diff --git a/pulsar-functions/worker/src/main/java/org/apache/pulsar/functions/worker/rest/api/ComponentImpl.java b/pulsar-functions/worker/src/main/java/org/apache/pulsar/functions/worker/rest/api/ComponentImpl.java
index 28fe2c5ea8fbe..f74ccf4a26b8f 100644
--- a/pulsar-functions/worker/src/main/java/org/apache/pulsar/functions/worker/rest/api/ComponentImpl.java
+++ b/pulsar-functions/worker/src/main/java/org/apache/pulsar/functions/worker/rest/api/ComponentImpl.java
@@ -1926,7 +1926,7 @@ protected File getPackageFile(FunctionDetails.ComponentType componentType, Strin
         if (isNotBlank(functionPkgUrl)) {
             componentPackageFile = getPackageFile(componentType, functionPkgUrl);
         } else if (existingPackagePath.startsWith(Utils.FILE) || existingPackagePath.startsWith(Utils.HTTP)) {
-            if (!worker().getPackageUrlValidator().isValidPackageUrl(componentType, functionPkgUrl)) {
+            if (!worker().getPackageUrlValidator().isValidPackageUrl(componentType, existingPackagePath)) {
                 throw new IllegalArgumentException("Function Package url is not valid."
                         + "supported url (http/https/file)");
             }
@@ -1935,7 +1935,7 @@ protected File getPackageFile(FunctionDetails.ComponentType componentType, Strin
             } catch (Exception e) {
                 throw new IllegalArgumentException(String.format("Encountered error \"%s\" "
                                 + "when getting %s package from %s", e.getMessage(),
-                        ComponentTypeUtils.toString(componentType), functionPkgUrl));
+                        ComponentTypeUtils.toString(componentType), existingPackagePath));
             }
         } else if (Utils.hasPackageTypePrefix(existingPackagePath)) {
             componentPackageFile = getPackageFile(componentType, existingPackagePath);
diff --git a/pulsar-functions/worker/src/test/java/org/apache/pulsar/functions/worker/rest/api/v3/AbstractFunctionApiResourceTest.java b/pulsar-functions/worker/src/test/java/org/apache/pulsar/functions/worker/rest/api/v3/AbstractFunctionApiResourceTest.java
index f5b11c4567adc..453e39e4132e8 100644
--- a/pulsar-functions/worker/src/test/java/org/apache/pulsar/functions/worker/rest/api/v3/AbstractFunctionApiResourceTest.java
+++ b/pulsar-functions/worker/src/test/java/org/apache/pulsar/functions/worker/rest/api/v3/AbstractFunctionApiResourceTest.java
@@ -1020,6 +1020,42 @@ public void testUpdateFunctionWithUrl() throws IOException {
 
     }
 
+    @Test
+    public void testUpdateFunctionWithExistingFileUrl() throws IOException {
+
+        String fileLocation = FutureUtil.class.getProtectionDomain().getCodeSource().getLocation().getPath();
+        String filePackageUrl = "file://" + fileLocation;
+
+        FunctionConfig functionConfig = new FunctionConfig();
+        functionConfig.setOutput(OUTPUT_TOPIC);
+        functionConfig.setOutputSerdeClassName(OUTPUT_SERDE_CLASS_NAME);
+        functionConfig.setTenant(TENANT);
+        functionConfig.setNamespace(NAMESPACE);
+        functionConfig.setName(FUNCTION);
+        functionConfig.setClassName(CLASS_NAME);
+        // increment parallelism to avoid 'Update contains no change' exception
+        functionConfig.setParallelism(PARALLELISM + 1);
+        functionConfig.setRuntime(FunctionConfig.Runtime.JAVA);
+        functionConfig.setCustomSerdeInputs(TOPICS_TO_SER_DE_CLASS_NAME);
+
+        FunctionMetaData existingMetaData = new FunctionMetaData();
+        existingMetaData.setFunctionDetails().copyFrom(createDefaultFunctionDetails());
+        existingMetaData.setPackageLocation().setPackagePath(filePackageUrl);
+
+        when(mockedManager.containsFunction(eq(TENANT), eq(NAMESPACE), eq(FUNCTION))).thenReturn(true);
+        when(mockedManager.getFunctionMetaData(any(), any(), any())).thenReturn(existingMetaData);
+
+        updateFunction(
+                TENANT,
+                NAMESPACE,
+                FUNCTION,
+                null,
+                null,
+                null,
+                functionConfig,
+                null, null);
+    }
+
     @Test(expectedExceptions = RestException.class, expectedExceptionsMessageRegExp = "function failed to register")
     public void testUpdateFunctionFailure() throws Exception {
         try {