diff --git a/.azure/hpu-tests.yml b/.azure/hpu-tests.yml
index bdfada907cac9..d0085cf7a7c77 100644
--- a/.azure/hpu-tests.yml
+++ b/.azure/hpu-tests.yml
@@ -22,7 +22,7 @@ jobs:
     cancelTimeoutInMinutes: "2"
     pool: habana-gaudi-hpus
     container:
-      image: "vault.habana.ai/gaudi-docker/1.5.0/ubuntu20.04/habanalabs/pytorch-installer-1.11.0:latest"
+      image: "vault.habana.ai/gaudi-docker/1.6.0/ubuntu20.04/habanalabs/pytorch-installer-1.12.0:latest"
       options: "--runtime=habana -e HABANA_VISIBLE_DEVICES=all -e OMPI_MCA_btl_vader_single_copy_mechanism=none --cap-add=sys_nice --ipc=host --shm-size=4g --name cd-container -v /usr/bin/docker:/tmp/docker:ro"
     workspace:
       clean: all
diff --git a/dockers/ci-runner-hpu/Dockerfile b/dockers/ci-runner-hpu/Dockerfile
index 588d23702e9ff..865885de9bc9a 100644
--- a/dockers/ci-runner-hpu/Dockerfile
+++ b/dockers/ci-runner-hpu/Dockerfile
@@ -16,8 +16,8 @@
 #        gaudi-docker-agent:latest
 
 ARG DIST="latest"
-ARG GAUDI_VERSION="1.5.0"
-ARG PYTORCH_INSTALLER_VERSION="1.11.0"
+ARG GAUDI_VERSION="1.6.0"
+ARG PYTORCH_INSTALLER_VERSION="1.12.0"
 FROM vault.habana.ai/gaudi-docker/${GAUDI_VERSION}/ubuntu20.04/habanalabs/pytorch-installer-${PYTORCH_INSTALLER_VERSION}:${DIST}
 
 LABEL maintainer="https://vault.habana.ai/"