diff --git a/crates/lib/src/cli.rs b/crates/lib/src/cli.rs
index 6766671f1..b02791af1 100644
--- a/crates/lib/src/cli.rs
+++ b/crates/lib/src/cli.rs
@@ -123,6 +123,13 @@ pub(crate) struct UpgradeOpts {
     #[clap(long, conflicts_with_all = ["check", "download_only"])]
     pub(crate) from_downloaded: bool,
 
+    /// Upgrade to a different tag of the currently booted image.
+    ///
+    /// This derives the target image by replacing the tag portion of the current
+    /// booted image reference.
+    #[clap(long)]
+    pub(crate) tag: Option<String>,
+
     #[clap(flatten)]
     pub(crate) progress: ProgressOptions,
 }
@@ -1047,7 +1054,19 @@ async fn upgrade(
     let repo = &booted_ostree.repo();
 
     let host = crate::status::get_status(booted_ostree)?.1;
-    let imgref = host.spec.image.as_ref();
+    let current_image = host.spec.image.as_ref();
+
+    // Handle --tag: derive target from current image + new tag
+    let derived_image = if let Some(ref tag) = opts.tag {
+        let image = current_image.ok_or_else(|| {
+            anyhow::anyhow!("--tag requires a booted image with a specified source")
+        })?;
+        Some(image.with_tag(tag)?)
+    } else {
+        None
+    };
+
+    let imgref = derived_image.as_ref().or(current_image);
     let prog: ProgressWriter = opts.progress.try_into()?;
 
     // If there's no specified image, let's be nice and check if the booted system is using rpm-ostree
@@ -1063,7 +1082,9 @@ async fn upgrade(
         }
     }
 
-    let spec = RequiredHostSpec::from_spec(&host.spec)?;
+    let imgref = imgref.ok_or_else(|| anyhow::anyhow!("No image source specified"))?;
+    // Use the derived image reference (if --tag was specified) instead of the spec's image
+    let spec = RequiredHostSpec { image: imgref };
     let booted_image = host
         .status
         .booted
@@ -1071,7 +1092,6 @@ async fn upgrade(
         .map(|b| b.query_image(repo))
         .transpose()?
         .flatten();
-    let imgref = imgref.ok_or_else(|| anyhow::anyhow!("No image source specified"))?;
     // Find the currently queued digest, if any before we pull
     let staged = host.status.staged.as_ref();
     let staged_image = staged.as_ref().and_then(|s| s.image.as_ref());
@@ -1099,16 +1119,17 @@ async fn upgrade(
     }
 
     if opts.check {
-        let imgref = imgref.clone().into();
+        let ostree_imgref = imgref.clone().into();
         let mut imp =
-            crate::deploy::new_importer(repo, &imgref, Some(&booted_ostree.deployment)).await?;
+            crate::deploy::new_importer(repo, &ostree_imgref, Some(&booted_ostree.deployment))
+                .await?;
         match imp.prepare().await? {
             PrepareResult::AlreadyPresent(_) => {
-                println!("No changes in: {imgref:#}");
+                println!("No changes in: {ostree_imgref:#}");
             }
             PrepareResult::Ready(r) => {
                 crate::deploy::check_bootc_label(&r.config);
-                println!("Update available for: {imgref:#}");
+                println!("Update available for: {ostree_imgref:#}");
                 if let Some(version) = r.version() {
                     println!("  Version: {version}");
                 }
@@ -1236,7 +1257,6 @@ async fn upgrade(
 
     Ok(())
 }
-
 pub(crate) fn imgref_for_switch(opts: &SwitchOpts) -> Result<ImageReference> {
     let transport = ostree_container::Transport::try_from(opts.transport.as_str())?;
     let imgref = ostree_container::ImageReference {
@@ -2245,6 +2265,82 @@ mod tests {
         assert_eq!(args.as_slice(), ["container", "image", "pull"]);
     }
 
