVersion = SemVersion.Parse(threshold, SemVersionStyles.Strict);
+        return v => SemVersion.ComparePrecedence(v, thresholdVersion) < 0;
+    }
+
+    /// <summary>
+    /// Helper method to create a version predicate for versions in a range [min, max)
+    /// </summary>
+    private static Func<SemVersion, bool> VersionInRange(string minInclusive, string maxExclusive)
+    {
+        var minVersion = SemVersion.Parse(minInclusive, SemVersionStyles.Strict);
+        var maxVersion = SemVersion.Parse(maxExclusive, SemVersionStyles.Strict);
+        return v => SemVersion.ComparePrecedence(v, minVersion) >= 0 
+                 && SemVersion.ComparePrecedence(v, maxVersion) < 0;
+    }
+
+    #region GetMigration - Basic functionality tests
+
+    [Fact]
+    public void GetMigration_WhenNoMatchingRule_ReturnsNull()
+    {
+        // Arrange
+        var migration = new PackageMigration(CreateTestLogger());
+        var targetVersion = SemVersion.Parse("9.5.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, "Aspire.Hosting.NonExistentPackage");
+
+        // Assert
+        Assert.Null(result);
+    }
+
+    [Fact]
+    public void GetMigration_WhenPackageIdDoesNotExist_ReturnsNull()
+    {
+        // Arrange
+        var migration = new PackageMigration(CreateTestLogger());
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, "SomeOtherPackage.NotAspire");
+
+        // Assert
+        Assert.Null(result);
+    }
+
+    [Fact]
+    public void GetMigration_WithEmptyPackageId_ReturnsNull()
+    {
+        // Arrange
+        var migration = new PackageMigration(CreateTestLogger());
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, string.Empty);
+
+        // Assert
+        Assert.Null(result);
+    }
+
+    #endregion
+
+    #region GetMigration - Version matching tests
+
+    [Fact]
+    public void GetMigration_WithPrereleaseVersion_EvaluatesPredicateCorrectly()
+    {
+        // Arrange
+        var migration = new PackageMigration(CreateTestLogger());
+        var prereleaseVersion = SemVersion.Parse("10.0.0-preview.1", SemVersionStyles.Strict);
+
+        // Act - testing that prerelease versions are handled without throwing
+        var result = migration.GetMigration(prereleaseVersion, "Aspire.Hosting.SomePackage");
+
+        // Assert
+        Assert.Null(result); // No migration rules defined, so should be null
+    }
+
+    [Fact]
+    public void GetMigration_WithDailyBuildVersion_EvaluatesPredicateCorrectly()
+    {
+        // Arrange
+        var migration = new PackageMigration(CreateTestLogger());
+        var dailyVersion = SemVersion.Parse("10.0.0-daily.12345.1", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(dailyVersion, "Aspire.Hosting.SomePackage");
+
+        // Assert
+        Assert.Null(result); // No migration rules defined, so should be null
+    }
+
+    #endregion
+
+    #region GetMigration - Case insensitivity tests
+
+    [Fact]
+    public void GetMigration_PackageIdComparison_IsCaseInsensitive()
+    {
+        // Arrange - Using a testable migration service with predefined rules
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.OldPackage", "Aspire.Hosting.NewPackage")
+        ]);
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act
+        var lowerCaseResult = migration.GetMigration(targetVersion, "aspire.hosting.oldpackage");
+        var upperCaseResult = migration.GetMigration(targetVersion, "ASPIRE.HOSTING.OLDPACKAGE");
+        var mixedCaseResult = migration.GetMigration(targetVersion, "Aspire.Hosting.OldPackage");
+
+        // Assert
+        Assert.Equal("Aspire.Hosting.NewPackage", lowerCaseResult);
+        Assert.Equal("Aspire.Hosting.NewPackage", upperCaseResult);
+        Assert.Equal("Aspire.Hosting.NewPackage", mixedCaseResult);
+    }
+
+    #endregion
+
+    #region Upward migration tests (stable -> daily/preview)
+
+    [Fact]
+    public void GetMigration_UpwardMigration_WhenTargetVersionMeetsThreshold_ReturnsMigratedPackage()
+    {
+        // Arrange - Simulating an upgrade scenario
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.LegacyPackage", "Aspire.Hosting.ModernPackage")
+        ]);
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, "Aspire.Hosting.LegacyPackage");
+
+        // Assert
+        Assert.Equal("Aspire.Hosting.ModernPackage", result);
+    }
+
+    [Fact]
+    public void GetMigration_UpwardMigration_WhenTargetVersionExceedsThreshold_ReturnsMigratedPackage()
