diff --git a/site/e2e/helpers.ts b/site/e2e/helpers.ts
index 756c307ff59c9..f655b14c192e3 100644
--- a/site/e2e/helpers.ts
+++ b/site/e2e/helpers.ts
@@ -31,6 +31,8 @@ export const createWorkspace = async (
   await page.goto("/templates/" + templateName + "/workspace", {
     waitUntil: "networkidle",
   })
+  await expect(page).toHaveURL("/templates/" + templateName + "/workspace")
+
   const name = randomName()
   await page.getByLabel("name").fill(name)
 
@@ -117,7 +119,10 @@ export const createTemplate = async (
   await page.addInitScript({
     content: "window.playwright = true",
   })
+
   await page.goto("/templates/new", { waitUntil: "networkidle" })
+  await expect(page).toHaveURL("/templates/new")
+
   await page.getByTestId("file-upload").setInputFiles({
     buffer: await createTemplateVersionTar(responses),
     mimeType: "application/x-tar",
@@ -616,3 +621,99 @@ export const fillParameters = async (
     }
   }
 }
+
+export const updateTemplate = async (
+  page: Page,
+  templateName: string,
+  responses?: EchoProvisionerResponses,
+) => {
+  const tarball = await createTemplateVersionTar(responses)
+
+  const sessionToken = await findSessionToken(page)
+  const child = spawn(
+    "go",
+    [
+      "run",
+      coderMainPath(),
+      "templates",
+      "push",
+      "--test.provisioner",
+      "echo",
+      "-y",
+      "-d",
+      "-",
+      templateName,
+    ],
+    {
+      env: {
+        ...process.env,
+        CODER_SESSION_TOKEN: sessionToken,
+        CODER_URL: "http://localhost:3000",
+      },
+    },
+  )
+
+  const uploaded = new Awaiter()
+  child.on("exit", (code) => {
+    if (code === 0) {
+      uploaded.done()
+      return
+    }
+
+    throw new Error(`coder templates push failed with code ${code}`)
+  })
+
+  child.stdin.write(tarball)
+  child.stdin.end()
+
+  await uploaded.wait()
+}
+
+export const updateWorkspace = async (
+  page: Page,
+  workspaceName: string,
+  richParameters: RichParameter[] = [],
+  buildParameters: WorkspaceBuildParameter[] = [],
+) => {
+  await page.goto("/@admin/" + workspaceName, {
+    waitUntil: "domcontentloaded",
+  })
+  await expect(page).toHaveURL("/@admin/" + workspaceName)
+
+  await page.getByTestId("workspace-update-button").click()
+  await page.getByTestId("confirm-button").click()
+
+  await fillParameters(page, richParameters, buildParameters)
+  await page.getByTestId("form-submit").click()
+
+  await page.waitForSelector(
+    "span[data-testid='build-status'] >> text=Running",
+    {
+      state: "visible",
+    },
+  )
+}
+
+export const updateWorkspaceParameters = async (
+  page: Page,
+  workspaceName: string,
+  richParameters: RichParameter[] = [],
+  buildParameters: WorkspaceBuildParameter[] = [],
+) => {
+  await page.goto("/@admin/" + workspaceName + "/settings/parameters", {
+    waitUntil: "domcontentloaded",
+  })
+  await expect(page).toHaveURL(
+    "/@admin/" + workspaceName + "/settings/parameters",
+  )
+
+  await fillParameters(page, richParameters, buildParameters)
+  await page.getByTestId("form-submit").click()
+
+  await page.waitForSelector(
+    "span[data-testid='build-status'] >> text=Running",
+    {
+      state: "visible",
+    },
+  )
+}
diff --git a/site/e2e/playwright.config.ts b/site/e2e/playwright.config.ts
index 78eb4495ce371..b25393e529e4a 100644
--- a/site/e2e/playwright.config.ts
+++ b/site/e2e/playwright.config.ts
@@ -41,6 +41,7 @@ export default defineConfig({
       `--access-url=http://localhost:${port} ` +
       `--http-address=localhost:${port} ` +
       `--in-memory --telemetry=false ` +
+      `--dangerous-disable-rate-limits ` +
       `--provisioner-daemons 10 ` +
       `--provisioner-daemons-echo ` +
       `--provisioner-daemon-poll-interval 50ms`,
diff --git a/site/e2e/tests/createWorkspace.spec.ts b/site/e2e/tests/createWorkspace.spec.ts
index 1effc01976651..8a4937ee019ea 100644
--- a/site/e2e/tests/createWorkspace.spec.ts
+++ b/site/e2e/tests/createWorkspace.spec.ts
@@ -1,4 +1,4 @@
-import { test } from "@playwright/test"
+import { test, Page } from "@playwright/test"
 import {
   createTemplate,
   createWorkspace,
@@ -17,6 +17,11 @@ import {
 } from "../parameters"
 import { RichParameter } from "../provisionerGenerated"
 
+test.beforeEach(async ({ page }: { page: Page }) => {
+  // eslint-disable-next-line no-console -- For debugging purposes
+  page.on("console", (msg) => console.log("Console: " + msg.text()))
+})
+
 test("create workspace", async ({ page }) => {
   const template = await createTemplate(page, {
     apply: [
@@ -107,6 +112,7 @@ test("create workspace and overwrite default parameters", async ({ page }) => {
     page,
     echoResponsesWithParameters(richParameters),
   )
+
   const workspaceName = await createWorkspace(
     page,
     template,
diff --git a/site/e2e/tests/updateWorkspace.spec.ts b/site/e2e/tests/updateWorkspace.spec.ts
new file mode 100644
index 0000000000000..ef84f19ba4ee0
--- /dev/null
+++ b/site/e2e/tests/updateWorkspace.spec.ts
@@ -0,0 +1,136 @@
+import { test, Page } from "@playwright/test"
+
+import {
+  createTemplate,
+  createWorkspace,
+  echoResponsesWithParameters,
+  updateTemplate,
+  updateWorkspace,
+  updateWorkspaceParameters,
+  verifyParameters,
+} from "../helpers"
+
+import {
+  fifthParameter,
+  firstParameter,
+  secondParameter,
+  sixthParameter,
+  secondBuildOption,
+} from "../parameters"
+import { RichParameter } from "../provisionerGenerated"
+
+test.beforeEach(async ({ page }: { page: Page }) => {
+  // eslint-disable-next-line no-console -- For debugging purposes
+  page.on("console", (msg) => console.log("Console: " + msg.text()))
+})
+
+test("update workspace, new optional, immutable parameter added", async ({
+  page,
+}) => {
+  const richParameters: RichParameter[] = [firstParameter, secondParameter]
+  const template = await createTemplate(
+    page,
+    echoResponsesWithParameters(richParameters),
+  )
+
+  const workspaceName = await createWorkspace(page, template)
+
+  // Verify that parameter values are default.
