diff --git a/scripts/update.sh b/scripts/update.sh
index 53128d4..a9a748d 100755
--- a/scripts/update.sh
+++ b/scripts/update.sh
@@ -49,6 +49,22 @@ update_pack() {
     rm -rf ${1}
 }
 
+print_conflicts() {
+    conflict_files=$(sed -n '/^Modified/p' ${updates_dir}/output.txt | sed -e 's/.*Conflicts: \[\(.*\)].*/\1/' )
+
+    if [[ ! -z "$conflict_files" ]]
+    then
+      IFS=' '
+      read -a strarr <<< "$conflict_files"
+      for filepath in "${strarr[@]}";
+      do
+        echo ${filepath}
+      done
+
+      echo "Conflicts are found in the above file(s). Please review the above file(s), resolve conflicts, and save with .final extension. Then re-run the update script."
+    fi
+}
+
 while getopts ":p:" o; do
     case "${o}" in
         p)
@@ -81,7 +97,7 @@ esac
 carbon_home=${packs_dir}/${pack}
 
 # Create updates directory if it doesn't exist
-updates_dir=$(pwd)/update_logs/${pack}
+updates_dir=${packs_dir}/updates/${pack}
 if [[ ! -d ${updates_dir} ]]
 then
   mkdir -p ${updates_dir}
@@ -90,7 +106,7 @@ fi
 # Getting update status
 # 0 - first/last update successful
 # 1 - Error occurred in last update
-# 2 - In-place has been updated
+# 2 - Update tool has been updated
 # 3 - conflicts encountered in last update
 status=0
 if [[ -f ${updates_dir}/status ]]
@@ -106,26 +122,27 @@ then
     unzip_pack ${pack}
 fi
 
-if [[ ! -f ${carbon_home}/bin/update_linux ]]
+if [[ ! -f ${carbon_home}/bin/wso2update_linux ]]
 then
   echo "Update executable not found."
   rm -rf ${packs_dir}/${pack}
   exit 1
-else
-  break
 fi
 
 # Move into binaries directory
 cd ${carbon_home}/bin
 
-# Run in-place update
+# Run update tool
+echo "Running WSO2 Update tool"
 if [[ ${status} -eq 0 ]] || [[ ${status} -eq 1 ]] || [[ ${status} -eq 2 ]]
 then
-  ./update_linux --verbose 2>&1 | tee ${updates_dir}/output.txt
+  echo "Validating credentials"
+  ./wso2update_linux --template "Modified: {{.Modified}}, Conflicts: {{.Conflicts}}" 2>&1 | tee ${updates_dir}/output.txt
   update_status=${PIPESTATUS[0]}
 elif [[ ${status} -eq 3 ]]
 then
-  ./update_linux --verbose --continue 2>&1 | tee ${updates_dir}/output.txt
+  echo "Resolving conflicts"
+  ./wso2update_linux --continue --template "Modified: {{.Modified}}, Conflicts: {{.Conflicts}}" 2>&1 | tee ${updates_dir}/output.txt
   update_status=${PIPESTATUS[0]}
 
   # Handle user running update script without resolving conflicts
@@ -141,11 +158,11 @@ else
   exit 1
 fi
 
-# Handle the In-place tool being updated
+# Handle the update tool being updated
 if [[ ${update_status} -eq 2 ]]
 then
-    echo "In-place tool has been updated. Running update again."
-    ./update_linux --verbose 2>&1 | tee ${updates_dir}/output.txt
+    echo "Update tool has been updated. Running update again."
+    ./wso2update_linux --template "Modified: {{.Modified}}, Conflicts: {{.Conflicts}}" 2>&1 | tee ${updates_dir}/output.txt
     update_status=${PIPESTATUS[0]}
 fi
 
@@ -158,7 +175,9 @@ then
   update_pack ${pack}
 elif [[ ${update_status} -eq 3 ]]
 then
+  echo ""
   echo "Conflicts encountered. Please resolve conflicts in ${packs_dir}/${pack} and run the update script again."
+  print_conflicts
 else
   echo "Update error occurred. Stopped with exit code ${update_status}"
   rm -rf ${packs_dir}/${pack}
@@ -166,33 +185,31 @@ else
 fi
 
 # Get list of merged files
-if [[ ${update_status} -eq 0 ]] # If update is successful
+if [[ ${update_status} -ne 1 ]] # If update is successful
 then
-  sed -n '/Merge successful for the following files./,/Successfully completed merging files/p' ${updates_dir}/output.txt > ${updates_dir}/merged_files.txt
-elif [[ ${update_status} -eq 3 ]] # If conflicts were encountered during update
-then
-  sed -n '/Merge successful for the following files./,/Merging/p' ${updates_dir}/output.txt > ${updates_dir}/merged_files.txt
+  modified_files=$(sed -n '/^Modified/p' ${updates_dir}/output.txt | sed -e 's/.*Modified: \[\(.*\)], Conflicts.*/\1/')
 fi
 
-if [[ -s ${updates_dir}/merged_files.txt ]]
+if [[ ! -z "$modified_files" ]]
 then
-  sed -i '1d' ${updates_dir}/merged_files.txt # Remove first line from file
-  sed -i '$ d' ${updates_dir}/merged_files.txt # Remove last line from file
-
-  while read -r line; do
+# Get the list of modified files
+  IFS=' '
+  read -a strarr <<< "$modified_files"
+  for line in "${strarr[@]}";
+  do
     filepath=${line##*${pack}/}
 
     for module in "${updated_modules[@]}"
     do
-        template_file=${packs_dir}/../../../${module}/templates/carbon-home/${filepath}.erb
-        if [[ -f ${template_file} ]]
-        then
-            updated_templates+=("modules/"${template_file##*${packs_dir}/../../../})
-        fi
+      template_file=${packs_dir}/../../../${module}/templates/carbon-home/${filepath}.erb
+      if [[ -f ${template_file} ]]
+      then
+        updated_templates+=("modules/"${template_file##*${packs_dir}/../../../})
+      fi
     done
-  done < ${updates_dir}/merged_files.txt
+  done
 
-  # Display template files to be changed
+# Display template files to be changed
   if [[ -n ${updated_templates} ]]
   then
     DATE=`date +%Y-%m-%d`