diff --git a/.github/workflows/test-dotnet.yml b/.github/workflows/test-dotnet.yml
index 87fd241..a8b9e29 100644
--- a/.github/workflows/test-dotnet.yml
+++ b/.github/workflows/test-dotnet.yml
@@ -41,3 +41,25 @@ jobs:
         shell: pwsh
         run: |
           __tests__/verify-dotnet.ps1 -Patterns "^${{ matrix.dotnet-version }}"
+  setup-versions-prefer-installed:
+    runs-on: ${{ matrix.operating-system }}
+    strategy:
+      fail-fast: false
+      matrix:
+        operating-system: [ubuntu-latest, windows-latest, macOS-latest]
+        dotnet-version: ['2.1', '2.2', '3.0', '3.1', '5.0', '6.0', '7.0', '8.0']
+    steps:
+      - name: Checkout
+        uses: actions/checkout@v3
+      - name: Clear toolcache
+        shell: pwsh
+        run: __tests__/clear-toolcache.ps1 ${{ runner.os }}
+      - name: Setup dotnet ${{ matrix.dotnet-version }}
+        uses: ./
+        with:
+          dotnet-version: ${{ matrix.dotnet-version }}
+          prefer-installed: true
+      - name: Verify installed version
+        shell: pwsh
+        run: |
+          __tests__/verify-dotnet.ps1 -Patterns "^${{ matrix.dotnet-version }}"
diff --git a/action.yml b/action.yml
index bf24aca..825a18e 100644
--- a/action.yml
+++ b/action.yml
@@ -9,6 +9,10 @@ inputs:
     description: 'Optional SDK version(s) to use. If not provided, will install global.json version when available. Examples: 2.2.104, 3.1, 3.1.x, 3.x, 6.0.2xx'
   dotnet-quality:
     description: 'Optional quality of the build. The possible values are: daily, signed, validated, preview, ga.'
+  prefer-installed:
+    description: 'Optional flag to prefer an already installed version of the SDK (when partial version syntax is used). If not provided, latest version with specified quality will be installed.'
+    required: false
+    default: false
   global-json-file:
     description: 'Optional global.json location, if your global.json isn''t located in the root of the repo.'
   source-url:
diff --git a/dist/cache-save/index.js b/dist/cache-save/index.js
index 60557b0..e105a4b 100644
--- a/dist/cache-save/index.js
+++ b/dist/cache-save/index.js
@@ -58523,91 +58523,91 @@ exports["default"] = _default;
 /***/ (function(__unused_webpack_module, exports, __nccwpck_require__) {
 
