diff --git a/railties/lib/rails/generators/rails/app/templates/bin/update.tt b/railties/lib/rails/generators/rails/app/templates/bin/update.tt
index 0d8ca2f9029695e4275c8b27cbf89995da9d6378..dcd80b6ce5edfe374e5f90dbee77ace2f0c1af12 100644
--- a/railties/lib/rails/generators/rails/app/templates/bin/update.tt
+++ b/railties/lib/rails/generators/rails/app/templates/bin/update.tt
@@ -17,7 +17,7 @@ chdir APP_ROOT do
   system! 'gem install bundler --conservative'
   system('bundle check') || system!('bundle install')
 <% if options[:yarn] %>
-  system! 'yarn'
+  system! 'bin/yarn'
 
 <% end %>
 <% unless options.skip_active_record -%>