diff --git a/pisi/cli/commands.py b/pisi/cli/commands.py
index c0e6c93d..c6170108 100644
--- a/pisi/cli/commands.py
+++ b/pisi/cli/commands.py
@@ -182,12 +182,14 @@ class UpdateDB(Command):
         super(UpdateDB, self).__init__()
 
     def run(self):
-        if len(self.args) != 1:
-            self.help()
-            return
-
         from pisi.operations import updatedb
-        indexfile = self.args[0]
+        try:
+            indexfile = self.args[0]
+        except IndexError:
+            # doesn't have an index file, we'll use the repo url in
+            # configuration file
+            indexfile = None
+
         updatedb(indexfile)
 
 
diff --git a/pisi/config.py b/pisi/config.py
index d55bf6d7..360d8357 100644
--- a/pisi/config.py
+++ b/pisi/config.py
@@ -35,7 +35,10 @@ class Config(object):
 
         def packages_dir(self):
             return self.destdir + self.values.dirs.packages_dir
-    
+
+        def index_dir(self):
+            return self.destdir + self.values.dirs.index_dir
+
         def tmp_dir(self):
             return self.destdir + self.values.dirs.tmp_dir
 
diff --git a/pisi/constants.py b/pisi/constants.py
index 38221579..2c5efcf3 100644
--- a/pisi/constants.py
+++ b/pisi/constants.py
@@ -49,6 +49,7 @@ class Constants:
         self.__c.comar_dir = "comar"
         self.__c.files_xml = "files.xml"
         self.__c.metadata_xml = "metadata.xml"
+        self.__c.pisi_index = "pisi-index.xml"
 
         # functions in actions_file
         self.__c.setup_func = "setup"
diff --git a/pisi/index.py b/pisi/index.py
index 6b22d1a7..cc924e71 100644
--- a/pisi/index.py
+++ b/pisi/index.py
@@ -21,16 +21,17 @@ class Index(XmlFile):
     def read(self, filename):
         """Read PSPEC file"""
 
-        self.filename = filename
+        self.filepath = filename
         url = PUrl(filename)
         if url.isRemoteFile():
-            from os import getcwd
+            from os.path import join
             from fetcher import fetchUrl
-            # TODO: index dosyasını indirmek için bir yer bulmak lazım.
-            fetchUrl(url, getcwd(), ui.Progress)
-            self.filename = url.filename()
+            # TODO: farklı depoların index dosyalarını handle edebilmek gerekiyor.
+            dest = config.index_dir()
+            fetchUrl(url, dest, ui.Progress)
+            self.filepath = join(dest, url.filename())
 
-        self.readxml(self.filename)
+        self.readxml(self.filepath)
 
         # find all binary packages
         packageElts = self.getAllNodes("Package")
diff --git a/pisi/operations.py b/pisi/operations.py
index 781bd27b..44e4c248 100644
--- a/pisi/operations.py
+++ b/pisi/operations.py
@@ -21,7 +21,42 @@ def remove(package_name):
     installdb.remove(package_name)
     removeScripts(package_name)
 
-def install(pkg_location):
+def install(pkg):
+    url = PUrl(pkg)
+    # check if we are dealing with a remote file or a real path of
+    # package filename. If we are working with a remote file
+    # install_package() will handle it.
+    if url.isRemoteFile() or os.path.exists(url.uri):
+        install_package(pkg)
+    else:
+        from os.path import join
+        from index import Index
+        # no pisi package is specified. We are goin to install a
+        # package from the repository.
+        repo_url = config.values.repos.default
+        index = Index()
+        indexpath = join(config.index_dir(), const.pisi_index)
+        index.read(indexpath)
+        # search package in index file, if it's present in the
+        # repository
+        for package in index.packages:
+            if package.name == pkg:
+                # As we have no Version tag we need to get 
+                # the last version and release information
+                # from the first child of History/Update. And it works :)
+                version = package.history[0].version
+                release = package.history[0].release
+
+                pkg_name = package.name + '-' + version +\
+                    '-' + release + const.package_prefix
+                package_uri = join(repo_url, pkg[0], pkg_name)
+                ui.info("Installing %s from repository %s\n" %
+                        (pkg_name, repo_url))
+                install_package(package_uri)
+                return
+        ui.error("Package %s not found in the index file." %pkg)
+
+def install_package(pkg_location):
     from install import Installer
 
     i = Installer(pkg_location)
@@ -42,12 +77,17 @@ def index(repo_dir = '.'):
     ui.info('* Building index of PISI files under %s\n' % repo_dir)
     index = Index()
     index.index(repo_dir)
-    index.write('pisi-index.xml')
+    print const.pisi_index
+    index.write(const.pisi_index)
     ui.info('* Index file written\n')
 
-def updatedb(indexfile):
+def updatedb(indexfile = None):
     from index import Index
 
+    if not indexfile:
+        repos_path = config.values.repos.default
+        indexfile = os.path.join(repos_path, const.pisi_index)
+
     ui.info('* Updating DB from index file: %s\n' % indexfile)
     index = Index()
     index.read(indexfile)