diff --git a/packages/frontend/@n8n/design-system/src/components/N8nTabs/Tabs.vue b/packages/frontend/@n8n/design-system/src/components/N8nTabs/Tabs.vue
index f0dda8872b..0104b138a8 100644
--- a/packages/frontend/@n8n/design-system/src/components/N8nTabs/Tabs.vue
+++ b/packages/frontend/@n8n/design-system/src/components/N8nTabs/Tabs.vue
@@ -116,7 +116,10 @@ const scrollRight = () => scroll(50);
 						@click="() => handleTabClick(option.value)"
 					>
 						<N8nIcon v-if="option.icon" :icon="option.icon" size="small" />
-						<span v-if="option.label">{{ option.label }}</span>
+						<span v-if="option.label" :class="$style.notificationContainer"
+							>{{ option.label }}
+							<div v-if="option.notification" :class="$style.notification"><div></div></div
+						></span>
 					</div>
 				</N8nTooltip>
 			</div>
@@ -211,6 +214,26 @@ const scrollRight = () => scroll(50);
 	font-weight: var(--font-weight-bold);
 }
 
+.notificationContainer {
+	display: flex;
+	position: relative;
+}
+
+.notification {
+	display: flex;
+	position: absolute;
+	right: -0.5em;
+	align-items: center;
+	justify-content: center;
+
+	div {
+		height: 0.3em;
+		width: 0.3em;
+		background-color: var(--color-primary);
+		border-radius: 50%;
+	}
+}
+
 .back {
 	composes: tab;
 	composes: button;
diff --git a/packages/frontend/@n8n/design-system/src/types/tabs.ts b/packages/frontend/@n8n/design-system/src/types/tabs.ts
index 9739882f56..5d85d06af3 100644
--- a/packages/frontend/@n8n/design-system/src/types/tabs.ts
+++ b/packages/frontend/@n8n/design-system/src/types/tabs.ts
@@ -10,4 +10,5 @@ export interface TabOptions<Value extends string | number> {
 	tooltip?: string;
 	align?: 'left' | 'right';
 	to?: RouteLocationRaw;
+	notification?: boolean;
 }
diff --git a/packages/frontend/editor-ui/src/Interface.ts b/packages/frontend/editor-ui/src/Interface.ts
index 4cb8e280a0..8ee8df79b6 100644
--- a/packages/frontend/editor-ui/src/Interface.ts
+++ b/packages/frontend/editor-ui/src/Interface.ts
@@ -1076,6 +1076,7 @@ export interface ITab<Value extends string | number = string | number> {
 	icon?: IconName;
 	align?: 'right';
 	tooltip?: string;
+	notification?: boolean;
 }
 
 export interface ITabBarItem {
diff --git a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue
index cb9309eab5..08a9aa6006 100644
--- a/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue
+++ b/packages/frontend/editor-ui/src/components/Node/NodeCreator/Panel/CommunityNodeUpdateInfo.vue
@@ -3,7 +3,6 @@ import { N8nNotice } from '@n8n/design-system';
 import { i18n } from '@n8n/i18n';
 import { useUIStore } from '@/stores/ui.store';
 import { computed } from 'vue';
-
 const noticeStyles = computed(() => {
 	const isDark = useUIStore().appliedTheme === 'dark';
 	if (isDark) {
diff --git a/packages/frontend/editor-ui/src/components/NodeSettings.vue b/packages/frontend/editor-ui/src/components/NodeSettings.vue
index 4788bb1a92..53d6cd0b43 100644
--- a/packages/frontend/editor-ui/src/components/NodeSettings.vue
+++ b/packages/frontend/editor-ui/src/components/NodeSettings.vue
@@ -6,6 +6,7 @@ import type {
 	NodeConnectionType,
 	NodeParameterValue,
 	INodeCredentialDescription,
+	PublicInstalledPackage,
 } from 'n8n-workflow';
 import { NodeConnectionTypes, NodeHelpers, deepCopy } from 'n8n-workflow';
 import type {
@@ -39,6 +40,8 @@ import { useNodeTypesStore } from '@/stores/nodeTypes.store';
 import { useHistoryStore } from '@/stores/history.store';
 import { RenameNodeCommand } from '@/models/history';
 import { useCredentialsStore } from '@/stores/credentials.store';
+import { useCommunityNodesStore } from '@/stores/communityNodes.store';
+import { useUsersStore } from '@/stores/users.store';
 import type { EventBus } from '@n8n/utils/event-bus';
 import { useExternalHooks } from '@/composables/useExternalHooks';
 import { useNodeHelpers } from '@/composables/useNodeHelpers';
@@ -142,6 +145,8 @@ const hiddenIssuesInputs = ref<string[]>([]);
 const nodeSettings = ref<INodeProperties[]>([]);
 const subConnections = ref<InstanceType<typeof NDVSubConnections> | null>(null);
 
