diff --git a/webview-ui/src/components/package-manager/PackageManagerViewStateManager.ts b/webview-ui/src/components/package-manager/PackageManagerViewStateManager.ts
index 54d2b9019f..42414ea3cc 100644
--- a/webview-ui/src/components/package-manager/PackageManagerViewStateManager.ts
+++ b/webview-ui/src/components/package-manager/PackageManagerViewStateManager.ts
@@ -183,12 +183,13 @@ export class PackageManagerViewStateManager {
 				// Clear any existing timeout
 				this.clearFetchTimeout()
 
-				// Create a new state object
+				// Create a new state object with sorted items
+				const sortedItems = this.sortItems([...items])
 				const newState = {
 					...this.state,
 					isFetching: false,
-					allItems: [...items],
-					displayItems: this.isFilterActive() ? this.state.displayItems : [...items],
+					allItems: sortedItems,
+					displayItems: this.isFilterActive() ? this.state.displayItems : sortedItems,
 				}
 
 				// If filters are active, apply them to the new items
@@ -337,6 +338,11 @@ export class PackageManagerViewStateManager {
 					...this.state.sortConfig,
 					...sortConfig,
 				}
+				// Apply sorting to both allItems and displayItems
+				this.state.allItems = this.sortItems(this.state.allItems)
+				if (this.state.displayItems) {
+					this.state.displayItems = this.sortItems(this.state.displayItems)
+				}
 				this.notifyStateChange()
 				break
 			}
@@ -412,6 +418,23 @@ export class PackageManagerViewStateManager {
 		return !!(this.state.filters.type || this.state.filters.search || this.state.filters.tags.length > 0)
 	}
 
+	private sortItems(items: PackageManagerItem[]): PackageManagerItem[] {
+		const { by, order } = this.state.sortConfig
+		return [...items].sort((a, b) => {
+			let aValue = a[by] || ""
+			let bValue = b[by] || ""
+
+			// Handle dates for lastUpdated
+			if (by === "lastUpdated") {
+				aValue = aValue || "1970-01-01T00:00:00Z"
+				bValue = bValue || "1970-01-01T00:00:00Z"
+			}
+
+			const comparison = aValue.localeCompare(bValue)
+			return order === "asc" ? comparison : -comparison
+		})
+	}
+
 	public async handleMessage(message: any): Promise<void> {
 		console.log("=== Handling Message ===", {
 			messageType: message.type,
diff --git a/webview-ui/src/components/package-manager/__tests__/PackageManagerViewStateManager.test.ts b/webview-ui/src/components/package-manager/__tests__/PackageManagerViewStateManager.test.ts
index 263103826d..201f3160f4 100644
--- a/webview-ui/src/components/package-manager/__tests__/PackageManagerViewStateManager.test.ts
+++ b/webview-ui/src/components/package-manager/__tests__/PackageManagerViewStateManager.test.ts
@@ -843,19 +843,103 @@ describe("PackageManagerViewStateManager", () => {
 	})
 
 	describe("Sort Transitions", () => {
-		it("should handle UPDATE_SORT transition", async () => {
-			const sortConfig = {
-				by: "lastUpdated" as const,
-				order: "desc" as const,
-			}
+		it("should sort items by name in ascending order", async () => {
+			const items = [
+				createTestItem({ name: "B Component" }),
+				createTestItem({ name: "A Component" }),
+				createTestItem({ name: "C Component" }),
+			]
+
+			await manager.transition({
+				type: "FETCH_COMPLETE",
+				payload: { items },
+			})
 
 			await manager.transition({
 				type: "UPDATE_SORT",
-				payload: { sortConfig },
+				payload: { sortConfig: { by: "name", order: "asc" } },
 			})
 
 			const state = manager.getState()
-			expect(state.sortConfig).toEqual(sortConfig)
+			expect(state.allItems[0].name).toBe("A Component")
+			expect(state.allItems[1].name).toBe("B Component")
+			expect(state.allItems[2].name).toBe("C Component")
+		})
+
+		it("should sort items by lastUpdated in descending order", async () => {
+			const items = [
+				createTestItem({ lastUpdated: "2025-04-13T09:00:00-07:00" }),
+				createTestItem({ lastUpdated: "2025-04-14T09:00:00-07:00" }),
+				createTestItem({ lastUpdated: "2025-04-12T09:00:00-07:00" }),
+			]
+
+			await manager.transition({
+				type: "FETCH_COMPLETE",
+				payload: { items },
+			})
+
+			await manager.transition({
+				type: "UPDATE_SORT",
+				payload: { sortConfig: { by: "lastUpdated", order: "desc" } },
+			})
+
+			const state = manager.getState()
+			expect(state.allItems[0].lastUpdated).toBe("2025-04-14T09:00:00-07:00")
+			expect(state.allItems[1].lastUpdated).toBe("2025-04-13T09:00:00-07:00")
+			expect(state.allItems[2].lastUpdated).toBe("2025-04-12T09:00:00-07:00")
+		})
+
+		it("should maintain sort order when items are updated", async () => {
+			const items = [
+				createTestItem({ name: "B Component" }),
+				createTestItem({ name: "A Component" }),
+				createTestItem({ name: "C Component" }),
+			]
+
+			await manager.transition({
+				type: "FETCH_COMPLETE",
+				payload: { items },
+			})
+
+			await manager.transition({
+				type: "UPDATE_SORT",
+				payload: { sortConfig: { by: "name", order: "asc" } },
+			})
+
+			// Add a new item
+			const newItems = [...items, createTestItem({ name: "D Component" })]
+
+			await manager.transition({
+				type: "FETCH_COMPLETE",
+				payload: { items: newItems },
+			})
+
+			const state = manager.getState()
+			expect(state.allItems[0].name).toBe("A Component")
+			expect(state.allItems[1].name).toBe("B Component")
+			expect(state.allItems[2].name).toBe("C Component")
+			expect(state.allItems[3].name).toBe("D Component")
+		})
+
+		it("should handle missing values gracefully", async () => {
+			const items = [
+				createTestItem({ name: "B Component", lastUpdated: undefined }),
+				createTestItem({ name: "A Component", lastUpdated: "2025-04-14T09:00:00-07:00" }),
+			]
+
+			await manager.transition({
+				type: "FETCH_COMPLETE",
+				payload: { items },
+			})
+
+			await manager.transition({
+				type: "UPDATE_SORT",
+				payload: { sortConfig: { by: "lastUpdated", order: "desc" } },
+			})
+
+			const state = manager.getState()
+			expect(state.allItems[0].lastUpdated).toBe("2025-04-14T09:00:00-07:00")
+			expect(state.allItems[1].lastUpdated).toBeUndefined()
 		})
 	})