+    {
+        // Arrange - Simulating an upgrade scenario with version beyond threshold
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.LegacyPackage", "Aspire.Hosting.ModernPackage")
+        ]);
+        var targetVersion = SemVersion.Parse("10.5.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, "Aspire.Hosting.LegacyPackage");
+
+        // Assert
+        Assert.Equal("Aspire.Hosting.ModernPackage", result);
+    }
+
+    [Fact]
+    public void GetMigration_UpwardMigration_WhenTargetVersionBelowThreshold_ReturnsNull()
+    {
+        // Arrange - Simulating scenario where version doesn't meet threshold
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.LegacyPackage", "Aspire.Hosting.ModernPackage")
+        ]);
+        var targetVersion = SemVersion.Parse("9.5.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, "Aspire.Hosting.LegacyPackage");
+
+        // Assert
+        Assert.Null(result);
+    }
+
+    #endregion
+
+    #region Downward migration tests (daily/preview -> stable)
+
+    [Fact]
+    public void GetMigration_DownwardMigration_WhenTargetVersionBelowThreshold_ReturnsMigratedPackage()
+    {
+        // Arrange - Simulating a downgrade scenario (daily -> stable)
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionBelow("10.0.0"), "Aspire.Hosting.NewPackage", "Aspire.Hosting.OldPackage")
+        ]);
+        var targetVersion = SemVersion.Parse("9.5.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, "Aspire.Hosting.NewPackage");
+
+        // Assert
+        Assert.Equal("Aspire.Hosting.OldPackage", result);
+    }
+
+    [Fact]
+    public void GetMigration_DownwardMigration_WhenTargetVersionMeetsThreshold_ReturnsNull()
+    {
+        // Arrange - Simulating scenario where version doesn't require downgrade migration
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionBelow("10.0.0"), "Aspire.Hosting.NewPackage", "Aspire.Hosting.OldPackage")
+        ]);
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act
+        var result = migration.GetMigration(targetVersion, "Aspire.Hosting.NewPackage");
+
+        // Assert
+        Assert.Null(result);
+    }
+
+    #endregion
+
+    #region Bidirectional migration tests
+
+    [Fact]
+    public void GetMigration_BidirectionalMigrations_UpwardMigrationWorks()
+    {
+        // Arrange - Setup bidirectional migration rules
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            // Upward migration: when upgrading to 10.0.0+, migrate OldPackage -> NewPackage
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.OldPackage", "Aspire.Hosting.NewPackage"),
+            // Downward migration: when downgrading to < 10.0.0, migrate NewPackage -> OldPackage
+            (VersionBelow("10.0.0"), "Aspire.Hosting.NewPackage", "Aspire.Hosting.OldPackage")
+        ]);
+
+        // Act - Test upward migration
+        var upgradeResult = migration.GetMigration(
+            SemVersion.Parse("10.0.0", SemVersionStyles.Strict), 
+            "Aspire.Hosting.OldPackage");
+
+        // Assert
+        Assert.Equal("Aspire.Hosting.NewPackage", upgradeResult);
+    }
+
+    [Fact]
+    public void GetMigration_BidirectionalMigrations_DownwardMigrationWorks()
+    {
+        // Arrange - Setup bidirectional migration rules
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            // Upward migration
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.OldPackage", "Aspire.Hosting.NewPackage"),
+            // Downward migration
+            (VersionBelow("10.0.0"), "Aspire.Hosting.NewPackage", "Aspire.Hosting.OldPackage")
+        ]);
+
+        // Act - Test downward migration
+        var downgradeResult = migration.GetMigration(
+            SemVersion.Parse("9.5.0", SemVersionStyles.Strict), 
+            "Aspire.Hosting.NewPackage");
+
+        // Assert
+        Assert.Equal("Aspire.Hosting.OldPackage", downgradeResult);
+    }
+
+    [Fact]
+    public void GetMigration_BidirectionalMigrations_SamePackageNoMigrationNeeded()
+    {
+        // Arrange - Setup bidirectional migration rules
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            // Upward migration
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.OldPackage", "Aspire.Hosting.NewPackage"),
+            // Downward migration
+            (VersionBelow("10.0.0"), "Aspire.Hosting.NewPackage", "Aspire.Hosting.OldPackage")
