diff --git a/dvc/command/update.py b/dvc/command/update.py
index 47df68dd6c..73f4d097d6 100644
--- a/dvc/command/update.py
+++ b/dvc/command/update.py
@@ -14,7 +14,7 @@ def run(self):
         ret = 0
         for target in self.args.targets:
             try:
-                self.repo.update(target)
+                self.repo.update(target, self.args.rev)
             except DvcException:
                 logger.exception("failed to update '{}'.".format(target))
                 ret = 1
@@ -33,4 +33,7 @@ def add_parser(subparsers, parent_parser):
     update_parser.add_argument(
         "targets", nargs="+", help="DVC-files to update."
     )
+    update_parser.add_argument(
+        "--rev", nargs="?", help="Git revision (e.g. SHA, branch, tag)"
+    )
     update_parser.set_defaults(func=CmdUpdate)
diff --git a/dvc/dependency/base.py b/dvc/dependency/base.py
index 270fdbba71..08fce73a9f 100644
--- a/dvc/dependency/base.py
+++ b/dvc/dependency/base.py
@@ -27,5 +27,5 @@ class DependencyBase(object):
     IsNotFileOrDirError = DependencyIsNotFileOrDirError
     IsStageFileError = DependencyIsStageFileError
 
-    def update(self):
+    def update(self, rev=None):
         pass
diff --git a/dvc/dependency/repo.py b/dvc/dependency/repo.py
index 26d58d609d..53edac176b 100644
--- a/dvc/dependency/repo.py
+++ b/dvc/dependency/repo.py
@@ -80,6 +80,9 @@ def download(self, to):
 
             repo.pull_to(self.def_path, to.path_info)
 
-    def update(self):
+    def update(self, rev=None):
+        if rev:
+            self.def_repo[self.PARAM_REV] = rev
+
         with self._make_repo(locked=False) as repo:
             self.def_repo[self.PARAM_REV_LOCK] = repo.scm.get_rev()
diff --git a/dvc/repo/update.py b/dvc/repo/update.py
index 9533bb6d36..44252d0057 100644
--- a/dvc/repo/update.py
+++ b/dvc/repo/update.py
@@ -2,10 +2,12 @@
 
 
 @locked
-def update(self, target):
+def update(self, target, rev=None):
     from dvc.stage import Stage
 
     stage = Stage.load(self, target)
-    stage.update()
+    stage.update(rev)
 
     stage.dump()
+
+    return stage
diff --git a/dvc/stage.py b/dvc/stage.py
index 8c9d79b8ad..79e52add9e 100644
--- a/dvc/stage.py
+++ b/dvc/stage.py
@@ -405,11 +405,11 @@ def reproduce(self, interactive=False, **kwargs):
 
         return self
 
-    def update(self):
+    def update(self, rev=None):
         if not self.is_repo_import and not self.is_import:
             raise StageUpdateError(self.relpath)
 
-        self.deps[0].update()
+        self.deps[0].update(rev=rev)
         locked = self.locked
         self.locked = False
         try:
diff --git a/scripts/completion/dvc.bash b/scripts/completion/dvc.bash
index f84efcf832..0727aa8ced 100644
--- a/scripts/completion/dvc.bash
+++ b/scripts/completion/dvc.bash
@@ -58,7 +58,7 @@ _dvc_run='--no-exec -f --file -c --cwd -d --deps -o --outs -O --outs-no-cache --
 _dvc_status='-j --jobs -r --remote -a --all-branches -T --all-tags -d --with-deps -c --cloud $(compgen -G *.dvc)'
 _dvc_unlock='$(compgen -G *.dvc)'
 _dvc_unprotect='$(compgen -G *)'
-_dvc_update='$(compgen -G *.dvc)'
+_dvc_update='--rev $(compgen -G *.dvc)'
 _dvc_version=''
 
 # Params
diff --git a/scripts/completion/dvc.zsh b/scripts/completion/dvc.zsh
index 7ee7386b29..4549306ac9 100644
--- a/scripts/completion/dvc.zsh
+++ b/scripts/completion/dvc.zsh
@@ -273,6 +273,7 @@ _dvc_unprotect=(
 )
 
 _dvc_update=(
+  "--rev[Git revision (e.g. SHA, branch, tag)]:Revision:"
   "*:Stages:_files -g '(*.dvc|Dvcfile)'"
 )
 
diff --git a/tests/func/test_update.py b/tests/func/test_update.py
index 54a5bacbf5..ca69a04309 100644
--- a/tests/func/test_update.py
+++ b/tests/func/test_update.py
@@ -2,7 +2,7 @@
 import os
 
 from dvc.stage import Stage
-from dvc.compat import fspath
+from dvc.compat import fspath, fspath_py35
 
 
 @pytest.mark.parametrize("cached", [True, False])
@@ -131,3 +131,37 @@ def test_update_import_url(tmp_dir, dvc, tmp_path_factory):
 
     assert dst.is_file()
     assert dst.read_text() == "updated file content"
+
+
+def test_update_rev(tmp_dir, dvc, scm, git_dir):
+    with git_dir.chdir():
+        git_dir.scm_gen({"foo": "foo"}, commit="first")
+
+    dvc.imp(fspath(git_dir), "foo")
+    assert (tmp_dir / "foo.dvc").exists()
+
+    with git_dir.chdir(), git_dir.branch("branch1", new=True):
+        git_dir.scm_gen({"foo": "foobar"}, commit="branch1 commit")
+        branch1_head = git_dir.scm.get_rev()
+
+    with git_dir.chdir(), git_dir.branch("branch2", new=True):
+        git_dir.scm_gen({"foo": "foobar foo"}, commit="branch2 commit")
+        branch2_head = git_dir.scm.get_rev()
+
+    stage = dvc.update("foo.dvc", rev="branch1")
+    assert stage.deps[0].def_repo == {
+        "url": fspath(git_dir),
+        "rev": "branch1",
+        "rev_lock": branch1_head,
+    }
+    with open(fspath_py35(tmp_dir / "foo")) as f:
+        assert "foobar" == f.read()
+
+    stage = dvc.update("foo.dvc", rev="branch2")
+    assert stage.deps[0].def_repo == {
+        "url": fspath(git_dir),
+        "rev": "branch2",
+        "rev_lock": branch2_head,
+    }
+    with open(fspath_py35(tmp_dir / "foo")) as f:
+        assert "foobar foo" == f.read()
diff --git a/tests/unit/command/test_update.py b/tests/unit/command/test_update.py
index 677b24a5ab..468c731368 100644
--- a/tests/unit/command/test_update.py
+++ b/tests/unit/command/test_update.py
@@ -1,15 +1,19 @@
+import pytest
 from dvc.cli import parse_args
 from dvc.command.update import CmdUpdate
 
 
-def test_update(dvc, mocker):
+@pytest.mark.parametrize(
+    "command,rev", [(["update"], None), (["update", "--rev", "REV"], "REV")]
+)
+def test_update(dvc, mocker, command, rev):
     targets = ["target1", "target2", "target3"]
-    cli_args = parse_args(["update"] + targets)
+    cli_args = parse_args(command + targets)
     assert cli_args.func == CmdUpdate
     cmd = cli_args.func(cli_args)
     m = mocker.patch("dvc.repo.Repo.update")
 
     assert cmd.run() == 0
 
-    calls = [mocker.call(target) for target in targets]
+    calls = [mocker.call(target, rev) for target in targets]
     m.assert_has_calls(calls)