diff --git a/homeassistant/components/qnap_qsw/update.py b/homeassistant/components/qnap_qsw/update.py
index 70bd4afa880..38a963818d4 100644
--- a/homeassistant/components/qnap_qsw/update.py
+++ b/homeassistant/components/qnap_qsw/update.py
@@ -1,7 +1,7 @@
 """Support for the QNAP QSW update."""
 from __future__ import annotations
 
-from typing import Final
+from typing import Any, Final
 
 from aioqsw.const import (
     QSD_DESCRIPTION,
@@ -16,6 +16,7 @@ from homeassistant.components.update import (
     UpdateDeviceClass,
     UpdateEntity,
     UpdateEntityDescription,
+    UpdateEntityFeature,
 )
 from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import EntityCategory
@@ -51,6 +52,7 @@ async def async_setup_entry(
 class QswUpdate(QswFirmwareEntity, UpdateEntity):
     """Define a QNAP QSW update."""
 
+    _attr_supported_features = UpdateEntityFeature.INSTALL
     entity_description: UpdateEntityDescription
 
     def __init__(
@@ -87,3 +89,13 @@ class QswUpdate(QswFirmwareEntity, UpdateEntity):
         self._attr_release_summary = self.get_device_value(
             QSD_FIRMWARE_CHECK, QSD_DESCRIPTION
         )
+
+    async def async_install(
+        self, version: str | None, backup: bool, **kwargs: Any
+    ) -> None:
+        """Install an update."""
+        await self.coordinator.async_refresh()
+        await self.coordinator.qsw.live_update()
+
+        self._attr_installed_version = self.latest_version
+        self.async_write_ha_state()
diff --git a/tests/components/qnap_qsw/test_update.py b/tests/components/qnap_qsw/test_update.py
index 69f4a3d08b4..26b7157f64d 100644
--- a/tests/components/qnap_qsw/test_update.py
+++ b/tests/components/qnap_qsw/test_update.py
@@ -1,11 +1,32 @@
 """The sensor tests for the QNAP QSW platform."""
 
-from aioqsw.const import API_RESULT, API_VERSION
+from unittest.mock import patch
 
-from homeassistant.const import STATE_OFF
+from aioqsw.const import API_ERROR_CODE, API_ERROR_MESSAGE, API_RESULT, API_VERSION
+
+from homeassistant.components.update import (
+    ATTR_BACKUP,
+    ATTR_IN_PROGRESS,
+    ATTR_INSTALLED_VERSION,
+    ATTR_LATEST_VERSION,
+    DOMAIN as UPDATE_DOMAIN,
+    SERVICE_INSTALL,
+)
+from homeassistant.const import ATTR_ENTITY_ID, STATE_OFF, STATE_ON
 from homeassistant.core import HomeAssistant
 
-from .util import FIRMWARE_INFO_MOCK, FIRMWARE_UPDATE_CHECK_MOCK, async_init_integration
+from .util import (
+    FIRMWARE_INFO_MOCK,
+    FIRMWARE_UPDATE_CHECK_MOCK,
+    USERS_VERIFICATION_MOCK,
+    async_init_integration,
+)
+
+FIRMWARE_UPDATE_LIVE_MOCK = {
+    API_ERROR_CODE: 200,
+    API_ERROR_MESSAGE: "OK",
+    API_RESULT: "None",
+}
 
 
 async def test_qnap_qsw_update(hass: HomeAssistant) -> None:
@@ -15,12 +36,50 @@ async def test_qnap_qsw_update(hass: HomeAssistant) -> None:
 
