diff --git a/src/Composer/Command/InstallCommand.php b/src/Composer/Command/InstallCommand.php
index d90b05b07..89dc3aa87 100644
--- a/src/Composer/Command/InstallCommand.php
+++ b/src/Composer/Command/InstallCommand.php
@@ -107,13 +107,17 @@ EOT
 
         // prepare aliased packages
         $aliasRepo = new ArrayRepository;
-        foreach ($composer->getPackage()->getAliases() as $alias) {
+        if (!$update && $composer->getLocker()->isLocked()) {
+            $aliases = $composer->getLocker()->getAliases();
+        } else {
+            $aliases = $composer->getPackage()->getAliases();
+        }
+        foreach ($aliases as $alias) {
             foreach ($repoManager->findPackages($alias['package'], $alias['version']) as $package) {
-                $aliasRepo->addPackage(new AliasPackage($package, $alias['replaces']));
+                $aliasRepo->addPackage(new AliasPackage($package, $alias['alias']));
             }
-
             foreach ($repoManager->getLocalRepository()->findPackages($alias['package'], $alias['version']) as $package) {
-                $repoManager->getLocalRepository()->addPackage(new AliasPackage($package, $alias['replaces']));
+                $repoManager->getLocalRepository()->addPackage(new AliasPackage($package, $alias['alias']));
                 $repoManager->getLocalRepository()->removePackage($package);
             }
         }
@@ -137,11 +141,11 @@ EOT
         $request = new Request($pool);
         if ($update) {
             $io->write('<info>Updating dependencies</info>');
-            $installedPackages = $installedRepo->getPackages();
-            $links = $this->collectLinks($composer->getPackage(), $noInstallRecommends, $installSuggests);
 
             $request->updateAll();
 
+            $links = $this->collectLinks($composer->getPackage(), $noInstallRecommends, $installSuggests);
+
             foreach ($links as $link) {
                 $request->install($link->getTarget(), $link->getConstraint());
             }
@@ -154,7 +158,14 @@ EOT
             }
 
             foreach ($composer->getLocker()->getLockedPackages() as $package) {
-                $constraint = new VersionConstraint('=', $package->getVersion());
+                $version = $package->getVersion();
+                foreach ($aliases as $alias) {
+                    if ($alias['package'] === $package->getName() && $alias['version'] === $package->getVersion()) {
+                        $version = $alias['alias'];
+                        break;
+                    }
+                }
+                $constraint = new VersionConstraint('=', $version);
                 $request->install($package->getName(), $constraint);
             }
         } else {
@@ -175,14 +186,13 @@ EOT
         // solve dependencies
         $operations = $solver->solve($request);
 
-        // execute operations
-        if (!$operations) {
-            $io->write('<info>Nothing to install/update</info>');
-        }
-
         // force dev packages to be updated to latest reference on update
         if ($update) {
             foreach ($localRepo->getPackages() as $package) {
+                if ($package instanceof AliasPackage) {
+                    $package = $package->getAliasOf();
+                }
+
                 // skip non-dev packages
                 if (!$package->isDev()) {
                     continue;
@@ -205,6 +215,19 @@ EOT
             }
         }
 
+        // anti-alias local repository to allow updates to work fine
+        foreach ($repoManager->getLocalRepository()->getPackages() as $package) {
+            if ($package instanceof AliasPackage) {
+                $repoManager->getLocalRepository()->addPackage(clone $package->getAliasOf());
+                $repoManager->getLocalRepository()->removePackage($package);
+            }
+        }
+
+        // execute operations
+        if (!$operations) {
+            $io->write('<info>Nothing to install/update</info>');
+        }
+
         foreach ($operations as $operation) {
             if ($verbose) {
                 $io->write((string) $operation);
@@ -238,7 +261,7 @@ EOT
 
         if (!$dryRun) {
             if ($update || !$composer->getLocker()->isLocked()) {
-                $composer->getLocker()->lockPackages($localRepo->getPackages());
+                $composer->getLocker()->setLockData($localRepo->getPackages(), $aliases);
                 $io->write('<info>Writing lock file</info>');
             }
 
diff --git a/src/Composer/Installer/InstallationManager.php b/src/Composer/Installer/InstallationManager.php
index d2f0e2a6b..6500e6b00 100644
--- a/src/Composer/Installer/InstallationManager.php
+++ b/src/Composer/Installer/InstallationManager.php
@@ -13,6 +13,7 @@
 namespace Composer\Installer;
 
 use Composer\Package\PackageInterface;
+use Composer\Package\AliasPackage;
 use Composer\DependencyResolver\Operation\OperationInterface;
 use Composer\DependencyResolver\Operation\InstallOperation;
 use Composer\DependencyResolver\Operation\UpdateOperation;
diff --git a/src/Composer/Package/AliasPackage.php b/src/Composer/Package/AliasPackage.php
index 3665fd30a..02c0a9510 100644
--- a/src/Composer/Package/AliasPackage.php
+++ b/src/Composer/Package/AliasPackage.php
@@ -60,6 +60,11 @@ class AliasPackage extends BasePackage
         }
     }
 
