diff --git a/pkg/services/pluginsintegration/plugininstaller/service.go b/pkg/services/pluginsintegration/plugininstaller/service.go
index b83563893a4..543d354c425 100644
--- a/pkg/services/pluginsintegration/plugininstaller/service.go
+++ b/pkg/services/pluginsintegration/plugininstaller/service.go
@@ -101,7 +101,12 @@ func (s *Service) installPluginsWithTimeout(pluginsToInstall []setting.InstallPl
 	}
 }
 
-func (s *Service) shouldUpdate(ctx context.Context, pluginID, currentVersion string) bool {
+func (s *Service) shouldUpdate(ctx context.Context, pluginID, currentVersion string, pluginURL string) bool {
+	// If the plugin is installed from a URL, we cannot check for updates as we do not have the version information
+	// from the repository. Therefore, we assume that the plugin should be updated if the URL is provided.
+	if pluginURL != "" {
+		return true
+	}
 	info, err := s.pluginRepo.GetPluginArchiveInfo(ctx, pluginID, "", repo.NewCompatOpts(s.cfg.BuildVersion, runtime.GOOS, runtime.GOARCH))
 	if err != nil {
 		s.log.Error("Failed to get plugin info", "pluginId", pluginID, "error", err)
@@ -128,7 +133,7 @@ func (s *Service) installPlugins(ctx context.Context, pluginsToInstall []setting
 				}
 				// The plugin is installed but it's not pinned to a specific version
 				// Check if there is a newer version available
-				if !s.shouldUpdate(ctx, installPlugin.ID, p.Info.Version) {
+				if !s.shouldUpdate(ctx, installPlugin.ID, p.Info.Version, installPlugin.URL) {
 					continue
 				}
 			}
diff --git a/pkg/services/pluginsintegration/plugininstaller/service_test.go b/pkg/services/pluginsintegration/plugininstaller/service_test.go
index 25afcf94ba8..1d6c3059eac 100644
--- a/pkg/services/pluginsintegration/plugininstaller/service_test.go
+++ b/pkg/services/pluginsintegration/plugininstaller/service_test.go
@@ -144,6 +144,12 @@ func TestService_Run(t *testing.T) {
 			pluginsToInstallSync: []setting.InstallPlugin{{ID: "myplugin"}},
 			pluginsToInstall:     []setting.InstallPlugin{{ID: "myplugin2"}},
 		},
+		{
+			name:                 "should install a plugin with a URL regardless of versioning",
+			shouldInstall:        true,
+			pluginsToInstallSync: []setting.InstallPlugin{{ID: "our-plugin-datasource", URL: "https://s3.our.domain/grafana-plugins/our-plugin-datasource-1.2.1+linux.zip"}},
+			existingPlugins:      []*plugins.Plugin{{JSONData: plugins.JSONData{ID: "our-plugin-datasource", Info: plugins.Info{Version: "1.2.2"}}}},
+		},
 	}
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
diff --git a/pkg/setting/setting_plugins_test.go b/pkg/setting/setting_plugins_test.go
index 4a5437548ed..af1d3f43561 100644
--- a/pkg/setting/setting_plugins_test.go
+++ b/pkg/setting/setting_plugins_test.go
@@ -394,6 +394,17 @@ func Test_migrateInstallPluginsToPreinstallPluginsSync(t *testing.T) {
 				},
 			},
 		},
+		{name: "parse private plugin",
+			installPluginsVal: "https://s3.our.domain/grafana-plugins/our-plugin-datasource-1.2.0+linux.zip;our-plugin-datasource 1.2.0",
+			preinstallPlugins: map[string]InstallPlugin{},
+			expectedPlugins: map[string]InstallPlugin{
+				"our-plugin-datasource": {
+					ID:      "our-plugin-datasource",
+					Version: "1.2.0",
+					URL:     "https://s3.our.domain/grafana-plugins/our-plugin-datasource-1.2.0+linux.zip",
+				},
+			},
+		},
 	}
 
 	for _, tc := range tests {