diff --git a/.changeset/rude-vans-build.md b/.changeset/rude-vans-build.md
new file mode 100644
index 00000000000..496af602313
--- /dev/null
+++ b/.changeset/rude-vans-build.md
@@ -0,0 +1,8 @@
+---
+"@pnpm/outdated": minor
+"@pnpm/plugin-commands-installation": minor
+"@pnpm/plugin-commands-outdated": minor
+"@pnpm/types": minor
+---
+
+Ignore packages listed in package.json > pnpm.updateConfig.ignoreDependencies fields on update/outdated command [#5358](https://github.com/pnpm/pnpm/issues/5358)
diff --git a/fixtures/with-pnpm-update-ignore/package.json b/fixtures/with-pnpm-update-ignore/package.json
new file mode 100644
index 00000000000..3e738ee45ae
--- /dev/null
+++ b/fixtures/with-pnpm-update-ignore/package.json
@@ -0,0 +1,15 @@
+{
+  "name": "with-pnpm-update-ignore",
+  "version": "1.0.0",
+  "dependencies": {
+    "is-positive": "1.0.0",
+    "is-negative": "1.0.0"
+  },
+  "pnpm": {
+    "updateConfig": {
+      "ignoreDependencies": [
+        "is-positive"
+      ]
+    }
+  }
+}
diff --git a/fixtures/with-pnpm-update-ignore/pnpm-lock.yaml b/fixtures/with-pnpm-update-ignore/pnpm-lock.yaml
new file mode 100644
index 00000000000..2a57a8642d3
--- /dev/null
+++ b/fixtures/with-pnpm-update-ignore/pnpm-lock.yaml
@@ -0,0 +1,21 @@
+lockfileVersion: 5.4
+
+specifiers:
+  is-negative: 1.0.0
+  is-positive: 1.0.0
+
+dependencies:
+  is-negative: 1.0.0
+  is-positive: 1.0.0
+
+packages:
+
+  /is-negative/1.0.0:
+    resolution: {integrity: sha512-1aKMsFUc7vYQGzt//8zhkjRWPoYkajY/I5MJEvrc0pDoHXrW7n5ri8DYxhy3rR+Dk0QFl7GjHHsZU1sppQrWtw==}
+    engines: {node: '>=0.10.0'}
+    dev: false
+
+  /is-positive/1.0.0:
+    resolution: {integrity: sha512-xxzPGZ4P2uN6rROUa5N9Z7zTX6ERuE0hs6GUOc/cKBLF2NqKc16UwqHMt3tFg4CO6EBTE5UecUasg+3jZx3Ckg==}
+    engines: {node: '>=0.10.0'}
+    dev: false
diff --git a/packages/outdated/src/outdated.ts b/packages/outdated/src/outdated.ts
index 6c545ee6690..870ecd59a14 100644
--- a/packages/outdated/src/outdated.ts
+++ b/packages/outdated/src/outdated.ts
@@ -34,6 +34,7 @@ export default async function outdated (
     compatible?: boolean
     currentLockfile: Lockfile | null
     getLatestManifest: GetLatestManifestFunction
+    ignoreDependencies?: Set<string>
     include?: IncludedDependencies
     lockfileDir: string
     manifest: ProjectManifest
@@ -69,8 +70,10 @@ export default async function outdated (
         pkgs.map(async (alias) => {
           const ref = opts.wantedLockfile!.importers[importerId][depType]![alias]
 
-          // ignoring linked packages. (For backward compatibility)
-          if (ref.startsWith('file:')) {
+          if (
+            ref.startsWith('file:') || // ignoring linked packages. (For backward compatibility)
+            opts.ignoreDependencies?.has(alias)
+          ) {
             return
           }
 
