diff --git a/cmd/soroban-cli/src/commands/contract/install.rs b/cmd/soroban-cli/src/commands/contract/install.rs
index d4a0d541f..8763fd7e6 100644
--- a/cmd/soroban-cli/src/commands/contract/install.rs
+++ b/cmd/soroban-cli/src/commands/contract/install.rs
@@ -4,9 +4,10 @@ use std::num::ParseIntError;
 
 use clap::{command, Parser};
 use soroban_env_host::xdr::{
-    self, Error as XdrError, Hash, HostFunction, InvokeHostFunctionOp, Memo, MuxedAccount,
-    Operation, OperationBody, Preconditions, ScMetaEntry, ScMetaV0, SequenceNumber, Transaction,
-    TransactionExt, TransactionResult, TransactionResultResult, Uint256, VecM,
+    self, ContractCodeEntryExt, Error as XdrError, Hash, HostFunction, InvokeHostFunctionOp,
+    LedgerEntryData, Limits, Memo, MuxedAccount, Operation, OperationBody, Preconditions, ReadXdr,
+    ScMetaEntry, ScMetaV0, SequenceNumber, Transaction, TransactionExt, TransactionResult,
+    TransactionResultResult, Uint256, VecM,
 };
 
 use super::restore;
@@ -127,8 +128,28 @@ impl NetworkRunnable for Cmd {
         let code_key =
             xdr::LedgerKey::ContractCode(xdr::LedgerKeyContractCode { hash: hash.clone() });
         let contract_data = client.get_ledger_entries(&[code_key]).await?;
-        if !contract_data.entries.unwrap_or_default().is_empty() {
-            return Ok(hash);
+        // Skip install if the contract is already installed, and the contract has an extension version that isn't V0.
+        // In protocol 21 extension V1 was added that stores additional information about a contract making execution
+        // of the contract cheaper. So if folks want to reinstall we should let them which is why the install will still
+        // go ahead if the contract has a V0 extension.
+        if let Some(entries) = contract_data.entries {
+            if let Some(entry_result) = entries.first() {
+                let entry: LedgerEntryData =
+                    LedgerEntryData::from_xdr_base64(&entry_result.xdr, Limits::none())?;
+
+                match &entry {
+                    LedgerEntryData::ContractCode(code) => {
+                        // Skip reupload if this isn't V0 because V1 extension already
+                        // exists.
+                        if code.ext.ne(&ContractCodeEntryExt::V0) {
+                            return Ok(hash);
+                        }
+                    }
+                    _ => {
+                        tracing::warn!("Entry retrieved should be of type ContractCode");
+                    }
+                }
+            }
         }
 
         let txn = client