+  await verifyParameters(page, workspaceName, richParameters, [
+    { name: firstParameter.name, value: firstParameter.defaultValue },
+    { name: secondParameter.name, value: secondParameter.defaultValue },
+  ])
+
+  // Push updated template.
+  const updatedRichParameters = [...richParameters, fifthParameter]
+  await updateTemplate(
+    page,
+    template,
+    echoResponsesWithParameters(updatedRichParameters),
+  )
+
+  // Now, update the workspace, and select the value for immutable parameter.
+  await updateWorkspace(page, workspaceName, updatedRichParameters, [
+    { name: fifthParameter.name, value: fifthParameter.options[0].value },
+  ])
+
+  // Verify parameter values.
+  await verifyParameters(page, workspaceName, updatedRichParameters, [
+    { name: firstParameter.name, value: firstParameter.defaultValue },
+    { name: secondParameter.name, value: secondParameter.defaultValue },
+    { name: fifthParameter.name, value: fifthParameter.options[0].value },
+  ])
+})
+
+test("update workspace, new required, mutable parameter added", async ({
+  page,
+}) => {
+  const richParameters: RichParameter[] = [firstParameter, secondParameter]
+  const template = await createTemplate(
+    page,
+    echoResponsesWithParameters(richParameters),
+  )
+
+  const workspaceName = await createWorkspace(page, template)
+
+  // Verify that parameter values are default.
+  await verifyParameters(page, workspaceName, richParameters, [
+    { name: firstParameter.name, value: firstParameter.defaultValue },
+    { name: secondParameter.name, value: secondParameter.defaultValue },
+  ])
+
+  // Push updated template.
+  const updatedRichParameters = [...richParameters, sixthParameter]
+  await updateTemplate(
+    page,
+    template,
+    echoResponsesWithParameters(updatedRichParameters),
+  )
+
+  // Now, update the workspace, and provide the parameter value.
+  const buildParameters = [{ name: sixthParameter.name, value: "99" }]
+  await updateWorkspace(
+    page,
+    workspaceName,
+    updatedRichParameters,
+    buildParameters,
+  )
+
+  // Verify parameter values.
+  await verifyParameters(page, workspaceName, updatedRichParameters, [
+    { name: firstParameter.name, value: firstParameter.defaultValue },
+    { name: secondParameter.name, value: secondParameter.defaultValue },
+    ...buildParameters,
+  ])
+})
+
+test("update workspace with ephemeral parameter enabled", async ({ page }) => {
+  const richParameters: RichParameter[] = [firstParameter, secondBuildOption]
+  const template = await createTemplate(
+    page,
+    echoResponsesWithParameters(richParameters),
+  )
+
+  const workspaceName = await createWorkspace(page, template)
+
+  // Verify that parameter values are default.
+  await verifyParameters(page, workspaceName, richParameters, [
+    { name: firstParameter.name, value: firstParameter.defaultValue },
+    { name: secondBuildOption.name, value: secondBuildOption.defaultValue },
+  ])
+
+  // Now, update the workspace, and select the value for ephemeral parameter.
+  const buildParameters = [{ name: secondBuildOption.name, value: "true" }]
+  await updateWorkspaceParameters(
+    page,
+    workspaceName,
+    richParameters,
+    buildParameters,
+  )
+
+  // Verify that parameter values are default.
+  await verifyParameters(page, workspaceName, richParameters, [
+    { name: firstParameter.name, value: firstParameter.defaultValue },
+    { name: secondBuildOption.name, value: secondBuildOption.defaultValue },
+  ])
+})
diff --git a/site/src/pages/WorkspacePage/UpdateBuildParametersDialog.tsx b/site/src/pages/WorkspacePage/UpdateBuildParametersDialog.tsx
index 860969267fb7e..2293fb530ffb3 100644
--- a/site/src/pages/WorkspacePage/UpdateBuildParametersDialog.tsx
+++ b/site/src/pages/WorkspacePage/UpdateBuildParametersDialog.tsx
@@ -111,7 +111,13 @@ export const UpdateBuildParametersDialog: FC<
         <Button fullWidth type="button" onClick={dialogProps.onClose}>
           Cancel
         </Button>
-        <Button color="primary" fullWidth type="submit" form="updateParameters">
+        <Button
+          color="primary"
+          fullWidth
+          type="submit"
+          form="updateParameters"
+          data-testid="form-submit"
+        >
           Update
         </Button>
       </DialogActions>