diff --git a/src/cli/update-cli.test.ts b/src/cli/update-cli.test.ts
index d1713ee0e4c..34ca4efaa87 100644
--- a/src/cli/update-cli.test.ts
+++ b/src/cli/update-cli.test.ts
@@ -624,12 +624,50 @@ describe("update-cli", () => {
 
     expect(runCommandWithTimeout).toHaveBeenCalledWith(
       [expect.stringMatching(/node/), entryPath, "gateway", "install", "--force"],
-      expect.objectContaining({ timeoutMs: 60_000 }),
+      expect.objectContaining({ cwd: root, timeoutMs: 60_000 }),
     );
     expect(runDaemonInstall).not.toHaveBeenCalled();
     expect(runRestartScript).toHaveBeenCalled();
   });
 
+  it("updateCommand preserves invocation-relative service env overrides during refresh", async () => {
+    const root = createCaseDir("openclaw-updated-root");
+    const entryPath = path.join(root, "dist", "entry.js");
+    pathExists.mockImplementation(async (candidate: string) => candidate === entryPath);
+
+    vi.mocked(runGatewayUpdate).mockResolvedValue({
+      status: "ok",
+      mode: "npm",
+      root,
+      steps: [],
+      durationMs: 100,
+    });
+    serviceLoaded.mockResolvedValue(true);
+
+    await withEnvAsync(
+      {
+        OPENCLAW_STATE_DIR: "./state",
+        OPENCLAW_CONFIG_PATH: "./config/openclaw.json",
+      },
+      async () => {
+        await updateCommand({});
+      },
+    );
+
+    expect(runCommandWithTimeout).toHaveBeenCalledWith(
+      [expect.stringMatching(/node/), entryPath, "gateway", "install", "--force"],
+      expect.objectContaining({
+        cwd: root,
+        env: expect.objectContaining({
+          OPENCLAW_STATE_DIR: path.resolve("./state"),
+          OPENCLAW_CONFIG_PATH: path.resolve("./config/openclaw.json"),
+        }),
+        timeoutMs: 60_000,
+      }),
+    );
+    expect(runDaemonInstall).not.toHaveBeenCalled();
+  });
+
   it("updateCommand falls back to restart when env refresh install fails", async () => {
     await runRestartFallbackScenario({ daemonInstall: "fail" });
   });
diff --git a/src/cli/update-cli/update-command.ts b/src/cli/update-cli/update-command.ts
index 6063eb5f163..d0d39e0215a 100644
--- a/src/cli/update-cli/update-command.ts
+++ b/src/cli/update-cli/update-command.ts
@@ -69,6 +69,13 @@ import { suppressDeprecations } from "./suppress-deprecations.js";
 
 const CLI_NAME = resolveCliName();
 const SERVICE_REFRESH_TIMEOUT_MS = 60_000;
+const SERVICE_REFRESH_PATH_ENV_KEYS = [
+  "OPENCLAW_HOME",
+  "OPENCLAW_STATE_DIR",
+  "CLAWDBOT_STATE_DIR",
+  "OPENCLAW_CONFIG_PATH",
+  "CLAWDBOT_CONFIG_PATH",
+] as const;
 
 const UPDATE_QUIPS = [
   "Leveled up! New skills unlocked. You're welcome.",
@@ -117,6 +124,25 @@ function formatCommandFailure(stdout: string, stderr: string): string {
   return detail.split("\n").slice(-3).join("\n");
 }
 
+function resolveServiceRefreshEnv(
+  env: NodeJS.ProcessEnv,
+  invocationCwd: string = process.cwd(),
+): NodeJS.ProcessEnv {
+  const resolvedEnv: NodeJS.ProcessEnv = { ...env };
+  for (const key of SERVICE_REFRESH_PATH_ENV_KEYS) {
+    const rawValue = resolvedEnv[key]?.trim();
+    if (!rawValue) {
+      continue;
+    }
+    if (rawValue.startsWith("~") || path.isAbsolute(rawValue) || path.win32.isAbsolute(rawValue)) {
+      resolvedEnv[key] = rawValue;
+      continue;
+    }
+    resolvedEnv[key] = path.resolve(invocationCwd, rawValue);
+  }
+  return resolvedEnv;
+}
+
 type UpdateDryRunPreview = {
   dryRun: true;
   root: string;
@@ -190,6 +216,8 @@ async function refreshGatewayServiceEnv(params: {
       continue;
     }
     const res = await runCommandWithTimeout([resolveNodeRunner(), candidate, ...args], {
+      cwd: params.result.root,
+      env: resolveServiceRefreshEnv(process.env),
       timeoutMs: SERVICE_REFRESH_TIMEOUT_MS,
     });
     if (res.code === 0) {