diff --git a/lib/crewai/src/crewai/cli/version.py b/lib/crewai/src/crewai/cli/version.py
index 69170e16ce..60eb3a95af 100644
--- a/lib/crewai/src/crewai/cli/version.py
+++ b/lib/crewai/src/crewai/cli/version.py
@@ -6,12 +6,12 @@
 import importlib.metadata
 import json
 from pathlib import Path
-from typing import Any, cast
+from typing import Any
 from urllib import request
 from urllib.error import URLError
 
 import appdirs
-from packaging.version import InvalidVersion, parse
+from packaging.version import InvalidVersion, Version, parse
 
 
 @lru_cache(maxsize=1)
@@ -42,21 +42,88 @@ def _is_cache_valid(cache_data: Mapping[str, Any]) -> bool:
         return False
 
 
+def _find_latest_non_yanked_version(
+    releases: Mapping[str, list[dict[str, Any]]],
+) -> str | None:
+    """Find the latest non-yanked version from PyPI releases data.
+
+    Args:
+        releases: PyPI releases dict mapping version strings to file info lists.
+
+    Returns:
+        The latest non-yanked version string, or None if all versions are yanked.
+    """
+    best_version: Version | None = None
+    best_version_str: str | None = None
+
+    for version_str, files in releases.items():
+        try:
+            v = parse(version_str)
+        except InvalidVersion:
+            continue
+
+        if v.is_prerelease or v.is_devrelease:
+            continue
+
+        if not files:
+            continue
+
+        all_yanked = all(f.get("yanked", False) for f in files)
+        if all_yanked:
+            continue
+
+        if best_version is None or v > best_version:
+            best_version = v
+            best_version_str = version_str
+
+    return best_version_str
+
+
+def _is_version_yanked(
+    version_str: str,
+    releases: Mapping[str, list[dict[str, Any]]],
+) -> tuple[bool, str]:
+    """Check if a specific version is yanked.
+
+    Args:
+        version_str: The version string to check.
+        releases: PyPI releases dict mapping version strings to file info lists.
+
+    Returns:
+        Tuple of (is_yanked, yanked_reason).
+    """
+    files = releases.get(version_str, [])
+    if not files:
+        return False, ""
+
+    all_yanked = all(f.get("yanked", False) for f in files)
+    if not all_yanked:
+        return False, ""
+
+    for f in files:
+        reason = f.get("yanked_reason", "")
+        if reason:
+            return True, str(reason)
+
+    return True, ""
+
+
 def get_latest_version_from_pypi(timeout: int = 2) -> str | None:
-    """Get the latest version of CrewAI from PyPI.
+    """Get the latest non-yanked version of CrewAI from PyPI.
 
     Args:
         timeout: Request timeout in seconds.
 
     Returns:
-        Latest version string or None if unable to fetch.
+        Latest non-yanked version string or None if unable to fetch.
     """
     cache_file = _get_cache_file()
     if cache_file.exists():
         try:
             cache_data = json.loads(cache_file.read_text())
-            if _is_cache_valid(cache_data):
-                return cast(str | None, cache_data.get("version"))
+            if _is_cache_valid(cache_data) and "current_version" in cache_data:
+                version: str | None = cache_data.get("version")
+                return version
         except (json.JSONDecodeError, OSError):
             pass
 
@@ -65,11 +132,18 @@ def get_latest_version_from_pypi(timeout: int = 2) -> str | None:
             "https://pypi.org/pypi/crewai/json", timeout=timeout
         ) as response:
             data = json.loads(response.read())
-            latest_version = cast(str, data["info"]["version"])
+            releases: dict[str, list[dict[str, Any]]] = data["releases"]
+            latest_version = _find_latest_non_yanked_version(releases)
+
+            current_version = get_crewai_version()
+            is_yanked, yanked_reason = _is_version_yanked(current_version, releases)
 
             cache_data = {
                 "version": latest_version,
                 "timestamp": datetime.now().isoformat(),
+                "current_version": current_version,
+                "current_version_yanked": is_yanked,
+                "current_version_yanked_reason": yanked_reason,
             }
             cache_file.write_text(json.dumps(cache_data))
 
