diff --git a/src/install/PackageManager/PackageJSONEditor.zig b/src/install/PackageManager/PackageJSONEditor.zig
index cf03e110d1..1838b64f1d 100644
--- a/src/install/PackageManager/PackageJSONEditor.zig
+++ b/src/install/PackageManager/PackageJSONEditor.zig
@@ -775,6 +775,57 @@ pub fn edit(
     }
 }
 
+/// Updates the overrides (npm) or resolutions (yarn) section of package.json
+/// when a dependency is being added/updated. This ensures overrides don't
+/// conflict with the new dependency version.
+/// When before_install is true, uses the literal version from the CLI.
+/// When before_install is false, uses the resolved version from e_string (set by edit()).
+pub fn editOverrides(
+    allocator: std.mem.Allocator,
+    updates: []const UpdateRequest,
+    current_package_json: *Expr,
+    before_install: bool,
+) !void {
+    // Try both "overrides" (npm) and "resolutions" (yarn)
+    inline for ([_]string{ "overrides", "resolutions" }) |override_key| {
+        if (current_package_json.asProperty(override_key)) |query| {
+            if (query.expr.data == .e_object) {
+                for (query.expr.data.e_object.properties.slice()) |*prop| {
+                    const key = prop.key orelse continue;
+                    if (key.data != .e_string) continue;
+
+                    const override_name = key.data.e_string.slice(allocator);
+
+                    // Check if this override matches any of our update requests
+                    for (updates) |request| {
+                        const name = request.getName();
+                        if (!strings.eqlLong(override_name, name, true)) continue;
+
+                        // Found a matching override - update it with the new version
+                        const value = prop.value orelse continue;
+                        if (value.data != .e_string) continue;
+
+                        // Get the version - either from literal (before install) or resolved (after)
+                        const new_version = if (before_install)
+                            request.version.literal.slice(request.version_buf)
+                        else if (request.e_string) |e_string|
+                            e_string.data
+                        else
+                            continue;
+                        if (new_version.len == 0) continue;
+
+                        // Update the override value
+                        prop.value = JSAst.Expr.allocate(allocator, JSAst.E.String, .{
+                            .data = try allocator.dupe(u8, new_version),
+                        }, logger.Loc.Empty);
+                        break;
+                    }
+                }
+            }
+        }
+    }
+}
+
 const trusted_dependencies_string = "trustedDependencies";
 
 const string = []const u8;
diff --git a/src/install/PackageManager/updatePackageJSONAndInstall.zig b/src/install/PackageManager/updatePackageJSONAndInstall.zig
index 2e504d6815..efa713d2b0 100644
--- a/src/install/PackageManager/updatePackageJSONAndInstall.zig
+++ b/src/install/PackageManager/updatePackageJSONAndInstall.zig
@@ -196,6 +196,14 @@ fn updatePackageJSONAndInstallWithManagerWithUpdates(
                         .before_install = true,
                     },
                 );
+                // Also update any matching overrides/resolutions with the literal version
+                // This ensures the install uses the correct version
+                try PackageJSONEditor.editOverrides(
+                    manager.allocator,
+                    updates.*,
+                    &current_package_json.root,
+                    true, // before_install = use literal version
+                );
             } else if (subcommand == .update) {
                 try PackageJSONEditor.editUpdateNoArgs(
                     manager,
@@ -375,6 +383,13 @@ fn updatePackageJSONAndInstallWithManagerWithUpdates(
                     .add_trusted_dependencies = manager.options.do.trust_dependencies_from_args,
                 },
             );
+            // Update any matching overrides/resolutions with the resolved versions
+            try PackageJSONEditor.editOverrides(
+                manager.allocator,
+                updates.*,
+                &new_package_json,
+                false, // before_install = use resolved version from e_string
+            );
         }
         var buffer_writer_two = JSPrinter.BufferWriter.init(manager.allocator);
         try buffer_writer_two.buffer.list.ensureTotalCapacity(manager.allocator, source.contents.len + 1);
diff --git a/test/cli/install/overrides.test.ts b/test/cli/install/overrides.test.ts
index 9ea001d97e..ce86e69381 100644
--- a/test/cli/install/overrides.test.ts
+++ b/test/cli/install/overrides.test.ts
@@ -247,3 +247,71 @@ test("overrides do not apply to workspaces", async () => {
   expect(await exited).toBe(0);
   expect(await stderr.text()).not.toContain("Saved lockfile");
 });
+
+test("bun add updates overrides when adding new version of overridden package", async () => {
+  // Regression test for https://github.com/oven-sh/bun/issues/25843
+  // When running `bun add pkg@newversion`, if there's an override for that package,
+  // the override should also be updated to prevent conflicts.
+  const tmp = tmpdirSync();
+  writeFileSync(
+    join(tmp, "package.json"),
+    JSON.stringify({
+      dependencies: {
+        lodash: "4.0.0",
+      },
+      overrides: {
+        lodash: "4.0.0",
+      },
+    }),
+  );
+
+  // First install to set up the lockfile with the old version
+  install(tmp, ["install"]);
+  expect(versionOf(tmp, "node_modules/lodash/package.json")).toBe("4.0.0");
+
+  // Now use bun add to update to a new version
+  install(tmp, ["add", "lodash@4.17.21"]);
+
+  // Verify the new version is installed
+  expect(versionOf(tmp, "node_modules/lodash/package.json")).toBe("4.17.21");
+
+  // Verify the package.json was updated correctly (both dependencies and overrides)
+  const packageJson = JSON.parse(readFileSync(join(tmp, "package.json")).toString());
+  expect(packageJson.dependencies.lodash).toBe("4.17.21");
+  expect(packageJson.overrides.lodash).toBe("4.17.21");
+
+  ensureLockfileDoesntChangeOnBunI(tmp);
+});
+
+test("bun add updates resolutions when adding new version of package with resolution", async () => {
+  // Similar to overrides test but for yarn-style resolutions
+  const tmp = tmpdirSync();
+  writeFileSync(
+    join(tmp, "package.json"),
+    JSON.stringify({
+      dependencies: {
+        lodash: "4.0.0",
+      },
+      resolutions: {
+        lodash: "4.0.0",
+      },
+    }),
+  );
+
+  // First install to set up the lockfile with the old version
+  install(tmp, ["install"]);
+  expect(versionOf(tmp, "node_modules/lodash/package.json")).toBe("4.0.0");
+
+  // Now use bun add to update to a new version
+  install(tmp, ["add", "lodash@4.17.21"]);
+
+  // Verify the new version is installed
+  expect(versionOf(tmp, "node_modules/lodash/package.json")).toBe("4.17.21");
+
+  // Verify the package.json was updated correctly (both dependencies and resolutions)
+  const packageJson = JSON.parse(readFileSync(join(tmp, "package.json")).toString());
+  expect(packageJson.dependencies.lodash).toBe("4.17.21");
+  expect(packageJson.resolutions.lodash).toBe("4.17.21");
+
+  ensureLockfileDoesntChangeOnBunI(tmp);
+});