 "use strict";
-
-var __createBinding = (this && this.__createBinding) || (Object.create ? (function(o, m, k, k2) {
-    if (k2 === undefined) k2 = k;
-    var desc = Object.getOwnPropertyDescriptor(m, k);
-    if (!desc || ("get" in desc ? !m.__esModule : desc.writable || desc.configurable)) {
-      desc = { enumerable: true, get: function() { return m[k]; } };
-    }
-    Object.defineProperty(o, k2, desc);
-}) : (function(o, m, k, k2) {
-    if (k2 === undefined) k2 = k;
-    o[k2] = m[k];
-}));
-var __setModuleDefault = (this && this.__setModuleDefault) || (Object.create ? (function(o, v) {
-    Object.defineProperty(o, "default", { enumerable: true, value: v });
-}) : function(o, v) {
-    o["default"] = v;
-});
-var __importStar = (this && this.__importStar) || function (mod) {
-    if (mod && mod.__esModule) return mod;
-    var result = {};
-    if (mod != null) for (var k in mod) if (k !== "default" && Object.prototype.hasOwnProperty.call(mod, k)) __createBinding(result, mod, k);
-    __setModuleDefault(result, mod);
-    return result;
-};
-var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
-    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
-    return new (P || (P = Promise))(function (resolve, reject) {
-        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
-        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
-        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
-        step((generator = generator.apply(thisArg, _arguments || [])).next());
-    });
-};
-var __importDefault = (this && this.__importDefault) || function (mod) {
-    return (mod && mod.__esModule) ? mod : { "default": mod };
-};
-Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.run = void 0;
-const core = __importStar(__nccwpck_require__(2186));
-const cache = __importStar(__nccwpck_require__(7799));
-const node_fs_1 = __importDefault(__nccwpck_require__(7561));
-const cache_utils_1 = __nccwpck_require__(1678);
-const constants_1 = __nccwpck_require__(9042);
-// Catch and log any unhandled exceptions.  These exceptions can leak out of the uploadChunk method in
-// @actions/toolkit when a failed upload closes the file descriptor causing any in-process reads to
-// throw an uncaught exception.  Instead of failing this action, just warn.
-process.on('uncaughtException', e => {
-    const warningPrefix = '[warning]';
-    core.info(`${warningPrefix}${e.message}`);
-});
-function run() {
-    return __awaiter(this, void 0, void 0, function* () {
-        try {
-            if (core.getBooleanInput('cache')) {
-                yield cachePackages();
-            }
-        }
-        catch (error) {
-            core.setFailed(error.message);
-        }
-    });
-}
-exports.run = run;
-const cachePackages = () => __awaiter(void 0, void 0, void 0, function* () {
-    const state = core.getState(constants_1.State.CacheMatchedKey);
-    const primaryKey = core.getState(constants_1.State.CachePrimaryKey);
-    if (!primaryKey) {
-        core.info('Primary key was not generated, not saving cache.');
-        return;
-    }
-    const { 'global-packages': cachePath } = yield (0, cache_utils_1.getNuGetFolderPath)();
-    if (!node_fs_1.default.existsSync(cachePath)) {
-        throw new Error(`Cache folder path is retrieved for .NET CLI but doesn't exist on disk: ${cachePath}`);
-    }
-    if (primaryKey === state) {
-        core.info(`Cache hit occurred on the primary key ${primaryKey}, not saving cache.`);
-        return;
-    }
-    const cacheId = yield cache.saveCache([cachePath], primaryKey);
-    if (cacheId == -1) {
-        return;
-    }
-    core.info(`Cache saved with the key: ${primaryKey}`);
-});
-run();
+
+var __createBinding = (this && this.__createBinding) || (Object.create ? (function(o, m, k, k2) {
+    if (k2 === undefined) k2 = k;
+    var desc = Object.getOwnPropertyDescriptor(m, k);
+    if (!desc || ("get" in desc ? !m.__esModule : desc.writable || desc.configurable)) {
+      desc = { enumerable: true, get: function() { return m[k]; } };
+    }
+    Object.defineProperty(o, k2, desc);
+}) : (function(o, m, k, k2) {
+    if (k2 === undefined) k2 = k;
+    o[k2] = m[k];
+}));
+var __setModuleDefault = (this && this.__setModuleDefault) || (Object.create ? (function(o, v) {
+    Object.defineProperty(o, "default", { enumerable: true, value: v });
+}) : function(o, v) {
+    o["default"] = v;
+});
+var __importStar = (this && this.__importStar) || function (mod) {
+    if (mod && mod.__esModule) return mod;
+    var result = {};
+    if (mod != null) for (var k in mod) if (k !== "default" && Object.prototype.hasOwnProperty.call(mod, k)) __createBinding(result, mod, k);
+    __setModuleDefault(result, mod);
+    return result;
+};
+var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
+    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
+    return new (P || (P = Promise))(function (resolve, reject) {
+        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
+        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
+        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
+        step((generator = generator.apply(thisArg, _arguments || [])).next());
+    });
+};
+var __importDefault = (this && this.__importDefault) || function (mod) {
+    return (mod && mod.__esModule) ? mod : { "default": mod };
+};
+Object.defineProperty(exports, "__esModule", ({ value: true }));
+exports.run = void 0;
+const core = __importStar(__nccwpck_require__(2186));
+const cache = __importStar(__nccwpck_require__(7799));
+const node_fs_1 = __importDefault(__nccwpck_require__(7561));
+const cache_utils_1 = __nccwpck_require__(1678);
+const constants_1 = __nccwpck_require__(9042);
+// Catch and log any unhandled exceptions.  These exceptions can leak out of the uploadChunk method in
+// @actions/toolkit when a failed upload closes the file descriptor causing any in-process reads to
+// throw an uncaught exception.  Instead of failing this action, just warn.
+process.on('uncaughtException', e => {
+    const warningPrefix = '[warning]';
+    core.info(`${warningPrefix}${e.message}`);
+});
+function run() {
+    return __awaiter(this, void 0, void 0, function* () {
+        try {
+            if (core.getBooleanInput('cache')) {
+                yield cachePackages();
+            }
+        }
+        catch (error) {
+            core.setFailed(error.message);
+        }
+    });
+}
+exports.run = run;
+const cachePackages = () => __awaiter(void 0, void 0, void 0, function* () {
+    const state = core.getState(constants_1.State.CacheMatchedKey);
+    const primaryKey = core.getState(constants_1.State.CachePrimaryKey);
+    if (!primaryKey) {
+        core.info('Primary key was not generated, not saving cache.');
+        return;
+    }
+    const { 'global-packages': cachePath } = yield (0, cache_utils_1.getNuGetFolderPath)();
+    if (!node_fs_1.default.existsSync(cachePath)) {
+        throw new Error(`Cache folder path is retrieved for .NET CLI but doesn't exist on disk: ${cachePath}`);
+    }
+    if (primaryKey === state) {
+        core.info(`Cache hit occurred on the primary key ${primaryKey}, not saving cache.`);
+        return;
+    }
+    const cacheId = yield cache.saveCache([cachePath], primaryKey);
+    if (cacheId == -1) {
+        return;
+    }
+    core.info(`Cache saved with the key: ${primaryKey}`);
+});
+run();
 
