diff --git a/cmd/helm/testdata/output/upgrade-uninstalled-with-keep-history.txt b/cmd/helm/testdata/output/upgrade-uninstalled-with-keep-history.txt
new file mode 100644
index 00000000000..f53b8715a06
--- /dev/null
+++ b/cmd/helm/testdata/output/upgrade-uninstalled-with-keep-history.txt
@@ -0,0 +1,7 @@
+Release "funny-bunny" does not exist. Installing it now.
+NAME: funny-bunny
+LAST DEPLOYED: Fri Sep  2 22:04:05 1977
+NAMESPACE: default
+STATUS: deployed
+REVISION: 3
+TEST SUITE: None
diff --git a/cmd/helm/upgrade.go b/cmd/helm/upgrade.go
index 5f68855b40d..73185d84e5d 100644
--- a/cmd/helm/upgrade.go
+++ b/cmd/helm/upgrade.go
@@ -36,6 +36,7 @@ import (
 	"helm.sh/helm/v3/pkg/cli/values"
 	"helm.sh/helm/v3/pkg/downloader"
 	"helm.sh/helm/v3/pkg/getter"
+	"helm.sh/helm/v3/pkg/release"
 	"helm.sh/helm/v3/pkg/storage/driver"
 )
 
@@ -120,7 +121,8 @@ func newUpgradeCmd(cfg *action.Configuration, out io.Writer) *cobra.Command {
 				// If a release does not exist, install it.
 				histClient := action.NewHistory(cfg)
 				histClient.Max = 1
-				if _, err := histClient.Run(args[0]); err == driver.ErrReleaseNotFound {
+				rel, err := histClient.Run(args[0])
+				if err == driver.ErrReleaseNotFound || (len(rel) > 0 && rel[len(rel)-1].Info.Status == release.StatusUninstalled) {
 					// Only print this to stdout for table output
 					if outfmt == output.Table {
 						fmt.Fprintf(out, "Release %q does not exist. Installing it now.\n", args[0])
@@ -146,6 +148,9 @@ func newUpgradeCmd(cfg *action.Configuration, out io.Writer) *cobra.Command {
 					instClient.DependencyUpdate = client.DependencyUpdate
 					instClient.Labels = client.Labels
 					instClient.EnableDNS = client.EnableDNS
+					if len(rel) > 0 && rel[len(rel)-1].Info.Status == release.StatusUninstalled {
+						instClient.Replace = true
+					}
 
 					rel, err := runInstall(args, instClient, valueOpts, out)
 					if err != nil {
diff --git a/cmd/helm/upgrade_test.go b/cmd/helm/upgrade_test.go
index 485267d1d6d..80d50e21551 100644
--- a/cmd/helm/upgrade_test.go
+++ b/cmd/helm/upgrade_test.go
@@ -175,6 +175,12 @@ func TestUpgradeCmd(t *testing.T) {
 			wantError: true,
 			rels:      []*release.Release{relWithStatusMock("funny-bunny", 2, ch, release.StatusPendingInstall)},
 		},
+		{
+			name:   "install a previously uninstalled release with '--keep-history' using 'upgrade --install'",
+			cmd:    fmt.Sprintf("upgrade funny-bunny -i '%s'", chartPath),
+			golden: "output/upgrade-uninstalled-with-keep-history.txt",
+			rels:   []*release.Release{relWithStatusMock("funny-bunny", 2, ch, release.StatusUninstalled)},
+		},
 	}
 	runTestCmd(t, tests)
 }