diff --git a/python/ray/dataframe/dataframe.py b/python/ray/dataframe/dataframe.py
index e3222b3e0f82..10671a4a31bb 100644
--- a/python/ray/dataframe/dataframe.py
+++ b/python/ray/dataframe/dataframe.py
@@ -4407,9 +4407,34 @@ def unstack(self, level=-1, fill_value=None):
 
     def update(self, other, join='left', overwrite=True, filter_func=None,
                raise_conflict=False):
-        raise NotImplementedError(
-            "To contribute to Pandas on Ray, please visit "
-            "github.com/ray-project/ray.")
+        """Modify DataFrame in place using non-NA values from other.
+
+        Args:
+            other: DataFrame, or object coercible into a DataFrame
+            join: {'left'}, default 'left'
+            overwrite: If True then overwrite values for common keys in frame
+            filter_func: Can choose to replace values other than NA.
+            raise_conflict: If True, will raise an error if the DataFrame and
+                other both contain data in the same place.
+
+        Returns:
+            None
+        """
+        if raise_conflict:
+            raise NotImplementedError(
+                "raise_conflict parameter not yet supported. "
+                "To contribute to Pandas on Ray, please visit "
+                "github.com/ray-project/ray.")
+
+        if not isinstance(other, DataFrame):
+            other = DataFrame(other)
+
+        def update_helper(x, y):
+            x.update(y, join, overwrite, filter_func, False)
+            return x
+
+        self._inter_df_op_helper(update_helper, other, join, 0, None,
+                                 inplace=True)
 
     def var(self, axis=None, skipna=None, level=None, ddof=1,
             numeric_only=None, **kwargs):
@@ -4963,36 +4988,40 @@ def _operator_helper(self, func, other, axis, level, *args):
         if isinstance(other, DataFrame):
             return self._inter_df_op_helper(
                 lambda x, y: func(x, y, axis, level, *args),
-                other, axis, level)
+                other, "outer", axis, level)
         else:
             return self._single_df_op_helper(
                 lambda df: func(df, other, axis, level, *args),
                 other, axis, level)
 
-    def _inter_df_op_helper(self, func, other, axis, level):
+    def _inter_df_op_helper(self, func, other, how, axis, level,
+                            inplace=False):
         if level is not None:
             raise NotImplementedError("Mutlilevel index not yet supported "
                                       "in Pandas on Ray")
         axis = pd.DataFrame()._get_axis_number(axis)
 
-        # Adding two DataFrames causes an outer join.
-        if isinstance(other, DataFrame):
-            new_column_index = self.columns.join(other.columns, how="outer")
-            new_index = self.index.join(other.index, how="outer")
-            copartitions = self._copartition(other, new_index)
-
-            new_blocks = \
-                np.array([_co_op_helper._submit(
-                    args=tuple([func, self.columns, other.columns,
-                                len(part[0]), None] +
-                          np.concatenate(part).tolist()),
-                    num_return_vals=len(part[0]))
-                    for part in copartitions])
+        new_column_index = self.columns.join(other.columns, how=how)
+        new_index = self.index.join(other.index, how=how)
+        copartitions = self._copartition(other, new_index)
 
+        new_blocks = \
+            np.array([_co_op_helper._submit(
+                args=tuple([func, self.columns, other.columns,
+                            len(part[0]), None] +
+                      np.concatenate(part).tolist()),
+                num_return_vals=len(part[0]))
+                for part in copartitions])
+
+        if not inplace:
             # TODO join the Index Metadata objects together for performance.
             return DataFrame(block_partitions=new_blocks,
                              columns=new_column_index,
                              index=new_index)
+        else:
+            self._update_inplace(block_partitions=new_blocks,
+                                 columns=new_column_index,
+                                 index=new_index)
 
     def _single_df_op_helper(self, func, other, axis, level):
         if level is not None:
diff --git a/python/ray/dataframe/test/test_dataframe.py b/python/ray/dataframe/test/test_dataframe.py
index 7660b5366447..3037e609a6c1 100644
--- a/python/ray/dataframe/test/test_dataframe.py
+++ b/python/ray/dataframe/test/test_dataframe.py
@@ -3009,10 +3009,21 @@ def test_unstack():
 
 
 def test_update():
-    ray_df = create_test_dataframe()
+    df = rdf.DataFrame([[1.5, np.nan, 3.],
+                        [1.5, np.nan, 3.],
+                        [1.5, np.nan, 3],
+                        [1.5, np.nan, 3]])
 
-    with pytest.raises(NotImplementedError):
-        ray_df.update(None)
+    other = rdf.DataFrame([[3.6, 2., np.nan],
+                           [np.nan, np.nan, 7]], index=[1, 3])
+
+    df.update(other)
+
+    expected = rdf.DataFrame([[1.5, np.nan, 3],
+                              [3.6, 2, 3],
+                              [1.5, np.nan, 3],
+                              [1.5, np.nan, 7.]])
+    assert ray_df_equals(df, expected)
 
 
 @pytest.fixture