diff --git a/client/channel.go b/client/channel.go
index f352f4d1e..bb929cba6 100644
--- a/client/channel.go
+++ b/client/channel.go
@@ -230,12 +230,7 @@ func (c *Client) GetCurrentChannelRelease(appID string, appType string, channelI
 
 		// If the channel has releases data, find the current one
 		if len(kotsChannel.Releases) > 0 {
-			var currentRelease *types.ChannelRelease
-			for _, release := range kotsChannel.Releases {
-				if currentRelease == nil || release.ChannelSequence > currentRelease.ChannelSequence {
-					currentRelease = &release
-				}
-			}
+			currentRelease := currentChannelRelease(kotsChannel.Releases, kotsChannel.ChannelSequence)
 			if currentRelease != nil {
 				proxyDomain := currentRelease.ProxyRegistryDomain
 				if proxyDomain == "" && kotsChannel.CustomHostNameOverrides.Proxy.Hostname != "" {
@@ -257,6 +252,7 @@ func (c *Client) GetCurrentChannelRelease(appID string, appType string, channelI
 				}
 				return currentRelease, proxyDomain, nil
 			}
+			return nil, "", errors.New("no active releases found in channel")
 		}
 
 		// Fallback to the existing approach if releases aren't included
@@ -269,11 +265,9 @@ func (c *Client) GetCurrentChannelRelease(appID string, appType string, channelI
 			return nil, "", errors.New("no releases found in channel")
 		}
 
-		var currentRelease *types.ChannelRelease
-		for _, release := range releases {
-			if currentRelease == nil || release.ChannelSequence > currentRelease.ChannelSequence {
-				currentRelease = release
-			}
+		currentRelease := currentChannelReleasePtrs(releases, kotsChannel.ChannelSequence)
+		if currentRelease == nil {
+			return nil, "", errors.New("no active releases found in channel")
 		}
 
 		proxyDomain := currentRelease.ProxyRegistryDomain
@@ -300,6 +294,49 @@ func (c *Client) GetCurrentChannelRelease(appID string, appType string, channelI
 	return nil, "", errors.Errorf("unknown app type %q", appType)
 }
 
+// currentChannelRelease returns the release matching channelSequence (the server's
+// authoritative current sequence). Falls back to the highest non-demoted sequence
+// when channelSequence is 0 (not returned by the API).
+func currentChannelRelease(releases []types.ChannelRelease, channelSequence int32) *types.ChannelRelease {
+	if channelSequence > 0 {
+		for i := range releases {
+			if releases[i].ChannelSequence == channelSequence {
+				return &releases[i]
+			}
+		}
+	}
+	var currentRelease *types.ChannelRelease
+	for i := range releases {
+		if releases[i].IsDemoted {
+			continue
+		}
+		if currentRelease == nil || releases[i].ChannelSequence > currentRelease.ChannelSequence {
+			currentRelease = &releases[i]
+		}
+	}
+	return currentRelease
+}
+
+func currentChannelReleasePtrs(releases []*types.ChannelRelease, channelSequence int32) *types.ChannelRelease {
+	if channelSequence > 0 {
+		for _, release := range releases {
+			if release != nil && release.ChannelSequence == channelSequence {
+				return release
+			}
+		}
+	}
+	var currentRelease *types.ChannelRelease
+	for _, release := range releases {
+		if release == nil || release.IsDemoted {
+			continue
+		}
+		if currentRelease == nil || release.ChannelSequence > currentRelease.ChannelSequence {
+			currentRelease = release
+		}
+	}
+	return currentRelease
+}
+
 // GetDefaultProxyHostname gets the default proxy hostname from the app's custom hostnames
 func (c *Client) GetDefaultProxyHostname(appID string) (string, error) {
 	customHostnames, err := c.KotsClient.ListCustomHostnames(appID)
diff --git a/client/channel_test.go b/client/channel_test.go
new file mode 100644
index 000000000..f00c2f301
--- /dev/null
+++ b/client/channel_test.go
@@ -0,0 +1,80 @@
+package client
+
+import (
+	"testing"
+
+	"github.com/replicatedhq/replicated/pkg/types"
+	"github.com/stretchr/testify/require"
+)
+
+func TestCurrentChannelReleaseUsesChannelSequence(t *testing.T) {
+	releases := []types.ChannelRelease{
+		{ChannelSequence: 1},
+		{ChannelSequence: 2},
+		{ChannelSequence: 3, IsDemoted: true},
+	}
+
+	currentRelease := currentChannelRelease(releases, 2)
+
+	require.NotNil(t, currentRelease)
+	require.EqualValues(t, 2, currentRelease.ChannelSequence)
+}
+
+func TestCurrentChannelReleaseSkipsDemotedReleases(t *testing.T) {
+	releases := []types.ChannelRelease{
+		{ChannelSequence: 1},
+		{ChannelSequence: 2, IsDemoted: true},
+	}
+
+	currentRelease := currentChannelRelease(releases, 0)
+
+	require.NotNil(t, currentRelease)
+	require.EqualValues(t, 1, currentRelease.ChannelSequence)
+}
+
+func TestCurrentChannelReleaseReturnsNilWhenAllReleasesAreDemoted(t *testing.T) {
+	releases := []types.ChannelRelease{
+		{ChannelSequence: 1, IsDemoted: true},
+		{ChannelSequence: 2, IsDemoted: true},
+	}
+
+	currentRelease := currentChannelRelease(releases, 0)
+
+	require.Nil(t, currentRelease)
+}
+
+func TestCurrentChannelReleasePtrsUsesChannelSequence(t *testing.T) {
+	releases := []*types.ChannelRelease{
+		{ChannelSequence: 1},
+		{ChannelSequence: 2},
+		{ChannelSequence: 3, IsDemoted: true},
+	}
+
+	currentRelease := currentChannelReleasePtrs(releases, 2)
+
+	require.NotNil(t, currentRelease)
+	require.EqualValues(t, 2, currentRelease.ChannelSequence)
+}
+
+func TestCurrentChannelReleasePtrsSkipsDemotedReleases(t *testing.T) {
+	releases := []*types.ChannelRelease{
+		{ChannelSequence: 1},
+		{ChannelSequence: 2, IsDemoted: true},
+	}
+
+	currentRelease := currentChannelReleasePtrs(releases, 0)
+
+	require.NotNil(t, currentRelease)
+	require.EqualValues(t, 1, currentRelease.ChannelSequence)
+}
+
+func TestCurrentChannelReleasePtrsReturnsNilWhenAllReleasesAreDemoted(t *testing.T) {
+	releases := []*types.ChannelRelease{
+		{ChannelSequence: 1, IsDemoted: true},
+		{ChannelSequence: 2, IsDemoted: true},
+	}
+
+	currentRelease := currentChannelReleasePtrs(releases, 0)
+
+	require.Nil(t, currentRelease)
+}