+        ]);
+
+        // Act - Old package at old version - no migration needed
+        var oldPackageAtOldVersion = migration.GetMigration(
+            SemVersion.Parse("9.5.0", SemVersionStyles.Strict), 
+            "Aspire.Hosting.OldPackage");
+
+        // Act - New package at new version - no migration needed
+        var newPackageAtNewVersion = migration.GetMigration(
+            SemVersion.Parse("10.0.0", SemVersionStyles.Strict), 
+            "Aspire.Hosting.NewPackage");
+
+        // Assert
+        Assert.Null(oldPackageAtOldVersion);
+        Assert.Null(newPackageAtNewVersion);
+    }
+
+    #endregion
+
+    #region Multiple rule match error tests
+
+    [Fact]
+    public void GetMigration_WhenMultipleRulesMatch_ThrowsPackageMigrationException()
+    {
+        // Arrange - Setup conflicting rules
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.SomePackage", "Aspire.Hosting.TargetA"),
+            (VersionAtLeast("9.5.0"), "Aspire.Hosting.SomePackage", "Aspire.Hosting.TargetB")
+        ]);
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act & Assert
+        var exception = Assert.Throws<PackageMigrationException>(() => 
+            migration.GetMigration(targetVersion, "Aspire.Hosting.SomePackage"));
+
+        Assert.Contains("Multiple migration rules match", exception.Message);
+        Assert.Contains("Aspire.Hosting.SomePackage", exception.Message);
+        Assert.Contains("10.0.0", exception.Message);
+    }
+
+    [Fact]
+    public void GetMigration_WhenMultipleRulesMatch_ExceptionIncludesTargetPackages()
+    {
+        // Arrange - Setup conflicting rules
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (_ => true, "Aspire.Hosting.ConflictingPackage", "Aspire.Hosting.Target1"),
+            (_ => true, "Aspire.Hosting.ConflictingPackage", "Aspire.Hosting.Target2")
+        ]);
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act & Assert
+        var exception = Assert.Throws<PackageMigrationException>(() => 
+            migration.GetMigration(targetVersion, "Aspire.Hosting.ConflictingPackage"));
+
+        Assert.Contains("Target1", exception.Message);
+        Assert.Contains("Target2", exception.Message);
+    }
+
+    #endregion
+
+    #region Complex version predicate tests
+
+    [Fact]
+    public void GetMigration_WithVersionRangePredicate_MatchesCorrectly()
+    {
+        // Arrange - Setup rule that only applies to specific version range [10.0.0, 11.0.0)
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionInRange("10.0.0", "11.0.0"), "Aspire.Hosting.RangePackage", "Aspire.Hosting.RangeTarget")
+        ]);
+
+        // Act
+        var belowRange = migration.GetMigration(SemVersion.Parse("9.5.0", SemVersionStyles.Strict), "Aspire.Hosting.RangePackage");
+        var inRange = migration.GetMigration(SemVersion.Parse("10.5.0", SemVersionStyles.Strict), "Aspire.Hosting.RangePackage");
+        var aboveRange = migration.GetMigration(SemVersion.Parse("11.0.0", SemVersionStyles.Strict), "Aspire.Hosting.RangePackage");
+
+        // Assert
+        Assert.Null(belowRange);
+        Assert.Equal("Aspire.Hosting.RangeTarget", inRange);
+        Assert.Null(aboveRange);
+    }
+
+    [Fact]
+    public void GetMigration_WithPrereleaseVersionPredicate_MatchesCorrectly()
+    {
+        // Arrange - Setup rule that includes prerelease versions
+        var previewThreshold = SemVersion.Parse("10.0.0-preview.1", SemVersionStyles.Strict);
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (v => SemVersion.ComparePrecedence(v, previewThreshold) >= 0, 
+             "Aspire.Hosting.PreviewPackage", "Aspire.Hosting.PreviewTarget")
+        ]);
+
+        // Act
+        var stableBelow = migration.GetMigration(SemVersion.Parse("9.5.0", SemVersionStyles.Strict), "Aspire.Hosting.PreviewPackage");
+        var previewMatch = migration.GetMigration(SemVersion.Parse("10.0.0-preview.1", SemVersionStyles.Strict), "Aspire.Hosting.PreviewPackage");
+        var previewAbove = migration.GetMigration(SemVersion.Parse("10.0.0-preview.5", SemVersionStyles.Strict), "Aspire.Hosting.PreviewPackage");
+        var stableAbove = migration.GetMigration(SemVersion.Parse("10.0.0", SemVersionStyles.Strict), "Aspire.Hosting.PreviewPackage");
+
+        // Assert
+        Assert.Null(stableBelow);
+        Assert.Equal("Aspire.Hosting.PreviewTarget", previewMatch);