 
 /***/ }),
@@ -58616,114 +58616,114 @@ run();
 /***/ (function(__unused_webpack_module, exports, __nccwpck_require__) {
 
 "use strict";
-
-var __createBinding = (this && this.__createBinding) || (Object.create ? (function(o, m, k, k2) {
-    if (k2 === undefined) k2 = k;
-    var desc = Object.getOwnPropertyDescriptor(m, k);
-    if (!desc || ("get" in desc ? !m.__esModule : desc.writable || desc.configurable)) {
-      desc = { enumerable: true, get: function() { return m[k]; } };
-    }
-    Object.defineProperty(o, k2, desc);
-}) : (function(o, m, k, k2) {
-    if (k2 === undefined) k2 = k;
-    o[k2] = m[k];
-}));
-var __setModuleDefault = (this && this.__setModuleDefault) || (Object.create ? (function(o, v) {
-    Object.defineProperty(o, "default", { enumerable: true, value: v });
-}) : function(o, v) {
-    o["default"] = v;
-});
-var __importStar = (this && this.__importStar) || function (mod) {
-    if (mod && mod.__esModule) return mod;
-    var result = {};
-    if (mod != null) for (var k in mod) if (k !== "default" && Object.prototype.hasOwnProperty.call(mod, k)) __createBinding(result, mod, k);
-    __setModuleDefault(result, mod);
-    return result;
-};
-var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
-    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
-    return new (P || (P = Promise))(function (resolve, reject) {
-        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
-        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
-        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
-        step((generator = generator.apply(thisArg, _arguments || [])).next());
-    });
-};
-Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.isCacheFeatureAvailable = exports.getNuGetFolderPath = void 0;
-const cache = __importStar(__nccwpck_require__(7799));
-const core = __importStar(__nccwpck_require__(2186));
-const exec = __importStar(__nccwpck_require__(1514));
-const constants_1 = __nccwpck_require__(9042);
-/**
- * Get NuGet global packages, cache, and temp folders from .NET CLI.
- * @returns (Folder Name)-(Path) mappings
- * @see https://docs.microsoft.com/nuget/consume-packages/managing-the-global-packages-and-cache-folders
- * @example
- * Windows
- * ```json
- * {
- *   "http-cache": "C:\\Users\\user1\\AppData\\Local\\NuGet\\v3-cache",
- *   "global-packages": "C:\\Users\\user1\\.nuget\\packages\\",
- *   "temp": "C:\\Users\\user1\\AppData\\Local\\Temp\\NuGetScratch",
- *   "plugins-cache": "C:\\Users\\user1\\AppData\\Local\\NuGet\\plugins-cache"
- * }
- * ```
- *
- * Mac/Linux
- * ```json
- * {
- *   "http-cache": "/home/user1/.local/share/NuGet/v3-cache",
- *   "global-packages": "/home/user1/.nuget/packages/",
- *   "temp": "/tmp/NuGetScratch",
- *   "plugins-cache": "/home/user1/.local/share/NuGet/plugins-cache"
- * }
- * ```
- */
-const getNuGetFolderPath = () => __awaiter(void 0, void 0, void 0, function* () {
-    const { stdout, stderr, exitCode } = yield exec.getExecOutput(constants_1.cliCommand, undefined, { ignoreReturnCode: true, silent: true });
-    if (exitCode) {
-        throw new Error(!stderr.trim()
-            ? `The '${constants_1.cliCommand}' command failed with exit code: ${exitCode}`
-            : stderr);
-    }
-    const result = {
-        'http-cache': '',
-        'global-packages': '',
-        temp: '',
-        'plugins-cache': ''
-    };
-    const regex = /(?:^|\s)(?<key>[a-z-]+): (?<path>.+[/\\].+)$/gm;
-    let match;
-    while ((match = regex.exec(stdout)) !== null) {
-        const key = match.groups.key;
-        if (key in result) {
-            result[key] = match.groups.path;
-        }
-    }
-    return result;
-});
-exports.getNuGetFolderPath = getNuGetFolderPath;
-function isCacheFeatureAvailable() {
-    if (cache.isFeatureAvailable()) {
-        return true;
-    }
-    if (isGhes()) {
-        core.warning('Cache action is only supported on GHES version >= 3.5. If you are on version >=3.5 Please check with GHES admin if Actions cache service is enabled or not.');
-        return false;
-    }
-    core.warning('The runner was not able to contact the cache service. Caching will be skipped');
-    return false;
-}
-exports.isCacheFeatureAvailable = isCacheFeatureAvailable;
-/**
- * Returns this action runs on GitHub Enterprise Server or not.
- * (port from https://github.com/actions/toolkit/blob/457303960f03375db6f033e214b9f90d79c3fe5c/packages/cache/src/internal/cacheUtils.ts#L134)
- */
-function isGhes() {
-    const url = process.env['GITHUB_SERVER_URL'] || 'https://github.com';
