diff --git a/src/auracast/server/multicast_server.py b/src/auracast/server/multicast_server.py
index 8f8f157..0b97357 100644
--- a/src/auracast/server/multicast_server.py
+++ b/src/auracast/server/multicast_server.py
@@ -1037,9 +1037,10 @@ async def system_update():
             log.error("git checkout failed: %s", stderr.decode())
             raise HTTPException(status_code=500, detail=f"git checkout failed: {stderr.decode()}")
 
-        # 2. Run poetry install
+        # 2. Run poetry install (use full path as poetry is in user's ~/.local/bin)
+        poetry_path = os.path.expanduser("~/.local/bin/poetry")
         proc = await asyncio.create_subprocess_exec(
-            "poetry", "install",
+            poetry_path, "install",
             cwd=project_root,
             stdout=asyncio.subprocess.PIPE,
             stderr=asyncio.subprocess.PIPE