diff --git a/docs/CI.md b/docs/CI.md
index 39f6014..ca69677 100644
--- a/docs/CI.md
+++ b/docs/CI.md
@@ -48,7 +48,7 @@ toolchain that CI and Release need.
    arm64 on `ubuntu-24.04-arm`) — no QEMU emulation
 2. Pushes each image by digest
 3. Merges digests into a multi-arch manifest tagged with the libkrun
-   version (e.g., `v1.17.3`) and `latest`
+   version (e.g., `v1.18.0`) and `latest`
 
 The build takes ~20 minutes because it compiles a Linux kernel (libkrunfw).
 Results are cached via GitHub Actions cache.
diff --git a/images/builder/Containerfile b/images/builder/Containerfile
index e193973..a1f5517 100644
--- a/images/builder/Containerfile
+++ b/images/builder/Containerfile
@@ -3,8 +3,8 @@
 
 # Builder container image for building libkrun + libkrunfw from source.
 
-ARG LIBKRUN_VERSION=v1.17.3
-ARG LIBKRUNFW_VERSION=v5.2.0
+ARG LIBKRUN_VERSION=v1.18.0
+ARG LIBKRUNFW_VERSION=v5.4.0
 
 FROM fedora:43
 
diff --git a/versions.env b/versions.env
index 7dccc41..650f8f1 100644
--- a/versions.env
+++ b/versions.env
@@ -1,4 +1,4 @@
 # SPDX-FileCopyrightText: Copyright 2025 Stacklok, Inc.
 # SPDX-License-Identifier: Apache-2.0
-LIBKRUN_VERSION=v1.17.3
-LIBKRUNFW_VERSION=v5.2.0
+LIBKRUN_VERSION=v1.18.0
+LIBKRUNFW_VERSION=v5.4.0