     update = hass.states.get("update.qsw_m408_4c_firmware_update")
     assert update is not None
-    assert update.state == STATE_OFF
+    assert update.state == STATE_ON
     assert (
-        update.attributes.get("installed_version")
+        update.attributes[ATTR_INSTALLED_VERSION]
         == FIRMWARE_INFO_MOCK[API_RESULT][API_VERSION]
     )
     assert (
-        update.attributes.get("latest_version")
+        update.attributes[ATTR_LATEST_VERSION]
         == FIRMWARE_UPDATE_CHECK_MOCK[API_RESULT][API_VERSION]
     )
+    assert update.attributes[ATTR_IN_PROGRESS] is False
+
+    with patch(
+        "homeassistant.components.qnap_qsw.QnapQswApi.get_firmware_update_check",
+        return_value=FIRMWARE_UPDATE_CHECK_MOCK,
+    ) as mock_firmware_update_check, patch(
+        "homeassistant.components.qnap_qsw.QnapQswApi.get_users_verification",
+        return_value=USERS_VERIFICATION_MOCK,
+    ) as mock_users_verification, patch(
+        "homeassistant.components.qnap_qsw.QnapQswApi.post_firmware_update_live",
+        return_value=FIRMWARE_UPDATE_LIVE_MOCK,
+    ) as mock_firmware_update_live:
+        await hass.services.async_call(
+            UPDATE_DOMAIN,
+            SERVICE_INSTALL,
+            {
+                ATTR_BACKUP: False,
+                ATTR_ENTITY_ID: "update.qsw_m408_4c_firmware_update",
+            },
+            blocking=True,
+        )
+
+        mock_firmware_update_check.assert_called_once()
+        mock_firmware_update_live.assert_called_once()
+        mock_users_verification.assert_called()
+
+    update = hass.states.get("update.qsw_m408_4c_firmware_update")
+    assert update is not None
+    assert update.state == STATE_OFF
+    assert (
+        update.attributes[ATTR_INSTALLED_VERSION]
+        == FIRMWARE_UPDATE_CHECK_MOCK[API_RESULT][API_VERSION]
+    )
+    assert (
+        update.attributes[ATTR_LATEST_VERSION]
+        == FIRMWARE_UPDATE_CHECK_MOCK[API_RESULT][API_VERSION]
+    )
+    assert update.attributes[ATTR_IN_PROGRESS] is False
diff --git a/tests/components/qnap_qsw/util.py b/tests/components/qnap_qsw/util.py
index 5ae801283bc..b0dd5d5bf60 100644
--- a/tests/components/qnap_qsw/util.py
+++ b/tests/components/qnap_qsw/util.py
@@ -109,17 +109,17 @@ FIRMWARE_UPDATE_CHECK_MOCK = {
     API_ERROR_CODE: 200,
     API_ERROR_MESSAGE: "OK",
     API_RESULT: {
-        API_VERSION: "1.2.0",
-        API_NUMBER: "29649",
-        API_BUILD_NUMBER: "20220128",
-        API_DATE: "Fri, 28 Jan 2022 01:17:39 +0800",
+        API_VERSION: "1.3.0",
+        API_NUMBER: "527638",
+        API_BUILD_NUMBER: "20221123",
+        API_DATE: "Wed, 07, Dec 2022 16:30:00 +0800",
         API_DESCRIPTION: "",
         API_DOWNLOAD_URL: [
-            "https://download.qnap.com/Storage/Networking/QSW408FW/QSW-M408AC3-FW.v1.2.0_S20220128_29649.img",
-            "https://eu1.qnap.com/Storage/Networking/QSW408FW/QSW-M408AC3-FW.v1.2.0_S20220128_29649.img",
-            "https://us1.qnap.com/Storage/Networking/QSW408FW/QSW-M408AC3-FW.v1.2.0_S20220128_29649.img",
+            "https://download.qnap.com/Storage/Networking/QSW408FW/QSW-M408AC3-FW.v1.3.0_S20221123_527638.img",
+            "https://eu1.qnap.com/Storage/Networking/QSW408FW/QSW-M408AC3-FW.v1.3.0_S20221123_527638.img",
+            "https://us1.qnap.com/Storage/Networking/QSW408FW/QSW-M408AC3-FW.v1.3.0_S20221123_527638.img",
         ],
-        API_NEWER: False,
+        API_NEWER: True,
     },
 }