diff --git a/packages/contracts/src/OnlyPluginUpgraderCondition.sol b/packages/contracts/src/OnlyPluginUpgraderCondition.sol
index 443ef90..9446c20 100644
--- a/packages/contracts/src/OnlyPluginUpgraderCondition.sol
+++ b/packages/contracts/src/OnlyPluginUpgraderCondition.sol
@@ -101,12 +101,26 @@ contract OnlyPluginUpgraderCondition is PermissionCondition {
 
     function decodeApplyUpdateCalldata(
         bytes memory _data
-    ) public pure returns (bytes4 selector, address daoAddress) {
+    ) public pure returns (bytes4 selector, address daoAddress, address targetPluginAddress) {
         // Slicing is only supported for bytes calldata, not bytes memory
         // Bytes memory requires an assembly block
         assembly {
-            selector := mload(add(_data, 0x20)) // 32
-            daoAddress := mload(add(_data, 0x24)) // 32 + 4
+            selector := mload(add(_data, 0x20))
+
+            let _payloadStart := add(_data, 0x24)
+            daoAddress := mload(_payloadStart)
+
+            let _paramsStructOffset := mload(add(_payloadStart, 0x20))
+
+            // Extracting the first field of the struct at offset 0
+            // struct ApplyUpdateParams {
+            //     address plugin;
+            //     PluginSetupRef pluginSetupRef;
+            //     bytes initData;
+            //     PermissionLib.MultiTargetPermission[] permissions;
+            //     bytes32 helpersHash;
+            // }
+            targetPluginAddress := mload(add(_payloadStart, _paramsStructOffset))
         }
     }
 
@@ -149,11 +163,13 @@ contract OnlyPluginUpgraderCondition is PermissionCondition {
     }
 
     function isValidApplyUpdateCalldata(bytes memory _data) private view returns (bool) {
-        (bytes4 _selector, address _dao) = decodeApplyUpdateCalldata(_data);
+        (bytes4 _selector, address _dao, address _targetPluginAddress) = decodeApplyUpdateCalldata(
+            _data
+        );
 
         if (_selector != PluginSetupProcessor.applyUpdate.selector) return false;
         else if (_dao != dao) return false;
-        // else if (!allowedPluginAddresses[_applyParams.plugin]) return false;
+        else if (!allowedPluginAddresses[_targetPluginAddress]) return false;
 
         return true;
     }
diff --git a/packages/contracts/test/unit-testing/only-plugin-upgrader-condition.ts b/packages/contracts/test/unit-testing/only-plugin-upgrader-condition.ts
index 43512b8..611bbaf 100644
--- a/packages/contracts/test/unit-testing/only-plugin-upgrader-condition.ts
+++ b/packages/contracts/test/unit-testing/only-plugin-upgrader-condition.ts
@@ -1273,6 +1273,9 @@ describe('Only Plugin Upgrader Condition', function () {
 
     it('Should decode decodeApplyUpdateCalldata properly', async () => {
       applyUpdateParams.plugin = bob.address;
+      const applyUpdateParams2 = JSON.parse(JSON.stringify(applyUpdateParams));
+      applyUpdateParams2.plugin = alice.address;
+
       const calldataList = [
         pspInterface.encodeFunctionData('applyUpdate', [
           dao.address,
@@ -1280,25 +1283,27 @@ describe('Only Plugin Upgrader Condition', function () {
         ]),
         pspInterface.encodeFunctionData('applyUpdate', [
           ADDRESS_THREE,
-          applyUpdateParams,
+          applyUpdateParams2,
         ]),
       ];
 
       // 1
-      let [selector, decodedDaoAddress] =
+      let [selector, decodedDaoAddress, pluginAddress] =
         await onlyPluginUpgraderCondition.decodeApplyUpdateCalldata(
           calldataList[0]
         );
       expect(selector).to.eq(calldataList[0].slice(0, 10));
       expect(decodedDaoAddress).to.eq(dao.address);
+      expect(pluginAddress).to.eq(bob.address);
 
       // 2
-      [selector, decodedDaoAddress] =
+      [selector, decodedDaoAddress, pluginAddress] =
         await onlyPluginUpgraderCondition.decodeApplyUpdateCalldata(
           calldataList[1]
         );
       expect(selector).to.eq(calldataList[1].slice(0, 10));
       expect(decodedDaoAddress).to.eq(ADDRESS_THREE);
+      expect(pluginAddress).to.eq(alice.address);
     });
   });
 });