diff --git a/packages/frontend/@n8n/i18n/src/locales/en.json b/packages/frontend/@n8n/i18n/src/locales/en.json
index 91601a3c08e..d6d7b91d6ba 100644
--- a/packages/frontend/@n8n/i18n/src/locales/en.json
+++ b/packages/frontend/@n8n/i18n/src/locales/en.json
@@ -96,6 +96,7 @@
 	"generic.unsavedWork.confirmMessage.cancelButtonText": "Leave without saving",
 	"generic.upgrade": "Upgrade",
 	"generic.upgradeNow": "Upgrade now",
+	"generic.update": "Update",
 	"generic.credential": "Credential | {count} Credential | {count} Credentials",
 	"generic.credentials": "Credentials",
 	"generic.workflow": "Workflow | {count} Workflow | {count} Workflows",
@@ -588,6 +589,9 @@
 	"codeNodeEditor.defaultsTo": "Defaults to {default}.",
 	"collectionParameter.choose": "Choose...",
 	"collectionParameter.noProperties": "No properties",
+	"communityNodeFooter.legacy": "Legacy",
+	"communityNodeFooter.manage": "Manage",
+	"communityNodeFooter.reportIssue": "Report issue",
 	"credentialEdit.credentialConfig.accountConnected": "Account connected",
 	"credentialEdit.credentialConfig.clickToCopy": "Click To Copy",
 	"credentialEdit.credentialConfig.connectionTestedSuccessfully": "Connection tested successfully",
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/NodeCreator.vue b/packages/frontend/editor-ui/src/components/Node/NodeCreator/NodeCreator.vue
index fede3fe5702..161e2f9d29b 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/NodeCreator.vue
+++ b/packages/frontend/editor-ui/src/components/Node/NodeCreator/NodeCreator.vue
@@ -18,6 +18,12 @@ import { useBuilderStore } from '@/stores/builder.store';
 import type { NodeTypeSelectedPayload } from '@/Interface';
 import { onClickOutside } from '@vueuse/core';
 
+// elements that should not trigger onClickOutside
+const OUTSIDE_CLICK_WHITELIST = [
+	// different modals
+	'.el-overlay-dialog',
+];
+
 export interface Props {
 	active?: boolean;
 	onNodeTypeSelected?: (value: NodeTypeSelectedPayload[]) => void;
@@ -153,7 +159,13 @@ onBeforeUnmount(() => {
 	unBindOnMouseUpOutside();
 });
 
-onClickOutside(nodeCreator, () => emit('closeNodeCreator'));
+onClickOutside(
+	nodeCreator,
+	() => {
+		emit('closeNodeCreator');
+	},
+	{ ignore: OUTSIDE_CLICK_WHITELIST },
+);
 </script>
 
 <template>
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.test.ts b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.test.ts
index 1ddbe0c51b1..ed82ecd7c9a 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.test.ts
+++ b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.test.ts
@@ -1,18 +1,25 @@
-import { fireEvent, waitFor } from '@testing-library/vue';
+import { fireEvent } from '@testing-library/vue';
 import { VIEWS } from '@/constants';
 import { createTestingPinia } from '@pinia/testing';
 import { setActivePinia } from 'pinia';
 import CommunityNodeFooter from './CommunityNodeFooter.vue';
 import { createComponentRenderer } from '@/__tests__/render';
 import { vi } from 'vitest';
-import { type ExtendedPublicInstalledPackage, fetchInstalledPackageInfo } from './utils';
+import { ref } from 'vue';
+import type { ExtendedPublicInstalledPackage } from '@/utils/communityNodeUtils';
 
-vi.mock('./utils', () => ({
-	fetchInstalledPackageInfo: vi.fn(),
+// Mock the useInstalledCommunityPackage composable
+const mockInstalledPackage = ref<ExtendedPublicInstalledPackage | undefined>(undefined);
+
+vi.mock('@/composables/useInstalledCommunityPackage', () => ({
+	useInstalledCommunityPackage: vi.fn(() => ({
+		installedPackage: mockInstalledPackage,
+		isUpdateCheckAvailable: ref(false),
+		isCommunityNode: ref(true),
+		initInstalledPackage: vi.fn(),
+	})),
 }));
 
-const mockedFetchInstalledPackageInfo = vi.mocked(fetchInstalledPackageInfo);
-
 const push = vi.fn();
 
 vi.mock('vue-router', async (importOriginal) => {
@@ -38,6 +45,9 @@ describe('CommunityNodeInfo - links & bugs URL', () => {
 		});
 
 		vi.stubGlobal('fetch', fetchMock);
+
+		// Reset the mock installed package before each test
+		mockInstalledPackage.value = undefined;
 	});
 
 	afterEach(() => {
@@ -55,7 +65,7 @@ describe('CommunityNodeInfo - links & bugs URL', () => {
 		expect(push).toHaveBeenCalledWith({ name: VIEWS.COMMUNITY_NODES });
 	});
 
-	it('Manage should not be in the footer', async () => {
+	it('Manage should not be in the footer', () => {
 		const { queryByText } = createComponentRenderer(CommunityNodeFooter)({
 			props: { packageName: 'n8n-nodes-test', showManage: false },
 		});
@@ -63,28 +73,37 @@ describe('CommunityNodeInfo - links & bugs URL', () => {
 		expect(queryByText('Manage')).not.toBeInTheDocument();
 	});
 
-	it('displays "Legacy" when updateAvailable', async () => {
-		mockedFetchInstalledPackageInfo.mockResolvedValue({
+	it('displays "Legacy" when updateAvailable', () => {
+		mockInstalledPackage.value = {
+			packageName: 'n8n-nodes-test',
 			installedVersion: '1.0.0',
 			updateAvailable: '1.0.1',
 			unverifiedUpdate: false,
-		} as ExtendedPublicInstalledPackage);
+			installedNodes: [],
+			createdAt: new Date(),
+			updatedAt: new Date(),
+		};
+
 		const { getByText } = createComponentRenderer(CommunityNodeFooter)({
 			props: {
 				packageName: 'n8n-nodes-test',
 				showManage: false,
 			},
 		});
-		await waitFor(() => expect(mockedFetchInstalledPackageInfo).toHaveBeenCalled());
 
 		expect(getByText('Package version 1.0.0 (Legacy)')).toBeInTheDocument();
 	});
 
