diff --git a/.github/workflows/smoke-test-daily.yml b/.github/workflows/smoke-test-daily.yml
index 8134fe145b5..e91f8482ed0 100644
--- a/.github/workflows/smoke-test-daily.yml
+++ b/.github/workflows/smoke-test-daily.yml
@@ -155,7 +155,7 @@ jobs:
                   ADMIN_PASSWORD: ${{ secrets.SMOKE_TEST_PERF_ADMIN_PASSWORD }}
                   CUSTOMER_USER: ${{ secrets.SMOKE_TEST_PERF_ADMIN_USER }}
                   CUSTOMER_PASSWORD: ${{ secrets.SMOKE_TEST_PERF_ADMIN_PASSWORD }}
-                  UPDATE_WC: true
+                  UPDATE_WC: nightly
                   DEFAULT_TIMEOUT_OVERRIDE: 120000
               run: |
                   pnpm exec playwright test --config=tests/e2e-pw/playwright.config.js update-woocommerce.spec.js
diff --git a/plugins/woocommerce/changelog/e2e-fix-daily-k6-workflow-env-var b/plugins/woocommerce/changelog/e2e-fix-daily-k6-workflow-env-var
new file mode 100644
index 00000000000..65522dd597d
--- /dev/null
+++ b/plugins/woocommerce/changelog/e2e-fix-daily-k6-workflow-env-var
@@ -0,0 +1,4 @@
+Significance: patch
+Type: dev
+
+Fix the value of `UPDATE_WC` environment variable in the daily k6 performance tests.