@@ -78,6 +152,40 @@ def get_latest_version_from_pypi(timeout: int = 2) -> str | None:
         return None
 
 
+def is_current_version_yanked() -> tuple[bool, str]:
+    """Check if the currently installed version has been yanked on PyPI.
+
+    Reads from cache if available, otherwise triggers a fetch.
+
+    Returns:
+        Tuple of (is_yanked, yanked_reason).
+    """
+    cache_file = _get_cache_file()
+    if cache_file.exists():
+        try:
+            cache_data = json.loads(cache_file.read_text())
+            if _is_cache_valid(cache_data) and "current_version" in cache_data:
+                current = get_crewai_version()
+                if cache_data.get("current_version") == current:
+                    return (
+                        bool(cache_data.get("current_version_yanked", False)),
+                        str(cache_data.get("current_version_yanked_reason", "")),
+                    )
+        except (json.JSONDecodeError, OSError):
+            pass
+
+    get_latest_version_from_pypi()
+
+    try:
+        cache_data = json.loads(cache_file.read_text())
+        return (
+            bool(cache_data.get("current_version_yanked", False)),
+            str(cache_data.get("current_version_yanked_reason", "")),
+        )
+    except (json.JSONDecodeError, OSError):
+        return False, ""
+
+
 def check_version() -> tuple[str, str | None]:
     """Check current and latest versions.
 
diff --git a/lib/crewai/src/crewai/events/utils/console_formatter.py b/lib/crewai/src/crewai/events/utils/console_formatter.py
index ee466c3445..4d3b714953 100644
--- a/lib/crewai/src/crewai/events/utils/console_formatter.py
+++ b/lib/crewai/src/crewai/events/utils/console_formatter.py
@@ -8,7 +8,7 @@
 from rich.panel import Panel
 from rich.text import Text
 
-from crewai.cli.version import is_newer_version_available
+from crewai.cli.version import is_current_version_yanked, is_newer_version_available
 
 
 _disable_version_check: ContextVar[bool] = ContextVar(
@@ -104,6 +104,22 @@ def _show_version_update_message_if_needed(self) -> None:
                 )
                 self.console.print(panel)
                 self.console.print()
+
+            is_yanked, yanked_reason = is_current_version_yanked()
+            if is_yanked:
+                yanked_message = f"Version {current} has been yanked from PyPI."
+                if yanked_reason:
+                    yanked_message += f"\nReason: {yanked_reason}"
+                yanked_message += "\n\nTo update, run: uv sync --upgrade-package crewai"
+
+                yanked_panel = Panel(
+                    yanked_message,
+                    title="Yanked Version",
+                    border_style="red",
+                    padding=(1, 2),
+                )
+                self.console.print(yanked_panel)
+                self.console.print()
         except Exception:  # noqa: S110
             # Silently ignore errors in version check - it's non-critical
             pass
diff --git a/lib/crewai/tests/cli/test_version.py b/lib/crewai/tests/cli/test_version.py
index 2600640968..4e53ea923b 100644
--- a/lib/crewai/tests/cli/test_version.py
+++ b/lib/crewai/tests/cli/test_version.py
@@ -1,15 +1,19 @@
 """Test for version management."""
 