diff --git a/packages/outdated/src/outdatedDepsOfProjects.ts b/packages/outdated/src/outdatedDepsOfProjects.ts
index dccf6fc2402..18186d3954d 100644
--- a/packages/outdated/src/outdatedDepsOfProjects.ts
+++ b/packages/outdated/src/outdatedDepsOfProjects.ts
@@ -18,6 +18,7 @@ export default async function outdatedDepsOfProjects (
   args: string[],
   opts: Omit<ManifestGetterOptions, 'fullMetadata' | 'lockfileDir'> & {
     compatible?: boolean
+    ignoreDependencies?: Set<string>
     include: IncludedDependencies
   } & Partial<Pick<ManifestGetterOptions, 'fullMetadata' | 'lockfileDir'>>
 ): Promise<OutdatedPackage[][]> {
@@ -44,6 +45,7 @@ export default async function outdatedDepsOfProjects (
       compatible: opts.compatible,
       currentLockfile,
       getLatestManifest,
+      ignoreDependencies: opts.ignoreDependencies,
       include: opts.include,
       lockfileDir,
       manifest,
diff --git a/packages/plugin-commands-installation/jest.config.js b/packages/plugin-commands-installation/jest.config.js
index f697d831691..739e8317bd5 100644
--- a/packages/plugin-commands-installation/jest.config.js
+++ b/packages/plugin-commands-installation/jest.config.js
@@ -1 +1,7 @@
-module.exports = require('../../jest.config.js')
+module.exports = {
+  ...require('../../jest.config.js'),
+  // This is a temporary workaround.
+  // Currently, multiple tests use the @pnpm.e2e/foo package and they change it's dist-tags.
+  // These tests are in separate files, so sometimes they will simultaneously set the dist tag and fail because they expect different versions to be tagged.
+  maxWorkers: 1,
+}
diff --git a/packages/plugin-commands-installation/src/installDeps.ts b/packages/plugin-commands-installation/src/installDeps.ts
index 1939f1c4c3d..9242642b3bf 100644
--- a/packages/plugin-commands-installation/src/installDeps.ts
+++ b/packages/plugin-commands-installation/src/installDeps.ts
@@ -24,7 +24,7 @@ import getOptionsFromRootManifest from './getOptionsFromRootManifest'
 import getPinnedVersion from './getPinnedVersion'
 import getSaveType from './getSaveType'
 import getNodeExecPath from './nodeExecPath'
-import recursive, { createMatcher, matchDependencies } from './recursive'
+import recursive, { createMatcher, matchDependencies, makeIgnorePatterns, UpdateDepsMatcher } from './recursive'
 import updateToLatestSpecsFromManifest, { createLatestSpecs } from './updateToLatestSpecsFromManifest'
 import { createWorkspaceSpecs, updateToWorkspacePackagesFromManifest } from './updateWorkspaceDependencies'
 
@@ -199,7 +199,18 @@ when running add/update with the --workspace option')
     }
   }
 
-  const updateMatch = opts.update && (params.length > 0) ? createMatcher(params) : null
+  let updateMatch: UpdateDepsMatcher | null
+  if (opts.update) {
+    if (params.length === 0) {
+      const ignoreDeps = manifest.pnpm?.updateConfig?.ignoreDependencies
+      if (ignoreDeps?.length) {
+        params = makeIgnorePatterns(ignoreDeps)
+      }
+    }
+    updateMatch = params.length ? createMatcher(params) : null
+  } else {
+    updateMatch = null
+  }
   if (updateMatch != null) {
     params = matchDependencies(updateMatch, manifest, includeDirect)
     if (params.length === 0 && opts.depth === 0) {
diff --git a/packages/plugin-commands-installation/src/recursive.ts b/packages/plugin-commands-installation/src/recursive.ts
index 496ed7445ea..51e0821a61a 100755
--- a/packages/plugin-commands-installation/src/recursive.ts
+++ b/packages/plugin-commands-installation/src/recursive.ts
@@ -173,8 +173,18 @@ export default async function recursive (
     optionalDependencies: true,
   }
 
-  const updateMatch = cmdFullName === 'update' && (params.length > 0) ? createMatcher(params) : null
-
+  let updateMatch: UpdateDepsMatcher | null
+  if (cmdFullName === 'update') {
+    if (params.length === 0) {
+      const ignoreDeps = manifestsByPath[opts.workspaceDir]?.manifest?.pnpm?.updateConfig?.ignoreDependencies
+      if (ignoreDeps?.length) {
+        params = makeIgnorePatterns(ignoreDeps)
+      }
+    }
+    updateMatch = params.length ? createMatcher(params) : null
+  } else {
+    updateMatch = null
+  }
   // For a workspace with shared lockfile
   if (opts.lockfileDir && ['add', 'install', 'remove', 'update', 'import'].includes(cmdFullName)) {
     let importers = await getImporters()
@@ -499,7 +509,9 @@ export function matchDependencies (
   return matchedDeps
 }
 