+    #[test]
+    fn test_parse_upgrade_options() {
+        // Test upgrade with --tag
+        let o = Opt::try_parse_from(["bootc", "upgrade", "--tag", "v1.1"]).unwrap();
+        match o {
+            Opt::Upgrade(opts) => {
+                assert_eq!(opts.tag, Some("v1.1".to_string()));
+            }
+            _ => panic!("Expected Upgrade variant"),
+        }
+
+        // Test that --tag works with --check (should compose naturally)
+        let o = Opt::try_parse_from(["bootc", "upgrade", "--tag", "v1.1", "--check"]).unwrap();
+        match o {
+            Opt::Upgrade(opts) => {
+                assert_eq!(opts.tag, Some("v1.1".to_string()));
+                assert!(opts.check);
+            }
+            _ => panic!("Expected Upgrade variant"),
+        }
+    }
+
+    #[test]
+    fn test_image_reference_with_tag() {
+        // Test basic tag replacement for registry transport
+        let current = ImageReference {
+            image: "quay.io/example/myapp:v1.0".to_string(),
+            transport: "registry".to_string(),
+            signature: None,
+        };
+        let result = current.with_tag("v1.1").unwrap();
+        assert_eq!(result.image, "quay.io/example/myapp:v1.1");
+        assert_eq!(result.transport, "registry");
+
+        // Test tag replacement with digest (digest should be stripped for registry)
+        let current_with_digest = ImageReference {
+            image: "quay.io/example/myapp:v1.0@sha256:abcdef1234567890abcdef1234567890abcdef1234567890abcdef1234567890".to_string(),
+            transport: "registry".to_string(),
+            signature: None,
+        };
+        let result = current_with_digest.with_tag("v2.0").unwrap();
+        assert_eq!(result.image, "quay.io/example/myapp:v2.0");
+
+        // Test that non-registry transport works (containers-storage)
+        let containers_storage = ImageReference {
+            image: "localhost/myapp:v1.0".to_string(),
+            transport: "containers-storage".to_string(),
+            signature: None,
+        };
+        let result = containers_storage.with_tag("v1.1").unwrap();
+        assert_eq!(result.image, "localhost/myapp:v1.1");
+        assert_eq!(result.transport, "containers-storage");
+
+        // Test digest stripping for non-registry transport
+        let containers_storage_with_digest = ImageReference {
+            image:
+                "localhost/myapp:v1.0@sha256:abcdef1234567890abcdef1234567890abcdef1234567890abcdef1234567890"
+                    .to_string(),
+            transport: "containers-storage".to_string(),
+            signature: None,
+        };
+        let result = containers_storage_with_digest.with_tag("v2.0").unwrap();
+        assert_eq!(result.image, "localhost/myapp:v2.0");
+        assert_eq!(result.transport, "containers-storage");
+
+        // Test image without tag (edge case)
+        let no_tag = ImageReference {
+            image: "localhost/myapp".to_string(),
+            transport: "containers-storage".to_string(),
+            signature: None,
+        };
+        let result = no_tag.with_tag("v1.0").unwrap();
+        assert_eq!(result.image, "localhost/myapp:v1.0");
+        assert_eq!(result.transport, "containers-storage");
+    }
+
     #[test]
     fn test_generate_completion_scripts_contain_commands() {
         use clap_complete::aot::{Shell, generate};
diff --git a/crates/lib/src/spec.rs b/crates/lib/src/spec.rs
index bf920413f..15428d451 100644
--- a/crates/lib/src/spec.rs
+++ b/crates/lib/src/spec.rs
@@ -151,6 +151,42 @@ impl ImageReference {
             Ok(format!("{}:{}", self.transport, self.image))
         }
     }
+
+    /// Derive a new image reference by replacing the tag.
+    ///
+    /// For transports with parseable image references (registry, containers-storage),
+    /// uses the OCI Reference API to properly handle tag replacement.
+    /// For other transports (oci, etc.), falls back to string manipulation.
+    pub fn with_tag(&self, new_tag: &str) -> Result<Self> {
+        // Try to parse as an OCI Reference (works for registry and containers-storage)
+        let new_image = if let Ok(reference) = self.image.parse::<Reference>() {
+            // Use the proper OCI API to replace the tag
+            let new_ref = Reference::with_tag(
+                reference.registry().to_string(),
+                reference.repository().to_string(),
+                new_tag.to_string(),
+            );
+            new_ref.to_string()
+        } else {
+            // For other transports like oci: with filesystem paths,
+            // strip any digest first, then replace tag via string manipulation
+            let image_without_digest = self.image.split('@').next().unwrap_or(&self.image);
+
+            // Split on last ':' to separate image:tag
+            let image_part = image_without_digest
+                .rsplit_once(':')
+                .map(|(base, _tag)| base)
+                .unwrap_or(image_without_digest);
+
+            format!("{}:{}", image_part, new_tag)
+        };
+
+        Ok(ImageReference {
+            image: new_image,
+            transport: self.transport.clone(),
+            signature: self.signature.clone(),
+        })
+    }
 }
 
 /// The status of the booted image
diff --git a/docs/src/man/bootc-upgrade.8.md b/docs/src/man/bootc-upgrade.8.md
index df5f0297e..b1b3f3b69 100644
--- a/docs/src/man/bootc-upgrade.8.md
+++ b/docs/src/man/bootc-upgrade.8.md
@@ -69,6 +69,10 @@ Soft reboot allows faster system restart by avoiding full hardware reboot when p
 
     Apply a staged deployment that was previously downloaded with --download-only
 
+**--tag**=*TAG*
+
+    Upgrade to a different tag of the currently booted image
+
 <!-- END GENERATED OPTIONS -->
 
 # EXAMPLES
@@ -85,6 +89,18 @@ Upgrade with soft reboot if possible:
 
     bootc upgrade --apply --soft-reboot=auto
 
+Upgrade to a different tag:
+
+    bootc upgrade --tag v1.2
+
+Check if a specific tag has updates before applying:
+
+    bootc upgrade --tag prod --check
+
+Upgrade to a tag and immediately apply:
+
+    bootc upgrade --tag v2.0 --apply
+
 # SEE ALSO
 
