In accordance with embodiments, there are provided mechanisms and methods for facilitating spin mode-based dynamic updating of application servers in an on-demand services environment. In one embodiment and by way of example, a method includes upgrading a first set of application servers of a plurality of application servers at one or more computing devices, holding a first set of requests received at the first set of application servers from being processed while the first set of application servers is being upgraded, and upgrading a second set of application servers of the plurality of application servers upon completion of the first set of application servers. The method may further include holding a second set of requests received at the second set of application servers from being processed while the second set of application servers is being upgraded, and resuming processing of the first set of requests at the upgraded first set of application servers.