diff --git a/scripts/release/homebrew/docker/formula_generate.py b/scripts/release/homebrew/docker/formula_generate.py
index d524b471752..4775d338621 100644
--- a/scripts/release/homebrew/docker/formula_generate.py
+++ b/scripts/release/homebrew/docker/formula_generate.py
@@ -11,6 +11,9 @@
 import requests
 import jinja2
 from poet.poet import make_graph, RESOURCE_TEMPLATE
+from collections import OrderedDict
+import bisect
+import argparse
 
 TEMPLATE_FILE_NAME='formula_template.txt'
 CLI_VERSION=os.environ['CLI_VERSION']
@@ -21,6 +24,24 @@
 def main():
     print('Generate formular for Azure CLI homebrew release.')
 
+    parser = argparse.ArgumentParser(prog='formula_generator.py')
+    parser.set_defaults(func=generate_formula)
+    parser.add_argument('-b', dest='build_method', choices=['update_existing', 'use_template'], help='The build method, default is update_existing, the other option is use_template.')
+    args = parser.parse_args()
+    args.func(**vars(args))
+
+def generate_formula(build_method: str, **_):
+    content = ''
+    if build_method is None or build_method == 'update_existing':
+        content = update_formula()
+    elif build_method == 'use_template':
+        content = generate_formula_with_template()
+    with open('azure-cli.rb', mode='w') as fq:
+        fq.write(content)
+
+
+def generate_formula_with_template() -> str:
+    """Generate a brew formula by using a template"""
     template_path = os.path.join(os.path.dirname(__file__), TEMPLATE_FILE_NAME)
     with open(template_path, mode='r') as fq:
         template_content = fq.read()
@@ -35,9 +56,8 @@ def main():
     )
     if not content.endswith('\n'):
         content += '\n'
+    return content
 
-    with open('azure-cli.rb', mode='w') as fq:
-        fq.write(content)
 
 def compute_sha256(resource_url: str) -> str:
     import hashlib
@@ -45,7 +65,7 @@ def compute_sha256(resource_url: str) -> str:
     resp = requests.get(resource_url)
     resp.raise_for_status()
     sha256.update(resp.content)
-    
+
     return sha256.hexdigest()
 
 
@@ -60,6 +80,12 @@ def collect_resources() -> str:
     return '\n\n'.join(nodes_render)
 
 
+def collect_resources_dict() -> dict:
+    nodes = make_graph('azure-cli')
+    filtered_nodes = {nodes[node_name]['name']: nodes[node_name] for node_name in sorted(nodes) if resource_filter(node_name)}
+    return filtered_nodes
+
+
 def resource_filter(name: str) -> bool:
     # TODO remove need for any filters and delete this method.
     return not name.startswith('azure-cli') and name not in ('futures', 'jeepney', 'entrypoints')
@@ -83,9 +109,63 @@ def last_bottle_hash():
             if 'bottle do' in content:
                 start = idx
                 look_for_end = True
-    
+
     return '\n'.join(lines[start: end + 1])
 
 
+def update_formula() -> str:
+    """Generate a brew formula by updating the existing one"""
+    nodes = collect_resources_dict()
+
+    resp = requests.get(HOMEBREW_FORMULAR_LATEST)
+    resp.raise_for_status()
+    text = resp.text
+
+    # update url, version and sha256 of azure-cli
+    text = re.sub('url ".*"', 'url "{}"'.format(HOMEBREW_UPSTREAM_URL), text, 1)
+    text = re.sub('version ".*"', 'version "{}"'.format(CLI_VERSION), text, 1)
+    upstream_sha = compute_sha256(HOMEBREW_UPSTREAM_URL)
+    text = re.sub('sha256 ".*"', 'sha256 "{}"'.format(upstream_sha), text, 1)
+    text = re.sub('.*revision.*\n', '', text, 1)  # remove revision for previous version if exists
+    pack = None
+    packs_to_remove = set()
+    lines = text.split('\n')
+    node_index_dict = OrderedDict()
+    for idx, line in enumerate(lines):
+        if line.strip().startswith("resource"):
+            m = re.search(r'resource "(.*)" do', line)
+            if m is not None:
+                pack = m.group(1)
+                node_index_dict[pack] = idx
+        elif pack is not None:
+            if line.strip().startswith("url"):
+                #update the url of package
+                if pack in nodes.keys():
+                    lines[idx] = re.sub('url ".*"', 'url "{}"'.format(nodes[pack]['url']), line, 1)
+                else:
+                    packs_to_remove.add(pack)
+            elif line.strip().startswith("sha256"):
+                #update the sha256 of package
+                if pack in nodes.keys():
+                    lines[idx] = re.sub('sha256 ".*"', 'sha256 "{}"'.format(nodes[pack]['checksum']), line, 1)
+                    del nodes[pack]
+                pack = None
+        elif line.strip().startswith('def install'):
+            if nodes:
+                # add new dependency packages
+                for node_name, node in nodes.items():
+                    # find the right place to insert the new resource per alphabetic order
+                    i = bisect.bisect_left(list(node_index_dict.keys()), node_name)
+                    line_idx = list(node_index_dict.items())[i][1]
+                    resource = RESOURCE_TEMPLATE.render(resource=node)
+                    lines[line_idx] = resource + '\n\n' + lines[line_idx]
+    new_text = "\n".join(lines)
+
+    # remove dependency packages that are no longer needed
+    for pack in packs_to_remove:
+        new_text = re.sub(r'resource "{}" do.*?\n  end\n\s+'.format(pack), '', new_text, flags=re.DOTALL)
+    return new_text
+
+
 if __name__ == '__main__':
     main()