-	it('displays "Latest" when not updateAvailable', async () => {
-		mockedFetchInstalledPackageInfo.mockResolvedValue({
+	it('displays "Latest" when not updateAvailable', () => {
+		mockInstalledPackage.value = {
+			packageName: 'n8n-nodes-test',
 			installedVersion: '1.0.0',
 			unverifiedUpdate: false,
-		} as ExtendedPublicInstalledPackage);
+			installedNodes: [],
+			createdAt: new Date(),
+			updatedAt: new Date(),
+		};
+
 		const { getByText } = createComponentRenderer(CommunityNodeFooter)({
 			props: {
 				packageName: 'n8n-nodes-test',
@@ -92,16 +111,19 @@ describe('CommunityNodeInfo - links & bugs URL', () => {
 			},
 		});
 
-		await waitFor(() => expect(mockedFetchInstalledPackageInfo).toHaveBeenCalled());
-
 		expect(getByText('Package version 1.0.0 (Latest)')).toBeInTheDocument();
 	});
 
-	it('displays "Latest" when only unverified update is available', async () => {
-		mockedFetchInstalledPackageInfo.mockResolvedValue({
+	it('displays "Latest" when only unverified update is available', () => {
+		mockInstalledPackage.value = {
+			packageName: 'n8n-nodes-test',
 			installedVersion: '1.0.0',
 			unverifiedUpdate: true,
-		} as ExtendedPublicInstalledPackage);
+			installedNodes: [],
+			createdAt: new Date(),
+			updatedAt: new Date(),
+		};
+
 		const { getByText } = createComponentRenderer(CommunityNodeFooter)({
 			props: {
 				packageName: 'n8n-nodes-test',
@@ -109,8 +131,18 @@ describe('CommunityNodeInfo - links & bugs URL', () => {
 			},
 		});
 
-		await waitFor(() => expect(mockedFetchInstalledPackageInfo).toHaveBeenCalled());
-
 		expect(getByText('Package version 1.0.0 (Latest)')).toBeInTheDocument();
 	});
+
+	it('does not display package version when installedPackage is undefined', () => {
+		// mockInstalledPackage.value is already undefined from beforeEach
+		const { queryByText } = createComponentRenderer(CommunityNodeFooter)({
+			props: {
+				packageName: 'n8n-nodes-test',
+				showManage: false,
+			},
+		});
+
+		expect(queryByText(/Package version/)).not.toBeInTheDocument();
+	});
 });
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.vue b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.vue
index 49e14f37ea3..0fb51bbc29d 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.vue
+++ b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeFooter.vue
@@ -5,7 +5,8 @@ import { onMounted, ref } from 'vue';
 import { useRouter } from 'vue-router';
 
 import { N8nLink, N8nText } from '@n8n/design-system';
-import { fetchInstalledPackageInfo, type ExtendedPublicInstalledPackage } from './utils';
+import { useInstalledCommunityPackage } from '@/composables/useInstalledCommunityPackage';
+import { i18n } from '@n8n/i18n';
 
 export interface Props {
 	packageName: string;
@@ -16,7 +17,7 @@ const props = defineProps<Props>();
 const router = useRouter();
 
 const bugsUrl = ref<string>(`https://registry.npmjs.org/${props.packageName}`);
-const installedPackage = ref<ExtendedPublicInstalledPackage | undefined>(undefined);
+const { installedPackage } = useInstalledCommunityPackage(props.packageName);
 
 async function openSettingsPage() {
 	await router.push({ name: VIEWS.COMMUNITY_NODES });
@@ -51,7 +52,6 @@ async function getBugsUrl(packageName: string) {
 onMounted(async () => {
 	if (props.packageName) {
 		await getBugsUrl(props.packageName);
-		installedPackage.value = await fetchInstalledPackageInfo(props.packageName);
 	}
 });
 </script>
@@ -63,18 +63,22 @@ onMounted(async () => {
 			<N8nText v-if="installedPackage" size="small" color="text-light" style="margin-right: auto">
 				Package version {{ installedPackage.installedVersion }} ({{
 					installedPackage.updateAvailable && !installedPackage.unverifiedUpdate
-						? 'Legacy'
-						: 'Latest'
+						? i18n.baseText('communityNodeFooter.legacy')
+						: i18n.baseText('nodeSettings.latest')
 				}})
 			</N8nText>
 			<template v-if="props.showManage">
 				<N8nLink theme="text" @click="openSettingsPage">
-					<N8nText size="small" color="primary" bold> Manage </N8nText>
+					<N8nText size="small" color="primary" bold>
+						{{ i18n.baseText('communityNodeFooter.manage') }}
+					</N8nText>
 				</N8nLink>
 				<N8nText size="small" style="color: var(--color-foreground-base)" bold>|</N8nText>
 			</template>
 			<N8nLink theme="text" @click="openIssuesPage">
-				<N8nText size="small" color="primary" bold> Report issue </N8nText>
+				<N8nText size="small" color="primary" bold>
+					{{ i18n.baseText('communityNodeFooter.reportIssue') }}
+				</N8nText>
 			</N8nLink>
 		</div>
 	</div>
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.test.ts b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.test.ts
index c580655fa65..5c3babeb731 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.test.ts
+++ b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.test.ts
@@ -1,16 +1,34 @@
 import { createComponentRenderer } from '@/__tests__/render';
+import { useInstalledCommunityPackage } from '@/composables/useInstalledCommunityPackage';
+import type { ExtendedPublicInstalledPackage } from '@/utils/communityNodeUtils';
 import { type TestingPinia, createTestingPinia } from '@pinia/testing';
 import { waitFor } from '@testing-library/vue';
 import { setActivePinia } from 'pinia';
+import { type ComputedRef, ref } from 'vue';
 import type { CommunityNodeDetails } from '../composables/useViewStacks';
 import CommunityNodeInfo from './CommunityNodeInfo.vue';
-import { type ExtendedPublicInstalledPackage, fetchInstalledPackageInfo } from './utils';
 
 vi.mock('./utils', () => ({
 	fetchInstalledPackageInfo: vi.fn(),
 }));
 
-const mockedFetchInstalledPackageInfo = vi.mocked(fetchInstalledPackageInfo);
+// const mockInstalledPackage = ref<ExtendedPublicInstalledPackage | undefined>(undefined);
+// const isUpdateCheckAvailable = ref(false);
+
+const defaultUseInstalledCommunityPackage = {
+	installedPackage: ref({
+		installedVersion: '1.0.0',
+		packageName: 'n8n-nodes-test',
+		unverifiedUpdate: false,
+	}) as ComputedRef<ExtendedPublicInstalledPackage>,
+	isUpdateCheckAvailable: ref(false),
+	isCommunityNode: ref(true),
+	initInstalledPackage: vi.fn(),
+} as unknown as ReturnType<typeof useInstalledCommunityPackage>;
+
+vi.mock('@/composables/useInstalledCommunityPackage', () => ({
+	useInstalledCommunityPackage: vi.fn(() => defaultUseInstalledCommunityPackage),
+}));
 
 const getCommunityNodeAttributes = vi.fn();
 