-export function createMatcher (params: string[]) {
+export type UpdateDepsMatcher = (input: string) => string | null
+
+export function createMatcher (params: string[]): UpdateDepsMatcher {
   const patterns: string[] = []
   const specs: string[] = []
   for (const param of params) {
@@ -519,3 +531,7 @@ export function createMatcher (params: string[]) {
     return specs[index]
   }
 }
+
+export function makeIgnorePatterns (ignoredDependencies: string[]): string[] {
+  return ignoredDependencies.map(depName => `!${depName}`)
+}
diff --git a/packages/plugin-commands-installation/test/update/update.ts b/packages/plugin-commands-installation/test/update/update.ts
index 14a05ab1234..5a533924d63 100644
--- a/packages/plugin-commands-installation/test/update/update.ts
+++ b/packages/plugin-commands-installation/test/update/update.ts
@@ -224,3 +224,92 @@ test('update should work normal when set empty string version', async () => {
   expect(lockfile.devDependencies['@pnpm.e2e/foo']).toEqual('2.0.0')
   expect(lockfile.devDependencies['@pnpm.e2e/peer-c']).toEqual('2.0.0')
 })
+
+test('ignore packages in package.json > updateConfig.ignoreDependencies fields in update command', async () => {
+  await addDistTag({ package: '@pnpm.e2e/foo', version: '100.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/bar', version: '100.0.0', distTag: 'latest' })
+
+  const project = prepare({
+    dependencies: {
+      '@pnpm.e2e/foo': '100.0.0',
+      '@pnpm.e2e/bar': '100.0.0',
+    },
+    pnpm: {
+      updateConfig: {
+        ignoreDependencies: [
+          '@pnpm.e2e/foo',
+        ],
+      },
+    },
+  })
+
+  await install.handler({
+    ...DEFAULT_OPTS,
+    dir: process.cwd(),
+    workspaceDir: process.cwd(),
+  })
+
+  const lockfile = await project.readLockfile()
+
+  expect(lockfile.packages['/@pnpm.e2e/foo/100.0.0']).toBeTruthy()
+  expect(lockfile.packages['/@pnpm.e2e/bar/100.0.0']).toBeTruthy()
+
+  await addDistTag({ package: '@pnpm.e2e/foo', version: '100.1.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/bar', version: '100.1.0', distTag: 'latest' })
+
+  await update.handler({
+    ...DEFAULT_OPTS,
+    dir: process.cwd(),
+    workspaceDir: process.cwd(),
+    latest: true,
+  })
+
+  const lockfileUpdated = await project.readLockfile()
+
+  expect(lockfileUpdated.packages['/@pnpm.e2e/foo/100.0.0']).toBeTruthy()
+  expect(lockfileUpdated.packages['/@pnpm.e2e/bar/100.1.0']).toBeTruthy()
+})
+
+test('not ignore packages if these are specified in parameter even if these are listed in package.json > pnpm.update.ignoreDependencies fields in update command', async () => {
+  await addDistTag({ package: '@pnpm.e2e/foo', version: '100.0.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/bar', version: '100.0.0', distTag: 'latest' })
+
+  const project = prepare({
+    dependencies: {
+      '@pnpm.e2e/foo': '100.0.0',
+      '@pnpm.e2e/bar': '100.0.0',
+    },
+    pnpm: {
+      updateConfig: {
+        ignoreDependencies: [
+          '@pnpm.e2e/foo',
+        ],
+      },
+    },
+  })
+
+  await install.handler({
+    ...DEFAULT_OPTS,
+    dir: process.cwd(),
+    workspaceDir: process.cwd(),
+  })
+
+  const lockfile = await project.readLockfile()
+
+  expect(lockfile.packages['/@pnpm.e2e/foo/100.0.0']).toBeTruthy()
+  expect(lockfile.packages['/@pnpm.e2e/bar/100.0.0']).toBeTruthy()
+
+  await addDistTag({ package: '@pnpm.e2e/foo', version: '100.1.0', distTag: 'latest' })
+  await addDistTag({ package: '@pnpm.e2e/bar', version: '100.1.0', distTag: 'latest' })
+
+  await update.handler({
+    ...DEFAULT_OPTS,
+    dir: process.cwd(),
+    workspaceDir: process.cwd(),
+  }, ['@pnpm.e2e/foo@latest', '@pnpm.e2e/bar@latest'])
+
+  const lockfileUpdated = await project.readLockfile()
+
+  expect(lockfileUpdated.packages['/@pnpm.e2e/foo/100.1.0']).toBeTruthy()
+  expect(lockfileUpdated.packages['/@pnpm.e2e/bar/100.1.0']).toBeTruthy()
+})
diff --git a/packages/plugin-commands-outdated/src/outdated.ts b/packages/plugin-commands-outdated/src/outdated.ts
index fc326fb725f..952f2d14d0b 100644
--- a/packages/plugin-commands-outdated/src/outdated.ts
+++ b/packages/plugin-commands-outdated/src/outdated.ts
@@ -167,15 +167,17 @@ export async function handler (
     const pkgs = Object.values(opts.selectedProjectsGraph).map((wsPkg) => wsPkg.package)
     return outdatedRecursive(pkgs, params, { ...opts, include })
   }
+  const manifest = await readProjectManifestOnly(opts.dir, opts)
   const packages = [
     {
       dir: opts.dir,
-      manifest: await readProjectManifestOnly(opts.dir, opts),
+      manifest,
     },
   ]
   const [outdatedPackages] = await outdatedDepsOfProjects(packages, params, {
     ...opts,
     fullMetadata: opts.long,
+    ignoreDependencies: new Set(manifest?.pnpm?.updateConfig?.ignoreDependencies ?? []),
     include,
     retry: {
       factor: opts.fetchRetryFactor,
diff --git a/packages/plugin-commands-outdated/src/recursive.ts b/packages/plugin-commands-outdated/src/recursive.ts
index 7eb9d86f5f6..a8e66bae78d 100644
--- a/packages/plugin-commands-outdated/src/recursive.ts
+++ b/packages/plugin-commands-outdated/src/recursive.ts
@@ -50,9 +50,11 @@ export default async (
   opts: OutdatedCommandOptions & { include: IncludedDependencies }
 ) => {
   const outdatedMap = {} as Record<string, OutdatedInWorkspace>
+  const rootManifest = pkgs.find(({ dir }) => dir === opts.lockfileDir ?? opts.dir)
   const outdatedPackagesByProject = await outdatedDepsOfProjects(pkgs, params, {
     ...opts,
     fullMetadata: opts.long,
+    ignoreDependencies: new Set(rootManifest?.manifest?.pnpm?.updateConfig?.ignoreDependencies ?? []),
     retry: {
       factor: opts.fetchRetryFactor,
       maxTimeout: opts.fetchRetryMaxtimeout,
diff --git a/packages/plugin-commands-outdated/test/index.ts b/packages/plugin-commands-outdated/test/index.ts
index 60ff64fa3ce..67ea802ae1c 100644
--- a/packages/plugin-commands-outdated/test/index.ts
+++ b/packages/plugin-commands-outdated/test/index.ts
@@ -15,6 +15,7 @@ const hasOutdatedDepsFixtureAndExternalLockfile = path.join(fixtures, 'has-outda
 const hasNotOutdatedDepsFixture = path.join(fixtures, 'has-not-outdated-deps')
 const hasMajorOutdatedDepsFixture = path.join(fixtures, 'has-major-outdated-deps')
 const hasNoLockfileFixture = path.join(fixtures, 'has-no-lockfile')
+const withPnpmUpdateIgnore = path.join(fixtures, 'with-pnpm-update-ignore')
 