-    return new URL(url).hostname.toUpperCase() !== 'GITHUB.COM';
-}
+
+var __createBinding = (this && this.__createBinding) || (Object.create ? (function(o, m, k, k2) {
+    if (k2 === undefined) k2 = k;
+    var desc = Object.getOwnPropertyDescriptor(m, k);
+    if (!desc || ("get" in desc ? !m.__esModule : desc.writable || desc.configurable)) {
+      desc = { enumerable: true, get: function() { return m[k]; } };
+    }
+    Object.defineProperty(o, k2, desc);
+}) : (function(o, m, k, k2) {
+    if (k2 === undefined) k2 = k;
+    o[k2] = m[k];
+}));
+var __setModuleDefault = (this && this.__setModuleDefault) || (Object.create ? (function(o, v) {
+    Object.defineProperty(o, "default", { enumerable: true, value: v });
+}) : function(o, v) {
+    o["default"] = v;
+});
+var __importStar = (this && this.__importStar) || function (mod) {
+    if (mod && mod.__esModule) return mod;
+    var result = {};
+    if (mod != null) for (var k in mod) if (k !== "default" && Object.prototype.hasOwnProperty.call(mod, k)) __createBinding(result, mod, k);
+    __setModuleDefault(result, mod);
+    return result;
+};
+var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
+    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
+    return new (P || (P = Promise))(function (resolve, reject) {
+        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
+        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
+        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
+        step((generator = generator.apply(thisArg, _arguments || [])).next());
+    });
+};
+Object.defineProperty(exports, "__esModule", ({ value: true }));
+exports.isCacheFeatureAvailable = exports.getNuGetFolderPath = void 0;
+const cache = __importStar(__nccwpck_require__(7799));
+const core = __importStar(__nccwpck_require__(2186));
+const exec = __importStar(__nccwpck_require__(1514));
+const constants_1 = __nccwpck_require__(9042);
+/**
+ * Get NuGet global packages, cache, and temp folders from .NET CLI.
+ * @returns (Folder Name)-(Path) mappings
+ * @see https://docs.microsoft.com/nuget/consume-packages/managing-the-global-packages-and-cache-folders
+ * @example
+ * Windows
+ * ```json
+ * {
+ *   "http-cache": "C:\\Users\\user1\\AppData\\Local\\NuGet\\v3-cache",
+ *   "global-packages": "C:\\Users\\user1\\.nuget\\packages\\",
+ *   "temp": "C:\\Users\\user1\\AppData\\Local\\Temp\\NuGetScratch",
+ *   "plugins-cache": "C:\\Users\\user1\\AppData\\Local\\NuGet\\plugins-cache"
+ * }
+ * ```
+ *
+ * Mac/Linux
+ * ```json
+ * {
+ *   "http-cache": "/home/user1/.local/share/NuGet/v3-cache",
+ *   "global-packages": "/home/user1/.nuget/packages/",
+ *   "temp": "/tmp/NuGetScratch",
+ *   "plugins-cache": "/home/user1/.local/share/NuGet/plugins-cache"
+ * }
+ * ```
+ */
+const getNuGetFolderPath = () => __awaiter(void 0, void 0, void 0, function* () {
+    const { stdout, stderr, exitCode } = yield exec.getExecOutput(constants_1.cliCommand, undefined, { ignoreReturnCode: true, silent: true });
+    if (exitCode) {
+        throw new Error(!stderr.trim()
+            ? `The '${constants_1.cliCommand}' command failed with exit code: ${exitCode}`
+            : stderr);
+    }
+    const result = {
+        'http-cache': '',
+        'global-packages': '',
+        temp: '',
+        'plugins-cache': ''
+    };
+    const regex = /(?:^|\s)(?<key>[a-z-]+): (?<path>.+[/\\].+)$/gm;
+    let match;
+    while ((match = regex.exec(stdout)) !== null) {
+        const key = match.groups.key;
+        if (key in result) {
+            result[key] = match.groups.path;
+        }
+    }
+    return result;
+});
+exports.getNuGetFolderPath = getNuGetFolderPath;
+function isCacheFeatureAvailable() {
+    if (cache.isFeatureAvailable()) {
+        return true;
+    }
+    if (isGhes()) {
+        core.warning('Cache action is only supported on GHES version >= 3.5. If you are on version >=3.5 Please check with GHES admin if Actions cache service is enabled or not.');
+        return false;
+    }
+    core.warning('The runner was not able to contact the cache service. Caching will be skipped');
+    return false;
+}
+exports.isCacheFeatureAvailable = isCacheFeatureAvailable;
+/**
+ * Returns this action runs on GitHub Enterprise Server or not.
+ * (port from https://github.com/actions/toolkit/blob/457303960f03375db6f033e214b9f90d79c3fe5c/packages/cache/src/internal/cacheUtils.ts#L134)
+ */
+function isGhes() {
+    const url = process.env['GITHUB_SERVER_URL'] || 'https://github.com';
+    return new URL(url).hostname.toUpperCase() !== 'GITHUB.COM';
+}
 
