diff --git a/fuelclient/fuelclient/cli/actions/environment.py b/fuelclient/fuelclient/cli/actions/environment.py
index 6bc1c7c376..9c00524c5c 100644
--- a/fuelclient/fuelclient/cli/actions/environment.py
+++ b/fuelclient/fuelclient/cli/actions/environment.py
@@ -14,7 +14,6 @@
 
 from fuelclient.cli.actions.base import Action
 from fuelclient.cli.actions.base import check_all
-from fuelclient.cli.actions.base import check_any
 import fuelclient.cli.arguments as Args
 from fuelclient.cli.arguments import group
 from fuelclient.cli.formatting import format_table
@@ -43,6 +42,9 @@ class EnvironmentAction(Action):
                 Args.get_create_arg(
                     "Create a new environment with "
                     "specific release id and name."
+                ),
+                Args.get_update_arg(
+                    "Update OS to specified release id for given env."
                 )
             ),
             Args.get_release_arg(
@@ -65,6 +67,7 @@ class EnvironmentAction(Action):
             ("create", self.create),
             ("set", self.set),
             ("delete", self.delete),
+            ("update", self.update),
             (None, self.list)
         )
 
@@ -84,8 +87,9 @@ class EnvironmentAction(Action):
             params.net,
             net_segment_type=params.nst
         )
+
         if params.mode:
-            data = env.set(mode=params.mode)
+            data = env.set({'mode': params.mode})
         else:
             data = env.get_fresh_data()
 
@@ -97,24 +101,35 @@ class EnvironmentAction(Action):
         )
 
     @check_all("env")
-    @check_any("name", "mode")
     def set(self, params):
         """For changing environments name, mode
            or network mode exists set action:
                 fuel --env 1 env set --name NewEmvName --mode ha_compact
         """
+        acceptable_params = ('mode', 'name', 'pending_release_id')
+
         env = Environment(params.env, params=params)
-        data = env.set(name=params.name, mode=params.mode)
-        msg_templates = []
-        if params.name:
-            msg_templates.append(
-                "Environment with id={id} was renamed to '{name}'.")
-        if params.mode:
-            msg_templates.append(
-                "Mode of environment with id={id} was set to '{mode}'.")
+
+        # forming message for output and data structure for request body
+        # TODO(aroma): make it less ugly
+        msg_template = ("Following attributes are changed for "
+                        "the environment: {env_attributes}")
+
+        env_attributes = []
+        update_kwargs = dict()
+        for param_name in acceptable_params:
+            attr_value = getattr(params, param_name, None)
+            if attr_value:
+                update_kwargs[param_name] = attr_value
+                env_attributes.append(
+                    ''.join([param_name, '=', str(attr_value)])
+                )
+
+        data = env.set(update_kwargs)
+        env_attributes = ', '.join(env_attributes)
         self.serializer.print_to_output(
             data,
-            "\n".join(msg_templates).format(**data)
+            msg_template.format(env_attributes=env_attributes)
         )
 
     @check_all("env")
@@ -135,7 +150,7 @@ class EnvironmentAction(Action):
                 fuel env
         """
         acceptable_keys = ("id", "status", "name", "mode",
-                           "release_id", "changes")
+                           "release_id", "changes", "pending_release_id")
         data = Environment.get_all_data()
         if params.env:
             data = filter(
@@ -149,3 +164,21 @@ class EnvironmentAction(Action):
                 acceptable_keys=acceptable_keys
             )
         )
+
+    def update(self, params):
+        """Update environment to given OS release
+                fuel env --env 1 --update --release 1
+        """
+        params.pending_release_id = params.release
+        self.set(params)
+
+        env = Environment(params.env, params=params)
+        update_task = env.update_env()
+
+        msg = ("Update process for environment has been started. "
+               "Update task id is {0}".format(update_task.id))
+
+        self.serializer.print_to_output(
+            {},
+            msg
+        )
diff --git a/fuelclient/fuelclient/cli/arguments.py b/fuelclient/fuelclient/cli/arguments.py
index f132292053..ff1cf856ed 100644
--- a/fuelclient/fuelclient/cli/arguments.py
+++ b/fuelclient/fuelclient/cli/arguments.py
@@ -35,7 +35,7 @@ substitutions = {
     "create": "--create",
     "remove": "--delete",
     "config": "--config",
-    "--roles": "--role"
+    "--roles": "--role",
 }
 
 
@@ -289,6 +289,11 @@ def get_list_arg(help_msg):
     return get_boolean_arg("list", flags=("-l",), help=help_msg)
 
