diff --git a/crates/worker/src/cli/command.rs b/crates/worker/src/cli/command.rs
index 54f6ea63..465102de 100644
--- a/crates/worker/src/cli/command.rs
+++ b/crates/worker/src/cli/command.rs
@@ -13,6 +13,7 @@ use crate::p2p::P2PContext;
 use crate::p2p::P2PService;
 use crate::services::discovery::DiscoveryService;
 use crate::services::discovery_updater::DiscoveryUpdater;
+use crate::services::version_checker::VersionChecker;
 use crate::state::system_state::SystemState;
 use crate::TaskHandles;
 use alloy::primitives::U256;
@@ -169,6 +170,10 @@ pub async fn execute_command(
     cancellation_token: CancellationToken,
     task_handles: TaskHandles,
 ) -> Result<(), Box<dyn std::error::Error + Send + Sync>> {
+    // Check for updates once per day on first CLI usage
+    let version_checker = VersionChecker::new();
+    version_checker.check_for_updates_if_needed().await;
+
     match command {
         Commands::Run {
             port: _,
diff --git a/crates/worker/src/services/mod.rs b/crates/worker/src/services/mod.rs
index 4903673d..cb27e86c 100644
--- a/crates/worker/src/services/mod.rs
+++ b/crates/worker/src/services/mod.rs
@@ -1,2 +1,3 @@
 pub mod discovery;
 pub mod discovery_updater;
+pub mod version_checker;
diff --git a/crates/worker/src/services/version_checker.rs b/crates/worker/src/services/version_checker.rs
new file mode 100644
index 00000000..18f2ef1e
--- /dev/null
+++ b/crates/worker/src/services/version_checker.rs
@@ -0,0 +1,249 @@
+use crate::console::Console;
+use anyhow::Result;
+use chrono::{DateTime, Utc};
+use directories::UserDirs;
+use log::debug;
+use reqwest::Client;
+use serde::{Deserialize, Serialize};
+use std::fs;
+use std::path::PathBuf;
+use tokio::time::Duration;
+
+const GITHUB_API_URL: &str =
+    "https://api.github.com/repos/PrimeIntellect-ai/protocol/releases/latest";
+const VERSION_CHECK_FILE: &str = ".prime_worker_version_check";
+const HTTP_TIMEOUT: Duration = Duration::from_secs(10);
+
+#[derive(Debug, Deserialize)]
+struct GitHubRelease {
+    tag_name: String,
+    html_url: String,
+}
+
+#[derive(Debug, Serialize, Deserialize)]
+struct VersionCheckCache {
+    last_check: DateTime<Utc>,
+    last_notified_version: Option<String>,
+}
+
+pub struct VersionChecker {
+    current_version: String,
+    cache_file_path: PathBuf,
+    client: Client,
+}
+
+impl VersionChecker {
+    pub fn new() -> Self {
+        let current_version = option_env!("WORKER_VERSION")
+            .unwrap_or(env!("CARGO_PKG_VERSION"))
+            .to_string();
+
+        let cache_file_path = UserDirs::new()
+            .map(|dirs| dirs.home_dir().to_path_buf())
+            .unwrap_or_else(|| PathBuf::from("."))
+            .join(VERSION_CHECK_FILE);
+
+        let client = Client::builder()
+            .timeout(HTTP_TIMEOUT)
+            .user_agent(format!("prime-worker/{}", current_version))
+            .build()
+            .unwrap_or_else(|_| Client::new());
+
+        Self {
+            current_version,
+            cache_file_path,
+            client,
+        }
+    }
+
+    /// Check for updates if it's been more than a day since last check
+    pub async fn check_for_updates_if_needed(&self) {
+        if !self.should_check_today() {
+            debug!("Version check already performed today, skipping");
+            return;
+        }
+
+        if let Err(e) = self.perform_version_check().await {
+            debug!("Version check failed: {}", e);
+        }
+    }
+
+    fn should_check_today(&self) -> bool {
+        match self.load_cache() {
+            Ok(cache) => {
+                let now = Utc::now();
+                let time_since_check = now.signed_duration_since(cache.last_check);
+                time_since_check.num_hours() >= 24
+            }
+            Err(_) => true, // If we can't read cache, perform check
+        }
+    }
+
+    async fn perform_version_check(&self) -> Result<()> {
+        debug!("Checking for Prime Worker updates...");
+
+        let latest_release = self.fetch_latest_release().await?;
+        let latest_version = self.clean_version_tag(&latest_release.tag_name);
+
+        // Update cache with current check time
+        let mut cache = self.load_cache().unwrap_or_else(|_| VersionCheckCache {
+            last_check: Utc::now(),
+            last_notified_version: None,
+        });
+        cache.last_check = Utc::now();
+
+        if self.is_newer_version(&latest_version) {
+            // Only show notification if we haven't already notified about this version
+            if cache.last_notified_version.as_ref() != Some(&latest_version) {
+                self.show_update_notification(&latest_version, &latest_release.html_url);
+                cache.last_notified_version = Some(latest_version);
+            }
+        } else {
+            debug!("Prime Worker is up to date ({})", self.current_version);
+        }
+
+        // Save updated cache
+        if let Err(e) = self.save_cache(&cache) {
