diff --git a/Dockerfile b/Dockerfile
index 41f487e..2207e29 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,9 +1,9 @@
 FROM debian:stable-slim
 
 #ARG ARCH=amd64
-ARG NRF_CONNECT_TAG=v2.4.2
+ARG NRF_CONNECT_TAG=v2.5.0
 # Should be for selected NRF_CONNECT_TAG
-ARG ZEPHYR_NEEDED_TAG=0.16.0
+ARG ZEPHYR_NEEDED_TAG=0.16.1
 # For new versions - xz
 ARG ZEPHYR_ARCHIVE_EXTENSION=xz
 
diff --git a/README.md b/README.md
index 4e0eb50..358bd8b 100644
--- a/README.md
+++ b/README.md
@@ -14,7 +14,7 @@ jobs:
 
 
     - name: Build
-      uses: embedd-actions/nrf-connect-sdk-ci@v2.3.0
+      uses: embedd-actions/nrf-connect-sdk-ci@v2.5.0
       with:
         board: nrf52833dk_nrf52833
         build_dir: build
@@ -37,4 +37,5 @@ v2.3.0
 v2.4.0
 v2.4.1
 v2.4.2
+v2.5.0
 ```
diff --git a/action.yml b/action.yml
index b168c5b..98d1c59 100644
--- a/action.yml
+++ b/action.yml
@@ -13,7 +13,7 @@ inputs:
     default: 'build'
 runs:
   using: 'docker'
-  image: 'docker://sergeyladanov/nrf-connect-sdk:v2.4.2'
+  image: 'docker://sergeyladanov/nrf-connect-sdk:v2.5.0'
   args:
     - west 
     - build