diff --git a/.github/workflows/test.yaml b/.github/workflows/test_ape_version.yaml
similarity index 80%
rename from .github/workflows/test.yaml
rename to .github/workflows/test_ape_version.yaml
index e423330..e4fc532 100644
--- a/.github/workflows/test.yaml
+++ b/.github/workflows/test_ape_version.yaml
@@ -1,4 +1,4 @@
-name: tests
+name: Version Test
 
 on:
   push:
@@ -9,7 +9,7 @@ on:
     paths-ignore: ['**.md']
 
 concurrency:
-  group: ${{ github.ref }}
+  group: ${{ github.ref }}-version
   cancel-in-progress: true
 
 jobs:
@@ -19,7 +19,13 @@ jobs:
     strategy:
       fail-fast: false
       matrix:
-        version: ["default", "0.6.11", "==0.6.11", "git+https://github.com/ApeWorX/ape.git@main"]
+        version:
+          [
+            'default',
+            '0.6.11',
+            '==0.6.11',
+            'git+https://github.com/ApeWorX/ape.git@main',
+          ]
     steps:
       - uses: actions/checkout@v3
 
diff --git a/.github/workflows/test_plugins.yaml b/.github/workflows/test_plugins.yaml
new file mode 100644
index 0000000..d64bda7
--- /dev/null
+++ b/.github/workflows/test_plugins.yaml
@@ -0,0 +1,49 @@
+name: Plugins Test
+
+on:
+  push:
+    branches: [main]
+    tags-ignore: ['**']
+    paths-ignore: ['**.md']
+  pull_request:
+    paths-ignore: ['**.md']
+
+concurrency:
+  group: ${{ github.ref }}-plugins
+  cancel-in-progress: true
+
+jobs:
+  run-this-action:
+    name: Run action (${{ matrix.plugins }})
+    runs-on: [ubuntu-latest]
+    strategy:
+      fail-fast: false
+      matrix:
+        plugins: [
+          'default_with_version_config',
+          'default_without_version_in_config',
+          'tokens',
+          'tokens==0.6.1'
+        ]
+    steps:
+      - uses: actions/checkout@v3
+
+      - name: Check plugins
+        id: check-plugins
+        run: |
+          if [[ "${{ matrix.plugins }}" != default_* ]]; then
+            echo "ape-plugins=${{ matrix.plugins }}" >> $GITHUB_OUTPUT
+          fi
+
+          if [[ "${{ matrix.plugins }}" == "default_without_version_in_config" ]]; then
+            # Remove the version so it defaults to `. -U`.
+            sed -i 's/version: 0.6.1//g' "ape-config.yaml"
+          fi
+
+      - name: Run ape action
+        id: ape-action
+        uses: ./
+        with:
+          ape-plugins-list: ${{ steps.check-plugins.outputs.ape-plugins }}
+
+      - run: ape plugins list
diff --git a/README.md b/README.md
index 9ce7031..bb00921 100644
--- a/README.md
+++ b/README.md
@@ -17,17 +17,19 @@ Can also use a `git+` value to install a branch, commit, or tag.
 
 Example values:
 
-* `1.0.0`
-* `==1.0.0`
-* `>=1.0.0,<2.0`
-* `git+https://github.com/your-github/ape.git@your-branch`
+- `1.0.0`
+- `==1.0.0`
+- `>=1.0.0,<2.0`
+- `git+https://github.com/your-github/ape.git@your-branch`
 
 ### `ape-plugins-list`
 
 **Optional** Space-separated list of plugins to install.
-Default is to install from local `ape-config.yaml`.
+The default is to install from your project's local `ape-config.yaml`.
+If you do not have any plugin version constraints specified in your `ape-config.yaml` file, the default includes the `-U` (`--upgrade`) flag to ensure you get the latest plugin versons.
+Otherwise, it relies on the constraints you have configured.
 
-Note: When requesting a pin, put it all together like `'plugin-a plugin-b==1.2.3 plugin-c>1.2'`
+To request specific versions of plugins, use a space-separated value like this `'plugin-a plugin-b==1.2.3 plugin-c>1.2'`.
 
 ## Outputs
 
diff --git a/action.yml b/action.yml
index 3a326a7..768c6ca 100644
--- a/action.yml
+++ b/action.yml
@@ -16,7 +16,7 @@ inputs:
   ape-plugins-list:
     description: 'Space seperated list of plugins to install with relevant pinning applied'
     required: False
-    default: '-U .'
+    default: ''
 
 outputs:
   ape-version:
@@ -88,19 +88,51 @@ runs:
         fi
       shell: bash
 
-    - run: ape plugins install ${{ inputs.ape-plugins-list }}
+    - name: Check ape-config.yaml exists
+      id: check-ape-config-yaml
+      uses: andstor/file-existence-action@v2
+      with:
+        files: 'ape-config.yaml'
+      
+    - name: Check version specs in config
+      id: check-plugin-version-specs
+      run: |
+        if [[ "${{ steps.check-ape-config-yaml.outputs.files_exists }}" == "true" ]]; then
+          version_present=$(sed -n '/^plugins:/,/^[^ ]/{/version:/p;}' "ape-config.yaml" | grep -c version || true)
+          if [[ -z "${version_present}" ]]; then
+            echo "version_present=0" >> $GITHUB_OUTPUT
+          else
+            echo "version_present=1" >> $GITHUB_OUTPUT
+          fi
+        else
+          echo "version_present=0" >> $GITHUB_OUTPUT
+        fi
       shell: bash
 
-    - name: Find if requirements.txt if exists
-      id: find-requirements-txt
+    - name: Install Plugins
       run: |
-        echo "file=$(ls requirements.txt)" >> $GITHUB_OUTPUT
+        if [[ "${{ steps.check-plugin-version-specs.outputs.version_present }}" == "1" ]] && [[ -z "${{ inputs.ape-plugins-list }}" ]]; then
+          plugins_value="."
+        elif [[ -z "${{ inputs.ape-plugins-list }}" ]]; then
+          plugins_value="--upgrade ."
+        else
+          plugins_value="${{ inputs.ape-plugins-list }}"
+        fi
+
+        ape plugins install $plugins_value
+
       shell: bash
 
+    - name: Check requirments.txt exists
+      id: check-requirements-txt
+      uses: andstor/file-existence-action@v2
+      with:
+        files: 'requirements.txt'
+  
     - name: Install requirements.txt
       run: pip install -r requirements.txt
       shell: bash
-      if: steps.find-requirements-txt.outputs.file == 'requirements.txt'
+      if: steps.check-ape-config-yaml.outputs.files_exists == true
 
     - name: Ensure compiler directories exist
       run: |
diff --git a/ape-config.yaml b/ape-config.yaml
new file mode 100644
index 0000000..c3d6ac3
--- /dev/null
+++ b/ape-config.yaml
@@ -0,0 +1,4 @@
+# This file exists only as a test for the action.
+plugins:
+  - name: tokens
+    version: 0.6.1
diff --git a/mdformat.yaml b/mdformat.yaml
new file mode 100644
index 0000000..01b2fb0
--- /dev/null
+++ b/mdformat.yaml
@@ -0,0 +1 @@
+number = true