diff --git a/src/Composer/Installer.php b/src/Composer/Installer.php
index 1987db300..6c1761134 100644
--- a/src/Composer/Installer.php
+++ b/src/Composer/Installer.php
@@ -247,7 +247,8 @@ class Installer
         // creating repository pool
         $pool = new Pool($minimumStability, $stabilityFlags);
         $pool->addRepository($installedRepo, $aliases);
-        foreach ($this->repositoryManager->getRepositories() as $repository) {
+        $repositories = $this->repositoryManager->getRepositories();
+        foreach ($repositories as $repository) {
             $pool->addRepository($repository, $aliases);
         }
 
@@ -360,6 +361,10 @@ class Installer
                 continue;
             }
 
+            if ($package instanceof AliasPackage) {
+                continue;
+            }
+
             // skip packages that will be updated/uninstalled
             foreach ($operations as $operation) {
                 if (('update' === $operation->getJobType() && $operation->getInitialPackage()->equals($package))
@@ -394,9 +399,13 @@ class Installer
                     $newPackage = null;
                     $matches = $pool->whatProvides($package->getName(), new VersionConstraint('=', $package->getVersion()));
                     foreach ($matches as $match) {
-                        if (null === $newPackage || $newPackage->getReleaseDate() < $match->getReleaseDate()) {
-                            $newPackage = $match;
+                        // skip local packages
+                        if (!in_array($match->getRepository(), $repositories, true)) {
+                            continue;
                         }
+
+                        $newPackage = $match;
+                        break;
                     }
 
                     if ($newPackage && $newPackage->getSourceReference() !== $package->getSourceReference()) {
diff --git a/tests/Composer/Test/Fixtures/installer/update-alias-lock.test b/tests/Composer/Test/Fixtures/installer/update-alias-lock.test
index cc69f17d1..03744bcfd 100644
--- a/tests/Composer/Test/Fixtures/installer/update-alias-lock.test
+++ b/tests/Composer/Test/Fixtures/installer/update-alias-lock.test
@@ -1,5 +1,5 @@
 --TEST--
-Update aliased package to non-aliased version
+Update aliased package does not mess up the lock file
 --COMPOSER--
 {
     "repositories": [
@@ -12,12 +12,22 @@ Update aliased package to non-aliased version
                     "source": { "reference": "master", "type": "git", "url": "" }
                 }
             ]
+        },
+        {
+            "type": "package",
+            "package": [
+                {
+                    "name": "a/a", "version": "dev-master",
+                    "extra": { "branch-alias": { "dev-master": "1.0.x-dev" } },
+                    "source": { "reference": "lowpriomaster", "type": "git", "url": "" }
+                }
+            ]
         }
     ],
     "require": {
         "a/a": "1.*"
     },
-    "minimum-stability": "stable"
+    "minimum-stability": "dev"
 }
 --LOCK--
 {
@@ -27,7 +37,7 @@ Update aliased package to non-aliased version
     ],
     "packages-dev": null,
     "aliases": [],
-    "minimum-stability": "stable",
+    "minimum-stability": "dev",
     "stability-flags": []
 }
 --INSTALLED--
@@ -48,7 +58,7 @@ update
     ],
     "packages-dev": null,
     "aliases": [],
-    "minimum-stability": "stable",
+    "minimum-stability": "dev",
     "stability-flags": []
 }
 --EXPECT--