+        Assert.Equal("Aspire.Hosting.PreviewTarget", previewAbove);
+        Assert.Equal("Aspire.Hosting.PreviewTarget", stableAbove);
+    }
+
+    #endregion
+
+    #region Multiple packages migration tests
+
+    [Fact]
+    public void GetMigration_WithMultiplePackageMigrations_EachPackageResolvesCorrectly()
+    {
+        // Arrange - Setup rules for multiple packages
+        var migration = new TestablePackageMigration(CreateTestLogger(), [
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.PackageA", "Aspire.Hosting.NewPackageA"),
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.PackageB", "Aspire.Hosting.NewPackageB"),
+            (VersionAtLeast("10.0.0"), "Aspire.Hosting.PackageC", "Aspire.Hosting.NewPackageC")
+        ]);
+        var targetVersion = SemVersion.Parse("10.0.0", SemVersionStyles.Strict);
+
+        // Act
+        var resultA = migration.GetMigration(targetVersion, "Aspire.Hosting.PackageA");
+        var resultB = migration.GetMigration(targetVersion, "Aspire.Hosting.PackageB");
+        var resultC = migration.GetMigration(targetVersion, "Aspire.Hosting.PackageC");
+        var resultUnknown = migration.GetMigration(targetVersion, "Aspire.Hosting.PackageD");
+
+        // Assert
+        Assert.Equal("Aspire.Hosting.NewPackageA", resultA);
+        Assert.Equal("Aspire.Hosting.NewPackageB", resultB);
+        Assert.Equal("Aspire.Hosting.NewPackageC", resultC);
+        Assert.Null(resultUnknown);
+    }
+
+    #endregion
+
+    #region Helper class for testing with custom rules
+
+    /// <summary>
+    /// A testable version of PackageMigration that allows injecting custom migration rules for testing.
+    /// </summary>
+    private sealed class TestablePackageMigration : IPackageMigration
+    {
+        private readonly ILogger<PackageMigration> _logger;
+        private readonly List<(Func<SemVersion, bool> VersionPredicate, string FromPackageId, string ToPackageId)> _migrationRules;
+
+        public TestablePackageMigration(
+            ILogger<PackageMigration> logger,
+            List<(Func<SemVersion, bool> VersionPredicate, string FromPackageId, string ToPackageId)> migrationRules)
+        {
+            _logger = logger;
+            _migrationRules = migrationRules;
+        }
+
+        public string? GetMigration(SemVersion targetHostingVersion, string packageId)
+        {
+            _logger.LogDebug("Checking migration rules for package '{PackageId}' targeting version '{TargetVersion}'", packageId, targetHostingVersion);
+
+            var matchingRules = _migrationRules
+                .Where(rule => string.Equals(rule.FromPackageId, packageId, StringComparison.OrdinalIgnoreCase)
+                    && rule.VersionPredicate(targetHostingVersion))
+                .ToList();
+
+            if (matchingRules.Count == 0)
+            {
+                _logger.LogDebug("No migration rules found for package '{PackageId}'", packageId);
+                return null;
+            }
+
+            if (matchingRules.Count > 1)
+            {
+                var toPackages = string.Join(", ", matchingRules.Select(r => r.ToPackageId));
+                _logger.LogError(
+                    "Multiple migration rules found for package '{PackageId}' at version '{TargetVersion}'. Target packages: {ToPackages}",
+                    packageId, targetHostingVersion, toPackages);
+
+                throw new PackageMigrationException(
+                    $"Multiple migration rules match for package '{packageId}' at version '{targetHostingVersion}'. " +
+                    $"This is a configuration error. Matching target packages: {toPackages}");
+            }
+
+            var matchingRule = matchingRules[0];
+            _logger.LogInformation(
+                "Migration rule found: '{FromPackageId}' -> '{ToPackageId}' for target version '{TargetVersion}'",
+                matchingRule.FromPackageId, matchingRule.ToPackageId, targetHostingVersion);
+
+            return matchingRule.ToPackageId;
+        }
+    }
+
+    #endregion
+}
diff --git a/tests/Aspire.Cli.Tests/Projects/ProjectUpdaterTests.cs b/tests/Aspire.Cli.Tests/Projects/ProjectUpdaterTests.cs
index 3e40fb823ee..62dd01b2ed0 100644
--- a/tests/Aspire.Cli.Tests/Projects/ProjectUpdaterTests.cs
+++ b/tests/Aspire.Cli.Tests/Projects/ProjectUpdaterTests.cs
@@ -152,7 +152,7 @@ await File.WriteAllTextAsync(
             </Project>
             """);
 
