diff --git a/Dockerfile b/Dockerfile
index d2e03af..0d6070e 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,7 +1,7 @@
 FROM debian:stable-slim
 
 #ARG ARCH=amd64
-ARG NRF_CONNECT_TAG=v2.6.1
+ARG NRF_CONNECT_TAG=v2.7.0
 # Should be for selected NRF_CONNECT_TAG
 ARG ZEPHYR_NEEDED_TAG=0.16.5-1
 # For new versions - xz
diff --git a/README.md b/README.md
index 36760cf..cd0eeaf 100644
--- a/README.md
+++ b/README.md
@@ -14,7 +14,7 @@ jobs:
 
 
     - name: Build
-      uses: embedd-actions/nrf-connect-sdk-ci@v2.6.1
+      uses: embedd-actions/nrf-connect-sdk-ci@v2.7.0
       with:
         board: nrf52833dk_nrf52833
         build_dir: build
@@ -29,6 +29,7 @@ can reference a specific version of GitHub action:
 uses: embedd-actions/nrf-connect-sdk-ci@v2.3.0
 uses: embedd-actions/nrf-connect-sdk-ci@v2.4.0
 uses: embedd-actions/nrf-connect-sdk-ci@v2.6.1
+uses: embedd-actions/nrf-connect-sdk-ci@v2.7.0
 ```
 
 ## List of available tags
@@ -41,4 +42,5 @@ v2.4.2
 v2.5.0
 v2.5.1
 v2.6.1
+v2.7.0
 ```
diff --git a/action.yml b/action.yml
index d8637a3..ab05f8c 100644
--- a/action.yml
+++ b/action.yml
@@ -13,7 +13,7 @@ inputs:
     default: 'build'
 runs:
   using: 'docker'
-  image: 'docker://sergeyladanov/nrf-connect-sdk:v2.6.1'
+  image: 'docker://sergeyladanov/nrf-connect-sdk:v2.7.0'
   args:
     - west 
     - build
diff --git a/docker-compose.yml b/docker-compose.yml
index 843d821..46e6989 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -7,6 +7,6 @@ services:
       context: .
       dockerfile: Dockerfile
       args:
-        - NRF_CONNECT_TAG=v2.6.1
-        - ZEPHYR_NEEDED_TAG=0.16.5
+        - NRF_CONNECT_TAG=v2.7.0
+        - ZEPHYR_NEEDED_TAG=0.16.5-1
         - ZEPHYR_ARCHIVE_EXTENSION=gz