+            debug!("Failed to save version check cache: {}", e);
+        }
+
+        Ok(())
+    }
+
+    async fn fetch_latest_release(&self) -> Result<GitHubRelease> {
+        let response = self
+            .client
+            .get(GITHUB_API_URL)
+            .header("Accept", "application/vnd.github.v3+json")
+            .send()
+            .await?;
+
+        if !response.status().is_success() {
+            return Err(anyhow::anyhow!(
+                "GitHub API request failed with status: {}",
+                response.status()
+            ));
+        }
+
+        let release: GitHubRelease = response.json().await?;
+        Ok(release)
+    }
+
+    fn clean_version_tag(&self, tag: &str) -> String {
+        // Remove 'v' prefix if present (e.g., "v0.2.12" -> "0.2.12")
+        tag.strip_prefix('v').unwrap_or(tag).to_string()
+    }
+
+    fn is_newer_version(&self, latest_version: &str) -> bool {
+        match self.compare_versions(&self.current_version, latest_version) {
+            Ok(is_older) => is_older,
+            Err(_) => {
+                // If version comparison fails, assume we should show the notification
+                // This handles cases with non-standard version formats
+                debug!(
+                    "Could not compare versions: current='{}', latest='{}'",
+                    self.current_version, latest_version
+                );
+                latest_version != self.current_version
+            }
+        }
+    }
+
+    fn compare_versions(&self, current: &str, latest: &str) -> Result<bool> {
+        // Simple semantic version comparison
+        let current_parts: Vec<u32> = current
+            .split('.')
+            .take(3)
+            .map(|s| s.parse().unwrap_or(0))
+            .collect();
+
+        let latest_parts: Vec<u32> = latest
+            .split('.')
+            .take(3)
+            .map(|s| s.parse().unwrap_or(0))
+            .collect();
+
+        // Pad with zeros to ensure we have exactly 3 numbers [major, minor, patch]
+        #[allow(clippy::get_first)]
+        let current_parts = [
+            current_parts.get(0).copied().unwrap_or(0),
+            current_parts.get(1).copied().unwrap_or(0),
+            current_parts.get(2).copied().unwrap_or(0),
+        ];
+
+        #[allow(clippy::get_first)]
+        let latest_parts = [
+            latest_parts.get(0).copied().unwrap_or(0),
+            latest_parts.get(1).copied().unwrap_or(0),
+            latest_parts.get(2).copied().unwrap_or(0),
+        ];
+
+        Ok(latest_parts > current_parts)
+    }
+
+    fn show_update_notification(&self, latest_version: &str, download_url: &str) {
+        Console::section("📦 UPDATE AVAILABLE");
+        Console::warning("A newer version of Prime Worker is available!");
+        Console::info("Current Version", &self.current_version);
+        Console::info("Latest Version", latest_version);
+        Console::info("Update Command", "curl -sSL https://raw.githubusercontent.com/PrimeIntellect-ai/protocol/main/crates/worker/scripts/install.sh | bash");
+        Console::info("Release Notes", download_url);
+        println!();
+    }
+
+    fn load_cache(&self) -> Result<VersionCheckCache> {
+        let content = fs::read_to_string(&self.cache_file_path)?;
+        let cache: VersionCheckCache = serde_json::from_str(&content)?;
+        Ok(cache)
+    }
+
+    fn save_cache(&self, cache: &VersionCheckCache) -> Result<()> {
+        let content = serde_json::to_string_pretty(cache)?;
+        if let Some(parent) = self.cache_file_path.parent() {
+            fs::create_dir_all(parent)?;
+        }
+        fs::write(&self.cache_file_path, content)?;
+        Ok(())
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_version_comparison() {
+        let checker = VersionChecker::new();
+
+        // Test basic version comparison
+        assert!(checker.compare_versions("0.2.11", "0.2.12").unwrap());
+        assert!(checker.compare_versions("0.2.11", "0.3.0").unwrap());
+        assert!(checker.compare_versions("1.0.0", "1.0.1").unwrap());
+
+        // Test equal versions
+        assert!(!checker.compare_versions("0.2.12", "0.2.12").unwrap());
+
+        // Test current is newer
+        assert!(!checker.compare_versions("0.2.12", "0.2.11").unwrap());
+        assert!(!checker.compare_versions("1.0.0", "0.9.9").unwrap());
+    }
+
+    #[test]
+    fn test_clean_version_tag() {
+        let checker = VersionChecker::new();
+
+        assert_eq!(checker.clean_version_tag("v0.2.12"), "0.2.12");
+        assert_eq!(checker.clean_version_tag("0.2.12"), "0.2.12");
+        assert_eq!(checker.clean_version_tag("v1.0.0-beta"), "1.0.0-beta");
+    }
+
+    #[tokio::test]
+    async fn test_version_checker_creation() {
+        let checker = VersionChecker::new();
+        assert!(!checker.current_version.is_empty());
+        assert!(checker
+            .cache_file_path
+            .to_string_lossy()
+            .contains(VERSION_CHECK_FILE));
+    }
+}