+const installedPackage = ref<PublicInstalledPackage | undefined>(undefined);
+
 const currentWorkflowInstance = computed(() => workflowsStore.getCurrentWorkflow());
 const currentWorkflow = computed(() =>
 	workflowsStore.getWorkflowById(currentWorkflowInstance.value.id),
@@ -240,6 +245,7 @@ const showNoParametersNotice = computed(
 const outputPanelEditMode = computed(() => ndvStore.outputPanelEditMode);
 
 const isCommunityNode = computed(() => !!node.value && isCommunityPackageName(node.value.type));
+const packageName = computed(() => node.value?.type.split('.')[0] ?? '');
 
 const usedCredentials = computed(() =>
 	Object.values(workflowsStore.usedCredentials).filter((credential) =>
@@ -771,7 +777,7 @@ watch(node, () => {
 	setNodeValues();
 });
 
-onMounted(() => {
+onMounted(async () => {
 	populateHiddenIssuesSet();
 	populateSettings();
 	setNodeValues();
@@ -781,6 +787,10 @@ onMounted(() => {
 	}
 	importCurlEventBus.on('setHttpNodeParameters', setHttpNodeParameters);
 	ndvEventBus.on('updateParameterValue', valueChanged);
+
+	if (isCommunityNode.value && useUsersStore().isInstanceOwner) {
+		installedPackage.value = await useCommunityNodesStore().getInstalledPackage(packageName.value);
+	}
 });
 
