diff --git a/go.mod b/go.mod
index 631803072..ace5a0ed3 100644
--- a/go.mod
+++ b/go.mod
@@ -20,6 +20,7 @@ require (
 	github.com/spf13/pflag v1.0.10
 	github.com/stretchr/testify v1.11.1
 	github.com/zalando/go-keyring v0.2.7
+	golang.org/x/mod v0.34.0
 	golang.org/x/sys v0.42.0
 	golang.org/x/text v0.35.0
 	gopkg.in/yaml.v3 v3.0.1
diff --git a/go.sum b/go.sum
index ade8f85e6..31a8e4688 100644
--- a/go.sum
+++ b/go.sum
@@ -163,6 +163,8 @@ github.com/zalando/go-keyring v0.2.7/go.mod h1:tsMo+VpRq5NGyKfxoBVjCuMrG47yj8cma
 go.yaml.in/yaml/v3 v3.0.4/go.mod h1:DhzuOOF2ATzADvBadXxruRBLzYTpT36CKvDb3+aBEFg=
 golang.org/x/exp v0.0.0-20231006140011-7918f672742d h1:jtJma62tbqLibJ5sFQz8bKtEM8rJBtfilJ2qTU199MI=
 golang.org/x/exp v0.0.0-20231006140011-7918f672742d/go.mod h1:ldy0pHrwJyGW56pPQzzkH36rKxoZW1tw7ZJpeKx+hdo=
+golang.org/x/mod v0.34.0 h1:xIHgNUUnW6sYkcM5Jleh05DvLOtwc6RitGHbDk4akRI=
+golang.org/x/mod v0.34.0/go.mod h1:ykgH52iCZe79kzLLMhyCUzhMci+nQj+0XkbXpNYtVjY=
 golang.org/x/net v0.38.0 h1:vRMAPTMaeGqVhG5QyLJHqNDwecKTomGeqbnfZyKlBI8=
 golang.org/x/net v0.38.0/go.mod h1:ivrbrMbzFq5J41QOQh0siUuly180yBYtLp+CKbEaFx8=
 golang.org/x/sync v0.20.0 h1:e0PTpb7pjO8GAtTs2dQ6jYa5BWYlMuX047Dco/pItO4=
diff --git a/internal/commands/doctor.go b/internal/commands/doctor.go
index 293a79eeb..d6db6df0c 100644
--- a/internal/commands/doctor.go
+++ b/internal/commands/doctor.go
@@ -252,8 +252,8 @@ func checkVersion(verbose bool) Check {
 	check.Message = v
 
 	// Try to check for latest version (non-blocking, best effort)
-	latest, err := fetchLatestVersion()
-	if err == nil && latest != "" && latest != v {
+	latest, err := versionChecker()
+	if err == nil && isUpdateAvailable(v, latest) {
 		check.Status = "warn"
 		check.Message = fmt.Sprintf("%s (update available: %s)", v, latest)
 		check.Hint = "Run: basecamp upgrade"
diff --git a/internal/commands/doctor_test.go b/internal/commands/doctor_test.go
index dd92f7367..55cf290e9 100644
--- a/internal/commands/doctor_test.go
+++ b/internal/commands/doctor_test.go
@@ -116,6 +116,21 @@ func TestCheckVersion(t *testing.T) {
 	assert.Contains(t, checkVerbose.Message, "commit")
 }
 
+func TestCheckVersionSuppressesOlderLatestRelease(t *testing.T) {
+	origVersion := version.Version
+	version.Version = "0.4.1-0.20260313174735-243815fa23b2"
+	defer func() { version.Version = origVersion }()
+
+	origChecker := versionChecker
+	versionChecker = func() (string, error) { return "0.4.0", nil }
+	defer func() { versionChecker = origChecker }()
+
+	check := checkVersion(false)
+	assert.Equal(t, "pass", check.Status)
+	assert.Equal(t, "0.4.1-0.20260313174735-243815fa23b2", check.Message)
+	assert.Empty(t, check.Hint)
+}
+
 func TestCheckSDKProvenance(t *testing.T) {
 	// Non-verbose: shows version string (works for both pseudo-versions and semver)
 	check := checkSDKProvenance(false)
diff --git a/internal/commands/update_notice.go b/internal/commands/update_notice.go
index faf49c5e0..71557bfc6 100644
--- a/internal/commands/update_notice.go
+++ b/internal/commands/update_notice.go
@@ -85,7 +85,7 @@ func (uc *UpdateCheck) Notice() string {
 		return ""
 	}
 
-	if uc.latest == "" || uc.latest == version.Version {
+	if !isUpdateAvailable(version.Version, uc.latest) {
 		return ""
 	}
 
diff --git a/internal/commands/update_notice_test.go b/internal/commands/update_notice_test.go
index b54217450..b3f3a0055 100644
--- a/internal/commands/update_notice_test.go
+++ b/internal/commands/update_notice_test.go
@@ -185,6 +185,20 @@ func TestNotice_NonBlocking(t *testing.T) {
 	assert.Equal(t, "", uc.Notice())
 }
 
