diff --git a/Dockerfile b/Dockerfile
index 081beee..ae9b7fd 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,11 +1,11 @@
 FROM debian:stable-slim
 
 #ARG ARCH=amd64
-ARG NRF_CONNECT_TAG=v2.3.0
+ARG NRF_CONNECT_TAG=v2.4.0
 # Should be for selected NRF_CONNECT_TAG
-ARG ZEPHYR_NEEDED_TAG=0.15.2
+ARG ZEPHYR_NEEDED_TAG=0.16.0
 # For new versions - xz
-ARG ZEPHYR_ARCHIVE_EXTENSION=gz
+ARG ZEPHYR_ARCHIVE_EXTENSION=xz
 
 # For entrypoint file
 ENV ZEPHYR_TAG=$ZEPHYR_NEEDED_TAG
diff --git a/README.md b/README.md
index 6f66138..745c4e2 100644
--- a/README.md
+++ b/README.md
@@ -27,10 +27,12 @@ To select the specific version of  NRF Connect SDK you
 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
 ```
 
 ## List of available tags
 
 ```
 v2.3.0
+v2.4.0
 ```
diff --git a/action.yml b/action.yml
index 123b57b..507730b 100644
--- a/action.yml
+++ b/action.yml
@@ -13,7 +13,7 @@ inputs:
     default: 'build'
 runs:
   using: 'docker'
-  image: 'docker://sergeyladanov/nrf-connect-sdk:v2.3.0'
+  image: 'docker://sergeyladanov/nrf-connect-sdk:v2.4.0'
   args:
     - west 
     - build