@@ -94,11 +112,15 @@ describe('CommunityNodeInfo', () => {
 			numberOfDownloads: 9999,
 			nodeVersions: [{ npmVersion: '1.0.0' }],
 		});
-		mockedFetchInstalledPackageInfo.mockResolvedValue({
-			installedVersion: '1.0.0',
-			packageName: 'n8n-nodes-test',
-			unverifiedUpdate: false,
-		} as ExtendedPublicInstalledPackage);
+
+		vi.mocked(useInstalledCommunityPackage).mockReturnValue({
+			...defaultUseInstalledCommunityPackage,
+			installedPackage: ref({
+				installedVersion: '1.0.0',
+				packageName: 'n8n-nodes-test',
+				unverifiedUpdate: false,
+			}) as ComputedRef<ExtendedPublicInstalledPackage>,
+		});
 
 		const wrapper = renderComponent({ pinia });
 
@@ -112,7 +134,7 @@ describe('CommunityNodeInfo', () => {
 		expect(wrapper.getByTestId('publisher-name').textContent).toEqual('Published by contributor');
 	});
 
-	it('should display update notice, should show verified batch for older versions', async () => {
+	it('should display update notice, should show verified badge for older versions', async () => {
 		const { useViewStacks } = await import('../composables/useViewStacks');
 		vi.mocked(useViewStacks).mockReturnValue({
 			activeViewStack: {
@@ -130,12 +152,16 @@ describe('CommunityNodeInfo', () => {
 			numberOfDownloads: 9999,
 			nodeVersions: [{ npmVersion: '1.0.0' }, { npmVersion: '0.0.9' }],
 		});
-		mockedFetchInstalledPackageInfo.mockResolvedValue({
-			installedVersion: '0.0.9',
-			packageName: 'n8n-nodes-test',
-			updateAvailable: '1.0.1',
-			unverifiedUpdate: false,
-		} as ExtendedPublicInstalledPackage);
+		vi.mocked(useInstalledCommunityPackage).mockReturnValue({
+			...defaultUseInstalledCommunityPackage,
+			isUpdateCheckAvailable: ref(true) as ComputedRef<boolean>,
+			installedPackage: ref({
+				installedVersion: '0.0.9',
+				packageName: 'n8n-nodes-test',
+				updateAvailable: '1.0.1',
+				unverifiedUpdate: false,
+			}) as ComputedRef<ExtendedPublicInstalledPackage>,
+		});
 
 		const wrapper = renderComponent({ pinia });
 
@@ -147,9 +173,9 @@ describe('CommunityNodeInfo', () => {
 		expect(wrapper.getByTestId('verified-tag').textContent).toEqual('Verified');
 		expect(wrapper.getByTestId('number-of-downloads').textContent).toEqual('9,999 Downloads');
 		expect(wrapper.getByTestId('publisher-name').textContent).toEqual('Published by contributor');
-		expect(wrapper.getByTestId('update-available').textContent).toEqual(
-			'A new node package version is available',
-		);
+		expect(
+			wrapper.getByTestId('update-available').querySelector('.n8n-text')?.textContent?.trim(),
+		).toEqual('A new node package version is available');
 	});
 
 	it('should NOT display update notice for unverified update', async () => {
@@ -170,12 +196,15 @@ describe('CommunityNodeInfo', () => {
 			numberOfDownloads: 9999,
 			nodeVersions: [{ npmVersion: '1.0.0' }, { npmVersion: '0.0.9' }],
 		});
-		mockedFetchInstalledPackageInfo.mockResolvedValue({
-			installedVersion: '0.0.9',
-			packageName: 'n8n-nodes-test',
-			updateAvailable: '1.0.1',
-			unverifiedUpdate: true,
-		} as ExtendedPublicInstalledPackage);
+		vi.mocked(useInstalledCommunityPackage).mockReturnValue({
+			...defaultUseInstalledCommunityPackage,
+			installedPackage: ref({
+				installedVersion: '0.0.9',
+				packageName: 'n8n-nodes-test',
+				updateAvailable: '1.0.1',
+				unverifiedUpdate: true,
+			}) as ComputedRef<ExtendedPublicInstalledPackage>,
+		});
 
 		const wrapper = renderComponent({ pinia });
 
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.vue b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.vue
index 33322d56871..e17011f4dc0 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.vue
+++ b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeInfo.vue
@@ -7,7 +7,7 @@ import { useNodeTypesStore } from '@/stores/nodeTypes.store';
 import { captureException } from '@sentry/vue';
 import { N8nText, N8nTooltip, N8nIcon } from '@n8n/design-system';
 import ShieldIcon from 'virtual:icons/fa-solid/shield-alt';
-import { type ExtendedPublicInstalledPackage, fetchInstalledPackageInfo } from './utils';
+import { useInstalledCommunityPackage } from '@/composables/useInstalledCommunityPackage';
 
 const { activeViewStack } = useViewStacks();
 
@@ -21,7 +21,9 @@ const publisherName = ref<string | undefined>(undefined);
 const downloads = ref<string | null>(null);
 const verified = ref(false);
 const official = ref(false);
-const installedPackage = ref<ExtendedPublicInstalledPackage | undefined>(undefined);
+const packageName = computed(() => communityNodeDetails?.packageName);
+const { installedPackage, initInstalledPackage, isUpdateCheckAvailable } =
+	useInstalledCommunityPackage(packageName);
 
 const nodeTypesStore = useNodeTypesStore();
 
@@ -42,9 +44,9 @@ async function fetchPackageInfo(packageName: string) {
 	const communityNodeAttributes = await nodeTypesStore.getCommunityNodeAttributes(
 		activeViewStack.communityNodeDetails?.key || '',
 	);
-
-	if (communityNodeDetails?.installed) {
-		installedPackage.value = await fetchInstalledPackageInfo(communityNodeDetails.packageName);
+	let packageInfo = installedPackage.value;
+	if (communityNodeDetails?.installed && !packageInfo) {
+		packageInfo = await initInstalledPackage();
 	}
 
 	if (communityNodeAttributes) {
@@ -52,11 +54,11 @@ async function fetchPackageInfo(packageName: string) {
 		downloads.value = formatNumber(communityNodeAttributes.numberOfDownloads);
 		official.value = communityNodeAttributes.isOfficialNode;
 