+func TestNotice_SuppressesOlderLatestVersion(t *testing.T) {
+	origVersion := version.Version
+	version.Version = "0.4.1-0.20260313174735-243815fa23b2"
+	defer func() { version.Version = origVersion }()
+
+	uc := &UpdateCheck{
+		latest: "0.4.0",
+		done:   make(chan struct{}),
+	}
+	close(uc.done)
+
+	assert.Equal(t, "", uc.Notice())
+}
+
 func TestUpdateCacheRoundTrip(t *testing.T) {
 	configDir := t.TempDir()
 	t.Setenv("XDG_CONFIG_HOME", configDir)
diff --git a/internal/commands/upgrade.go b/internal/commands/upgrade.go
index efe0a83fb..860150329 100644
--- a/internal/commands/upgrade.go
+++ b/internal/commands/upgrade.go
@@ -55,7 +55,7 @@ func runUpgrade(cmd *cobra.Command, args []string) error {
 		return fmt.Errorf("could not check for updates: %w", err)
 	}
 
-	if latest == current {
+	if !isUpdateAvailable(current, latest) {
 		fmt.Fprintln(w, "already up to date")
 		return app.OK(
 			map[string]string{"status": "up_to_date", "version": current},
diff --git a/internal/commands/upgrade_test.go b/internal/commands/upgrade_test.go
index 884226fc9..388bd2a35 100644
--- a/internal/commands/upgrade_test.go
+++ b/internal/commands/upgrade_test.go
@@ -86,6 +86,22 @@ func TestUpgradeAvailable(t *testing.T) {
 	assert.Contains(t, appBuf.String(), "releases/tag/v1.3.0")
 }
 
+func TestUpgradeSuppressesOlderLatestRelease(t *testing.T) {
+	app, appBuf := setupPeopleTestApp(t)
+
+	orig := version.Version
+	version.Version = "0.4.1-0.20260313174735-243815fa23b2"
+	t.Cleanup(func() { version.Version = orig })
+
+	stubUpgradeCheckers(t, "0.4.0", false)
+
+	cmdOut, err := executeUpgradeCommand(t, app)
+	require.NoError(t, err)
+	assert.Contains(t, cmdOut, "already up to date")
+	assert.Contains(t, appBuf.String(), "up_to_date")
+	assert.NotContains(t, cmdOut, "update available")
+}
+
 // TestUpgradeOutputGoesToWriter verifies output uses cmd.OutOrStdout(), not os.Stdout.
 func TestUpgradeOutputGoesToWriter(t *testing.T) {
 	app, _ := setupPeopleTestApp(t)
diff --git a/internal/commands/version_compare.go b/internal/commands/version_compare.go
new file mode 100644
index 000000000..73d57d1b2
--- /dev/null
+++ b/internal/commands/version_compare.go
@@ -0,0 +1,33 @@
+package commands
+
+import (
+	"strings"
+
+	"golang.org/x/mod/semver"
+)
+
+// isUpdateAvailable reports whether latest is newer than current.
+//
+// Versions are compared as semantic versions with an optional leading "v".
+// This correctly handles prerelease/pseudo versions such as
+// "0.4.1-0.20260313174735-243815fa23b2", which should compare newer than
+// "0.4.0".
+func isUpdateAvailable(current, latest string) bool {
+	current = normalizeSemver(current)
+	latest = normalizeSemver(latest)
+	if !semver.IsValid(current) || !semver.IsValid(latest) {
+		return latest != "" && latest != current
+	}
+	return semver.Compare(latest, current) > 0
+}
+
+func normalizeSemver(v string) string {
+	v = strings.TrimSpace(v)
+	if v == "" {
+		return ""
+	}
+	if !strings.HasPrefix(v, "v") {
+		v = "v" + v
+	}
+	return v
+}
diff --git a/internal/commands/version_compare_test.go b/internal/commands/version_compare_test.go
new file mode 100644
index 000000000..0208b8b8b
--- /dev/null
+++ b/internal/commands/version_compare_test.go
@@ -0,0 +1,27 @@
+package commands
+
+import "testing"
+
+func TestIsUpdateAvailable(t *testing.T) {
+	tests := []struct {
+		name    string
+		current string
+		latest  string
+		want    bool
+	}{
+		{name: "newer stable release", current: "1.0.0", latest: "1.1.0", want: true},
+		{name: "same version", current: "1.0.0", latest: "1.0.0", want: false},
+		{name: "older latest suppressed", current: "1.1.0", latest: "1.0.0", want: false},
+		{name: "pseudo current newer than older release", current: "0.4.1-0.20260313174735-243815fa23b2", latest: "0.4.0", want: false},
+		{name: "release newer than pseudo prerelease of same base", current: "0.4.1-0.20260313174735-243815fa23b2", latest: "0.4.1", want: true},
+		{name: "invalid fallback treats different as update", current: "custom-build", latest: "1.0.0", want: true},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			if got := isUpdateAvailable(tt.current, tt.latest); got != tt.want {
+				t.Fatalf("isUpdateAvailable(%q, %q) = %v, want %v", tt.current, tt.latest, got, tt.want)
+			}
+		})
+	}
+}