-        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string PackageVersion, string? PackageSource)>();
+        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string? PackageVersion, string? PackageSource)>();
         var services = CliTestHelper.CreateServiceCollection(workspace, outputHelper, config =>
         {
             config.DotNetCliRunnerFactory = (sp) =>
@@ -289,7 +289,7 @@ await File.WriteAllTextAsync(
             </Project>
             """);
 
-        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string PackageVersion, string? PackageSource)>();
+        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string? PackageVersion, string? PackageSource)>();
         var services = CliTestHelper.CreateServiceCollection(workspace, outputHelper, config =>
         {
             config.DotNetCliRunnerFactory = (sp) =>
@@ -448,7 +448,7 @@ await File.WriteAllTextAsync(
             </Project>
             """);
 
-        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string PackageVersion, string? PackageSource)>();
+        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string? PackageVersion, string? PackageSource)>();
         var services = CliTestHelper.CreateServiceCollection(workspace, outputHelper, config =>
         {
             config.DotNetCliRunnerFactory = (sp) =>
@@ -1476,7 +1476,7 @@ await File.WriteAllTextAsync(
         var channels = await packagingService.GetChannelsAsync();
         var selectedChannel = channels.Single(c => c.Name == "default");
 
-        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, new PackageMigration(Microsoft.Extensions.Logging.Abstractions.NullLogger<PackageMigration>.Instance));
         var updateResult = await projectUpdater.UpdateProjectAsync(appHostProjectFile, selectedChannel).WaitAsync(CliTestConstants.DefaultTimeout);
 
         // Should not throw ProjectUpdaterException; should produce update steps including AppHost SDK
@@ -1578,7 +1578,7 @@ await File.WriteAllTextAsync(
         var channels = await packagingService.GetChannelsAsync();
         var selectedChannel = channels.Single(c => c.Name == "default");
 
-        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, new PackageMigration(Microsoft.Extensions.Logging.Abstractions.NullLogger<PackageMigration>.Instance));
         var updateResult = await projectUpdater.UpdateProjectAsync(appHostProjectFile, selectedChannel).WaitAsync(CliTestConstants.DefaultTimeout);
 
         // Should discover package reference (version may be absent) and not crash
@@ -1657,7 +1657,7 @@ await File.WriteAllTextAsync(
         var channels = await packagingService.GetChannelsAsync();
         var selectedChannel = channels.Single(c => c.Name == "default");
 
-        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, new PackageMigration(Microsoft.Extensions.Logging.Abstractions.NullLogger<PackageMigration>.Instance));
 
         // Should throw ProjectUpdaterException due to invalid XML
         await Assert.ThrowsAsync<ProjectUpdaterException>(() =>
@@ -1739,7 +1739,7 @@ await File.WriteAllTextAsync(
         var channels = await packagingService.GetChannelsAsync();
         var selectedChannel = channels.Single(c => c.Name == "default");
 
-        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, new PackageMigration(Microsoft.Extensions.Logging.Abstractions.NullLogger<PackageMigration>.Instance));
         var updateResult = await projectUpdater.UpdateProjectAsync(appHostProjectFile, selectedChannel).WaitAsync(CliTestConstants.DefaultTimeout);
 
         // Normal path unaffected - no updates needed since version is already current
@@ -1818,7 +1818,7 @@ await File.WriteAllTextAsync(
         var channels = await packagingService.GetChannelsAsync();
         var selectedChannel = channels.Single(c => c.Name == "default");
 
-        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, new PackageMigration(Microsoft.Extensions.Logging.Abstractions.NullLogger<PackageMigration>.Instance));
         var updateResult = await projectUpdater.UpdateProjectAsync(appHostFile, selectedChannel).WaitAsync(CliTestConstants.DefaultTimeout);
 