-		if (!installedPackage.value) {
+		if (!packageInfo) {
 			verified.value = true;
 		} else {
 			const verifiedVersions = communityNodeAttributes.nodeVersions?.map((v) => v.npmVersion) ?? [];
-			verified.value = verifiedVersions.includes(installedPackage.value.installedVersion);
+			verified.value = verifiedVersions.includes(packageInfo.installedVersion);
 		}
 
 		return;
@@ -112,8 +114,9 @@ onMounted(async () => {
 			{{ communityNodeDetails?.description }}
 		</N8nText>
 		<CommunityNodeUpdateInfo
-			v-if="isOwner && installedPackage?.updateAvailable && !installedPackage.unverifiedUpdate"
+			v-if="isUpdateCheckAvailable && installedPackage?.updateAvailable"
 			data-test-id="update-available"
+			:package-name="communityNodeDetails?.packageName"
 		/>
 		<div v-else :class="$style.separator"></div>
 		<div :class="$style.info">
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue
index 4d01117fce7..993e78bf62b 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue
+++ b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue
@@ -1,32 +1,29 @@
 <script setup lang="ts">
-import { N8nNotice } from '@n8n/design-system';
-import { i18n } from '@n8n/i18n';
 import { useUIStore } from '@/stores/ui.store';
-import { computed } from 'vue';
-const noticeStyles = computed(() => {
-	const isDark = useUIStore().appliedTheme === 'dark';
-	if (isDark) {
-		return {
-			borderColor: 'var(--color-callout-secondary-border)',
-			backgroundColor: 'var(--color-callout-secondary-background)',
-			color: 'var(--color-callout-secondary-font)',
-		};
-	}
-	return {
-		borderColor: 'var(--color-secondary)',
-		backgroundColor: 'var(--color-secondary-tint-3)',
-	};
-});
+import { N8nButton, N8nCallout } from '@n8n/design-system';
+import { i18n } from '@n8n/i18n';
+
+interface Props {
+	packageName?: string;
+}
+
+const props = defineProps<Props>();
+
+const { openCommunityPackageUpdateConfirmModal } = useUIStore();
+
+const onUpdate = () => {
+	if (!props.packageName) return;
+	openCommunityPackageUpdateConfirmModal(props.packageName);
+};
 </script>
 
 <template>
-	<N8nNotice
-		theme="info"
-		:style="{
-			marginTop: '0',
-			...noticeStyles,
-		}"
-	>
+	<N8nCallout theme="secondary" :iconless="true" style="margin-bottom: var(--spacing-s)">
 		{{ i18n.baseText('communityNodeUpdateInfo.available') }}
-	</N8nNotice>
+		<template v-if="props.packageName" #trailingContent>
+			<N8nButton type="secondary" @click="onUpdate">
+				{{ i18n.baseText('generic.update') }}
+			</N8nButton>
+		</template>
+	</N8nCallout>
 </template>
diff --git a/packages/frontend/editor-ui/src/components/NodeSettings.vue b/packages/frontend/editor-ui/src/components/NodeSettings.vue
index a29e3509201..9b677f0ea9d 100644
--- a/packages/frontend/editor-ui/src/components/NodeSettings.vue
+++ b/packages/frontend/editor-ui/src/components/NodeSettings.vue
@@ -1,64 +1,63 @@
 <script setup lang="ts">
-import { useTemplateRef, computed, onBeforeUnmount, onMounted, ref, watch } from 'vue';
-import type {
-	INodeParameters,
-	NodeConnectionType,
-	NodeParameterValue,
-	INodeCredentialDescription,
-	PublicInstalledPackage,
-} from 'n8n-workflow';
-import { NodeConnectionTypes, NodeHelpers, deepCopy } from 'n8n-workflow';
 import type {
 	CurlToJSONResponse,
 	INodeUi,
 	INodeUpdatePropertiesInformation,
 	IUpdateInformation,
 } from '@/Interface';
+import type {
+	INodeCredentialDescription,
+	INodeParameters,
+	NodeConnectionType,
+	NodeParameterValue,
+} from 'n8n-workflow';
+import { NodeConnectionTypes, NodeHelpers, deepCopy } from 'n8n-workflow';
+import { computed, onBeforeUnmount, onMounted, ref, useTemplateRef, watch } from 'vue';
 
 import { BASE_NODE_SURVEY_URL } from '@/constants';
 
-import ParameterInputList from '@/components/ParameterInputList.vue';
+import NDVSubConnections from '@/components/NDVSubConnections.vue';
 import NodeCredentials from '@/components/NodeCredentials.vue';
+import NodeSettingsHeader from '@/components/NodeSettingsHeader.vue';
 import NodeSettingsTabs from '@/components/NodeSettingsTabs.vue';
 import NodeWebhooks from '@/components/NodeWebhooks.vue';
-import NDVSubConnections from '@/components/NDVSubConnections.vue';
-import NodeSettingsHeader from '@/components/NodeSettingsHeader.vue';
+import ParameterInputList from '@/components/ParameterInputList.vue';
 import get from 'lodash/get';
 