+import json
 from datetime import datetime, timedelta
 from pathlib import Path
 from unittest.mock import MagicMock, patch
 
 from crewai import __version__
 from crewai.cli.version import (
+    _find_latest_non_yanked_version,
     _get_cache_file,
     _is_cache_valid,
+    _is_version_yanked,
     get_crewai_version,
     get_latest_version_from_pypi,
+    is_current_version_yanked,
     is_newer_version_available,
 )
 
@@ -19,10 +23,8 @@ def test_dynamic_versioning_consistency() -> None:
     cli_version = get_crewai_version()
     package_version = __version__
 
-    # Both should return the same version string
     assert cli_version == package_version
 
-    # Version should not be empty
     assert package_version is not None
     assert len(package_version.strip()) > 0
 
@@ -63,12 +65,18 @@ def test_is_cache_valid_with_missing_timestamp(self) -> None:
     def test_get_latest_version_from_pypi_success(
         self, mock_urlopen: MagicMock, mock_exists: MagicMock
     ) -> None:
-        """Test successful PyPI version fetch."""
-        # Mock cache not existing to force fetch from PyPI
+        """Test successful PyPI version fetch uses releases data."""
         mock_exists.return_value = False
 
+        releases = {
+            "1.0.0": [{"yanked": False}],
+            "2.0.0": [{"yanked": False}],
+            "2.1.0": [{"yanked": True, "yanked_reason": "bad release"}],
+        }
         mock_response = MagicMock()
-        mock_response.read.return_value = b'{"info": {"version": "2.0.0"}}'
+        mock_response.read.return_value = json.dumps(
+            {"info": {"version": "2.1.0"}, "releases": releases}
+        ).encode()
         mock_urlopen.return_value.__enter__.return_value = mock_response
 
         version = get_latest_version_from_pypi()
@@ -82,7 +90,6 @@ def test_get_latest_version_from_pypi_failure(
         """Test PyPI version fetch failure."""
         from urllib.error import URLError
 
-        # Mock cache not existing to force fetch from PyPI
         mock_exists.return_value = False
 
         mock_urlopen.side_effect = URLError("Network error")
@@ -133,18 +140,247 @@ def test_is_newer_version_available_with_none_latest(
         assert latest is None
 
