A system and method are disclosed for remotely updating a software application on both thin client and non-thin client workstations while the software application is open on the client workstation. The system includes a server-side module and a client-side module. The method involves the server receiving the new software application and then either automatically pushing it onto each client or receiving a request from a registered client to have the new software program installed. The state of the user's application may optionally be saved during the install and restored after the automatic upgrading and installing of the segment of the software application. After the new software application has been successfully installed, the cache from the previous application is invalidated. Control is then transferred back to the client.