-import NodeExecuteButton from './NodeExecuteButton.vue';
-import {
-	collectSettings,
-	createCommonNodeSettings,
-	nameIsParameter,
-	getNodeSettingsInitialValues,
-	collectParametersByTab,
-} from '@/utils/nodeSettingsUtils';
-import { isCommunityPackageName } from '@/utils/nodeTypesUtils';
-import { useWorkflowsStore } from '@/stores/workflows.store';
-import { useNDVStore } from '@/stores/ndv.store';
-import { useNodeTypesStore } from '@/stores/nodeTypes.store';
-import { useHistoryStore } from '@/stores/history.store';
-import { RenameNodeCommand } from '@/models/history';
-import { useCredentialsStore } from '@/stores/credentials.store';
-import { useCommunityNodesStore } from '@/stores/communityNodes.store';
-import { useUsersStore } from '@/stores/users.store';
-import type { EventBus } from '@n8n/utils/event-bus';
+import ExperimentalEmbeddedNdvHeader from '@/components/canvas/experimental/components/ExperimentalEmbeddedNdvHeader.vue';
+import FreeAiCreditsCallout from '@/components/FreeAiCreditsCallout.vue';
+import NodeActionsList from '@/components/NodeActionsList.vue';
+import NodeSettingsInvalidNodeWarning from '@/components/NodeSettingsInvalidNodeWarning.vue';
 import { useExternalHooks } from '@/composables/useExternalHooks';
+import { useInstalledCommunityPackage } from '@/composables/useInstalledCommunityPackage';
+import { useNodeCredentialOptions } from '@/composables/useNodeCredentialOptions';
 import { useNodeHelpers } from '@/composables/useNodeHelpers';
-import { useI18n } from '@n8n/i18n';
+import { useNodeSettingsParameters } from '@/composables/useNodeSettingsParameters';
 import { useTelemetry } from '@/composables/useTelemetry';
 import { importCurlEventBus, ndvEventBus } from '@/event-bus';
-import { ProjectTypes } from '@/types/projects.types';
-import FreeAiCreditsCallout from '@/components/FreeAiCreditsCallout.vue';
 import NodeStorageLimitCallout from '@/features/dataStore/components/NodeStorageLimitCallout.vue';
-import { useResizeObserver } from '@vueuse/core';
-import { useNodeSettingsParameters } from '@/composables/useNodeSettingsParameters';
-import { N8nBlockUi, N8nIcon, N8nNotice, N8nText } from '@n8n/design-system';
-import ExperimentalEmbeddedNdvHeader from '@/components/canvas/experimental/components/ExperimentalEmbeddedNdvHeader.vue';
-import NodeSettingsInvalidNodeWarning from '@/components/NodeSettingsInvalidNodeWarning.vue';
+import { RenameNodeCommand } from '@/models/history';
+import { useCredentialsStore } from '@/stores/credentials.store';
+import { useHistoryStore } from '@/stores/history.store';
+import { useNDVStore } from '@/stores/ndv.store';
+import { useNodeTypesStore } from '@/stores/nodeTypes.store';
+import { useUsersStore } from '@/stores/users.store';
+import { useWorkflowsStore } from '@/stores/workflows.store';
 import type { NodeSettingsTab } from '@/types/nodeSettings';
-import NodeActionsList from '@/components/NodeActionsList.vue';
-import { useNodeCredentialOptions } from '@/composables/useNodeCredentialOptions';
+import { ProjectTypes } from '@/types/projects.types';
+import {
+	collectParametersByTab,
+	collectSettings,
+	createCommonNodeSettings,
+	getNodeSettingsInitialValues,
+	nameIsParameter,
+} from '@/utils/nodeSettingsUtils';
+import { isCommunityPackageName } from '@/utils/nodeTypesUtils';
+import { N8nBlockUi, N8nIcon, N8nNotice, N8nText } from '@n8n/design-system';
+import { useI18n } from '@n8n/i18n';
+import type { EventBus } from '@n8n/utils/event-bus';
+import { useResizeObserver } from '@vueuse/core';
+import NodeExecuteButton from './NodeExecuteButton.vue';
 
 const props = withDefaults(
 	defineProps<{
@@ -143,8 +142,6 @@ const nodeValuesInitialized = ref(false);
 const hiddenIssuesInputs = ref<string[]>([]);
 const subConnections = ref<InstanceType<typeof NDVSubConnections> | null>(null);
 
-const installedPackage = ref<PublicInstalledPackage | undefined>(undefined);
-
 const currentWorkflow = computed(
 	() => workflowsStore.getWorkflowById(workflowsStore.workflowObject.id), // @TODO check if we actually need workflowObject here
 );
@@ -163,6 +160,9 @@ const nodeType = computed(() =>
 
 const { areAllCredentialsSet } = useNodeCredentialOptions(node, nodeType, '');
 
+const nodeTypeName = computed(() => node.value?.type);
+const { installedPackage, isUpdateCheckAvailable } = useInstalledCommunityPackage(nodeTypeName);
+
 const isTriggerNode = computed(() => !!node.value && nodeTypesStore.isTriggerNode(node.value.type));
 
 const isToolNode = computed(() => !!node.value && nodeTypesStore.isToolNode(node.value.type));
@@ -541,10 +541,6 @@ onMounted(async () => {
 	}
 	importCurlEventBus.on('setHttpNodeParameters', setHttpNodeParameters);
 	ndvEventBus.on('updateParameterValue', valueChanged);
-
-	if (isCommunityNode.value && useUsersStore().isInstanceOwner) {
-		installedPackage.value = await useCommunityNodesStore().getInstalledPackage(packageName.value);
-	}
 });
 
 onBeforeUnmount(() => {
@@ -748,8 +744,10 @@ function handleSelectAction(params: INodeParameters) {
 			</div>
 			<div v-show="openPanel === 'settings'">
 				<CommunityNodeUpdateInfo
-					v-if="isCommunityNode && installedPackage?.updateAvailable"
+					v-if="isUpdateCheckAvailable && installedPackage?.updateAvailable"
 					data-test-id="update-available"
+					:package-name="packageName"
+					style="margin-top: var(--spacing-s)"
 				/>
 				<ParameterInputList
 					:parameters="parametersByTab.settings"
diff --git a/packages/frontend/editor-ui/src/components/NodeSettingsTabs.test.ts b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.test.ts
index 91a7871a3a5..42eaa2a4d2d 100644
--- a/packages/frontend/editor-ui/src/components/NodeSettingsTabs.test.ts
+++ b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.test.ts
@@ -1,21 +1,29 @@
 import { describe, it, expect, vi } from 'vitest';
+import { mock } from 'vitest-mock-extended';
 import { createComponentRenderer } from '@/__tests__/render';
 import { createTestingPinia } from '@pinia/testing';
 import NodeSettingsTabs from '@/components/NodeSettingsTabs.vue';
-import { useCommunityNodesStore } from '@/stores/communityNodes.store';
-import type { PublicInstalledPackage } from 'n8n-workflow';
+import { ref } from 'vue';
+import type { ExtendedPublicInstalledPackage } from '@/utils/communityNodeUtils';
+import { useInstalledCommunityPackage } from '@/composables/useInstalledCommunityPackage';
 
 const renderComponent = createComponentRenderer(NodeSettingsTabs);
 
-vi.mock('@/stores/communityNodes.store', () => ({
-	useCommunityNodesStore: vi.fn(() => ({
-		getInstalledPackage: vi.fn(),
+vi.mock('@/composables/useInstalledCommunityPackage', () => ({
+	useInstalledCommunityPackage: vi.fn(() => ({
+		installedPackage: ref<ExtendedPublicInstalledPackage | undefined>(undefined),
+		isCommunityNode: ref(false),
+		isUpdateCheckAvailable: ref(false),
+		initInstalledPackage: vi.fn(),
 	})),
 }));
 
