diff --git a/app/src/cc/arduino/libraries/contributions/ui/ContributedLibraryTableCell.java b/app/src/cc/arduino/libraries/contributions/ui/ContributedLibraryTableCell.java
index b84629376..9e6fe1950 100644
--- a/app/src/cc/arduino/libraries/contributions/ui/ContributedLibraryTableCell.java
+++ b/app/src/cc/arduino/libraries/contributions/ui/ContributedLibraryTableCell.java
@@ -110,7 +110,7 @@ public class ContributedLibraryTableCell extends InstallerTableCell {
       installButton.addActionListener(new ActionListener() {
         @Override
         public void actionPerformed(ActionEvent e) {
-          onInstall(editorValue.getSelected());
+          onInstall(editorValue.getSelected(), editorValue.getInstalled());
         }
       });
       int width = installButton.getPreferredSize().width;
@@ -135,7 +135,7 @@ public class ContributedLibraryTableCell extends InstallerTableCell {
       public void actionPerformed(ActionEvent e) {
         ContributedLibrary selected;
         selected = (ContributedLibrary) downgradeChooser.getSelectedItem();
-        onInstall(selected);//, editorValue.getInstalled());
+        onInstall(selected, editorValue.getInstalled());
       }
     });
 
@@ -199,11 +199,11 @@ public class ContributedLibraryTableCell extends InstallerTableCell {
     panel.add(Box.createVerticalStrut(10));
   }
 
-  protected void onRemove(ContributedLibrary contributedPlatform) {
+  protected void onRemove(ContributedLibrary selectedLib) {
     // Empty
   }
 
-  protected void onInstall(ContributedLibrary contributedPlatform) {
+  protected void onInstall(ContributedLibrary selectedLib, ContributedLibrary installedLib) {
     // Empty
   }
 
diff --git a/app/src/cc/arduino/libraries/contributions/ui/LibraryInstaller.java b/app/src/cc/arduino/libraries/contributions/ui/LibraryInstaller.java
index a1e54e8ee..2f83b24d0 100644
--- a/app/src/cc/arduino/libraries/contributions/ui/LibraryInstaller.java
+++ b/app/src/cc/arduino/libraries/contributions/ui/LibraryInstaller.java
@@ -88,7 +88,7 @@ public class LibraryInstaller {
     rescanLibraryIndex(progress);
   }
 
-  public void install(ContributedLibrary lib) throws Exception {
+  public void install(ContributedLibrary lib, ContributedLibrary replacedLib) throws Exception {
     if (lib.isInstalled())
       throw new Exception(_("Library is already installed!"));
 
@@ -109,12 +109,26 @@ public class LibraryInstaller {
     // Step 2: Unpack library on the correct location
     progress.setStatus(_("Installing library..."));
     onProgress(progress);
-    File destFolder = new File(indexer.getSketchbookLibrariesFolder(), lib.getName());
-    destFolder.mkdirs();
-    ArchiveExtractor.extract(lib.getDownloadedFile(), destFolder, 1);
+    File libsFolder = indexer.getSketchbookLibrariesFolder();
+    File tmpFolder = FileUtils.createTempFolderIn(libsFolder);
+    try {
+      ArchiveExtractor.extract(lib.getDownloadedFile(), tmpFolder, 1);
+    } catch (Exception e) {
+      if (tmpFolder.exists())
+        FileUtils.recursiveDelete(tmpFolder);
+    }
     progress.stepDone();
 
-    // Step 3: Rescan index
+    // Step 3: Remove replaced library and move installed one to the correct location
+    // TODO: Fix progress bar...
+    if (replacedLib != null) {
+      remove(replacedLib);
+    }
+    File destFolder = new File(libsFolder, lib.getName());
+    tmpFolder.renameTo(destFolder);
+    progress.stepDone();
+    
+    // Step 4: Rescan index
     rescanLibraryIndex(progress);
   }
 
diff --git a/app/src/cc/arduino/libraries/contributions/ui/LibraryManagerUI.java b/app/src/cc/arduino/libraries/contributions/ui/LibraryManagerUI.java
index b9ef14094..2a5c88789 100644
--- a/app/src/cc/arduino/libraries/contributions/ui/LibraryManagerUI.java
+++ b/app/src/cc/arduino/libraries/contributions/ui/LibraryManagerUI.java
@@ -62,8 +62,8 @@ public class LibraryManagerUI extends InstallerJDialog {
   protected InstallerTableCell createCellEditor() {
     return new ContributedLibraryTableCell() {
       @Override
-      protected void onInstall(ContributedLibrary selectedPlatform) {
-        onInstallPressed(selectedPlatform);
+      protected void onInstall(ContributedLibrary selectedLibrary, ContributedLibrary installedLibrary) {
+        onInstallPressed(selectedLibrary, installedLibrary);
       }
 
       @Override
@@ -148,13 +148,13 @@ public class LibraryManagerUI extends InstallerJDialog {
     installerThread.start();
   }
 
-  public void onInstallPressed(final ContributedLibrary lib) {
+  public void onInstallPressed(final ContributedLibrary lib, final ContributedLibrary replaced) {
     installerThread = new Thread(new Runnable() {
       @Override
       public void run() {
         try {
           setProgressVisible(true, _("Installing..."));
-          installer.install(lib);
+          installer.install(lib, replaced);
           onIndexesUpdated(); // TODO: Do a better job in refreshing only the needed element
           //getContribModel().updateLibrary(lib);
         } catch (Exception e) {