diff --git a/build.gradle b/build.gradle
index 19033284ddc..673cca7fd83 100644
--- a/build.gradle
+++ b/build.gradle
@@ -27,7 +27,7 @@ ext {
     datastoreVersion = "1.1.0.RELEASE"
     gantVersion = "1.9.6"
     gdocEngineVersion = "1.0.1"
-    groovyVersion = "1.8.7"
+    groovyVersion = "1.8.8"
     gradleGroovyVersion = groovyVersion
     gradleGroovyVersion = "1.8.2"
     ivyVersion = "2.2.0"
diff --git a/dependencies.txt b/dependencies.txt
index 0027823960e..4de45387e52 100644
--- a/dependencies.txt
+++ b/dependencies.txt
@@ -88,8 +88,8 @@ The following libraries are included in Grails because they are required either
 - Gant 1.9.5 (http://gant.codehaus.org) Apache 2.0 License
 - required for the command line tools (Gant)
 
-* groovy-all-1.8.7.jar
-- Groovy 1.8.7 (http://groovy.codehaus.org) Apache 2.0 License
+* groovy-all-1.8.8.jar
+- Groovy 1.8.8 (http://groovy.codehaus.org) Apache 2.0 License
 - required for the command line tools (Gant)
 - required for building Grails core
 - required for running Grails applications
diff --git a/grails-bootstrap/src/main/groovy/org/codehaus/groovy/grails/resolve/GrailsCoreDependencies.java b/grails-bootstrap/src/main/groovy/org/codehaus/groovy/grails/resolve/GrailsCoreDependencies.java
index c555bac2fb1..2e07236bdca 100644
--- a/grails-bootstrap/src/main/groovy/org/codehaus/groovy/grails/resolve/GrailsCoreDependencies.java
+++ b/grails-bootstrap/src/main/groovy/org/codehaus/groovy/grails/resolve/GrailsCoreDependencies.java
@@ -169,7 +169,7 @@ public Object doCall() {
 
                         // dependencies needed at compile time
                         ModuleRevisionId[] groovyDependencies = {
-                            ModuleRevisionId.newInstance("org.codehaus.groovy", "groovy-all", "1.8.7")
+                            ModuleRevisionId.newInstance("org.codehaus.groovy", "groovy-all", "1.8.8")
                         };
                         registerDependencies(dependencyManager, compileTimeDependenciesMethod, groovyDependencies, "jline");