+let installedCommunityPackage: ReturnType<typeof useInstalledCommunityPackage>;
+
 describe('NodeSettingsTabs', () => {
 	beforeEach(() => {
 		createTestingPinia({ stubActions: false });
+		installedCommunityPackage = useInstalledCommunityPackage();
 	});
 
 	afterEach(() => {
@@ -30,10 +38,16 @@ describe('NodeSettingsTabs', () => {
 	});
 
 	it('displays notification when updateAvailable', async () => {
-		const communityNodesStore = useCommunityNodesStore();
-		vi.spyOn(communityNodesStore, 'getInstalledPackage').mockResolvedValue({
-			updateAvailable: '1.0.1',
-		} as PublicInstalledPackage);
+		vi.spyOn(installedCommunityPackage.isUpdateCheckAvailable, 'value', 'get').mockReturnValue(
+			true,
+		);
+		vi.spyOn(installedCommunityPackage.installedPackage, 'value', 'get').mockReturnValue(
+			mock<ExtendedPublicInstalledPackage>({
+				packageName: 'test-package',
+				installedVersion: '1.0.0',
+				updateAvailable: '1.0.1',
+			}),
+		);
 
 		const { findByTestId } = renderComponent({
 			props: {},
@@ -43,12 +57,8 @@ describe('NodeSettingsTabs', () => {
 		expect(notification).toBeDefined();
 	});
 
-	it('does not display notification when not updateAvailable', async () => {
-		const communityNodesStore = useCommunityNodesStore();
-		vi.spyOn(communityNodesStore, 'getInstalledPackage').mockResolvedValue(
-			{} as PublicInstalledPackage,
-		);
-
+	it('does not display notification when not updateAvailable', () => {
+		// Default mock values (from beforeEach) should not trigger notification
 		const { queryByTestId } = renderComponent({
 			props: {},
 		});
diff --git a/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue
index 8fecccbf277..1d6e32d2836 100644
--- a/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue
+++ b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue
@@ -3,19 +3,17 @@ import type { ITab } from '@/Interface';
 import { COMMUNITY_NODES_INSTALLATION_DOCS_URL } from '@/constants';
 import { useNDVStore } from '@/stores/ndv.store';
 import { useWorkflowsStore } from '@/stores/workflows.store';
-import type { INodeTypeDescription, PublicInstalledPackage } from 'n8n-workflow';
+import type { INodeTypeDescription } from 'n8n-workflow';
 import { NodeConnectionTypes } from 'n8n-workflow';
-import { computed, onMounted, ref } from 'vue';
+import { computed } from 'vue';
 
 import { useExternalHooks } from '@/composables/useExternalHooks';
-import { useI18n } from '@n8n/i18n';
-import { useTelemetry } from '@/composables/useTelemetry';
-import { isCommunityPackageName } from '@/utils/nodeTypesUtils';
-import { N8nTabs } from '@n8n/design-system';
+import { useInstalledCommunityPackage } from '@/composables/useInstalledCommunityPackage';
 import { useNodeDocsUrl } from '@/composables/useNodeDocsUrl';
-import { useCommunityNodesStore } from '@/stores/communityNodes.store';
-import { useUsersStore } from '@/stores/users.store';
+import { useTelemetry } from '@/composables/useTelemetry';
 import type { NodeSettingsTab } from '@/types/nodeSettings';
+import { N8nTabs } from '@n8n/design-system';
+import { useI18n } from '@n8n/i18n';
 
 type Props = {
 	modelValue?: NodeSettingsTab;
@@ -46,19 +44,12 @@ const workflowsStore = useWorkflowsStore();
 const i18n = useI18n();
 const telemetry = useTelemetry();
 const { docsUrl } = useNodeDocsUrl({ nodeType: () => props.nodeType });
-const communityNodesStore = useCommunityNodesStore();
 
 const activeNode = computed(() => ndvStore.activeNode);
 
-const installedPackage = ref<PublicInstalledPackage | undefined>(undefined);
-
-const isCommunityNode = computed(() => {
-	const nodeType = props.nodeType;
-	if (nodeType) {
-		return isCommunityPackageName(nodeType.name);
-	}
-	return false;
-});
+const nodeTypeName = computed(() => props.nodeType?.name);
+const { installedPackage, isCommunityNode, isUpdateCheckAvailable } =
+	useInstalledCommunityPackage(nodeTypeName);
 
 const packageName = computed(() => props.nodeType?.name.split('.')[0] ?? '');
 
@@ -101,7 +92,8 @@ const options = computed(() => {
 		},
 		{
 			value: 'settings',
-			notification: installedPackage.value?.updateAvailable ? true : undefined,
+			notification:
+				isUpdateCheckAvailable.value && installedPackage.value?.updateAvailable ? true : undefined,
 			...(props.compact
 				? { icon: 'settings', align: 'right', tooltip: i18n.baseText('nodeSettings.settings') }
 				: { label: i18n.baseText('nodeSettings.settings') }),
@@ -169,12 +161,6 @@ function onTooltipClick(tab: NodeSettingsTab, event: MouseEvent) {
 		telemetry.track('user clicked cnr docs link', { source: 'node details view' });
 	}
 }
-
-onMounted(async () => {
-	if (isCommunityNode.value && useUsersStore().isInstanceOwner) {
-		installedPackage.value = await communityNodesStore.getInstalledPackage(packageName.value);
-	}
-});
 </script>
 
