diff --git a/Dockerfile b/Dockerfile
index 6b37b32..86af891 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -97,7 +97,7 @@ RUN \
   ALVERSION=$(cat /kasm_release/conf/database/seed_data/default_properties.yaml |awk '/alembic_version/ {print $2}') && \
   curl -o \
     /tmp/images.tar.gz -L \
-    "https://kasm-ci.s3.amazonaws.com/1.16.0-images-combined.tar.gz" && \
+    "https://kasm-ci.s3.amazonaws.com/1.16.1-images-combined.tar.gz" && \
   tar xf \
     /tmp/images.tar.gz -C \
     / && \
diff --git a/README.md b/README.md
index 9b32ccd..ace6cba 100644
--- a/README.md
+++ b/README.md
@@ -18,7 +18,7 @@ It has a few core principles:
 version: "2.1"
 services:
   kasm:
-    image: kasmweb/workspaces:1.15.0
+    image: kasmweb/workspaces:1.16.1
     privileged: true
     container_name: kasm
     environment: