The proposal to appoint 53-year-old Mishustin, a relatively obscure figure who has headed the service since 2010, came after the surprise resignation of Dmitry Medvedev following Putin's proposal of a package of constitutional reforms.
However, as the exact details of this mass resignation - led by current prime minister and former president Dmitry Medvedev - unfurled, it was clear that this was no protest at Putin's proposed reforms.
While he was in the role, the Presidency saw reduced power, while Mr Putin became more influential.
But in 2024 Putin will be 73, and it is not clear that he would really want to be involved in the sort of day-to-day policy discussions a prime minister must involve himself in.
"It would increase the role and significance of the country's parliament. of parliamentary parties, and the independence and responsibility of the prime minister".
Real wages have been falling for over five years and have gradually eroded the government's popularity ratings, raising the prospect they could start bleeding into Putin's own ratings, analysts and critics of the Kremlin said. Currently, the prime minister and ministers are appointed by the president.
What changes did Putin propose?
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Speculation has swirled about changes to Russia's political system that would allow Putin to stay on after 2024, when he is due to step down after a fourth Kremlin term.
Putin to "rule for life"? The President is paving the way towards a dramatic change in governance as he prepares for a transition four years from now.
While Putin continued calling the shots during Medvedev's presidency, he wasn't quite happy with his performance.
Mr. Medvedev's cabinet also resigned.
To him, the title of President or Prime Minister is inconsequential as long as power can be shifted to the office he holds.
On Wednesday, he proposed expanding the State Council's role and enshrining its status in the constitution. Alternatively, he could have himself elected as the head of the State Council, which Putin plans to equip with more power.
Putin also emphasised the need to amend the constitution to give it a clear priority over global law.
Mr. Putin, on a roll overseas but becalmed at home by Russia's stagnant economy, has a long record of wrong-footing friends and foes, and he has ensured that he has remained the arbiter on all important decisions in Russian Federation since Mr. Yeltsin resigned on Dec 31, 1999. He also said these reforms are necessary to bring the Russian constitution up to date.
But in this year's address, he avoided speaking about worldwide affairs and instead announced a series of measures to aid families, including providing free school meals to all children for the first four years of their education.