 <template>
diff --git a/packages/frontend/editor-ui/src/composables/useInstalledCommunityPackage.test.ts b/packages/frontend/editor-ui/src/composables/useInstalledCommunityPackage.test.ts
new file mode 100644
index 00000000000..df17c245b64
--- /dev/null
+++ b/packages/frontend/editor-ui/src/composables/useInstalledCommunityPackage.test.ts
@@ -0,0 +1,258 @@
+import { vi, describe, it, expect, beforeEach } from 'vitest';
+import { createTestingPinia } from '@pinia/testing';
+import { setActivePinia } from 'pinia';
+import { nextTick } from 'vue';
+import { mockedStore } from '@/__tests__/utils';
+
+import { useInstalledCommunityPackage } from './useInstalledCommunityPackage';
+import { useCommunityNodesStore } from '@/stores/communityNodes.store';
+import { useUsersStore } from '@/stores/users.store';
+import type { ExtendedPublicInstalledPackage } from '@/utils/communityNodeUtils';
+
+// Mock the utility functions
+vi.mock('@/utils/nodeTypesUtils', () => ({
+	isCommunityPackageName: vi.fn(),
+}));
+
+vi.mock('@/utils/communityNodeUtils', () => ({
+	fetchInstalledPackageInfo: vi.fn(),
+}));
+
+// Import mocked functions
+import { isCommunityPackageName } from '@/utils/nodeTypesUtils';
+import { fetchInstalledPackageInfo } from '@/utils/communityNodeUtils';
+
+const mockIsCommunityPackageName = vi.mocked(isCommunityPackageName);
+const mockFetchInstalledPackageInfo = vi.mocked(fetchInstalledPackageInfo);
+
+describe('useInstalledCommunityPackage', () => {
+	beforeEach(() => {
+		setActivePinia(createTestingPinia());
+		vi.clearAllMocks();
+	});
+
+	describe('computed properties', () => {
+		it('should handle nodeTypeName parsing correctly', () => {
+			mockIsCommunityPackageName.mockReturnValue(true);
+			const composable = useInstalledCommunityPackage('@test/n8n-nodes-test.TestNode');
+			expect(composable.isCommunityNode.value).toBe(true);
+		});
+
+		it('should return false for isCommunityNode when nodeTypeName is undefined', () => {
+			const composable = useInstalledCommunityPackage();
+			expect(composable.isCommunityNode.value).toBe(false);
+		});
+
+		it('should compute isCommunityNode correctly when nodeTypeName is provided and is community', () => {
+			mockIsCommunityPackageName.mockReturnValue(true);
+
+			const { isCommunityNode } = useInstalledCommunityPackage('@test/n8n-nodes-test.TestNode');
+
+			expect(isCommunityNode.value).toBe(true);
+			expect(mockIsCommunityPackageName).toHaveBeenCalledWith('@test/n8n-nodes-test.TestNode');
+		});
+
+		it('should compute isCommunityNode as false when nodeTypeName is provided but not community', () => {
+			mockIsCommunityPackageName.mockReturnValue(false);
+
+			const { isCommunityNode } = useInstalledCommunityPackage('n8n-nodes-base.HttpRequest');
+
+			expect(isCommunityNode.value).toBe(false);
+			expect(mockIsCommunityPackageName).toHaveBeenCalledWith('n8n-nodes-base.HttpRequest');
+		});
+
+		it('should compute isCommunityNode as false when nodeTypeName is undefined', () => {
+			const { isCommunityNode } = useInstalledCommunityPackage();
+
+			expect(isCommunityNode.value).toBe(false);
+			expect(mockIsCommunityPackageName).not.toHaveBeenCalled();
+		});
+
+		it('should compute isUpdateCheckAvailable correctly when user is instance owner and node is community', () => {
+			const usersStore = mockedStore(useUsersStore);
+			usersStore.isInstanceOwner = true;
+			mockIsCommunityPackageName.mockReturnValue(true);
+
+			const { isUpdateCheckAvailable } = useInstalledCommunityPackage(
+				'@test/n8n-nodes-test.TestNode',
+			);
+
+			expect(isUpdateCheckAvailable.value).toBe(true);
+		});
+
+		it('should compute isUpdateCheckAvailable as false when user is not instance owner', () => {
+			const usersStore = mockedStore(useUsersStore);
+			usersStore.isInstanceOwner = false;
+			mockIsCommunityPackageName.mockReturnValue(true);
+
+			const { isUpdateCheckAvailable } = useInstalledCommunityPackage(
+				'@test/n8n-nodes-test.TestNode',
+			);
+
+			expect(isUpdateCheckAvailable.value).toBe(false);
+		});
+
+		it('should compute isUpdateCheckAvailable as false when node is not community', () => {
+			const usersStore = mockedStore(useUsersStore);
+			usersStore.isInstanceOwner = true;
+			mockIsCommunityPackageName.mockReturnValue(false);
+
+			const { isUpdateCheckAvailable } = useInstalledCommunityPackage('n8n-nodes-base.HttpRequest');
+
+			expect(isUpdateCheckAvailable.value).toBe(false);
+		});
+	});
+
+	describe('initInstalledPackage', () => {
+		it('should return undefined when packageName is empty', async () => {
+			const { initInstalledPackage } = useInstalledCommunityPackage();
+
+			const result = await initInstalledPackage();
+
+			expect(result).toBeUndefined();
+			expect(mockFetchInstalledPackageInfo).not.toHaveBeenCalled();
+		});
+
+		it('should return undefined when node is not a community node', async () => {
+			mockIsCommunityPackageName.mockReturnValue(false);
+
+			const { initInstalledPackage } = useInstalledCommunityPackage('n8n-nodes-base.HttpRequest');
+
+			const result = await initInstalledPackage();
+
+			expect(result).toBeUndefined();
+			expect(mockFetchInstalledPackageInfo).not.toHaveBeenCalled();
+		});
+
+		it('should fetch and set installedPackage when conditions are met', async () => {
+			const mockPackage: ExtendedPublicInstalledPackage = {
+				packageName: '@test/n8n-nodes-test',
+				installedVersion: '1.0.0',
+				installedNodes: [],
+				createdAt: new Date(),
+				updatedAt: new Date(),
+				unverifiedUpdate: false,
+			};
+
+			mockIsCommunityPackageName.mockReturnValue(true);
+			mockFetchInstalledPackageInfo.mockResolvedValue(mockPackage);
+
+			const { initInstalledPackage, installedPackage } = useInstalledCommunityPackage(
+				'@test/n8n-nodes-test.TestNode',
+			);
+
+			const result = await initInstalledPackage();
+
+			expect(mockFetchInstalledPackageInfo).toHaveBeenCalledWith('@test/n8n-nodes-test');
+			expect(result).toStrictEqual(mockPackage);
+			expect(installedPackage.value).toStrictEqual(mockPackage);
+		});
+
+		it('should handle fetchInstalledPackageInfo returning undefined', async () => {
+			mockIsCommunityPackageName.mockReturnValue(true);
+			mockFetchInstalledPackageInfo.mockResolvedValue(undefined);
+
+			const { initInstalledPackage, installedPackage } = useInstalledCommunityPackage(
+				'@test/n8n-nodes-test.TestNode',
+			);
+
+			const result = await initInstalledPackage();
+
+			expect(mockFetchInstalledPackageInfo).toHaveBeenCalledWith('@test/n8n-nodes-test');
+			expect(result).toBeUndefined();
+			expect(installedPackage.value).toBeUndefined();
+		});
+	});
+
+	describe('watcher functionality', () => {
