diff --git a/README.md b/README.md
index 11123be4957ee20498f71fcc649aaffa10901c34..f45093634183625baa509a0c124292ac80047b36 100644
--- a/README.md
+++ b/README.md
@@ -287,6 +287,7 @@ beautifully renders the inputs for each templates - check it out!
 
 The following OpenTofu versions are available with this component via the `opentofu_version` input:
 
+- [`1.8.7`](https://github.com/opentofu/opentofu/releases/tag/v1.8.7)
 - [`1.8.6`](https://github.com/opentofu/opentofu/releases/tag/v1.8.6)
 - [`1.8.5`](https://github.com/opentofu/opentofu/releases/tag/v1.8.5)
 - [`1.9.0-alpha1`](https://github.com/opentofu/opentofu/releases/tag/v1.9.0-alpha1)
diff --git a/default.json b/default.json
index 1208e575f992870c0587e04840834fa0e0e1eb04..ca40ee0d67add63cff2bb3ba3448601ed7a5ddfb 100644
--- a/default.json
+++ b/default.json
@@ -12,7 +12,7 @@
                 "templates/**/*.yml",
                 "templates/**/*.yaml"
             ],
-            "allowedVersions": "<=1.8.6"
+            "allowedVersions": "<=1.8.7"
         }
     ],
     "customManagers": [
diff --git a/opentofu_versions.yaml b/opentofu_versions.yaml
index 1feeb4151208a43ee5534c04a215edd7e354c0d0..dc1f047ff93cf063aa1a0ffe85e3c057f0058e5e 100644
--- a/opentofu_versions.yaml
+++ b/opentofu_versions.yaml
@@ -1,6 +1,7 @@
 .data:
-  latest_version: '1.8.6'
+  latest_version: '1.8.7'
   supported_versions: &supported_versions
+    - '1.8.7'
     - '1.8.6'
     - '1.8.5'
     - '1.9.0-alpha1'
diff --git a/templates/apply.yml b/templates/apply.yml
index cbc4df9a21d89a422869a07159aa454b0045e41e..ad3e200aa2c5eb1c6ca062a46d2ddba28e68f423 100644
--- a/templates/apply.yml
+++ b/templates/apply.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/custom-command.yml b/templates/custom-command.yml
index e302a31545d2513b2acbf57dc39b881e7abc02ea..e37bc92ac4406e4a2fe8d6374e9b9f34388e17a0 100644
--- a/templates/custom-command.yml
+++ b/templates/custom-command.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/destroy.yml b/templates/destroy.yml
index 7c159619fc7a309492713faa71d8fe41d4e619aa..70d0d1203bed373c991e02eef37887bb45a53733 100644
--- a/templates/destroy.yml
+++ b/templates/destroy.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/fmt.yml b/templates/fmt.yml
index 925a1c70db9c99e9089594018cc73442d1a66568..f2c1e81817278a43c5dfb726955801916b65b325 100644
--- a/templates/fmt.yml
+++ b/templates/fmt.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/full-pipeline.yml b/templates/full-pipeline.yml
index 815c43c8ec041b7b0f0d338b04abdaf8417e5bc4..1546eb14f8eb2da10d4ce671b841bc7f9d7ce876 100644
--- a/templates/full-pipeline.yml
+++ b/templates/full-pipeline.yml
@@ -33,8 +33,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/graph.yml b/templates/graph.yml
index e8dd1ba0105dff37385d1582c9b461aa6fed905f..ea870adff332c13da9386dfaf568ed8bbb5c2e2b 100644
--- a/templates/graph.yml
+++ b/templates/graph.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/job-templates.yml b/templates/job-templates.yml
index eda3791a09397e1a2658675820bbf638cf623dec..48f38fa1f9fb70d8edc58024a8dd5131203141f9 100644
--- a/templates/job-templates.yml
+++ b/templates/job-templates.yml
@@ -33,8 +33,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/plan.yml b/templates/plan.yml
index a0d3235b3504e3ce90a9a92c4fea4cda0831c175..071ce51592e4b0994d9b0b6a7c77807fdfdb7307 100644
--- a/templates/plan.yml
+++ b/templates/plan.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/test.yml b/templates/test.yml
index 2de8cee0787a2c77d1f8e9b060681518396ee196..83839d1617a9ee53409c3f9c9bec1f1c9d2813b9 100644
--- a/templates/test.yml
+++ b/templates/test.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/validate-plan-apply.yml b/templates/validate-plan-apply.yml
index c74ee0a7154a03de36329465a251e7572ab14f96..98e493fcab3efedf81629cf2833e0d541035bcda 100644
--- a/templates/validate-plan-apply.yml
+++ b/templates/validate-plan-apply.yml
@@ -27,8 +27,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/validate-plan-destroy.yml b/templates/validate-plan-destroy.yml
index d533d5d438139dab4f4699da255ef7ab642a3248..184d020dccca7f6e8ff2e061e31a1b6b219e036c 100644
--- a/templates/validate-plan-destroy.yml
+++ b/templates/validate-plan-destroy.yml
@@ -27,8 +27,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/validate-plan.yml b/templates/validate-plan.yml
index 0d7d4df249fd34363c62cf2d0d19520ab9e7038a..36977a5a4e9413640a4785ec854a60dbb8419c57 100644
--- a/templates/validate-plan.yml
+++ b/templates/validate-plan.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
diff --git a/templates/validate.yml b/templates/validate.yml
index f272bf6b3200cd3b28d93d2d026e4375d5efb57a..b4950ed299098ffa25f6961f19b9d0f0b80c6f6a 100644
--- a/templates/validate.yml
+++ b/templates/validate.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.6'
+      default: '1.8.7'
       options:
+        - '1.8.7'
         - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'