 
 /***/ }),
@@ -58732,26 +58732,26 @@ function isGhes() {
 /***/ ((__unused_webpack_module, exports) => {
 
 "use strict";
-
-Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.Outputs = exports.State = exports.cliCommand = exports.lockFilePatterns = void 0;
-/** NuGet lock file patterns */
-exports.lockFilePatterns = ['packages.lock.json'];
-/**
- * .NET CLI command to list local NuGet resources.
- * @see https://docs.microsoft.com/dotnet/core/tools/dotnet-nuget-locals
- */
-exports.cliCommand = 'dotnet nuget locals all --list --force-english-output';
-var State;
-(function (State) {
-    State["CachePrimaryKey"] = "CACHE_KEY";
-    State["CacheMatchedKey"] = "CACHE_RESULT";
-})(State = exports.State || (exports.State = {}));
-var Outputs;
-(function (Outputs) {
-    Outputs["CacheHit"] = "cache-hit";
-    Outputs["DotnetVersion"] = "dotnet-version";
-})(Outputs = exports.Outputs || (exports.Outputs = {}));
+
+Object.defineProperty(exports, "__esModule", ({ value: true }));
+exports.Outputs = exports.State = exports.cliCommand = exports.lockFilePatterns = void 0;
+/** NuGet lock file patterns */
+exports.lockFilePatterns = ['packages.lock.json'];
+/**
+ * .NET CLI command to list local NuGet resources.
+ * @see https://docs.microsoft.com/dotnet/core/tools/dotnet-nuget-locals
+ */
+exports.cliCommand = 'dotnet nuget locals all --list --force-english-output';
+var State;
+(function (State) {
+    State["CachePrimaryKey"] = "CACHE_KEY";
+    State["CacheMatchedKey"] = "CACHE_RESULT";
+})(State = exports.State || (exports.State = {}));
+var Outputs;
+(function (Outputs) {
+    Outputs["CacheHit"] = "cache-hit";
+    Outputs["DotnetVersion"] = "dotnet-version";
+})(Outputs = exports.Outputs || (exports.Outputs = {}));
 
