diff --git a/modules/cli/src/main/scala/scala/cli/commands/dependencyupdate/DependencyUpdate.scala b/modules/cli/src/main/scala/scala/cli/commands/dependencyupdate/DependencyUpdate.scala
index 070ace2f7e..67f6ccb4da 100644
--- a/modules/cli/src/main/scala/scala/cli/commands/dependencyupdate/DependencyUpdate.scala
+++ b/modules/cli/src/main/scala/scala/cli/commands/dependencyupdate/DependencyUpdate.scala
@@ -5,6 +5,7 @@ import caseapp.core.help.HelpFormat
 
 import scala.build.actionable.ActionableDependencyHandler
 import scala.build.actionable.ActionableDiagnostic.ActionableDependencyUpdateDiagnostic
+import scala.build.internal.Constants
 import scala.build.options.{BuildOptions, Scope}
 import scala.build.{CrossSources, Logger, Position, Sources}
 import scala.cli.CurrentParams
@@ -60,7 +61,9 @@ object DependencyUpdate extends ScalaCommand[DependencyUpdateOptions] {
     val actionableMainUpdateDiagnostics = generateActionableUpdateDiagnostic(Scope.Main)
     val actionableTestUpdateDiagnostics = generateActionableUpdateDiagnostic(Scope.Test)
     val actionableUpdateDiagnostics =
-      (actionableMainUpdateDiagnostics ++ actionableTestUpdateDiagnostics).distinct
+      (actionableMainUpdateDiagnostics ++ actionableTestUpdateDiagnostics)
+        .distinct
+        .filter(_.dependencyModuleName != Constants.toolkitTestName)
 
     if (options.all)
       updateDependencies(actionableUpdateDiagnostics, logger)
diff --git a/modules/integration/src/test/scala/scala/cli/integration/DependencyUpdateTests.scala b/modules/integration/src/test/scala/scala/cli/integration/DependencyUpdateTests.scala
index 9841473672..c9c948dd86 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/DependencyUpdateTests.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/DependencyUpdateTests.scala
@@ -61,7 +61,7 @@ class DependencyUpdateTests extends ScalaCliSuite {
     }
   }
 
-  test("update typelevel toolkit dependence") {
+  test("update typelevel toolkit dependency") {
     val toolkitVersion = "0.0.1"
     val testInputs = TestInputs(
       os.rel / "Foo.scala" ->
@@ -79,7 +79,7 @@ class DependencyUpdateTests extends ScalaCliSuite {
       os.proc(TestUtil.cli, "--power", "dependency-update", "--all", ".")
         .call(cwd = root)
 
-      val toolkitDirective = "//> using toolkit \"(.*)\"".r
+      val toolkitDirective = "//> using toolkit \"typelevel:(.*)\"".r
       val updatedToolkitVersionOpt = {
         val regexMatch = toolkitDirective.findFirstMatchIn(os.read(root / "Foo.scala"))
         regexMatch.map(_.group(1))
diff --git a/modules/options/src/main/scala/scala/build/actionable/ActionableDependencyHandler.scala b/modules/options/src/main/scala/scala/build/actionable/ActionableDependencyHandler.scala
index e06a8dec2d..8677fb831c 100644
--- a/modules/options/src/main/scala/scala/build/actionable/ActionableDependencyHandler.scala
+++ b/modules/options/src/main/scala/scala/build/actionable/ActionableDependencyHandler.scala
@@ -3,14 +3,15 @@ package scala.build.actionable
 import coursier.Versions
 import coursier.core.{Latest, Version}
 import coursier.parse.RepositoryParser
-import dependency._
+import dependency.*
 
 import scala.build.EitherCps.{either, value}
 import scala.build.Positioned
-import scala.build.actionable.ActionableDiagnostic._
+import scala.build.actionable.ActionableDiagnostic.*
 import scala.build.actionable.errors.ActionableHandlerError
 import scala.build.errors.{BuildException, RepositoryFormatError}
-import scala.build.internal.Util._
+import scala.build.internal.Constants
+import scala.build.internal.Util.*
 import scala.build.options.BuildOptions
 import scala.build.options.ScalaVersionUtil.versions
 import scala.concurrent.duration.DurationInt
@@ -32,14 +33,22 @@ case object ActionableDependencyHandler
     val dependency     = setting.value
     val currentVersion = dependency.version
     val latestVersion  = value(findLatestVersion(buildOptions, dependency))
-    if (Version(latestVersion) > Version(currentVersion) && !isLatestSyntaxVersion(currentVersion))
-      if (dependency.userParams.contains("toolkit"))
+    if Version(latestVersion) > Version(currentVersion) && !isLatestSyntaxVersion(currentVersion)
+    then
+      if dependency.userParams.contains(Constants.toolkitName) &&
+        dependency.module.name != Constants.toolkitTestName
+      then
+        val toolkitSuggestion =
+          if dependency.module.organization == Constants.toolkitOrganization then latestVersion
+          else if dependency.module.organization == Constants.typelevelOrganization then
+            s"typelevel:$latestVersion"
+          else s"${dependency.module.organization}:$latestVersion"
         Some(ActionableDependencyUpdateDiagnostic(
           setting.positions,
           currentVersion,
           latestVersion,
-          dependencyModuleName = "toolkit",
-          suggestion = latestVersion
+          dependencyModuleName = Constants.toolkitName,
+          suggestion = toolkitSuggestion
         ))
       else
         Some(ActionableDependencyUpdateDiagnostic(