diff --git a/NEWS b/NEWS
index 1b254eb2..94ac35fc 100644
--- a/NEWS
+++ b/NEWS
@@ -1,5 +1,11 @@
 xbps-0.38 (???):
 
+ * Added support to replace virtual packages when the package to be installed
+   matches a virtual pkgname, for example:
+
+	- nvidia is installed and provides the `libGL` virtual pkgname.
+	- libGL matches the virtual pkgname and therefore replaces the `nvidia` pkg.
+
  * xbps-query(8): added --fulldeptree long option to print a full dependency
    tree for a package; this supersedes -xx which was broken since 0.37.
 
diff --git a/lib/repo_pkgdeps.c b/lib/repo_pkgdeps.c
index 8a169772..15fe2007 100644
--- a/lib/repo_pkgdeps.c
+++ b/lib/repo_pkgdeps.c
@@ -36,7 +36,9 @@ store_dependency(struct xbps_handle *xhp,
 		 xbps_dictionary_t repo_pkgd,
 		 pkg_state_t repo_pkg_state)
 {
+	xbps_array_t replaces;
 	const char *pkgver;
+	char *pkgname, *self_replaced;
 	int rv;
 	/*
 	 * Overwrite package state in dictionary with same state than the
@@ -49,11 +51,29 @@ store_dependency(struct xbps_handle *xhp,
 	 */
 	if (!xbps_dictionary_set_bool(repo_pkgd, "automatic-install", true))
 		return EINVAL;
+
+	xbps_dictionary_get_cstring_nocopy(repo_pkgd, "pkgver", &pkgver);
+	/*
+	 * Set a replaces to itself, so that virtual packages are always replaced.
+	*/
+	if ((replaces = xbps_dictionary_get(repo_pkgd, "replaces")) == NULL)
+		replaces = xbps_array_create();
+
+	pkgname = xbps_pkg_name(pkgver);
+	assert(pkgname);
+	self_replaced = xbps_xasprintf("%s>=0", pkgname);
+	free(pkgname);
+	xbps_array_add_cstring(replaces, self_replaced);
+	free(self_replaced);
+
+	if (!xbps_dictionary_set(repo_pkgd, "replaces", replaces)) {
+		free(pkgname);
+		return EINVAL;
+	}
 	/*
 	 * Add the dictionary into the unsorted queue.
 	 */
 	xbps_array_add(unsorted, repo_pkgd);
-	xbps_dictionary_get_cstring_nocopy(repo_pkgd, "pkgver", &pkgver);
 	xbps_dbg_printf_append(xhp, " (added %s)\n", pkgver);
 
 	return 0;
diff --git a/lib/transaction_ops.c b/lib/transaction_ops.c
index 3090f5bd..5e3baf4c 100644
--- a/lib/transaction_ops.c
+++ b/lib/transaction_ops.c
@@ -62,9 +62,9 @@ static int
 trans_find_pkg(struct xbps_handle *xhp, const char *pkg, bool reinstall)
 {
 	xbps_dictionary_t pkg_pkgdb = NULL, pkg_repod = NULL;
-	xbps_array_t unsorted;
+	xbps_array_t unsorted, replaces;
 	const char *repoloc, *repopkgver, *instpkgver, *reason;
-	char *pkgname;
+	char *self_replaced, *pkgname;
 	int action = 0, rv = 0;
 	pkg_state_t state = 0;
 	bool autoinst = false;
@@ -175,10 +175,10 @@ trans_find_pkg(struct xbps_handle *xhp, const char *pkg, bool reinstall)
 		/* Package not installed, don't error out */
 		state = XBPS_PKG_STATE_NOT_INSTALLED;
 	}
-	free(pkgname);
-
-	if ((rv = xbps_set_pkg_state_dictionary(pkg_repod, state)) != 0)
+	if ((rv = xbps_set_pkg_state_dictionary(pkg_repod, state)) != 0) {
+		free(pkgname);
 		return rv;
+	}
 
 	if ((action == TRANS_INSTALL) && (state == XBPS_PKG_STATE_UNPACKED))
 		reason = "configure";
@@ -193,16 +193,32 @@ trans_find_pkg(struct xbps_handle *xhp, const char *pkg, bool reinstall)
 	    "transaction", reason))
 		return EINVAL;
 
+	/*
+	 * Set a replaces to itself, so that virtual packages are always replaced.
+	 */
+	if ((replaces = xbps_dictionary_get(pkg_repod, "replaces")) == NULL)
+		replaces = xbps_array_create();
+
+	self_replaced = xbps_xasprintf("%s>=0", pkgname);
+	xbps_array_add_cstring(replaces, self_replaced);
+	free(self_replaced);
+
+	if (!xbps_dictionary_set(pkg_repod, "replaces", replaces)) {
+		free(pkgname);
+		return EINVAL;
+	}
 	/*
 	 * Add the pkg dictionary from repository's index dictionary into
 	 * the "unsorted" queue.
 	 */
-	if (!xbps_array_add(unsorted, pkg_repod))
+	if (!xbps_array_add(unsorted, pkg_repod)) {
+		free(pkgname);
 		return EINVAL;
-
+	}
 	xbps_dbg_printf(xhp, "%s: added into the transaction (%s).\n",
 	    repopkgver, repoloc);
 
+	free(pkgname);
 	return 0;
 }
 
diff --git a/tests/xbps/libxbps/shell/replace_test.sh b/tests/xbps/libxbps/shell/replace_test.sh
index 11903e45..6e36897f 100644
--- a/tests/xbps/libxbps/shell/replace_test.sh
+++ b/tests/xbps/libxbps/shell/replace_test.sh
@@ -36,6 +36,37 @@ replace_dups_body() {
 	atf_check_equal $result 1
 }
 
+atf_test_case self_replace
+
+self_replace_head() {
+	atf_set "descr" "Tests for package replace: self replacing virtual packages"
+}
+
+self_replace_body() {
+	mkdir some_repo root
+	mkdir -p pkg_A/usr/bin pkg_B/usr/bin
+	echo "A-1.0_1" > pkg_A/usr/bin/foo
+	echo "B-1.0_1" > pkg_B/usr/bin/foo
+	cd some_repo
+	xbps-create -A noarch -n A-1.0_1 -s "A pkg" ../pkg_A
+	atf_check_equal $? 0
+	xbps-create -A noarch -n B-1.0_1 -s "B pkg" --replaces "A>=0" --provides="A-1.0_1" ../pkg_B
+	atf_check_equal $? 0
+	xbps-rindex -a *.xbps
+	atf_check_equal $? 0
+	cd ..
+	xbps-install -C empty.conf -r root --repository=$PWD/some_repo -y A
+	atf_check_equal $? 0
+	xbps-install -C empty.conf -r root --repository=$PWD/some_repo -y B
+	atf_check_equal $? 0
+	xbps-install -C empty.conf -r root --repository=$PWD/some_repo -y A
+	atf_check_equal $? 0
+	out=$(xbps-query -C empty.conf -r root -l|awk '{print $2}')
+	exp="A-1.0_1"
+	atf_check_equal $out $exp
+}
+
 atf_init_test_cases() {
 	atf_add_test_case replace_dups
+	atf_add_test_case self_replace
 }