diff --git a/src/Squirrel/UpdateManager.ApplyReleases.cs b/src/Squirrel/UpdateManager.ApplyReleases.cs
index 72a3649a3..84d790a3d 100644
--- a/src/Squirrel/UpdateManager.ApplyReleases.cs
+++ b/src/Squirrel/UpdateManager.ApplyReleases.cs
@@ -299,6 +299,10 @@ Task<string> installPackageToAppDir(UpdateInfo updateInfo, ReleaseEntry release,
 
                     target.Create();
 
+                    // Create the .not-finished file before extraction is started
+                    var notFinishedFilePath = Path.Combine(target.FullName, ".not-finished");
+                    File.WriteAllText(notFinishedFilePath, "");
+
                     this.Log().Info("Writing files to app directory: {0}", target.FullName);
                     await ReleasePackage.ExtractZipForInstall(
                         Path.Combine(updateInfo.PackageDirectory, release.Filename),
@@ -306,6 +310,11 @@ await ReleasePackage.ExtractZipForInstall(
                         rootAppDirectory,
                         progressCallback).ConfigureAwait(false);
 
+                    // Delete the .not-finished file after extraction is completed
+                    this.ErrorIfThrows(() => {
+                        File.Delete(notFinishedFilePath);
+                    }, "Couldn't delete file: " + notFinishedFilePath);
+
                     return target.FullName;
                 });
             }
diff --git a/src/StubExecutable/StubExecutable.cpp b/src/StubExecutable/StubExecutable.cpp
index a0042646b..64489812e 100644
--- a/src/StubExecutable/StubExecutable.cpp
+++ b/src/StubExecutable/StubExecutable.cpp
@@ -6,6 +6,12 @@
 
 using namespace std;
 
+bool FileExists(const std::wstring& filePath)
+{
+    DWORD fileAttributes = GetFileAttributes(filePath.c_str());
+    return (fileAttributes != INVALID_FILE_ATTRIBUTES) && !(fileAttributes & FILE_ATTRIBUTE_DIRECTORY);
+}
+
 wchar_t* FindRootAppDir()
 {
     wchar_t* ourDirectory = new wchar_t[MAX_PATH];
@@ -67,6 +73,13 @@ std::wstring FindLatestAppDir()
 
         version::Semver200_version thisVer(s);
 
+        // Skip the directory which contains a .not-finished file
+        std::wstring appFolder = fileInfo.cFileName;
+        std::wstring dirPath = ourDir.substr(0, ourDir.size() - 5) + appFolder;
+        if (FileExists(dirPath + L"\\.not-finished")) {
+            continue;
+        }
+
         if (thisVer > acc) {
             acc = thisVer;
             acc_s = appVer;
diff --git a/src/Update/Program.cs b/src/Update/Program.cs
index 5413f0aa4..0bc21be89 100644
--- a/src/Update/Program.cs
+++ b/src/Update/Program.cs
@@ -486,7 +486,7 @@ static void ProcessStart(string exeName, string arguments, bool shouldWait)
                     Utility.AppDirForRelease(appDir, x),
                     Utility.AppDirForVersion(appDir, new SemanticVersion(x.Version.Version.Major, x.Version.Version.Minor, x.Version.Version.Build, ""))
                 })
-                .FirstOrDefault(x => Directory.Exists(x));
+                .FirstOrDefault(x => Directory.Exists(x) && !File.Exists(Path.Combine(x, ".not-finished")));
 
             // Check for the EXE name they want
             var targetExe = new FileInfo(Path.Combine(latestAppDir, exeName.Replace("%20", " ")));