diff --git a/cmd/rudder/rudder.go b/cmd/rudder/rudder.go
index 93913be91..71f5325d1 100644
--- a/cmd/rudder/rudder.go
+++ b/cmd/rudder/rudder.go
@@ -81,8 +81,12 @@ func (r *ReleaseModuleServiceServer) RollbackRelease(ctx context.Context, in *re
 	return nil, nil
 }
 
-// UpgradeRelease is not implemented
+// UpgradeRelease upgrades manifests using kubernetes client
 func (r *ReleaseModuleServiceServer) UpgradeRelease(ctx context.Context, in *release.UpgradeReleaseRequest) (*release.UpgradeReleaseResponse, error) {
 	grpclog.Print("upgrade")
-	return nil, nil
+	c := bytes.NewBufferString(in.Current.Manifest)
+	t := bytes.NewBufferString(in.Target.Manifest)
+	err := kubeClient.Update(in.Target.Namespace, c, t, in.Recreate, in.Timeout, in.Wait)
+	// upgrade response object should be changed to include status
+	return &release.UpgradeReleaseResponse{}, err
 }
diff --git a/pkg/proto/hapi/release/modules.pb.go b/pkg/proto/hapi/release/modules.pb.go
index cfe36e572..123eb378a 100644
--- a/pkg/proto/hapi/release/modules.pb.go
+++ b/pkg/proto/hapi/release/modules.pb.go
@@ -158,7 +158,15 @@ func (m *DeleteReleaseResponse) GetResult() *Result {
 }
 
 type UpgradeReleaseRequest struct {
-	Release *Release `protobuf:"bytes,1,opt,name=release" json:"release,omitempty"`
+	Current *Release `protobuf:"bytes,1,opt,name=release" json:"release,omitempty"`
+	Target  *Release `protobuf:"bytes,1,opt,name=release" json:"release,omitempty"`
+	// Performs pods restart for resources if applicable
+	Recreate bool `protobuf:"varint,6,opt,name=recreate" json:"recreate,omitempty"`
+	// timeout specifies the max amount of time any kubernetes client command can run.
+	Timeout int64 `protobuf:"varint,7,opt,name=timeout" json:"timeout,omitempty"`
+	// wait, if true, will wait until all Pods, PVCs, and Services are in a ready state
+	// before marking the release as successful. It will wait for as long as timeout
+	Wait bool `protobuf:"varint,9,opt,name=wait" json:"wait,omitempty"`
 }
 
 func (m *UpgradeReleaseRequest) Reset()                    { *m = UpgradeReleaseRequest{} }
@@ -168,7 +176,7 @@ func (*UpgradeReleaseRequest) Descriptor() ([]byte, []int) { return fileDescript
 
 func (m *UpgradeReleaseRequest) GetRelease() *Release {
 	if m != nil {
-		return m.Release
+		return m.Target
 	}
 	return nil
 }
diff --git a/pkg/rudder/client.go b/pkg/rudder/client.go
index cc3b193ab..1583ac69b 100644
--- a/pkg/rudder/client.go
+++ b/pkg/rudder/client.go
@@ -40,3 +40,14 @@ func InstallRelease(rel *release.InstallReleaseRequest) (*release.InstallRelease
 	client := release.NewReleaseModuleServiceClient(conn)
 	return client.InstallRelease(context.Background(), rel)
 }
+
+// UpgradeReleas calls Rudder UpgradeRelease method which should perform update
+func UpgradeRelease(req *release.UpgradeReleaseRequest) (*release.UpgradeReleaseResponse, error) {
+	conn, err := grpc.Dial(fmt.Sprintf("127.0.0.1:%d", GrpcAddr), grpc.WithInsecure())
+	if err != nil {
+		return nil, err
+	}
+	defer conn.Close()
+	client := release.NewReleaseModuleServiceClient(conn)
+	return client.UpgradeRelease(context.Background(), req)
+}
diff --git a/pkg/tiller/release_modules.go b/pkg/tiller/release_modules.go
index 12d4cdcb2..a377527f6 100644
--- a/pkg/tiller/release_modules.go
+++ b/pkg/tiller/release_modules.go
@@ -28,6 +28,7 @@ import (
 // ReleaseModule is an interface that allows ReleaseServer to run operations on release via either local implementation or Rudder service
 type ReleaseModule interface {
 	Create(r *release.Release, req *services.InstallReleaseRequest, env *environment.Environment) error
+	Update(current, target *release.Release, req *services.UpdateReleaseRequest, env *environment.Environment) error
 }
 