         Assert.True(updateResult.UpdatedApplied);
@@ -1901,7 +1901,7 @@ await File.WriteAllTextAsync(
         var channels = await packagingService.GetChannelsAsync();
         var selectedChannel = channels.Single(c => c.Name == "default");
 
-        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, new PackageMigration(Microsoft.Extensions.Logging.Abstractions.NullLogger<PackageMigration>.Instance));
         var updateResult = await projectUpdater.UpdateProjectAsync(appHostFile, selectedChannel).WaitAsync(CliTestConstants.DefaultTimeout);
 
         Assert.True(updateResult.UpdatedApplied);
@@ -1989,7 +1989,7 @@ await File.WriteAllTextAsync(
         var channels = await packagingService.GetChannelsAsync();
         var selectedChannel = channels.Single(c => c.Name == "default");
 
-        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var projectUpdater = new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, new PackageMigration(Microsoft.Extensions.Logging.Abstractions.NullLogger<PackageMigration>.Instance));
 
         // This should not throw and should handle the * version gracefully
         var updateResult = await projectUpdater.UpdateProjectAsync(appHostProjectFile, selectedChannel).WaitAsync(CliTestConstants.DefaultTimeout);
@@ -2302,7 +2302,7 @@ await File.WriteAllTextAsync(
             </Project>
             """);
 
-        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string PackageVersion, string? PackageSource)>();
+        var packagesAddsExecuted = new List<(FileInfo ProjectFile, string PackageId, string? PackageVersion, string? PackageSource)>();
 
         var services = CliTestHelper.CreateServiceCollection(workspace, outputHelper, config =>
         {
diff --git a/tests/Aspire.Cli.Tests/Templating/DotNetTemplateFactoryTests.cs b/tests/Aspire.Cli.Tests/Templating/DotNetTemplateFactoryTests.cs
index f8a2cfe33f1..5fc84e657ed 100644
--- a/tests/Aspire.Cli.Tests/Templating/DotNetTemplateFactoryTests.cs
+++ b/tests/Aspire.Cli.Tests/Templating/DotNetTemplateFactoryTests.cs
@@ -411,7 +411,10 @@ public Task<int> NewProjectAsync(string templateName, string projectName, string
         public Task<int> BuildAsync(FileInfo projectFile, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
             => throw new NotImplementedException();
 
-        public Task<int> AddPackageAsync(FileInfo projectFile, string packageName, string version, string? packageSourceUrl, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
+        public Task<int> AddPackageAsync(FileInfo projectFile, string packageName, string? version, string? packageSourceUrl, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
+            => throw new NotImplementedException();
+
+        public Task<int> RemovePackageAsync(FileInfo projectFile, string packageName, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
             => throw new NotImplementedException();
 
         public Task<int> AddProjectToSolutionAsync(FileInfo solutionFile, FileInfo projectFile, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
diff --git a/tests/Aspire.Cli.Tests/TestServices/TestDotNetCliRunner.cs b/tests/Aspire.Cli.Tests/TestServices/TestDotNetCliRunner.cs
index 0d4a63f112a..c644a06faa4 100644
--- a/tests/Aspire.Cli.Tests/TestServices/TestDotNetCliRunner.cs
+++ b/tests/Aspire.Cli.Tests/TestServices/TestDotNetCliRunner.cs
@@ -11,7 +11,8 @@ namespace Aspire.Cli.Tests.TestServices;
 
 internal sealed class TestDotNetCliRunner : IDotNetCliRunner
 {
-    public Func<FileInfo, string, string, string?, DotNetCliRunnerInvocationOptions, CancellationToken, int>? AddPackageAsyncCallback { get; set; }
+    public Func<FileInfo, string, string?, string?, DotNetCliRunnerInvocationOptions, CancellationToken, int>? AddPackageAsyncCallback { get; set; }
+    public Func<FileInfo, string, DotNetCliRunnerInvocationOptions, CancellationToken, int>? RemovePackageAsyncCallback { get; set; }
     public Func<FileInfo, FileInfo, DotNetCliRunnerInvocationOptions, CancellationToken, int>? AddProjectToSolutionAsyncCallback { get; set; }
     public Func<FileInfo, DotNetCliRunnerInvocationOptions, CancellationToken, int>? BuildAsyncCallback { get; set; }
     public Func<DotNetCliRunnerInvocationOptions, CancellationToken, int>? CheckHttpCertificateAsyncCallback { get; set; }
@@ -26,13 +27,20 @@ internal sealed class TestDotNetCliRunner : IDotNetCliRunner
     public Func<FileInfo, DotNetCliRunnerInvocationOptions, CancellationToken, (int ExitCode, IReadOnlyList<FileInfo> Projects)>? GetSolutionProjectsAsyncCallback { get; set; }
     public Func<FileInfo, FileInfo, DotNetCliRunnerInvocationOptions, CancellationToken, int>? AddProjectReferenceAsyncCallback { get; set; }
 
