diff --git a/package.json b/package.json
index 57a7596f..bf3b0d9d 100644
--- a/package.json
+++ b/package.json
@@ -39,6 +39,7 @@
     "start-dev-https": "webpack serve --server-type https --mode=development",
     "start-prod": "http-server ./dist --port 3502 --ext html -c-1 --gzip --brotli --cors --proxy http://localhost:3502?",
     "start-prod-https": "http-server ./dist --port 3502 --ext html -c-1 --gzip --brotli --cors --ssl --cert ./keys/sdk-r.crt --key ./keys/sdk-r.key --proxy https://localhost:3502?",
+    "create_and_install_sdk_packages": "node scripts/update-dependencies.js",
     "test": "node scripts/playwright-message.js && playwright test --project=chromium MediaCo/portal MediaCo/embedded",
     "test:headed": "playwright test --headed --project=chromium MediaCo/portal MediaCo/embedded",
     "test-report": "playwright show-report tests/playwright-report",
diff --git a/scripts/update-dependencies.js b/scripts/update-dependencies.js
new file mode 100644
index 00000000..dbc983ce
--- /dev/null
+++ b/scripts/update-dependencies.js
@@ -0,0 +1,72 @@
+const { execFileSync } = require('child_process');
+const path = require('path');
+const fs = require('fs');
+const readline = require('readline');
+
+try {
+  const componentsProjectRootPath = process.cwd();
+  const componentsPackagePath = path.join(componentsProjectRootPath, 'packages', 'react-sdk-components');
+
+  const readLineInterface = readline.createInterface({
+    input: process.stdin,
+    output: process.stdout
+  });
+
+  readLineInterface.question('Please enter the absolute path of react-sdk project: ', sdkProjectPathInput => {
+    readLineInterface.close();
+
+    const sdkProjectRootPath = path.resolve(sdkProjectPathInput.trim());
+
+    if (!fs.existsSync(sdkProjectRootPath)) {
+      throw new Error(`Path does not exist: ${sdkProjectRootPath}`);
+    }
+
+    if (!fs.existsSync(path.join(sdkProjectRootPath, 'package.json'))) {
+      throw new Error(`No package.json found at: ${sdkProjectRootPath}`);
+    }
+
+    const existingTgzInComponents = fs
+      .readdirSync(componentsPackagePath)
+      .find(file => file.endsWith('.tgz') && file.indexOf('pega-react-sdk-components') > -1);
+
+    if (existingTgzInComponents) {
+      console.log(`---- Removing existing tgz: ${existingTgzInComponents} ----`);
+      fs.unlinkSync(path.join(componentsPackagePath, existingTgzInComponents));
+    }
+
+    console.log(`---- Building react-sdk-components at: ${componentsProjectRootPath} ----`);
+    execFileSync('npm', ['run', 'build-sdk'], { cwd: componentsProjectRootPath, stdio: 'inherit' });
+
+    console.log(`---- Packing npm package in: ${componentsPackagePath} ----`);
+    execFileSync('npm', ['pack'], { cwd: componentsPackagePath, stdio: 'inherit' });
+
+    const componentsTgzFile = fs
+      .readdirSync(componentsPackagePath)
+      .find(file => file.endsWith('.tgz') && file.indexOf('pega-react-sdk-components') > -1);
+
+    if (!componentsTgzFile) {
+      throw new Error('No react-sdk-components .tgz file found after packing.');
+    }
+
+    const componentsTgzPath = path.join(componentsPackagePath, componentsTgzFile);
+    const componentTargetTgzPath = path.join(sdkProjectRootPath, componentsTgzFile);
+
+    const existingTgzInSDK = fs.readdirSync(sdkProjectRootPath).find(file => file.endsWith('.tgz') && file.indexOf('pega-react-sdk-components') > -1);
+
+    if (existingTgzInSDK) {
+      console.log(`---- Removing old package: ${existingTgzInSDK} ----`);
+      fs.unlinkSync(path.join(sdkProjectRootPath, existingTgzInSDK));
+    }
+
+    console.log(`---- Copying ${componentsTgzFile} to react-sdk folder: ${sdkProjectRootPath} ----`);
+    fs.copyFileSync(componentsTgzPath, componentTargetTgzPath);
+
+    console.log(`---- Installing ${componentsTgzFile} in react-sdk ----`);
+    execFileSync('npm', ['install', `./${componentsTgzFile}`], { cwd: sdkProjectRootPath, stdio: 'inherit' });
+
+    console.log("Done!!! 'react-sdk' now uses local build of react-sdk-components.");
+  });
+} catch (error) {
+  console.error('Error:', error.message);
+  process.exit(1);
+}