 // LocalReleaseModule is a local implementation of ReleaseModule
@@ -39,6 +40,12 @@ func (m *LocalReleaseModule) Create(r *release.Release, req *services.InstallRel
 	return env.KubeClient.Create(r.Namespace, b, req.Timeout, req.Wait)
 }
 
+func (m *LocalReleaseModule) Update(current, target *release.Release, req *services.UpdateReleaseRequest, env *environment.Environment) error {
+	c := bytes.NewBufferString(current.Manifest)
+	t := bytes.NewBufferString(target.Manifest)
+	return env.KubeClient.Update(target.Namespace, c, t, req.Recreate, req.Timeout, req.Wait)
+}
+
 // RemoteReleaseModule is a ReleaseModule which calls Rudder service to operate on a release
 type RemoteReleaseModule struct{}
 
@@ -48,3 +55,16 @@ func (m *RemoteReleaseModule) Create(r *release.Release, req *services.InstallRe
 	_, err := rudder.InstallRelease(request)
 	return err
 }
+
+// Update calls rudder.UpgradeRelease
+func (m *RemoteReleaseModule) Update(current, target *release.Release, req *services.UpdateReleaseRequest, env *environment.Environment) error {
+	req := &release.UpgradeReleaseRequest{
+		Current:  current,
+		Target:   target,
+		Recreate: req.Recreate,
+		Timeout:  req.Timeout,
+		Wait:     req.Wait,
+	}
+	_, err := rudder.UpgradeRelease(req)
+	return err
+}
diff --git a/pkg/tiller/release_server.go b/pkg/tiller/release_server.go
index 4d56465cb..ea5cafd02 100644
--- a/pkg/tiller/release_server.go
+++ b/pkg/tiller/release_server.go
@@ -332,8 +332,7 @@ func (s *ReleaseServer) performUpdate(originalRelease, updatedRelease *release.R
 			return res, err
 		}
 	}
-
-	if err := s.performKubeUpdate(originalRelease, updatedRelease, req.Recreate, req.Timeout, req.Wait); err != nil {
+	if err := s.ReleaseModule.Update(originalRelease, updatedRelease, req, s.env); err != nil {
 		msg := fmt.Sprintf("Upgrade %q failed: %s", updatedRelease.Name, err)
 		log.Printf("warning: %s", msg)
 		originalRelease.Info.Status.Code = release.Status_SUPERSEDED
@@ -520,7 +519,7 @@ func (s *ReleaseServer) performRollback(currentRelease, targetRelease *release.R
 		}
 	}
 
-	if err := s.performKubeUpdate(currentRelease, targetRelease, req.Recreate, req.Timeout, req.Wait); err != nil {
+	if err := s.ReleaseModule.Update(currentRelease, targetRelease, req); err != nil {
 		msg := fmt.Sprintf("Rollback %q failed: %s", targetRelease.Name, err)
 		log.Printf("warning: %s", msg)
 		currentRelease.Info.Status.Code = release.Status_SUPERSEDED
@@ -546,13 +545,6 @@ func (s *ReleaseServer) performRollback(currentRelease, targetRelease *release.R
 	return res, nil
 }
 
-func (s *ReleaseServer) performKubeUpdate(currentRelease, targetRelease *release.Release, recreate bool, timeout int64, shouldWait bool) error {
-	kubeCli := s.env.KubeClient
-	current := bytes.NewBufferString(currentRelease.Manifest)
-	target := bytes.NewBufferString(targetRelease.Manifest)
-	return kubeCli.Update(targetRelease.Namespace, current, target, recreate, timeout, shouldWait)
-}
-
 // prepareRollback finds the previous release and prepares a new release object with
 //  the previous release's configuration
 func (s *ReleaseServer) prepareRollback(req *services.RollbackReleaseRequest) (*release.Release, *release.Release, error) {
@@ -902,7 +894,7 @@ func (s *ReleaseServer) performRelease(r *release.Release, req *services.Install
 		// so as to append to the old release's history
 		r.Version = old.Version + 1
 
-		if err := s.performKubeUpdate(old, r, false, req.Timeout, req.Wait); err != nil {
+		if err := s.ReleaseModule.Update(old, r, req, s.env); err != nil {
 			msg := fmt.Sprintf("Release replace %q failed: %s", r.Name, err)
 			log.Printf("warning: %s", msg)
 			old.Info.Status.Code = release.Status_SUPERSEDED