diff --git a/cpmfile.json b/cpmfile.json
index 9cac812b7a..0032734712 100644
--- a/cpmfile.json
+++ b/cpmfile.json
@@ -351,13 +351,13 @@
     },
     "zstd": {
         "find_args": "MODULE",
-        "hash": "cc5ad4b119a9c2ea57f0b71eeff01113bb506e0d17000159c5409cb8236d22e38c52d5e9e97e7947a4bf1b2dfc44b6c503ab2d9aedbd59458435c6a2849cb029",
+        "hash": "2b006c3c110c38bd2f5896b42d36a38931c8eae261f30552f9a9fd04458d218d8f1a1425f117fd12af545ed77042e4b2d1a1a9b6286c4d0b9d74ef79f20a8f08",
         "min_version": "1.5",
         "options": [
             "ZSTD_BUILD_SHARED OFF"
         ],
         "repo": "facebook/zstd",
         "source_subdir": "build/cmake",
-        "version": "b8d6101fba"
+        "version": "33618c8"
     }
 }
diff --git a/src/core/file_sys/registered_cache.cpp b/src/core/file_sys/registered_cache.cpp
index cdc6811a27..26e73d260a 100644
--- a/src/core/file_sys/registered_cache.cpp
+++ b/src/core/file_sys/registered_cache.cpp
@@ -1448,10 +1448,11 @@ void ExternalContentProvider::ScanDirectory(const VirtualDir& dir) {
         }
 
         const auto extension = Common::ToLower(filename.substr(dot_pos + 1));
-
-        if (extension == "nsp" || extension == "nsz") {
+        // .xcz is an XCI container, but its updates only work through the NSP/PFS0 path
+        // (DecompressNCZ), not ProcessXCI. So route .xcz here on purpose.
+        if (extension == "nsp" || extension == "nsz" || extension == "xcz") {
             ProcessNSP(file);
-        } else if (extension == "xci" || extension == "xcz") {
+        } else if (extension == "xci") {
             ProcessXCI(file);
         }
     }
diff --git a/src/core/loader/loader.cpp b/src/core/loader/loader.cpp
index 48daf9c3fb..92e2e2f602 100644
--- a/src/core/loader/loader.cpp
+++ b/src/core/loader/loader.cpp
@@ -89,16 +89,20 @@ std::shared_ptr<FileSys::NSP> OpenContainerAsNsp(FileSys::VirtualFile file, File
 
     if (type == FileType::XCI || type == FileType::XCZ) {
         FileSys::XCI xci{file, program_id, program_index};
-        if (xci.GetStatus() != ResultStatus::Success) {
-            return nullptr;
+        if (xci.GetStatus() == ResultStatus::Success) {
+            auto secure_nsp = xci.GetSecurePartitionNSP();
+            if (secure_nsp != nullptr && secure_nsp->GetStatus() == ResultStatus::Success) {
+                return secure_nsp;
+            }
         }
 
-        auto secure_nsp = xci.GetSecurePartitionNSP();
-        if (secure_nsp == nullptr || secure_nsp->GetStatus() != ResultStatus::Success) {
-            return nullptr;
+        // PFS0-shaped .xcz (NSZ-style container) does not parse as XCI; fall back to NSP.
+        if (type == FileType::XCZ) {
+            auto nsp = std::make_shared<FileSys::NSP>(file, program_id, program_index);
+            return nsp->GetStatus() == ResultStatus::Success ? nsp : nullptr;
         }
 
-        return secure_nsp;
+        return nullptr;
     }
 
     return nullptr;
@@ -331,11 +335,26 @@ static std::unique_ptr<AppLoader> GetFileLoader(Core::System& system, FileSys::V
 
     // NX XCI (nX Card Image) file format.
     case FileType::XCI:
-    case FileType::XCZ:
         return std::make_unique<AppLoader_XCI>(std::move(file), system.GetFileSystemController(),
                                                system.GetContentProvider(), program_id,
                                                program_index);
 
+    // NCZ-compressed XCI container. XCI-shaped .xcz goes to the XCI loader, while
+    // PFS0-shaped (NSZ-style) .xcz containers fall back to the NSP loader.
+    case FileType::XCZ: {
+        FileSys::XCI probe{file, program_id, program_index};
+        if (probe.GetStatus() == ResultStatus::Success &&
+            probe.GetSecurePartitionNSP() != nullptr) {
+            return std::make_unique<AppLoader_XCI>(std::move(file),
+                                                   system.GetFileSystemController(),
+                                                   system.GetContentProvider(), program_id,
+                                                   program_index);
+        }
+        return std::make_unique<AppLoader_NSP>(std::move(file), system.GetFileSystemController(),
+                                               system.GetContentProvider(), program_id,
+                                               program_index);
+    }
+
     // NX NAX (NintendoAesXts) file format.
     case FileType::NAX:
         return std::make_unique<AppLoader_NAX>(std::move(file));
diff --git a/src/core/loader/nsp.cpp b/src/core/loader/nsp.cpp
index 3b9112642e..8b2c79394d 100644
--- a/src/core/loader/nsp.cpp
+++ b/src/core/loader/nsp.cpp
@@ -61,6 +61,12 @@ FileType AppLoader_NSP::IdentifyType(const FileSys::VirtualFile& nsp_file) {
         return FileType::NSZ;
     }
 
+    // PFS0-shaped .xcz containers are handled by this loader too; report XCZ so the game
+    // list does not show them as NSP. XCI-shaped .xcz is identified by AppLoader_XCI.
+    if (nsp_file->GetName().ends_with(".xcz")) {
+        return FileType::XCZ;
+    }
+
     const FileSys::NSP nsp(nsp_file);
 
     if (nsp.GetStatus() != ResultStatus::Success) {