diff --git a/embedded-localstack/README.adoc b/embedded-localstack/README.adoc
index cf40d9f4c..212642fea 100644
--- a/embedded-localstack/README.adoc
+++ b/embedded-localstack/README.adoc
@@ -16,7 +16,7 @@
 * `embedded.localstack.enabled` `(true|false, default is true)`
 * `embedded.localstack.reuseContainer` `(true|false, default is false)`
 * `embedded.localstack.services` `(comma separated list of AWS services (S3, SQS, DYNAMODB, etc. Should be non empty)`
-* `embedded.localstack.dockerImage` `(default is 'localstack/localstack:3.8.1')`
+* `embedded.localstack.dockerImage` `(default is 'localstack/localstack:4.0.3')`
 ** Image versions on https://hub.docker.com/r/localstack/localstack/tags[dockerhub]
 * `embedded.localstack.useSsl` `(default is false)`
 * `embedded.localstack.hostname` `(default is 'localhost')`
diff --git a/embedded-localstack/src/main/java/com/playtika/testcontainer/localstack/LocalStackProperties.java b/embedded-localstack/src/main/java/com/playtika/testcontainer/localstack/LocalStackProperties.java
index 45f329a25..5e0a567c6 100644
--- a/embedded-localstack/src/main/java/com/playtika/testcontainer/localstack/LocalStackProperties.java
+++ b/embedded-localstack/src/main/java/com/playtika/testcontainer/localstack/LocalStackProperties.java
@@ -23,6 +23,6 @@ public class LocalStackProperties extends CommonContainerProperties {
     public String getDefaultDockerImage() {
         // Please don`t remove this comment.
         // renovate: datasource=docker
-        return "localstack/localstack:3.8.1";
+        return "localstack/localstack:4.0.3";
     }
 }
diff --git a/embedded-localstack/src/main/resources/META-INF/additional-spring-configuration-metadata.json b/embedded-localstack/src/main/resources/META-INF/additional-spring-configuration-metadata.json
index 2f805ec93..e80cb2911 100644
--- a/embedded-localstack/src/main/resources/META-INF/additional-spring-configuration-metadata.json
+++ b/embedded-localstack/src/main/resources/META-INF/additional-spring-configuration-metadata.json
@@ -35,7 +35,7 @@
       "name": "embedded.localstack.docker-image",
       "values": [
         {
-          "value": "localstack/localstack:3.8.1",
+          "value": "localstack/localstack:4.0.3",
           "description": "Default Localstack image. Ref https://hub.docker.com/r/localstack/localstack for further info."
         }
       ]