diff --git a/temporal-sdk/src/test/java/io/temporal/workflow/updateTest/UpdateTestContinueAsNew.java b/temporal-sdk/src/test/java/io/temporal/workflow/updateTest/UpdateTestContinueAsNew.java
new file mode 100644
index 000000000..2bc9ddf42
--- /dev/null
+++ b/temporal-sdk/src/test/java/io/temporal/workflow/updateTest/UpdateTestContinueAsNew.java
@@ -0,0 +1,162 @@
+/*
+ * Copyright (C) 2022 Temporal Technologies, Inc. All Rights Reserved.
+ *
+ * Copyright (C) 2012-2016 Amazon.com, Inc. or its affiliates. All Rights Reserved.
+ *
+ * Modifications copyright (C) 2017 Uber Technologies, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this material except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package io.temporal.workflow.updateTest;
+
+import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertThrows;
+
+import io.temporal.activity.Activity;
+import io.temporal.activity.ActivityInterface;
+import io.temporal.activity.ActivityMethod;
+import io.temporal.activity.ActivityOptions;
+import io.temporal.api.common.v1.WorkflowExecution;
+import io.temporal.client.*;
+import io.temporal.testing.internal.SDKTestOptions;
+import io.temporal.testing.internal.SDKTestWorkflowRule;
+import io.temporal.worker.WorkerOptions;
+import io.temporal.workflow.CompletablePromise;
+import io.temporal.workflow.Workflow;
+import io.temporal.workflow.shared.TestActivities;
+import io.temporal.workflow.shared.TestWorkflows.WorkflowWithUpdate;
+import java.time.Duration;
+import java.util.ArrayList;
+import java.util.List;
+import java.util.Optional;
+import java.util.UUID;
+import org.junit.Rule;
+import org.junit.Test;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
+
+public class UpdateTestContinueAsNew {
+
+  private static final Logger log = LoggerFactory.getLogger(UpdateTestContinueAsNew.class);
+
+  @Rule
+  public SDKTestWorkflowRule testWorkflowRule =
+      SDKTestWorkflowRule.newBuilder()
+          .setWorkerOptions(WorkerOptions.newBuilder().build())
+          .setWorkflowTypes(TestUpdateWorkflowImpl.class)
+          .setActivityImplementations(new ActivityImpl())
+          .build();
+
+  @Test
+  public void testContinueAsNewInAUpdate() {
+    String workflowId = UUID.randomUUID().toString();
+    WorkflowClient workflowClient = testWorkflowRule.getWorkflowClient();
+    WorkflowOptions options =
+        SDKTestOptions.newWorkflowOptionsWithTimeouts(testWorkflowRule.getTaskQueue()).toBuilder()
+            .setWorkflowId(workflowId)
+            .build();
+    WorkflowWithUpdate workflow = workflowClient.newWorkflowStub(WorkflowWithUpdate.class, options);
+    // To execute workflow client.execute() would do. But we want to start workflow and immediately
+    // return.
+    WorkflowExecution execution = WorkflowClient.start(workflow::execute);
+
+    SDKTestWorkflowRule.waitForOKQuery(workflow);
+    assertEquals("initial", workflow.getState());
+
+    assertEquals(workflowId, execution.getWorkflowId());
+
+    assertEquals("Execute-Hello Update", workflow.update(0, "Hello Update"));
+    assertEquals("Execute-Hello Update 2", workflow.update(0, "Hello Update 2"));
+    // Complete should fail since we have not continued as new yet
+    assertThrows(WorkflowUpdateException.class, () -> workflow.complete());
+
+    // Send an update to continue as new, must be async since the update won't complete
+    WorkflowStub workflowStub = WorkflowStub.fromTyped(workflow);
+    workflowStub.startUpdate("update", String.class, 0, "");
+
+    testWorkflowRule.waitForTheEndOfWFT(execution.getWorkflowId());
+    testWorkflowRule.invalidateWorkflowCache();
+
+    assertEquals("Execute-Hello Update", workflow.update(0, "Hello Update"));
+    assertEquals("Execute-Hello Update 2", workflow.update(0, "Hello Update 2"));
+
+    workflow.complete();
+
+    String result =
+        testWorkflowRule
+            .getWorkflowClient()
+            .newUntypedWorkflowStub(execution, Optional.empty())
+            .getResult(String.class);
+    assertEquals("Execute-Hello Update Execute-Hello Update 2", result);
+  }
+
+  public static class TestUpdateWorkflowImpl implements WorkflowWithUpdate {
+    String state = "initial";
+    List<String> updates = new ArrayList<>();
+    CompletablePromise<Void> promise = Workflow.newPromise();
+    private final TestActivities.TestActivity1 activity =
+        Workflow.newActivityStub(
+            TestActivities.TestActivity1.class,
+            ActivityOptions.newBuilder().setScheduleToCloseTimeout(Duration.ofHours(1)).build());
+
+    @Override
+    public String execute() {
+      promise.get();
+      return updates.get(0) + " " + updates.get(1);
+    }
+
+    @Override
+    public String getState() {
+      return state;
+    }
+
+    @Override
+    public String update(Integer index, String value) {
+      if (value.isEmpty()) {
+        Workflow.newContinueAsNewStub(WorkflowWithUpdate.class).execute();
+      }
+      String result = activity.execute(value);
+      updates.add(result);
+      return result;
+    }
+
+    @Override
+    public void updateValidator(Integer index, String value) {}
+
+    @Override
+    public void complete() {
+      promise.complete(null);
+    }
+
+    @Override
+    public void completeValidator() {
+      if (updates.size() < 2 || !Workflow.getInfo().getContinuedExecutionRunId().isPresent()) {
+        throw new RuntimeException("Workflow not ready to complete");
+      }
+    }
+  }
+
+  @ActivityInterface
+  public interface GreetingActivities {
+    @ActivityMethod
+    String hello(String input);
+  }
+
+  public static class ActivityImpl implements TestActivities.TestActivity1 {
+    @Override
+    public String execute(String input) {
+      return Activity.getExecutionContext().getInfo().getActivityType() + "-" + input;
+    }
+  }
+}