 
 /***/ }),
diff --git a/dist/setup/index.js b/dist/setup/index.js
index 2cb4668..97ddf84 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -72745,6 +72745,77 @@ var Outputs;
 })(Outputs = exports.Outputs || (exports.Outputs = {}));
 
 
+/***/ }),
+
+/***/ 2971:
+/***/ (function(__unused_webpack_module, exports, __nccwpck_require__) {
+
+"use strict";
+
+var __createBinding = (this && this.__createBinding) || (Object.create ? (function(o, m, k, k2) {
+    if (k2 === undefined) k2 = k;
+    var desc = Object.getOwnPropertyDescriptor(m, k);
+    if (!desc || ("get" in desc ? !m.__esModule : desc.writable || desc.configurable)) {
+      desc = { enumerable: true, get: function() { return m[k]; } };
+    }
+    Object.defineProperty(o, k2, desc);
+}) : (function(o, m, k, k2) {
+    if (k2 === undefined) k2 = k;
+    o[k2] = m[k];
+}));
+var __setModuleDefault = (this && this.__setModuleDefault) || (Object.create ? (function(o, v) {
+    Object.defineProperty(o, "default", { enumerable: true, value: v });
+}) : function(o, v) {
+    o["default"] = v;
+});
+var __importStar = (this && this.__importStar) || function (mod) {
+    if (mod && mod.__esModule) return mod;
+    var result = {};
+    if (mod != null) for (var k in mod) if (k !== "default" && Object.prototype.hasOwnProperty.call(mod, k)) __createBinding(result, mod, k);
+    __setModuleDefault(result, mod);
+    return result;
+};
+var __awaiter = (this && this.__awaiter) || function (thisArg, _arguments, P, generator) {
+    function adopt(value) { return value instanceof P ? value : new P(function (resolve) { resolve(value); }); }
+    return new (P || (P = Promise))(function (resolve, reject) {
+        function fulfilled(value) { try { step(generator.next(value)); } catch (e) { reject(e); } }
+        function rejected(value) { try { step(generator["throw"](value)); } catch (e) { reject(e); } }
+        function step(result) { result.done ? resolve(result.value) : adopt(result.value).then(fulfilled, rejected); }
+        step((generator = generator.apply(thisArg, _arguments || [])).next());
+    });
+};
+Object.defineProperty(exports, "__esModule", ({ value: true }));
+exports.matchVersionToList = exports.listSdks = void 0;
+const exec = __importStar(__nccwpck_require__(1514));
+const listSdks = () => __awaiter(void 0, void 0, void 0, function* () {
+    const { stdout, exitCode } = yield exec.getExecOutput('dotnet', ['--list-sdks'], {
+        ignoreReturnCode: true
+    });
+    if (exitCode) {
+        return [];
+    }
+    return (stdout
+        .trim()
+        .split('\n')
+        .map(versionInfo => versionInfo.trim())
+        .map(versionInfo => versionInfo.split(' ')[0])
+        // reverses output so newer versions are first
+        .reverse());
+});
+exports.listSdks = listSdks;
+/**
+ * Function that matches string like that
+ * '3.1', '3.1.x', '3', '3.x', '6.0.4xx' to
+ * correct version number like '3.1.201', '3.1.201', '3.1.201', '3.1.201', '6.0.402'
+ */
+const matchVersionToList = (version, versions) => {
+    const versionRegex = new RegExp(`^${version.replace(/x/g, '\\d+')}`);
+    const matchedVersion = versions.find(v => versionRegex.test(v));
+    return matchedVersion;
+};
+exports.matchVersionToList = matchVersionToList;
+
+
 /***/ }),
 
