diff --git a/.azure/hpu-tests.yml b/.azure/hpu-tests.yml
index bdfada907cac9..3c8c90ec9ec7e 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
@@ -62,7 +62,7 @@ jobs:
         python -m pytest -sv accelerators/test_hpu.py --forked --junitxml=hpu1_test-results.xml
       workingDirectory: tests/tests_pytorch
       displayName: 'Single card HPU test'
-
+     
     - bash: |
         python -m pytest -sv accelerators/test_hpu.py --forked --hpus 8 --junitxml=hpu8_test-results.xml
       workingDirectory: tests/tests_pytorch