diff --git a/gen/app-gen b/gen/app-gen
index 122f352..b56149a 100755
--- a/gen/app-gen
+++ b/gen/app-gen
@@ -34,7 +34,7 @@ Usage: $0 [options] [-- [options-for-mender-artifact] ]
         --output-path       - Path to output artifact file. Default: reboot-artifact.mender
         --image [current-url,]new-url       - Path to output artifact file. Default: reboot-artifact.mender
         --deep-delta        - Calculate delta by parsing the image
-        --manifests-dir     - Directory containing orchestrator-specific manifests describing the deployment
+        --manifests-dir [current-dir,]new-dir     - Directory containing orchestrator-specific manifests describing the deployment
         --platform          - Platform of the images, e.g.: linux/arm/v7
         --orchestrator      - Name of the orchestrator, and name of the sub-module, e.g.: docker-compose
         --k8s-ctr-address   - k8s orchestrator specific: containerd address, e.g.: /run/k3s/containerd/containerd.sock
@@ -74,7 +74,8 @@ orchestrator=""
 k8s_ctr_address=""
 k8s_namespace=""
 platform=""
-manifests_dir=""
+manifests_current_dir=""
+manifests_new_dir=""
 declare -a images=()
 declare -a images_shas=()
 deep_delta=false
@@ -98,7 +99,8 @@ while test $# -gt 0; do
             if [ -z "$2" ]; then
                 show_help_and_exit_error
             fi
-            manifests_dir="$2"
+            manifests_current_dir=$( echo "$2" | cut -f1 -d,)
+            manifests_new_dir=$( echo "$2" | cut -f2 -d,)
             shift 2
             ;;
         --orchestrator | -o)
@@ -203,7 +205,7 @@ if [ -z "${platform}" ]; then
     show_help_and_exit_error
 fi
 
-if [ -z "${manifests_dir}" ]; then
+if [ -z "${manifests_current_dir}" ]; then
     echo "Directory containing manifests not specified. Aborting." >&2
     show_help_and_exit_error
 fi
@@ -212,10 +214,49 @@ if [ ${#images[@]} -lt 1 ]; then
     if [[ "${orchestrator}" == "${DOCKER_COMPOSE_ORCHESTRATOR}" ]]; then
         echo "No specific images specified. Will try to extract from docker-compose.yaml file." >&2
 
-        while read -r img; do
-            images+=("$img")
-            images+=("$img")
-        done < <( docker compose --project-directory "$manifests_dir" config --images)
+        if [[ "$manifests_current_dir" == "$manifests_new_dir" ]]; then
+            while read -r img; do
+                images+=("$img")
+                images+=("$img")
+            done < <( docker compose --project-directory "$manifests_current_dir" config --images)
+        else
+            declare -a current_images=()
+            declare -a new_images=()
+
+            while read -r img; do
+                current_images+=("$img")
+            done < <( docker compose --project-directory "$manifests_current_dir" config --images)
+
+            while read -r img; do
+                new_images+=("$img")
+            done < <( docker compose --project-directory "$manifests_new_dir" config --images)
+
+            for i in "${!current_images[@]}"; do
+                for j in "${!new_images[@]}"; do
+                    # if it's a full match, don't include because it was already included in previous docker-compose
+                    if [ "${current_images[i]}" == "${new_images[j]}" ]; then
+                        unset 'current_images[i]'
+                        unset 'new_images[j]'
+                        continue 2
+                    # if it's a match up until the tag, include for update
+                    elif [ "${current_images[i]%%:*}" == "${new_images[j]%%:*}" ]; then
+                        images+=("${current_images[i]}")
+                        images+=("${new_images[j]}")
+                        unset 'current_images[i]'
+                        unset 'new_images[j]'
+                        continue 2
+                    fi
+                done
+                # if it isn't a match, don't include because it's removed from docker-compose
+                unset 'current_images[i]'
+            done
+
+            for i in "${!new_images[@]}"; do
+                images+=("${new_images[i]}")
+                images+=("${new_images[i]}")
+                unset 'new_images[i]'
+            done
+        fi
 
         if [ ${#images[@]} -lt 1 ]; then
             echo "Image extraction from docker-compose.yaml failed. Aborting." >&2
@@ -565,7 +606,7 @@ generate_metadata() {
 
 prepare_images "${temp_dir}/images"
 ( cd "${temp_dir}" && tar czvf images.tar.gz images  )
-cp -a "${manifests_dir}" "${temp_dir}/manifests"
+cp -a "${manifests_current_dir}" "${temp_dir}/manifests"
 ( cd "${temp_dir}" && tar czvf "manifests.tar.gz" manifests  )
 generate_metadata "${temp_dir}/metadata.json"