diff --git a/src/slic3r/plugin/PluginFsUtils.cpp b/src/slic3r/plugin/PluginFsUtils.cpp
index 7956d01bb0..4a5d16ff9c 100644
--- a/src/slic3r/plugin/PluginFsUtils.cpp
+++ b/src/slic3r/plugin/PluginFsUtils.cpp
@@ -754,7 +754,14 @@ bool read_install_state(const boost::filesystem::path& plugin_dir, PluginDescrip
     // truth for a cloud plugin's installed version: it records the version fetched from
     // the cloud at install time, independent of the (possibly stale) manifest/PEP723
     // header that scan_directory parses into entry.version.
-    if (!state.installed_version.empty())
+    //
+    // A local plugin has no cloud copy to diverge from: the entry file's own header is the only
+    // source of truth for its version. Trusting the sidecar there would pin the version shown
+    // in the UI to whatever it was at first install, even after the file is edited.
+    const bool is_local_install = state.installed_from == "local" && state.cloud_uuid.empty();
+    if (is_local_install && !entry.version.empty())
+        entry.installed_version = entry.version;
+    else if (!state.installed_version.empty())
         entry.installed_version = state.installed_version;
     if (!state.cloud_uuid.empty())
         entry.cloud = CloudPluginState{state.cloud_uuid, true, false, false};
diff --git a/tests/slic3rutils/test_plugin_install.cpp b/tests/slic3rutils/test_plugin_install.cpp
index b860486979..0f3b9a7fcf 100644
--- a/tests/slic3rutils/test_plugin_install.cpp
+++ b/tests/slic3rutils/test_plugin_install.cpp
@@ -144,3 +144,43 @@ TEST_CASE("install-state sidecar is the source of truth for a cloud plugin's ins
     read_install_state(plugin_dir, scanned);
     CHECK(scanned.installed_version == "1.2.0");
 }
+
+TEST_CASE("a local plugin's installed version follows its entry file header", "[PluginInstall]")
+{
+    ScopedDataDir data_dir_guard("local-installed-version");
+
+    const fs::path plugin_dir = data_dir_guard.dir / "plugin";
+    fs::create_directories(plugin_dir);
+
+    // Sidecar written when the local plugin was first installed at 1.0.0.
+    PluginInstallState state;
+    state.installed_from    = "local";
+    state.installed_version = "1.0.0";
+    REQUIRE(write_install_state(plugin_dir, state));
+
+    // The user then edited the plugin file: the freshly scanned header says 1.1.0.
+    PluginDescriptor scanned;
+    scanned.version = "1.1.0";
+    REQUIRE(read_install_state(plugin_dir, scanned));
+    CHECK(scanned.installed_version == "1.1.0");
+}
+
+TEST_CASE("an unsubscribed cloud plugin follows its header version", "[PluginInstall]")
+{
+    ScopedDataDir data_dir_guard("unsubscribed-installed-version");
+
+    const fs::path plugin_dir = data_dir_guard.dir / "plugin";
+    fs::create_directories(plugin_dir);
+
+    // What keep_installed_plugin_as_local leaves behind: a normal local package. The sidecar still
+    // holds the version fetched from the cloud (1.2.0), but the header (1.0.0) is the source of truth.
+    PluginInstallState state;
+    state.installed_from    = "local";
+    state.installed_version = "1.2.0";
+    REQUIRE(write_install_state(plugin_dir, state));
+
+    PluginDescriptor scanned;
+    scanned.version = "1.0.0";
+    REQUIRE(read_install_state(plugin_dir, scanned));
+    CHECK(scanned.installed_version == "1.0.0");
+}