 **bootc**(8), **bootc-switch**(8), **bootc-status**(8), **bootc-rollback**(8)
diff --git a/tmt/plans/integration.fmf b/tmt/plans/integration.fmf
index ff0f69a91..46c58eb55 100644
--- a/tmt/plans/integration.fmf
+++ b/tmt/plans/integration.fmf
@@ -230,4 +230,11 @@ execute:
     how: fmf
     test:
       - /tmt/tests/tests/test-38-install-bootloader-none
+
+/plan-39-upgrade-tag:
+  summary: Test bootc upgrade --tag functionality with containers-storage
+  discover:
+    how: fmf
+    test:
+      - /tmt/tests/tests/test-39-upgrade-tag
 # END GENERATED PLANS
diff --git a/tmt/tests/booted/test-upgrade-tag.nu b/tmt/tests/booted/test-upgrade-tag.nu
new file mode 100644
index 000000000..c3b165143
--- /dev/null
+++ b/tmt/tests/booted/test-upgrade-tag.nu
@@ -0,0 +1,104 @@
+# number: 39
+# tmt:
+#   summary: Test bootc upgrade --tag functionality with containers-storage
+#   duration: 30m
+#
+# This test verifies:
+# - bootc upgrade --tag switches to different tags of the same image
+# - bootc upgrade --check --tag verifies tag availability
+# Test using containers-storage transport to avoid registry dependency
+use std assert
+use tap.nu
+
+# This code runs on *each* boot
+bootc status
+let st = bootc status --json | from json
+let booted = $st.status.booted.image
+
+# Run on the first boot
+def initial_build [] {
+    tap begin "upgrade --tag test"
+
+    let td = mktemp -d
+    cd $td
+
+    # Copy bootc image to local storage
+    bootc image copy-to-storage
+
+    # Build v1 image
+    "FROM localhost/bootc
+RUN echo v1 content > /usr/share/bootc-tag-test.txt
+" | save Dockerfile
+    podman build -t localhost/bootc-tag-test:v1 .
+
+    # Verify v1 content
+    let v = podman run --rm localhost/bootc-tag-test:v1 cat /usr/share/bootc-tag-test.txt | str trim
+    assert equal $v "v1 content"
+
+    # Switch to v1
+    bootc switch --transport containers-storage localhost/bootc-tag-test:v1
+
+    # Build v2 image (different content) - use --force to overwrite Dockerfile
+    "FROM localhost/bootc
+RUN echo v2 content > /usr/share/bootc-tag-test.txt
+" | save --force Dockerfile
+    podman build -t localhost/bootc-tag-test:v2 .
+
+    # Verify v2 content
+    let v = podman run --rm localhost/bootc-tag-test:v2 cat /usr/share/bootc-tag-test.txt | str trim
+    assert equal $v "v2 content"
+
+    tmt-reboot
+}
+
+# Second boot: verify we're on v1, then upgrade to v2 using --tag
+def second_boot [] {
+    print "verifying second boot (v1)"
+
+    # Should be on v1
+    assert equal $booted.image.transport containers-storage
+    assert equal $booted.image.image "localhost/bootc-tag-test:v1"
+
+    # Verify v1 content
+    let t = open /usr/share/bootc-tag-test.txt | str trim
+    assert equal $t "v1 content"
+
+    # Test upgrade --check --tag v2
+    let check_output = bootc upgrade --check --tag v2
+    print $"Check output: ($check_output)"
+
+    # Now upgrade to v2 using --tag
+    bootc upgrade --tag v2
+
+    # Verify we staged an update
+    let st = bootc status --json | from json
+    assert ($st.status.staged != null)
+    let staged = $st.status.staged.image
+    assert equal $staged.image "localhost/bootc-tag-test:v2"
+
+    tmt-reboot
+}
+
+# Third boot: verify we're on v2
+def third_boot [] {
+    print "verifying third boot (v2)"
+
+    # Should be on v2 now
+    assert equal $booted.image.transport containers-storage
+    assert equal $booted.image.image "localhost/bootc-tag-test:v2"
+
+    # Verify v2 content
+    let t = open /usr/share/bootc-tag-test.txt | str trim
+    assert equal $t "v2 content"
+
+    tap ok
+}
+
+def main [] {
+    match $env.TMT_REBOOT_COUNT? {
+        null | "0" => initial_build,
+        "1" => second_boot,
+        "2" => third_boot,
+        $o => { error make { msg: $"Invalid TMT_REBOOT_COUNT ($o)" } },
+    }
+}
diff --git a/tmt/tests/tests.fmf b/tmt/tests/tests.fmf
index da3b8f26b..b26b3ad9c 100644
--- a/tmt/tests/tests.fmf
+++ b/tmt/tests/tests.fmf
@@ -131,3 +131,8 @@
   summary: Test bootc install with --bootloader=none
   duration: 30m
   test: nu booted/test-install-bootloader-none.nu
+
+/test-39-upgrade-tag:
+  summary: Test bootc upgrade --tag functionality with containers-storage
+  duration: 30m
+  test: nu booted/test-upgrade-tag.nu