+    public function getAliasOf()
+    {
+        return $this->aliasOf;
+    }
+
     /**
      * {@inheritDoc}
      */
@@ -204,6 +209,10 @@ class AliasPackage extends BasePackage
     {
         return $this->aliasOf->getReleaseDate();
     }
+    public function getBinaries()
+    {
+        return $this->aliasOf->getBinaries();
+    }
     public function getKeywords()
     {
         return $this->aliasOf->getKeywords();
diff --git a/src/Composer/Package/Loader/RootPackageLoader.php b/src/Composer/Package/Loader/RootPackageLoader.php
index 657ff482c..a6865f01e 100644
--- a/src/Composer/Package/Loader/RootPackageLoader.php
+++ b/src/Composer/Package/Loader/RootPackageLoader.php
@@ -50,7 +50,7 @@ class RootPackageLoader extends ArrayLoader
                     $aliases[] = array(
                         'package' => strtolower($reqName),
                         'version' => $this->versionParser->normalize($match[1]),
-                        'replaces' => $this->versionParser->normalize($match[2]),
+                        'alias' => $this->versionParser->normalize($match[2]),
                     );
                 }
             }
diff --git a/src/Composer/Package/Locker.php b/src/Composer/Package/Locker.php
index c55c0e467..205372481 100644
--- a/src/Composer/Package/Locker.php
+++ b/src/Composer/Package/Locker.php
@@ -91,6 +91,12 @@ class Locker
         return $packages;
     }
 
+    public function getAliases()
+    {
+        $lockList = $this->getLockData();
+        return isset($lockList['aliases']) ? $lockList['aliases'] : array();
+    }
+
     public function getLockData()
     {
         if (!$this->isLocked()) {
@@ -101,15 +107,17 @@ class Locker
     }
 
     /**
-     * Locks provided packages into lockfile.
+     * Locks provided data into lockfile.
      *
      * @param array $packages array of packages
+     * @param array $aliases array of aliases
      */
-    public function lockPackages(array $packages)
+    public function setLockData(array $packages, array $aliases)
     {
         $lock = array(
             'hash' => $this->hash,
             'packages' => array(),
+            'aliases' => $aliases,
         );
         foreach ($packages as $package) {
             $name    = $package->getPrettyName();
diff --git a/src/Composer/Package/PackageInterface.php b/src/Composer/Package/PackageInterface.php
index 1f19a835f..cf68cc02d 100644
--- a/src/Composer/Package/PackageInterface.php
+++ b/src/Composer/Package/PackageInterface.php
@@ -293,6 +293,13 @@ interface PackageInterface
      */
     function getDescription();
 
+    /**
+     * Returns the package binaries
+     *
+     * @return string
+     */
+    function getBinaries();
+
     /**
      * Returns the package homepage
      *
diff --git a/src/Composer/Package/Version/VersionParser.php b/src/Composer/Package/Version/VersionParser.php
index 36a16ae09..19cd240a8 100644
--- a/src/Composer/Package/Version/VersionParser.php
+++ b/src/Composer/Package/Version/VersionParser.php
@@ -36,7 +36,7 @@ class VersionParser
 
         // ignore aliases and just assume the alias is required instead of the source
         if (preg_match('{^([^,\s]+) +as +([^,\s]+)$}', $version, $match)) {
-            $version = $match[1];
+            $version = $match[2];
         }
 
         // match master-like branches
diff --git a/tests/Composer/Test/Package/LockerTest.php b/tests/Composer/Test/Package/LockerTest.php
index 8feeabeaf..9c3f3cbe0 100644
--- a/tests/Composer/Test/Package/LockerTest.php
+++ b/tests/Composer/Test/Package/LockerTest.php
@@ -114,7 +114,7 @@ class LockerTest extends \PHPUnit_Framework_TestCase
         $locker->getLockedPackages();
     }
 
-    public function testLockPackages()
+    public function testSetLockData()
     {
         $json = $this->createJsonFileMock();
         $repo = $this->createRepositoryManagerMock();
@@ -151,9 +151,10 @@ class LockerTest extends \PHPUnit_Framework_TestCase
                     array('package' => 'pkg1', 'version' => '1.0.0-beta'),
                     array('package' => 'pkg2', 'version' => '0.1.10')
                 ),
+                'aliases' => array(),
             ));
 
-        $locker->lockPackages(array($package1, $package2));
+        $locker->setLockData(array($package1, $package2), array());
     }
 
     public function testLockBadPackages()
@@ -171,7 +172,7 @@ class LockerTest extends \PHPUnit_Framework_TestCase
 
         $this->setExpectedException('LogicException');
 
-        $locker->lockPackages(array($package1));
+        $locker->setLockData(array($package1), array());
     }
 
     public function testIsFresh()
diff --git a/tests/Composer/Test/Package/Version/VersionParserTest.php b/tests/Composer/Test/Package/Version/VersionParserTest.php
index d7336bd5a..63efbc2f5 100644
--- a/tests/Composer/Test/Package/Version/VersionParserTest.php
+++ b/tests/Composer/Test/Package/Version/VersionParserTest.php
@@ -53,7 +53,7 @@ class VersionParserTest extends \PHPUnit_Framework_TestCase
             'parses trunk'      => array('dev-trunk',           '9999999-dev'),
             'parses arbitrary'  => array('dev-feature-foo',     'dev-feature-foo'),
             'parses arbitrary2' => array('DEV-FOOBAR',          'dev-foobar'),
-            'ignores aliases'   => array('dev-master as 1.0.0', '9999999-dev'),
+            'ignores aliases'   => array('dev-master as 1.0.0', '1.0.0.0'),
         );
     }