diff --git a/.github/workflows/canary-release-pr.yml b/.github/workflows/canary-release-pr.yml
index 827f24a2c5f8..659765318fe5 100644
--- a/.github/workflows/canary-release-pr.yml
+++ b/.github/workflows/canary-release-pr.yml
@@ -1,11 +1,11 @@
 name: Publish canary release of PR
-run-name: 'Canary release: PR #${{ inputs.pr }}, triggered by ${{ github.triggering_actor }}'
+run-name: "Canary release: PR #${{ inputs.pr }}, triggered by ${{ github.triggering_actor }}"
 
 on:
   workflow_dispatch:
     inputs:
       pr:
-        description: 'Pull request number to create a canary release for'
+        description: "Pull request number to create a canary release for"
         required: true
         type: number
 
@@ -58,7 +58,7 @@ jobs:
       - name: Setup Node.js
         uses: actions/setup-node@v3
         with:
-          node-version-file: '.nvmrc'
+          node-version-file: ".nvmrc"
       - name: Cache dependencies
         uses: actions/cache@v3
         with:
@@ -91,10 +91,10 @@ jobs:
         with:
           githubToken: ${{ secrets.GH_TOKEN }}
           prNumber: ${{ inputs.pr }}
-          find: 'CANARY_RELEASE_SECTION'
+          find: "CANARY_RELEASE_SECTION"
           isHtmlCommentTag: true
           replace: |
-            This pull request has been released as version [`${{ steps.version.outputs.next-version }}`](https://npmjs.com/package/@storybook/cli/v/${{ steps.version.outputs.next-version }}). Install it by pinning all your Storybook dependencies to that version.
+            This pull request has been released as version `${{ steps.version.outputs.next-version }}`. Try it out in a new sandbox by running `npx storybook@${{ steps.version.outputs.next-version }} sandbox` or in an existing project with `npx storybook@${{ steps.version.outputs.next-version }} upgrade`.
             <details>
             <summary>More information</summary>
 
diff --git a/code/lib/cli/src/upgrade.ts b/code/lib/cli/src/upgrade.ts
index 8738f1bfea6a..29115c4244cf 100644
--- a/code/lib/cli/src/upgrade.ts
+++ b/code/lib/cli/src/upgrade.ts
@@ -110,13 +110,14 @@ export const doUpgrade = async ({
 }: UpgradeOptions) => {
   const packageManager = JsPackageManagerFactory.getPackageManager({ force: pkgMgr });
 
-  const currentVersion = versions['@storybook/cli'];
   const beforeVersion = await getStorybookCoreVersion();
+  const currentVersion = versions['@storybook/cli'];
+  const isCanary = currentVersion.startsWith('0.0.0');
 
-  if (lt(currentVersion, beforeVersion)) {
+  if (!isCanary && lt(currentVersion, beforeVersion)) {
     throw new UpgradeStorybookToLowerVersionError({ beforeVersion, currentVersion });
   }
-  if (eq(currentVersion, beforeVersion)) {
+  if (!isCanary && eq(currentVersion, beforeVersion)) {
     throw new UpgradeStorybookToSameVersionError({ beforeVersion });
   }
 
@@ -166,12 +167,12 @@ export const doUpgrade = async ({
       // only upgrade packages that are in the monorepo
       return dependency in versions;
     }) as Array<keyof typeof versions>;
-    return monorepoDependencies.map(
-      (dependency) =>
-        // add ^ modifier to the version if this is the latest and stable version
-        // example output: @storybook/react@^8.0.0
-        `${dependency}@${!isOutdated || isPrerelease ? '^' : ''}${versions[dependency]}`
-    );
+    return monorepoDependencies.map((dependency) => {
+      /* add ^ modifier to the version if this is the latest stable or prerelease version
+         example outputs: @storybook/react@^8.0.0 */
+      const maybeCaret = (!isOutdated || isPrerelease) && !isCanary ? '^' : '';
+      return `${dependency}@${maybeCaret}${versions[dependency]}`;
+    });
   };
 
   const upgradedDependencies = toUpgradedDependencies(packageJson.dependencies);