diff --git a/groovy/transpiler.py b/groovy/transpiler.py
index 8de7146..c5fcf29 100644
--- a/groovy/transpiler.py
+++ b/groovy/transpiler.py
@@ -319,6 +319,10 @@ def visit_Call(self, node: ast.Call):  # noqa: N802
             # Try to resolve if this is a Gradio component.
             if has_gradio:
                 try:
+                    # Handle direct update() call
+                    if node.func.id == "update":
+                        return self._handle_gradio_component_updates(node)
+
                     component_class = getattr(gradio, node.func.id, None)
                     if component_class and issubclass(
                         component_class, gradio.blocks.Block
@@ -342,6 +346,10 @@ def visit_Call(self, node: ast.Call):  # noqa: N802
                     "gradio",
                     "gr",
                 }:
+                    # Handle gr.update() call
+                    if node.func.attr == "update":
+                        return self._handle_gradio_component_updates(node)
+
                     component_class = getattr(gradio, node.func.attr, None)
                     if component_class and issubclass(
                         component_class, gradio.blocks.Block
@@ -626,6 +634,9 @@ def _is_valid_gradio_return(node: ast.AST) -> bool:
                 try:
                     import gradio
 
+                    if node.func.attr == "update":
+                        return True
+
                     component_class = getattr(gradio, node.func.attr, None)
                     if component_class and issubclass(
                         component_class, gradio.blocks.Block
@@ -643,6 +654,9 @@ def _is_valid_gradio_return(node: ast.AST) -> bool:
             try:
                 import gradio
 
+                if node.func.id == "update":
+                    return True
+
                 component_class = getattr(gradio, node.func.id, None)
                 if component_class and issubclass(component_class, gradio.blocks.Block):
                     if node.args:
@@ -669,7 +683,7 @@ def _is_valid_gradio_return(node: ast.AST) -> bool:
     import gradio as gr
 
     def filter_rows_by_term():
-        return gr.Tabs(selected=2, visible=True, info=None)
+        return gr.update(selected=2, visible=True, info=None)
 
-    js_code = transpile(filter_rows_by_term)
+    js_code = transpile(filter_rows_by_term, validate=True)
     print(js_code)
diff --git a/tests/test_transpiler.py b/tests/test_transpiler.py
index 5227252..db84e24 100644
--- a/tests/test_transpiler.py
+++ b/tests/test_transpiler.py
@@ -328,3 +328,51 @@ def component_with_none():
     return {"visible": true, "info": null, "__type__": "update"};
 }"""
     assert transpile(component_with_none).strip() == expected.strip()
+
+
+def test_gradio_update_function():
+    def update_component():
+        return gradio.update(visible=False, interactive=True)
+
+    expected = """function update_component() {
+    return {"visible": false, "interactive": true, "__type__": "update"};
+}"""
+    assert transpile(update_component).strip() == expected.strip()
+
+
+def test_update_with_none_values():
+    def update_with_none():
+        return gradio.update(info=None, label="Updated")
+
+    expected = """function update_with_none() {
+    return {"info": null, "label": "Updated", "__type__": "update"};
+}"""
+    assert transpile(update_with_none).strip() == expected.strip()
+
+
+def test_mixed_update_and_components():
+    def mixed_updates():
+        return gradio.update(visible=True), gradio.Textbox(placeholder="Test")
+
+    expected = """function mixed_updates() {
+    return [{"visible": true, "__type__": "update"}, {"placeholder": "Test", "__type__": "update"}];
+}"""
+    assert transpile(mixed_updates).strip() == expected.strip()
+
+
+def test_conditional_update():
+    def conditional_update(x: int):
+        if x > 10:
+            return gradio.update(visible=True)
+        else:
+            return gradio.update(visible=False)
+
+    expected = """function conditional_update(x) {
+    if ((x > 10)) {
+        return {"visible": true, "__type__": "update"};
+    }
+    else {
+        return {"visible": false, "__type__": "update"};
+    }
+}"""
+    assert transpile(conditional_update).strip() == expected.strip()