 /***/ 2574:
@@ -72799,10 +72870,12 @@ const path_1 = __importDefault(__nccwpck_require__(1017));
 const os_1 = __importDefault(__nccwpck_require__(2037));
 const semver_1 = __importDefault(__nccwpck_require__(5911));
 const utils_1 = __nccwpck_require__(1314);
+const dotnet_utils_1 = __nccwpck_require__(2971);
 const QUALITY_INPUT_MINIMAL_MAJOR_TAG = 6;
 const LATEST_PATCH_SYNTAX_MINIMAL_MAJOR_TAG = 5;
 class DotnetVersionResolver {
-    constructor(version) {
+    constructor(version, preferInstalled = false) {
+        this.preferInstalled = preferInstalled;
         this.inputVersion = version.trim();
         this.resolvedArgument = { type: '', value: '', qualityFlag: false };
     }
@@ -72813,10 +72886,20 @@ class DotnetVersionResolver {
             }
             if (semver_1.default.valid(this.inputVersion)) {
                 this.createVersionArgument();
+                return;
             }
-            else {
+            if (!this.preferInstalled) {
                 yield this.createChannelArgument();
+                return;
             }
+            const requestedVersion = this.inputVersion;
+            const installedVersions = yield (0, dotnet_utils_1.listSdks)();
+            const matchingInstalledVersion = (0, dotnet_utils_1.matchVersionToList)(requestedVersion, installedVersions);
+            if (matchingInstalledVersion === undefined) {
+                this.createChannelArgument();
+                return;
+            }
+            this.createVersionArgument(matchingInstalledVersion);
         });
     }
     isNumericTag(versionTag) {
@@ -72831,9 +72914,9 @@ class DotnetVersionResolver {
         }
         return majorTag ? true : false;
     }
-    createVersionArgument() {
+    createVersionArgument(updatedVersion) {
         this.resolvedArgument.type = 'version';
-        this.resolvedArgument.value = this.inputVersion;
+        this.resolvedArgument.value = updatedVersion !== null && updatedVersion !== void 0 ? updatedVersion : this.inputVersion;
     }
     createChannelArgument() {
         return __awaiter(this, void 0, void 0, function* () {
@@ -72993,13 +73076,14 @@ DotnetInstallDir.dirPath = process.env['DOTNET_INSTALL_DIR']
     ? DotnetInstallDir.convertInstallPathToAbsolute(process.env['DOTNET_INSTALL_DIR'])
     : DotnetInstallDir.default[utils_1.PLATFORM];
 class DotnetCoreInstaller {
-    constructor(version, quality) {
+    constructor(version, quality, preferInstalled = false) {
         this.version = version;
         this.quality = quality;
+        this.preferInstalled = preferInstalled;
     }
     installDotnet() {
         return __awaiter(this, void 0, void 0, function* () {
-            const versionResolver = new DotnetVersionResolver(this.version);
+            const versionResolver = new DotnetVersionResolver(this.version, this.preferInstalled);
             const dotnetVersion = yield versionResolver.createDotnetVersion();
             /**
              * Install dotnet runitme first in order to get
@@ -73148,13 +73232,14 @@ function run() {
             }
             if (versions.length) {
                 const quality = core.getInput('dotnet-quality');
+                const preferInstalled = core.getBooleanInput('prefer-installed');
                 if (quality && !qualityOptions.includes(quality)) {
                     throw new Error(`Value '${quality}' is not supported for the 'dotnet-quality' option. Supported values are: daily, signed, validated, preview, ga.`);
                 }
                 let dotnetInstaller;
                 const uniqueVersions = new Set(versions);
                 for (const version of uniqueVersions) {
-                    dotnetInstaller = new installer_1.DotnetCoreInstaller(version, quality);
+                    dotnetInstaller = new installer_1.DotnetCoreInstaller(version, quality, preferInstalled);
                     const installedVersion = yield dotnetInstaller.installDotnet();
                     installedDotnetVersions.push(installedVersion);
                 }
diff --git a/src/dotnet-utils.ts b/src/dotnet-utils.ts
new file mode 100644
index 0000000..a4e45b6
--- /dev/null
+++ b/src/dotnet-utils.ts
@@ -0,0 +1,37 @@
+import * as exec from '@actions/exec';
+
+export const listSdks = async () => {
+  const {stdout, exitCode} = await exec.getExecOutput(
+    'dotnet',
+    ['--list-sdks'],
+    {
+      ignoreReturnCode: true
+    }
+  );
+
+  if (exitCode) {
+    return [];
+  }
+
+  return (
+    stdout
+      .trim()
+      .split('\n')
+      .map(versionInfo => versionInfo.trim())
+      .map(versionInfo => versionInfo.split(' ')[0])
+      // reverses output so newer versions are first
+      .reverse()
+  );
+};
+
+/**
+ * Function that matches string like that
+ * '3.1', '3.1.x', '3', '3.x', '6.0.4xx' to
+ * correct version number like '3.1.201', '3.1.201', '3.1.201', '3.1.201', '6.0.402'
+ */
+export const matchVersionToList = (version: string, versions: string[]) => {
+  const versionRegex = new RegExp(`^${version.replace(/x/g, '\\d+')}`);
+  const matchedVersion = versions.find(v => versionRegex.test(v));
+
+  return matchedVersion;
+};
diff --git a/src/installer.ts b/src/installer.ts
index 4900afa..cd1f7ed 100644
--- a/src/installer.ts
+++ b/src/installer.ts
@@ -9,6 +9,7 @@ import os from 'os';
 import semver from 'semver';
 import {IS_WINDOWS, PLATFORM} from './utils';
 import {QualityOptions} from './setup-dotnet';
+import {listSdks, matchVersionToList} from './dotnet-utils';
 
