diff --git a/bench/app.py b/bench/app.py
index 8b165b2b..90853c45 100755
--- a/bench/app.py
+++ b/bench/app.py
@@ -20,7 +20,7 @@ from six.moves import reload_module
 # imports - module imports
 import bench
 from bench.config.common_site_config import get_config
-from bench.utils import CommandFailedError, build_assets, check_git_for_shallow_clone, exec_cmd, get_cmd_output, get_frappe, restart_supervisor_processes, restart_systemd_processes, run_frappe_cmd
+from bench.utils import color, CommandFailedError, build_assets, check_git_for_shallow_clone, exec_cmd, get_cmd_output, get_frappe, restart_supervisor_processes, restart_systemd_processes, run_frappe_cmd
 
 
 logging.basicConfig(level="INFO")
@@ -173,7 +173,7 @@ def new_app(app, bench_path='.'):
 
 
 def install_app(app, bench_path=".", verbose=False, no_cache=False, postprocess=True, skip_assets=False):
-	logger.info("installing {}".format(app))
+	print('\n{0}Installing {1}{2}'.format(color.yellow, app, color.nc))
 
 	pip_path = os.path.join(bench_path, "env", "bin", "pip")
 	quiet_flag = "-q" if not verbose else ""
diff --git a/bench/commands/setup.py b/bench/commands/setup.py
index 2e516496..973eeff2 100755
--- a/bench/commands/setup.py
+++ b/bench/commands/setup.py
@@ -128,13 +128,17 @@ def setup_socketio():
 @click.option("--node", help="Update only Node packages", default=False, is_flag=True)
 @click.option("--python", help="Update only Python packages", default=False, is_flag=True)
 def setup_requirements(node=False, python=False):
-	if not node:
-		from bench.utils import update_requirements as setup_python_packages
-		setup_python_packages()
+	if not (node or python):
+		from bench.utils import update_requirements
+		update_requirements()
 
-	if not python:
-		from bench.utils import update_node_packages as setup_node_packages
-		setup_node_packages()
+	elif not node:
+		from bench.utils import update_python_packages
+		update_python_packages()
+
+	elif not python:
+		from bench.utils import update_node_packages
+		update_node_packages()
 
 
 @click.command("manager", help="Setup bench-manager.local site with the bench_manager app installed on it")
diff --git a/bench/utils.py b/bench/utils.py
index 67ff3364..5740d50a 100755
--- a/bench/utils.py
+++ b/bench/utils.py
@@ -564,15 +564,26 @@ def update_env_pip(bench_path):
 
 def update_requirements(bench_path='.'):
 	from bench.app import get_apps, install_app
-	print('Updating Python libraries...')
+	print('Installing applications...')
 
-	# update env pip
 	update_env_pip(bench_path)
 
 	for app in get_apps():
 		install_app(app, bench_path=bench_path, skip_assets=True)
 
 
+def update_python_packages(bench_path='.'):
+	from bench.app import get_apps
+	pip_path = os.path.join(bench_path, "env", "bin", "pip")
+	print('Updating Python libraries...')
+
+	update_env_pip(bench_path)
+	for app in get_apps():
+		print('\n{0}Installing python dependencies for {1}{2}'.format(color.yellow, app, color.nc))
+		app_path = os.path.join(bench_path, "apps", app)
+		exec_cmd("{0} install -q -U -e {1}".format(pip_path, app_path), cwd=bench_path)
+
+
 def update_node_packages(bench_path='.'):
 	print('Updating node packages...')
 	from bench.app import get_develop_version