 
+class TestFindLatestNonYankedVersion:
+    """Test _find_latest_non_yanked_version helper."""
+
+    def test_skips_yanked_versions(self) -> None:
+        """Test that yanked versions are skipped."""
+        releases = {
+            "1.0.0": [{"yanked": False}],
+            "2.0.0": [{"yanked": True}],
+        }
+        assert _find_latest_non_yanked_version(releases) == "1.0.0"
+
+    def test_returns_highest_non_yanked(self) -> None:
+        """Test that the highest non-yanked version is returned."""
+        releases = {
+            "1.0.0": [{"yanked": False}],
+            "1.5.0": [{"yanked": False}],
+            "2.0.0": [{"yanked": True}],
+        }
+        assert _find_latest_non_yanked_version(releases) == "1.5.0"
+
+    def test_returns_none_when_all_yanked(self) -> None:
+        """Test that None is returned when all versions are yanked."""
+        releases = {
+            "1.0.0": [{"yanked": True}],
+            "2.0.0": [{"yanked": True}],
+        }
+        assert _find_latest_non_yanked_version(releases) is None
+
+    def test_skips_prerelease_versions(self) -> None:
+        """Test that pre-release versions are skipped."""
+        releases = {
+            "1.0.0": [{"yanked": False}],
+            "2.0.0a1": [{"yanked": False}],
+            "2.0.0rc1": [{"yanked": False}],
+        }
+        assert _find_latest_non_yanked_version(releases) == "1.0.0"
+
+    def test_skips_versions_with_empty_files(self) -> None:
+        """Test that versions with no files are skipped."""
+        releases: dict[str, list[dict[str, bool]]] = {
+            "1.0.0": [{"yanked": False}],
+            "2.0.0": [],
+        }
+        assert _find_latest_non_yanked_version(releases) == "1.0.0"
+
+    def test_handles_invalid_version_strings(self) -> None:
+        """Test that invalid version strings are skipped."""
+        releases = {
+            "1.0.0": [{"yanked": False}],
+            "not-a-version": [{"yanked": False}],
+        }
+        assert _find_latest_non_yanked_version(releases) == "1.0.0"
+
+    def test_partially_yanked_files_not_considered_yanked(self) -> None:
+        """Test that a version with some non-yanked files is not yanked."""
+        releases = {
+            "1.0.0": [{"yanked": False}],
+            "2.0.0": [{"yanked": True}, {"yanked": False}],
+        }
+        assert _find_latest_non_yanked_version(releases) == "2.0.0"
+
+
+class TestIsVersionYanked:
+    """Test _is_version_yanked helper."""
+
+    def test_non_yanked_version(self) -> None:
+        """Test a non-yanked version returns False."""
+        releases = {"1.0.0": [{"yanked": False}]}
+        is_yanked, reason = _is_version_yanked("1.0.0", releases)
+        assert is_yanked is False
+        assert reason == ""
+
+    def test_yanked_version_with_reason(self) -> None:
+        """Test a yanked version returns True with reason."""
+        releases = {
+            "1.0.0": [{"yanked": True, "yanked_reason": "critical bug"}],
+        }
+        is_yanked, reason = _is_version_yanked("1.0.0", releases)
+        assert is_yanked is True
+        assert reason == "critical bug"
+
+    def test_yanked_version_without_reason(self) -> None:
+        """Test a yanked version returns True with empty reason."""
+        releases = {"1.0.0": [{"yanked": True}]}
+        is_yanked, reason = _is_version_yanked("1.0.0", releases)
+        assert is_yanked is True
+        assert reason == ""
+
+    def test_unknown_version(self) -> None:
+        """Test an unknown version returns False."""
+        releases = {"1.0.0": [{"yanked": False}]}
+        is_yanked, reason = _is_version_yanked("9.9.9", releases)
+        assert is_yanked is False
+        assert reason == ""
+
+    def test_partially_yanked_files(self) -> None:
+        """Test a version with mixed yanked/non-yanked files is not yanked."""
+        releases = {
+            "1.0.0": [{"yanked": True}, {"yanked": False}],
+        }
+        is_yanked, reason = _is_version_yanked("1.0.0", releases)
+        assert is_yanked is False
+        assert reason == ""
+
+    def test_multiple_yanked_files_picks_first_reason(self) -> None:
+        """Test that the first available reason is returned."""
+        releases = {
+            "1.0.0": [
+                {"yanked": True, "yanked_reason": ""},
+                {"yanked": True, "yanked_reason": "second reason"},
+            ],
+        }