-    public Task<int> AddPackageAsync(FileInfo projectFilePath, string packageName, string packageVersion, string? nugetSource, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
+    public Task<int> AddPackageAsync(FileInfo projectFilePath, string packageName, string? packageVersion, string? nugetSource, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
     {
         return AddPackageAsyncCallback != null
             ? Task.FromResult(AddPackageAsyncCallback(projectFilePath, packageName, packageVersion, nugetSource, options, cancellationToken))
             : throw new NotImplementedException();
     }
 
+    public Task<int> RemovePackageAsync(FileInfo projectFilePath, string packageName, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
+    {
+        return RemovePackageAsyncCallback != null
+            ? Task.FromResult(RemovePackageAsyncCallback(projectFilePath, packageName, options, cancellationToken))
+            : Task.FromResult(0); // If not overridden, just return success.
+    }
+
     public Task<int> AddProjectToSolutionAsync(FileInfo solutionFile, FileInfo projectFile, DotNetCliRunnerInvocationOptions options, CancellationToken cancellationToken)
     {
         return AddProjectToSolutionAsyncCallback != null
diff --git a/tests/Aspire.Cli.Tests/Utils/CliTestHelper.cs b/tests/Aspire.Cli.Tests/Utils/CliTestHelper.cs
index 554d9b59a58..85013933096 100644
--- a/tests/Aspire.Cli.Tests/Utils/CliTestHelper.cs
+++ b/tests/Aspire.Cli.Tests/Utils/CliTestHelper.cs
@@ -89,6 +89,7 @@ public static IServiceCollection CreateServiceCollection(TemporaryWorkspace work
         services.AddSingleton(options.CliUpdateNotifierFactory);
         services.AddSingleton(options.DotNetSdkInstallerFactory);
         services.AddSingleton(options.PackagingServiceFactory);
+        services.AddSingleton(options.PackageMigrationFactory);
         services.AddSingleton(options.CliExecutionContextFactory);
         services.AddSingleton(options.DiskCacheFactory);
         services.AddSingleton(options.CliHostEnvironmentFactory);
@@ -239,7 +240,8 @@ public ISolutionLocator CreateDefaultSolutionLocatorFactory(IServiceProvider ser
         var cache = serviceProvider.GetRequiredService<IMemoryCache>();
         var executionContext = serviceProvider.GetRequiredService<CliExecutionContext>();
         var fallbackParser = serviceProvider.GetRequiredService<FallbackProjectParser>();
-        return new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser);
+        var packageMigration = serviceProvider.GetRequiredService<IPackageMigration>();
+        return new ProjectUpdater(logger, runner, interactionService, cache, executionContext, fallbackParser, packageMigration);
     };
 
     public Func<IServiceProvider, ICliHostEnvironment> CliHostEnvironmentFactory { get; set; } = (IServiceProvider serviceProvider) =>
@@ -340,6 +342,12 @@ public ISolutionLocator CreateDefaultSolutionLocatorFactory(IServiceProvider ser
         return new PackagingService(executionContext, nuGetPackageCache, features, configuration);
     };
 
+    public Func<IServiceProvider, IPackageMigration> PackageMigrationFactory { get; set; } = (IServiceProvider serviceProvider) =>
+    {
+        var logger = serviceProvider.GetRequiredService<ILogger<PackageMigration>>();
+        return new PackageMigration(logger);
+    };
+
     public Func<IServiceProvider, IDiskCache> DiskCacheFactory { get; set; } = (IServiceProvider serviceProvider) => new NullDiskCache();
 
     public Func<IServiceProvider, ICliDownloader> CliDownloaderFactory { get; set; } = (IServiceProvider serviceProvider) =>