diff --git a/arduino/libraries/librariesmanager/install.go b/arduino/libraries/librariesmanager/install.go
index 5a3db0ff646..ba187af5879 100644
--- a/arduino/libraries/librariesmanager/install.go
+++ b/arduino/libraries/librariesmanager/install.go
@@ -64,6 +64,7 @@ func (lm *LibrariesManager) InstallPrerequisiteCheck(name string, version *semve
 		return nil, err
 	}
 
+	lm.RescanLibraries()
 	libs := lm.FindByReference(&librariesindex.Reference{Name: name}, installLocation)
 
 	if len(libs) > 1 {
diff --git a/arduino/libraries/librariesmanager/librariesmanager.go b/arduino/libraries/librariesmanager/librariesmanager.go
index 30dbf69d644..943b4fdf77a 100644
--- a/arduino/libraries/librariesmanager/librariesmanager.go
+++ b/arduino/libraries/librariesmanager/librariesmanager.go
@@ -132,6 +132,7 @@ func (lm *LibrariesManager) AddPlatformReleaseLibrariesDir(plaftormRelease *core
 
 // RescanLibraries reload all installed libraries in the system.
 func (lm *LibrariesManager) RescanLibraries() []*status.Status {
+	lm.clearLibraries()
 	statuses := []*status.Status{}
 	for _, dir := range lm.LibrariesDir {
 		if errs := lm.LoadLibrariesFromDir(dir); len(errs) > 0 {
@@ -217,3 +218,9 @@ func (lm *LibrariesManager) FindByReference(libRef *librariesindex.Reference, in
 	}
 	return alternatives.FilterByVersionAndInstallLocation(libRef.Version, installLocation)
 }
+
+func (lm *LibrariesManager) clearLibraries() {
+	for k := range lm.Libraries {
+		delete(lm.Libraries, k)
+	}
+}
diff --git a/arduino/libraries/librariesmanager/librariesmanager_test.go b/arduino/libraries/librariesmanager/librariesmanager_test.go
new file mode 100644
index 00000000000..a987462b6b2
--- /dev/null
+++ b/arduino/libraries/librariesmanager/librariesmanager_test.go
@@ -0,0 +1,32 @@
+// This file is part of arduino-cli.
+//
+// Copyright 2020 ARDUINO SA (http://www.arduino.cc/)
+//
+// This software is released under the GNU General Public License version 3,
+// which covers the main part of arduino-cli.
+// The terms of this license can be found at:
+// https://www.gnu.org/licenses/gpl-3.0.en.html
+//
+// You can be released from the requirements of the above licenses by purchasing
+// a commercial license. Buying such a license is mandatory if you want to
+// modify or otherwise use the software for commercial activities involving the
+// Arduino software without disclosing the source code of your own applications.
+// To purchase a commercial license, send an email to license@arduino.cc.
+package librariesmanager
+
+import (
+	"testing"
+
+	"github.com/arduino/arduino-cli/arduino/libraries"
+	"github.com/arduino/go-paths-helper"
+	"github.com/stretchr/testify/require"
+)
+
+func Test_RescanLibrariesCallClear(t *testing.T) {
+	baseDir := paths.New(t.TempDir())
+	lm := NewLibraryManager(baseDir.Join("index_dir"), baseDir.Join("downloads_dir"))
+	lm.Libraries["testLibA"] = libraries.List{}
+	lm.Libraries["testLibB"] = libraries.List{}
+	lm.RescanLibraries()
+	require.Len(t, lm.Libraries, 0)
+}
diff --git a/internal/integrationtest/daemon/daemon_test.go b/internal/integrationtest/daemon/daemon_test.go
index 8685a7c0750..779eeb44ab2 100644
--- a/internal/integrationtest/daemon/daemon_test.go
+++ b/internal/integrationtest/daemon/daemon_test.go
@@ -382,3 +382,36 @@ func TestDaemonBundleLibInstall(t *testing.T) {
 		}
 	}
 }
+
+func TestDaemonLibrariesRescanOnInstall(t *testing.T) {
+	/*
+		Ensures that the libraries are rescanned prior to installing a new one,
+		to avoid clashes with libraries installed after the daemon initialization.
+		To perform the check:
+		 - the daemon is run and a gprc instance initialized
+		 - a library is installed through the cli
+		 - an attempt to install a new version of the library is done
+		   with the gprc instance
+		The last attempt is expected to not raise an error
+	*/
+	env, cli := createEnvForDaemon(t)
+	defer env.CleanUp()
+
+	grpcInst := cli.Create()
+	require.NoError(t, grpcInst.Init("", "", func(ir *commands.InitResponse) {
+		fmt.Printf("INIT> %v\n", ir.GetMessage())
+	}))
+	cli.Run("lib", "install", "SD@1.2.3")
+
+	instCl, err := grpcInst.LibraryInstall(context.Background(), "SD", "1.2.4", false, false, true)
+
+	require.NoError(t, err)
+	for {
+		_, err := instCl.Recv()
+		if err == io.EOF {
+			break
+		}
+		require.NoError(t, err)
+	}
+
+}