+        is_yanked, reason = _is_version_yanked("1.0.0", releases)
+        assert is_yanked is True
+        assert reason == "second reason"
+
+
+class TestIsCurrentVersionYanked:
+    """Test is_current_version_yanked public function."""
+
+    @patch("crewai.cli.version.get_crewai_version")
+    @patch("crewai.cli.version._get_cache_file")
+    def test_reads_from_valid_cache(
+        self, mock_cache_file: MagicMock, mock_version: MagicMock, tmp_path: Path
+    ) -> None:
+        """Test reading yanked status from a valid cache."""
+        mock_version.return_value = "1.0.0"
+        cache_file = tmp_path / "version_cache.json"
+        cache_data = {
+            "version": "2.0.0",
+            "timestamp": datetime.now().isoformat(),
+            "current_version": "1.0.0",
+            "current_version_yanked": True,
+            "current_version_yanked_reason": "bad release",
+        }
+        cache_file.write_text(json.dumps(cache_data))
+        mock_cache_file.return_value = cache_file
+
+        is_yanked, reason = is_current_version_yanked()
+        assert is_yanked is True
+        assert reason == "bad release"
+
+    @patch("crewai.cli.version.get_crewai_version")
+    @patch("crewai.cli.version._get_cache_file")
+    def test_not_yanked_from_cache(
+        self, mock_cache_file: MagicMock, mock_version: MagicMock, tmp_path: Path
+    ) -> None:
+        """Test non-yanked status from a valid cache."""
+        mock_version.return_value = "2.0.0"
+        cache_file = tmp_path / "version_cache.json"
+        cache_data = {
+            "version": "2.0.0",
+            "timestamp": datetime.now().isoformat(),
+            "current_version": "2.0.0",
+            "current_version_yanked": False,
+            "current_version_yanked_reason": "",
+        }
+        cache_file.write_text(json.dumps(cache_data))
+        mock_cache_file.return_value = cache_file
+
+        is_yanked, reason = is_current_version_yanked()
+        assert is_yanked is False
+        assert reason == ""
+
+    @patch("crewai.cli.version.get_latest_version_from_pypi")
+    @patch("crewai.cli.version.get_crewai_version")
+    @patch("crewai.cli.version._get_cache_file")
+    def test_triggers_fetch_on_stale_cache(
+        self,
+        mock_cache_file: MagicMock,
+        mock_version: MagicMock,
+        mock_fetch: MagicMock,
+        tmp_path: Path,
+    ) -> None:
+        """Test that a stale cache triggers a re-fetch."""
+        mock_version.return_value = "1.0.0"
+        cache_file = tmp_path / "version_cache.json"
+        old_time = datetime.now() - timedelta(hours=25)
+        cache_data = {
+            "version": "2.0.0",
+            "timestamp": old_time.isoformat(),
+            "current_version": "1.0.0",
+            "current_version_yanked": True,
+            "current_version_yanked_reason": "old reason",
+        }
+        cache_file.write_text(json.dumps(cache_data))
+        mock_cache_file.return_value = cache_file
+
+        fresh_cache = {
+            "version": "2.0.0",
+            "timestamp": datetime.now().isoformat(),
+            "current_version": "1.0.0",
+            "current_version_yanked": False,
+            "current_version_yanked_reason": "",
+        }
+
+        def write_fresh_cache() -> str:
+            cache_file.write_text(json.dumps(fresh_cache))
+            return "2.0.0"
+
+        mock_fetch.side_effect = lambda: write_fresh_cache()
+
+        is_yanked, reason = is_current_version_yanked()
+        assert is_yanked is False
+        mock_fetch.assert_called_once()
+
+    @patch("crewai.cli.version.get_latest_version_from_pypi")
+    @patch("crewai.cli.version.get_crewai_version")
+    @patch("crewai.cli.version._get_cache_file")
+    def test_returns_false_on_fetch_failure(
+        self,
+        mock_cache_file: MagicMock,
+        mock_version: MagicMock,
+        mock_fetch: MagicMock,
+        tmp_path: Path,
+    ) -> None:
+        """Test that fetch failure returns not yanked."""
+        mock_version.return_value = "1.0.0"
+        cache_file = tmp_path / "version_cache.json"
+        mock_cache_file.return_value = cache_file
+        mock_fetch.return_value = None
+
+        is_yanked, reason = is_current_version_yanked()
+        assert is_yanked is False
+        assert reason == ""
+
+
 class TestConsoleFormatterVersionCheck:
     """Test version check display in ConsoleFormatter."""
 