 onBeforeUnmount(() => {
@@ -978,6 +988,10 @@ function handleWheelEvent(event: WheelEvent) {
 				</div>
 			</div>
 			<div v-show="openPanel === 'settings'">
+				<CommunityNodeUpdateInfo
+					v-if="isCommunityNode && installedPackage?.updateAvailable"
+					data-test-id="update-available"
+				/>
 				<ParameterInputList
 					:parameters="parametersSetting"
 					:node-values="nodeValues"
diff --git a/packages/frontend/editor-ui/src/components/NodeSettingsTabs.test.ts b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.test.ts
new file mode 100644
index 0000000000..91a7871a3a
--- /dev/null
+++ b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.test.ts
@@ -0,0 +1,60 @@
+import { describe, it, expect, vi } from 'vitest';
+import { createComponentRenderer } from '@/__tests__/render';
+import { createTestingPinia } from '@pinia/testing';
+import NodeSettingsTabs from '@/components/NodeSettingsTabs.vue';
+import { useCommunityNodesStore } from '@/stores/communityNodes.store';
+import type { PublicInstalledPackage } from 'n8n-workflow';
+
+const renderComponent = createComponentRenderer(NodeSettingsTabs);
+
+vi.mock('@/stores/communityNodes.store', () => ({
+	useCommunityNodesStore: vi.fn(() => ({
+		getInstalledPackage: vi.fn(),
+	})),
+}));
+
+describe('NodeSettingsTabs', () => {
+	beforeEach(() => {
+		createTestingPinia({ stubActions: false });
+	});
+
+	afterEach(() => {
+		vi.clearAllMocks();
+	});
+
+	it('renders the component', () => {
+		const { getByText } = renderComponent({
+			props: {},
+		});
+		expect(getByText('Parameters')).toBeInTheDocument();
+	});
+
+	it('displays notification when updateAvailable', async () => {
+		const communityNodesStore = useCommunityNodesStore();
+		vi.spyOn(communityNodesStore, 'getInstalledPackage').mockResolvedValue({
+			updateAvailable: '1.0.1',
+		} as PublicInstalledPackage);
+
+		const { findByTestId } = renderComponent({
+			props: {},
+		});
+
+		const notification = await findByTestId('tab-settings');
+		expect(notification).toBeDefined();
+	});
+
+	it('does not display notification when not updateAvailable', async () => {
+		const communityNodesStore = useCommunityNodesStore();
+		vi.spyOn(communityNodesStore, 'getInstalledPackage').mockResolvedValue(
+			{} as PublicInstalledPackage,
+		);
+
+		const { queryByTestId } = renderComponent({
+			props: {},
+		});
+
+		const tab = queryByTestId('tab-settings');
+		const notification = tab?.querySelector('.notification');
+		expect(notification).toBeNull();
+	});
+});
diff --git a/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue
index e522116b05..abdf6bb43c 100644
--- a/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue
+++ b/packages/frontend/editor-ui/src/components/NodeSettingsTabs.vue
@@ -3,9 +3,9 @@ import type { ITab } from '@/Interface';
 import { COMMUNITY_NODES_INSTALLATION_DOCS_URL } from '@/constants';
 import { useNDVStore } from '@/stores/ndv.store';
 import { useWorkflowsStore } from '@/stores/workflows.store';
-import type { INodeTypeDescription } from 'n8n-workflow';
+import type { INodeTypeDescription, PublicInstalledPackage } from 'n8n-workflow';
 import { NodeConnectionTypes } from 'n8n-workflow';
-import { computed } from 'vue';
+import { computed, onMounted, ref } from 'vue';
 
 import { useExternalHooks } from '@/composables/useExternalHooks';
 import { useI18n } from '@n8n/i18n';
@@ -13,6 +13,8 @@ import { useTelemetry } from '@/composables/useTelemetry';
 import { isCommunityPackageName } from '@/utils/nodeTypesUtils';
 import { N8nTabs } from '@n8n/design-system';
 import { useNodeDocsUrl } from '@/composables/useNodeDocsUrl';
+import { useCommunityNodesStore } from '@/stores/communityNodes.store';
+import { useUsersStore } from '@/stores/users.store';
 
 export type Tab = 'settings' | 'params' | 'communityNode' | 'docs';
 type Props = {
@@ -37,9 +39,12 @@ const workflowsStore = useWorkflowsStore();
 const i18n = useI18n();
 const telemetry = useTelemetry();
 const { docsUrl } = useNodeDocsUrl({ nodeType: () => props.nodeType });
+const communityNodesStore = useCommunityNodesStore();
 
 const activeNode = computed(() => ndvStore.activeNode);
 
+const installedPackage = ref<PublicInstalledPackage | undefined>(undefined);
+
 const isCommunityNode = computed(() => {
 	const nodeType = props.nodeType;
 	if (nodeType) {
@@ -67,6 +72,7 @@ const options = computed(() => {
 		{
 			label: i18n.baseText('nodeSettings.settings'),
 			value: 'settings',
+			notification: installedPackage.value?.updateAvailable ? true : undefined,
 		},
 	];
 
@@ -129,6 +135,12 @@ function onTooltipClick(tab: string | number, event: MouseEvent) {
 		telemetry.track('user clicked cnr docs link', { source: 'node details view' });
 	}
 }
+
+onMounted(async () => {
+	if (isCommunityNode.value && useUsersStore().isInstanceOwner) {
+		installedPackage.value = await communityNodesStore.getInstalledPackage(packageName.value);
+	}
+});
 </script>
 
 <template>