diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3b7aacabc9e..6db0b4d1ca2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -36,7 +36,7 @@ Docs: https://docs.openclaw.ai
 - Providers/Amazon Bedrock Mantle: refresh IAM-backed bearer tokens at runtime instead of baking discovery-time tokens into provider config, so long-lived Mantle sessions keep working after the initial token ages out. Thanks @wirjo.
 - Config/includes: write through single-file top-level includes for isolated OpenClaw-owned mutations, so `plugins install` and `plugins update` update an included `plugins.json5` file instead of flattening modular `$include` configs. Fixes #41050 and #66048.
 - Config/reload: plan gateway reloads from source-authored config instead of runtime-materialized snapshots, so plugin update writes no longer trigger false restarts from derived provider/plugin config paths. Fixes #68732.
-- Plugins/update: skip npm plugin reinstall/config rewrites when the installed version and recorded artifact identity already match the registry target, and let bare npm package names resolve back to tracked install records. Fixes #46955 and #67957.
+- Plugins/update: skip npm plugin reinstall/config rewrites when the installed version and recorded artifact identity already match the registry target, let bare npm package names resolve back to tracked install records, and point already-installed `plugins install` attempts at `plugins update` / `--force` instead of a hook-pack fallback. Fixes #46955, #67957, and #68073.
 - Agents/MCP: keep `mcp.servers` and bundle MCP tools available in Pi embedded
   `coding` and `messaging` sessions while preserving `minimal` profile and
   `tools.deny: ["bundle-mcp"]` opt-out behavior. Fixes #68875 and #68818.
diff --git a/docs/cli/plugins.md b/docs/cli/plugins.md
index 7c164e5781b..f315fa274ce 100644
--- a/docs/cli/plugins.md
+++ b/docs/cli/plugins.md
@@ -76,6 +76,8 @@ bundled-plugin recovery path for plugins that explicitly opt into
 `--force` reuses the existing install target and overwrites an already-installed
 plugin or hook pack in place. Use it when you are intentionally reinstalling
 the same id from a new local path, archive, ClawHub package, or npm artifact.
+For routine upgrades of an already tracked npm plugin, prefer
+`openclaw plugins update <id-or-npm-spec>`.
 
 `--pin` applies to npm installs only. It is not supported with `--marketplace`,
 because marketplace installs persist marketplace source metadata instead of an
diff --git a/src/cli/plugins-cli.install.test.ts b/src/cli/plugins-cli.install.test.ts
index 8280564812c..d20f8202703 100644
--- a/src/cli/plugins-cli.install.test.ts
+++ b/src/cli/plugins-cli.install.test.ts
@@ -678,6 +678,29 @@ describe("plugins cli install", () => {
     );
   });
 
+  it("suggests update or --force when npm plugin install target already exists", async () => {
+    loadConfig.mockReturnValue({} as OpenClawConfig);
+    mockClawHubPackageNotFound("@example/lossless-claw");
+    installPluginFromNpmSpec.mockResolvedValue({
+      ok: false,
+      error:
+        "plugin already exists: /home/openclaw/.openclaw/extensions/lossless-claw (delete it first)",
+    });
+    installHooksFromNpmSpec.mockResolvedValue({
+      ok: false,
+      error: "package.json missing openclaw.hooks",
+    });
+
+    await expect(
+      runPluginsCommand(["plugins", "install", "@example/lossless-claw"]),
+    ).rejects.toThrow("__exit__:1");
+
+    expect(runtimeErrors.at(-1)).toContain(
+      "Use `openclaw plugins update <id-or-npm-spec>` to upgrade the tracked plugin, or rerun install with `--force` to replace it.",
+    );
+    expect(runtimeErrors.at(-1)).not.toContain("Also not a valid hook pack");
+  });
+
   it("passes the install logger to the --link dry-run probe", async () => {
     const localPluginDir = fs.mkdtempSync(path.join(os.tmpdir(), "openclaw-link-plugin-"));
     const cfg = {
diff --git a/src/cli/plugins-command-helpers.ts b/src/cli/plugins-command-helpers.ts
index 99e9ed30e65..55e7bfc4a11 100644
--- a/src/cli/plugins-command-helpers.ts
+++ b/src/cli/plugins-command-helpers.ts
@@ -103,6 +103,9 @@ export function formatPluginInstallWithHookFallbackError(
   pluginError: string,
   hookError: string,
 ): string {
+  if (/plugin already exists: .+ \(delete it first\)/.test(pluginError)) {
+    return `${pluginError}\nUse \`openclaw plugins update <id-or-npm-spec>\` to upgrade the tracked plugin, or rerun install with \`--force\` to replace it.`;
+  }
   return `${pluginError}\nAlso not a valid hook pack: ${hookError}`;
 }