+		it('should call initInstalledPackage when installedPackages changes', async () => {
+			const communityNodesStore = mockedStore(useCommunityNodesStore);
+			const mockPackage: ExtendedPublicInstalledPackage = {
+				packageName: '@test/n8n-nodes-test',
+				installedVersion: '1.0.0',
+				installedNodes: [],
+				createdAt: new Date(),
+				updatedAt: new Date(),
+				unverifiedUpdate: false,
+			};
+
+			mockIsCommunityPackageName.mockReturnValue(true);
+			mockFetchInstalledPackageInfo.mockResolvedValue(mockPackage);
+
+			// Initialize the composable
+			const { installedPackage } = useInstalledCommunityPackage('@test/n8n-nodes-test.TestNode');
+
+			// Simulate store change
+			communityNodesStore.installedPackages = {
+				'@test/n8n-nodes-test': mockPackage,
+			};
+
+			await nextTick();
+
+			expect(mockFetchInstalledPackageInfo).toHaveBeenCalledWith('@test/n8n-nodes-test');
+			expect(installedPackage.value).toStrictEqual(mockPackage);
+		});
+
+		it('should not call initInstalledPackage when packageName is empty', async () => {
+			const communityNodesStore = mockedStore(useCommunityNodesStore);
+
+			// Initialize the composable without nodeTypeName
+			useInstalledCommunityPackage();
+
+			// Simulate store change
+			const mockSomePackage: ExtendedPublicInstalledPackage = {
+				packageName: 'some-package',
+				installedVersion: '1.0.0',
+				installedNodes: [],
+				createdAt: new Date(),
+				updatedAt: new Date(),
+				unverifiedUpdate: false,
+			};
+			communityNodesStore.installedPackages = {
+				'some-package': mockSomePackage,
+			};
+
+			await nextTick();
+
+			expect(mockFetchInstalledPackageInfo).not.toHaveBeenCalled();
+		});
+
+		it('should not call initInstalledPackage when package is not in installedPackages', async () => {
+			const communityNodesStore = mockedStore(useCommunityNodesStore);
+			mockIsCommunityPackageName.mockReturnValue(true);
+
+			// Initialize the composable
+			useInstalledCommunityPackage('@test/n8n-nodes-test.TestNode');
+
+			// Simulate store change with different package
+			const mockDifferentPackage: ExtendedPublicInstalledPackage = {
+				packageName: 'different-package',
+				installedVersion: '1.0.0',
+				installedNodes: [],
+				createdAt: new Date(),
+				updatedAt: new Date(),
+				unverifiedUpdate: false,
+			};
+			communityNodesStore.installedPackages = {
+				'different-package': mockDifferentPackage,
+			};
+
+			await nextTick();
+
+			expect(mockFetchInstalledPackageInfo).not.toHaveBeenCalled();
+		});
+	});
+
+	describe('return values', () => {
+		it('should return all expected properties and functions', () => {
+			const result = useInstalledCommunityPackage('@test/n8n-nodes-test.TestNode');
+
+			expect(result).toHaveProperty('installedPackage');
+			expect(result).toHaveProperty('isUpdateCheckAvailable');
+			expect(result).toHaveProperty('isCommunityNode');
+			expect(result).toHaveProperty('initInstalledPackage');
+
+			expect(typeof result.initInstalledPackage).toBe('function');
+		});
+	});
+});
diff --git a/packages/frontend/editor-ui/src/composables/useInstalledCommunityPackage.ts b/packages/frontend/editor-ui/src/composables/useInstalledCommunityPackage.ts
new file mode 100644
index 00000000000..86499b73b05
--- /dev/null
+++ b/packages/frontend/editor-ui/src/composables/useInstalledCommunityPackage.ts
@@ -0,0 +1,65 @@
+import { useCommunityNodesStore } from '@/stores/communityNodes.store';
+import { useUsersStore } from '@/stores/users.store';
+import { isCommunityPackageName } from '@/utils/nodeTypesUtils';
+import {
+	type ExtendedPublicInstalledPackage,
+	fetchInstalledPackageInfo,
+} from '@/utils/communityNodeUtils';
+import { computed, type MaybeRefOrGetter, onMounted, ref, watch, toValue } from 'vue';
+
+export function useInstalledCommunityPackage(nodeTypeName?: MaybeRefOrGetter<string | undefined>) {
+	const communityNodesStore = useCommunityNodesStore();
+	const usersStore = useUsersStore();
+
+	const installedPackage = ref<ExtendedPublicInstalledPackage | undefined>(undefined);
+
+	const packageName = computed(() => toValue(nodeTypeName)?.split('.')[0] ?? '');
+	const isCommunityNode = computed(() => {
+		const nodeType = toValue(nodeTypeName);
+		if (nodeType) {
+			return isCommunityPackageName(nodeType);
+		}
+		return false;
+	});
+
+	const initInstalledPackage = async () => {
+		if (!packageName.value || !isCommunityNode.value) return undefined;
+		installedPackage.value = await fetchInstalledPackageInfo(packageName.value);
+		return installedPackage.value;
+	};
+
+	// update when installed package changes if it's defined
+	watch(
+		() => communityNodesStore.installedPackages[packageName.value],
+		async (changedPackage) => {
+			if (!packageName.value || !changedPackage) return;
+			await initInstalledPackage();
+		},
+		{ deep: true },
+	);
+
+	onMounted(async () => {
+		if (!packageName.value || !isCommunityNode.value) return;
+
+		await initInstalledPackage();
+	});
+
+	/**
+	 * True when the node is a community node, the user has rights to update the package and the package is not an unverified update.
+	 * Update dialogs and button should not be shown when this is false.
+	 */
+	const isUpdateCheckAvailable = computed(() => {
+		return (
+			isCommunityNode.value &&
+			usersStore.isInstanceOwner &&
+			!installedPackage.value?.unverifiedUpdate
+		);
+	});
+
+	return {
+		installedPackage,
+		isUpdateCheckAvailable,
+		isCommunityNode,
+		initInstalledPackage,
+	};
+}
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/utils.test.ts b/packages/frontend/editor-ui/src/utils/communityNodeUtils.test.ts
similarity index 97%
rename from packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/utils.test.ts
rename to packages/frontend/editor-ui/src/utils/communityNodeUtils.test.ts
index d5f9a7f026e..87df8125e8b 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/utils.test.ts
+++ b/packages/frontend/editor-ui/src/utils/communityNodeUtils.test.ts
@@ -1,5 +1,5 @@
 import { describe, it, expect, vi } from 'vitest';
-import { fetchInstalledPackageInfo } from './utils';
+import { fetchInstalledPackageInfo } from './communityNodeUtils';
 import { useCommunityNodesStore } from '@/stores/communityNodes.store';
 import { type NodeTypesStore, useNodeTypesStore } from '@/stores/nodeTypes.store';
 import type { PublicInstalledPackage } from 'n8n-workflow';
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/utils.ts b/packages/frontend/editor-ui/src/utils/communityNodeUtils.ts
similarity index 100%
rename from packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/utils.ts
rename to packages/frontend/editor-ui/src/utils/communityNodeUtils.ts