 export interface DotnetVersion {
   type: string;
@@ -22,7 +23,7 @@ export class DotnetVersionResolver {
   private inputVersion: string;
   private resolvedArgument: DotnetVersion;
 
-  constructor(version: string) {
+  constructor(version: string, private preferInstalled = false) {
     this.inputVersion = version.trim();
     this.resolvedArgument = {type: '', value: '', qualityFlag: false};
   }
@@ -33,11 +34,30 @@ export class DotnetVersionResolver {
         `The 'dotnet-version' was supplied in invalid format: ${this.inputVersion}! Supported syntax: A.B.C, A.B, A.B.x, A, A.x, A.B.Cxx`
       );
     }
+
     if (semver.valid(this.inputVersion)) {
       this.createVersionArgument();
-    } else {
-      await this.createChannelArgument();
+      return;
     }
+
+    if (!this.preferInstalled) {
+      await this.createChannelArgument();
+      return;
+    }
+
+    const requestedVersion = this.inputVersion;
+    const installedVersions = await listSdks();
+    const matchingInstalledVersion = matchVersionToList(
+      requestedVersion,
+      installedVersions
+    );
+
+    if (matchingInstalledVersion === undefined) {
+      this.createChannelArgument();
+      return;
+    }
+
+    this.createVersionArgument(matchingInstalledVersion);
   }
 
   private isNumericTag(versionTag): boolean {
@@ -59,9 +79,9 @@ export class DotnetVersionResolver {
     return majorTag ? true : false;
   }
 
-  private createVersionArgument() {
+  private createVersionArgument(updatedVersion?: string) {
     this.resolvedArgument.type = 'version';
-    this.resolvedArgument.value = this.inputVersion;
+    this.resolvedArgument.value = updatedVersion ?? this.inputVersion;
   }
 
   private async createChannelArgument() {
@@ -253,10 +273,17 @@ export class DotnetCoreInstaller {
     DotnetInstallDir.setEnvironmentVariable();
   }
 
-  constructor(private version: string, private quality: QualityOptions) {}
+  constructor(
+    private version: string,
+    private quality: QualityOptions,
+    private preferInstalled = false
+  ) {}
 
   public async installDotnet(): Promise<string | null> {
-    const versionResolver = new DotnetVersionResolver(this.version);
+    const versionResolver = new DotnetVersionResolver(
+      this.version,
+      this.preferInstalled
+    );
     const dotnetVersion = await versionResolver.createDotnetVersion();
 
     /**
diff --git a/src/setup-dotnet.ts b/src/setup-dotnet.ts
index 2a628a5..292e6da 100644
--- a/src/setup-dotnet.ts
+++ b/src/setup-dotnet.ts
@@ -59,6 +59,7 @@ export async function run() {
 
     if (versions.length) {
       const quality = core.getInput('dotnet-quality') as QualityOptions;
+      const preferInstalled = core.getBooleanInput('prefer-installed');
 
       if (quality && !qualityOptions.includes(quality)) {
         throw new Error(
@@ -69,7 +70,11 @@ export async function run() {
       let dotnetInstaller: DotnetCoreInstaller;
       const uniqueVersions = new Set<string>(versions);
       for (const version of uniqueVersions) {
-        dotnetInstaller = new DotnetCoreInstaller(version, quality);
+        dotnetInstaller = new DotnetCoreInstaller(
+          version,
+          quality,
+          preferInstalled
+        );
         const installedVersion = await dotnetInstaller.installDotnet();
         installedDotnetVersions.push(installedVersion);
       }