diff --git a/packages/cli/src/commands/update.ts b/packages/cli/src/commands/update.ts
index 81bc72e2e..d70ead6c3 100644
--- a/packages/cli/src/commands/update.ts
+++ b/packages/cli/src/commands/update.ts
@@ -81,7 +81,7 @@ async function runUpdate(cwd: string, config: cliConfig.Config, options: UpdateO
 	const components = options.components;
 	const registryIndex = await registry.getRegistryIndex();
 
-	const componentDir = path.resolve(config.resolvedPaths.components, "ui");
+	const componentDir = path.resolve(config.resolvedPaths.ui);
 	if (!existsSync(componentDir)) {
 		throw error(`Component directory ${color.cyan(componentDir)} does not exist.`);
 	}
diff --git a/packages/cli/test/fixtures/config-custom/components.json b/packages/cli/test/fixtures/config-custom/components.json
new file mode 100644
index 000000000..f3c82e124
--- /dev/null
+++ b/packages/cli/test/fixtures/config-custom/components.json
@@ -0,0 +1,16 @@
+{
+	"style": "new-york",
+	"tailwind": {
+		"config": "custom-tailwind.config.js",
+		"css": "src/custom-app.pcss",
+		"baseColor": "zinc"
+	},
+	"aliases": {
+		"components": "$lib/custom-components",
+		"utils": "$lib/custom-utils",
+		"ui": "$lib/components/custom-ui",
+		"hooks": "$lib/custom-hooks"
+	},
+	"typescript": true,
+	"registry": "https://next.shadcn-svelte.com/registry"
+}
diff --git a/packages/cli/test/fixtures/config-custom/package.json b/packages/cli/test/fixtures/config-custom/package.json
new file mode 100644
index 000000000..7e8e48ce0
--- /dev/null
+++ b/packages/cli/test/fixtures/config-custom/package.json
@@ -0,0 +1,16 @@
+{
+	"name": "test-cli-config-full",
+	"version": "0.0.0",
+	"private": true,
+	"devDependencies": {
+		"@sveltejs/adapter-auto": "^3.0.0",
+		"@sveltejs/kit": "^2.0.0",
+		"@sveltejs/vite-plugin-svelte": "^3.0.0",
+		"svelte": "^4.2.7",
+		"svelte-check": "^3.6.0",
+		"tslib": "^2.4.1",
+		"typescript": "^5.0.0",
+		"vite": "^5.0.3"
+	},
+	"type": "module"
+}
diff --git a/packages/cli/test/fixtures/config-custom/tsconfig.json b/packages/cli/test/fixtures/config-custom/tsconfig.json
new file mode 100644
index 000000000..a8f10c8e3
--- /dev/null
+++ b/packages/cli/test/fixtures/config-custom/tsconfig.json
@@ -0,0 +1,14 @@
+{
+	"extends": "./.svelte-kit/tsconfig.json",
+	"compilerOptions": {
+		"allowJs": true,
+		"checkJs": true,
+		"esModuleInterop": true,
+		"forceConsistentCasingInFileNames": true,
+		"resolveJsonModule": true,
+		"skipLibCheck": true,
+		"sourceMap": true,
+		"strict": true,
+		"moduleResolution": "bundler"
+	}
+}
diff --git a/packages/cli/test/utils/get-config.spec.ts b/packages/cli/test/utils/get-config.spec.ts
index 453f196e3..7e559319e 100644
--- a/packages/cli/test/utils/get-config.spec.ts
+++ b/packages/cli/test/utils/get-config.spec.ts
@@ -175,4 +175,32 @@ describe("getConfig", () => {
 			registry: `${SITE_BASE_URL}/registry`,
 		});
 	});
+
+	it("handles cases where a full custom config is present", async () => {
+		expect(await getConf("config-custom")).toEqual({
+			style: "new-york",
+			tailwind: {
+				config: "custom-tailwind.config.js",
+				css: "src/custom-app.pcss",
+				baseColor: "zinc",
+			},
+			aliases: {
+				components: "$lib/custom-components",
+				utils: "$lib/custom-utils",
+				ui: "$lib/components/custom-ui",
+				hooks: "$lib/custom-hooks",
+			},
+			resolvedPaths: {
+				tailwindConfig: resolvePath("../fixtures/config-custom/custom-tailwind.config.js"),
+				tailwindCss: resolvePath("../fixtures/config-custom/src/custom-app.pcss"),
+				cwd: resolvePath("../fixtures/config-custom"),
+				components: resolvePath("../fixtures/config-custom/src/lib/custom-components"),
+				utils: resolvePath("../fixtures/config-custom/src/lib/custom-utils"),
+				ui: resolvePath("../fixtures/config-custom/src/lib/components/custom-ui"),
+				hooks: resolvePath("../fixtures/config-custom/src/lib/custom-hooks"),
+			},
+			typescript: true,
+			registry: `${SITE_BASE_URL}/registry`,
+		});
+	});
 });