+    @patch("crewai.events.utils.console_formatter.is_current_version_yanked")
     @patch("crewai.events.utils.console_formatter.is_newer_version_available")
     @patch.dict("os.environ", {"CI": ""})
     def test_version_message_shows_when_update_available_and_verbose(
-        self, mock_check: MagicMock
+        self, mock_check: MagicMock, mock_yanked: MagicMock
     ) -> None:
         """Test version message shows when update available and verbose enabled."""
         from crewai.events.utils.console_formatter import ConsoleFormatter
 
         mock_check.return_value = (True, "1.0.0", "2.0.0")
+        mock_yanked.return_value = (False, "")
 
         formatter = ConsoleFormatter(verbose=True)
         with patch.object(formatter.console, "print") as mock_print:
@@ -165,14 +401,16 @@ def test_version_message_hides_when_verbose_false(
             formatter._show_version_update_message_if_needed()
             mock_print.assert_not_called()
 
+    @patch("crewai.events.utils.console_formatter.is_current_version_yanked")
     @patch("crewai.events.utils.console_formatter.is_newer_version_available")
     def test_version_message_hides_when_no_update_available(
-        self, mock_check: MagicMock
+        self, mock_check: MagicMock, mock_yanked: MagicMock
     ) -> None:
         """Test version message hidden when no update available."""
         from crewai.events.utils.console_formatter import ConsoleFormatter
 
         mock_check.return_value = (False, "2.0.0", "2.0.0")
+        mock_yanked.return_value = (False, "")
 
         formatter = ConsoleFormatter(verbose=True)
         with patch.object(formatter.console, "print") as mock_print:
@@ -208,3 +446,60 @@ def test_version_message_hides_in_ci_environment_with_numeric_value(
         with patch.object(formatter.console, "print") as mock_print:
             formatter._show_version_update_message_if_needed()
             mock_print.assert_not_called()
+
+    @patch("crewai.events.utils.console_formatter.is_current_version_yanked")
+    @patch("crewai.events.utils.console_formatter.is_newer_version_available")
+    @patch.dict("os.environ", {"CI": ""})
+    def test_yanked_warning_shows_when_version_is_yanked(
+        self, mock_check: MagicMock, mock_yanked: MagicMock
+    ) -> None:
+        """Test yanked warning panel shows when current version is yanked."""
+        from crewai.events.utils.console_formatter import ConsoleFormatter
+
+        mock_check.return_value = (False, "1.0.0", "1.0.0")
+        mock_yanked.return_value = (True, "critical bug")
+
+        formatter = ConsoleFormatter(verbose=True)
+        with patch.object(formatter.console, "print") as mock_print:
+            formatter._show_version_update_message_if_needed()
+            assert mock_print.call_count == 2
+            panel = mock_print.call_args_list[0][0][0]
+            assert "Yanked Version" in panel.title
+            assert "critical bug" in str(panel.renderable)
+
+    @patch("crewai.events.utils.console_formatter.is_current_version_yanked")
+    @patch("crewai.events.utils.console_formatter.is_newer_version_available")
+    @patch.dict("os.environ", {"CI": ""})
+    def test_yanked_warning_shows_without_reason(
+        self, mock_check: MagicMock, mock_yanked: MagicMock
+    ) -> None:
+        """Test yanked warning panel shows even without a reason."""
+        from crewai.events.utils.console_formatter import ConsoleFormatter
+
+        mock_check.return_value = (False, "1.0.0", "1.0.0")
+        mock_yanked.return_value = (True, "")
+
+        formatter = ConsoleFormatter(verbose=True)
+        with patch.object(formatter.console, "print") as mock_print:
+            formatter._show_version_update_message_if_needed()
+            assert mock_print.call_count == 2
+            panel = mock_print.call_args_list[0][0][0]
+            assert "Yanked Version" in panel.title
+            assert "Reason:" not in str(panel.renderable)
+
+    @patch("crewai.events.utils.console_formatter.is_current_version_yanked")
+    @patch("crewai.events.utils.console_formatter.is_newer_version_available")
+    @patch.dict("os.environ", {"CI": ""})
+    def test_both_update_and_yanked_warning_show(
+        self, mock_check: MagicMock, mock_yanked: MagicMock
+    ) -> None:
+        """Test both update and yanked panels show when applicable."""
+        from crewai.events.utils.console_formatter import ConsoleFormatter
+
+        mock_check.return_value = (True, "1.0.0", "2.0.0")
+        mock_yanked.return_value = (True, "security issue")
+
+        formatter = ConsoleFormatter(verbose=True)
+        with patch.object(formatter.console, "print") as mock_print:
+            formatter._show_version_update_message_if_needed()
+            assert mock_print.call_count == 4