diff --git a/delta/testkit/src/main/scala/ch/epfl/bluebrain/nexus/testkit/localstack/LocalStackS3.scala b/delta/testkit/src/main/scala/ch/epfl/bluebrain/nexus/testkit/localstack/LocalStackS3.scala
index 818286ce11..88cf910364 100644
--- a/delta/testkit/src/main/scala/ch/epfl/bluebrain/nexus/testkit/localstack/LocalStackS3.scala
+++ b/delta/testkit/src/main/scala/ch/epfl/bluebrain/nexus/testkit/localstack/LocalStackS3.scala
@@ -10,7 +10,7 @@ import software.amazon.awssdk.services.s3.S3AsyncClient
 
 object LocalStackS3 {
   val ServiceType = Service.S3
-  val Version     = "3.7"
+  val Version     = "3.8"
 
   def localstackS3(): Resource[IO, LocalStackV2Container] = {
 
diff --git a/tests/docker/docker-compose.yml b/tests/docker/docker-compose.yml
index 9afe8f5189..30175d50ad 100644
--- a/tests/docker/docker-compose.yml
+++ b/tests/docker/docker-compose.yml
@@ -164,7 +164,7 @@ services:
       - ./config:/config
 
   localstack:
-    image: localstack/localstack:3.7
+    image: localstack/localstack:3.8
     environment:
       AWS_ACCESS_KEY_ID: "MY_ACCESS_KEY"
       AWS_SECRET_ACCESS_KEY: "CHUTCHUT"