 const REGISTRY_URL = `http://localhost:${REGISTRY_MOCK_PORT}`
 
@@ -317,3 +318,19 @@ test('pnpm outdated: print only compatible versions', async () => {
 └─────────────┴─────────┴────────┘
 `)
 })
+
+test('ignore packages in package.json > pnpm.updateConfig.ignoreDependencies in outdated command', async () => {
+  const { output, exitCode } = await outdated.handler({
+    ...OUTDATED_OPTIONS,
+    dir: withPnpmUpdateIgnore,
+  })
+
+  expect(exitCode).toBe(1)
+  expect(stripAnsi(output)).toBe(`\
+┌─────────────┬─────────┬────────┐
+│ Package     │ Current │ Latest │
+├─────────────┼─────────┼────────┤
+│ is-negative │ 1.0.0   │ 2.1.0  │
+└─────────────┴─────────┴────────┘
+`)
+})
\ No newline at end of file
diff --git a/packages/types/src/package.ts b/packages/types/src/package.ts
index 016fd10f738..ddfb2b96dfd 100644
--- a/packages/types/src/package.ts
+++ b/packages/types/src/package.ts
@@ -131,6 +131,9 @@ export type ProjectManifest = BaseManifest & {
     allowedDeprecatedVersions?: AllowedDeprecatedVersions
     allowNonAppliedPatches?: boolean
     patchedDependencies?: Record<string, string>
+    updateConfig?: {
+      ignoreDependencies?: string[]
+    }
   }
   private?: boolean
   resolutions?: Record<string, string>