diff --git a/pipenv/cli/command.py b/pipenv/cli/command.py
index 247672d811..29fd85ed65 100644
--- a/pipenv/cli/command.py
+++ b/pipenv/cli/command.py
@@ -219,7 +219,7 @@ def install(state, **kwargs):
         editable_packages=state.installstate.editables,
         site_packages=state.site_packages,
         extra_pip_args=state.installstate.extra_pip_args,
-        categories=state.installstate.categories,
+        pipfile_categories=state.installstate.categories,
         skip_lock=state.installstate.skip_lock,
     )
 
diff --git a/pipenv/routines/install.py b/pipenv/routines/install.py
index 19b0390c79..e4c7b572aa 100644
--- a/pipenv/routines/install.py
+++ b/pipenv/routines/install.py
@@ -252,7 +252,7 @@ def do_install(
     deploy=False,
     site_packages=None,
     extra_pip_args=None,
-    categories=None,
+    pipfile_categories=None,
     skip_lock=False,
 ):
     requirements_directory = fileutils.create_tracked_tempdir(
@@ -263,10 +263,10 @@ def do_install(
     editable_packages = editable_packages if editable_packages else []
     package_args = [p for p in packages if p] + [p for p in editable_packages if p]
     new_packages = []
-    if dev and not categories:
-        categories = ["packages", "dev-packages"]
-    elif not categories:
-        categories = ["packages"]
+    if dev and not pipfile_categories:
+        pipfile_categories = ["packages", "dev-packages"]
+    elif not pipfile_categories:
+        pipfile_categories = ["packages"]
 
     ensure_project(
         project,
@@ -277,7 +277,7 @@ def do_install(
         skip_requirements=False,
         pypi_mirror=pypi_mirror,
         site_packages=site_packages,
-        categories=categories,
+        pipfile_categories=pipfile_categories,
     )
 
     do_install_validations(
@@ -290,7 +290,7 @@ def do_install(
         requirementstxt=requirementstxt,
         pre=pre,
         deploy=deploy,
-        categories=categories,
+        categories=pipfile_categories,
         skip_lock=skip_lock,
     )
 
@@ -313,11 +313,11 @@ def do_install(
             system=system,
             pypi_mirror=pypi_mirror,
             extra_pip_args=extra_pip_args,
-            categories=categories,
+            categories=pipfile_categories,
             perform_upgrades=not skip_lock,
             index=index,
         )
-        if not dev and len(categories) == 1 and packages_installed:
+        if not dev and len(pipfile_categories) == 1 and packages_installed:
             sys.exit(0)
 
     try:
@@ -328,7 +328,7 @@ def do_install(
             requirements_dir=requirements_directory,
             pypi_mirror=pypi_mirror,
             extra_pip_args=extra_pip_args,
-            categories=categories,
+            categories=pipfile_categories,
             skip_lock=skip_lock,
         )
     except Exception as e:
diff --git a/pipenv/routines/update.py b/pipenv/routines/update.py
index 7f84203ee4..1834d04590 100644
--- a/pipenv/routines/update.py
+++ b/pipenv/routines/update.py
@@ -198,6 +198,12 @@ def upgrade(
             categories = ["develop"]
         else:
             categories = ["default"]
+    elif "dev-packages" in categories:
+        categories.remove("dev-packages")
+        categories.insert(0, "develop")
+    elif "packages" in categories:
+        categories.remove("packages")
+        categories.insert(0, "default")
 
     # Get current dependency graph
     try:
diff --git a/pipenv/utils/pipfile.py b/pipenv/utils/pipfile.py
index 93eb0f69cc..78e43c55ce 100644
--- a/pipenv/utils/pipfile.py
+++ b/pipenv/utils/pipfile.py
@@ -64,7 +64,7 @@ def find_pipfile(max_depth=3):
 
 
 def ensure_pipfile(
-    project, validate=True, skip_requirements=False, system=False, categories=None
+    project, validate=True, skip_requirements=False, system=False, pipfile_categories=None
 ):
     """Creates a Pipfile for the project, if it doesn't exist."""
 
@@ -96,7 +96,7 @@ def ensure_pipfile(
             ) as st:
                 # Import requirements.txt.
                 try:
-                    import_requirements(project, categories=categories)
+                    import_requirements(project, categories=pipfile_categories)
                 except Exception:
                     err.print(environments.PIPENV_SPINNER_FAIL_TEXT.format("Failed..."))
                 else:
diff --git a/pipenv/utils/project.py b/pipenv/utils/project.py
index dffc9e2cbf..b6e58119fd 100644
--- a/pipenv/utils/project.py
+++ b/pipenv/utils/project.py
@@ -31,7 +31,7 @@ def ensure_project(
     skip_requirements=False,
     pypi_mirror=None,
     clear=False,
-    categories=None,
+    pipfile_categories=None,
 ):
     """Ensures both Pipfile and virtualenv exist for the project."""
 
@@ -91,7 +91,7 @@ def ensure_project(
         validate=validate,
         skip_requirements=skip_requirements,
         system=system,
-        categories=categories,
+        pipfile_categories=pipfile_categories,
     )
     os.environ["PIP_PYTHON_PATH"] = project.python(system=system)