 
+def get_update_arg(help_msg):
+    return get_boolean_arg("update",
+                           flags=("--env-update",), help=help_msg)
+
+
 def get_dir_arg(help_msg):
     return get_str_arg("dir", default=os.curdir, help=help_msg)
 
diff --git a/fuelclient/fuelclient/objects/environment.py b/fuelclient/fuelclient/objects/environment.py
index 13f59b8e4f..0d3905c9da 100644
--- a/fuelclient/fuelclient/objects/environment.py
+++ b/fuelclient/fuelclient/objects/environment.py
@@ -22,6 +22,7 @@ from fuelclient.cli.error import ServerDataException
 from fuelclient.cli.serializers import listdir_without_extensions
 from fuelclient.objects.base import BaseObject
 from fuelclient.objects.task import DeployTask
+from fuelclient.objects.task import Task
 
 
 class Environment(BaseObject):
@@ -49,18 +50,24 @@ class Environment(BaseObject):
         data = cls.connection.post_request("clusters/", data)
         return cls.init_with_data(data)
 
-    def set(self, name=None, mode=None):
-        data = {}
-        if mode:
+    def set(self, data):
+        if data.get('mode'):
             data["mode"] = "ha_compact" \
-                if mode.lower() == "ha" else "multinode"
-        if name:
-            data["name"] = name
+                if data['mode'].lower() == "ha" else "multinode"
+
         return self.connection.put_request(
             "clusters/{0}/".format(self.id),
             data
         )
 
+    def update_env(self):
+        return Task.init_with_data(
+            self.connection.put_request(
+                "clusters/{0}/update/".format(self.id),
+                {}
+            )
+        )
+
     def delete(self):
         return self.connection.delete_request(
             "clusters/{0}/".format(self.id)
@@ -322,7 +329,6 @@ class Environment(BaseObject):
         )
 
     def stop(self):
-        from fuelclient.objects.task import Task
         return Task.init_with_data(
             self.connection.put_request(
                 "clusters/{0}/stop_deployment/".format(self.id),
@@ -331,7 +337,6 @@ class Environment(BaseObject):
         )
 
     def reset(self):
-        from fuelclient.objects.task import Task
         return Task.init_with_data(
             self.connection.put_request(
                 "clusters/{0}/reset/".format(self.id),
@@ -346,7 +351,6 @@ class Environment(BaseObject):
             ','.join(map(lambda n: str(n.id), nodes)))
 
     def install_selected_nodes(self, method_type, nodes):
-        from fuelclient.objects.task import Task
         return Task.init_with_data(
             self.connection.put_request(
                 self._get_method_url(method_type, nodes),
diff --git a/fuelclient/tests/test_client.py b/fuelclient/tests/test_client.py
index d46e13bfbc..305acfd41b 100644
--- a/fuelclient/tests/test_client.py
+++ b/fuelclient/tests/test_client.py
@@ -25,12 +25,12 @@ class TestHandlers(BaseTestCase):
     def test_env_action(self):
         #check env help
         help_msgs = ["usage: fuel environment [-h]",
-                     "[--list | --set | --delete | --create]",
+                     "[--list | --set | --delete | --create | --update]",
                      "optional arguments:", "--help", "--list", "--set",
                      "--delete", "--rel", "--env-create",
                      "--create", "--name", "--env-name", "--mode", "--net",
                      "--network-mode", "--nst", "--net-segment-type",
-                     "--deployment-mode"]
+                     "--deployment-mode", "--update", "--env-update"]
         self.check_all_in_msg("env --help", help_msgs)
         #no clusters
         self.check_for_rows_in_table("env")
@@ -41,15 +41,17 @@ class TestHandlers(BaseTestCase):
         #list of tuples (<fuel CLI command>, <expected output of a command>)
         expected_stdout = \
             [(
-                "env create --name=TestEnv --release=1",
+                "env --create --name=TestEnv --release=1",
                 "Environment 'TestEnv' with id=1, mode=ha_compact and "
                 "network-mode=nova_network was created!\n"
             ), (
                 "--env-id=1 env set --name=NewEnv",
-                "Environment with id=1 was renamed to 'NewEnv'.\n"
+                ("Following attributes are changed for "
+                 "the environment: name=NewEnv\n")
             ), (
                 "--env-id=1 env set --mode=multinode",
-                "Mode of environment with id=1 was set to 'multinode'.\n"
+                ("Following attributes are changed for "
+                 "the environment: mode=multinode\n")
             )]
 
         for cmd, msg in expected_stdout: