diff --git a/README.md b/README.md
index def1dfb1eb939afcdd69b70c76ddb32fcc87c6e7..394680da580ae4d9ba2023e51bbc273fb734a6cf 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:
 
+- [`1.8.8`](https://github.com/opentofu/opentofu/releases/tag/v1.8.8)
 - [`1.8.7`](https://github.com/opentofu/opentofu/releases/tag/v1.8.7)
 - [`1.9.0-beta2`](https://github.com/opentofu/opentofu/releases/tag/v1.9.0-beta2)
 - [`1.8.6`](https://github.com/opentofu/opentofu/releases/tag/v1.8.6)
diff --git a/default.json b/default.json
index ca40ee0d67add63cff2bb3ba3448601ed7a5ddfb..7ccb451ee28bb890cc0cf967b2b4cf7f5bcc931e 100644
--- a/default.json
+++ b/default.json
@@ -12,7 +12,7 @@
                 "templates/**/*.yml",
                 "templates/**/*.yaml"
             ],
-            "allowedVersions": "<=1.8.7"
+            "allowedVersions": "<=1.8.8"
         }
     ],
     "customManagers": [
diff --git a/opentofu_versions.yaml b/opentofu_versions.yaml
index af2a66fdace5b2b4c356424bc3fd7a7a0ad6eb65..b1a3da28c3988249bc5a816fc70c752d4871de80 100644
--- a/opentofu_versions.yaml
+++ b/opentofu_versions.yaml
@@ -1,6 +1,7 @@
 .data:
-  latest_version: '1.8.7'
+  latest_version: '1.8.8'
   supported_versions: &supported_versions
+    - '1.8.8'
     - '1.8.7'
     - '1.9.0-beta2'
     - '1.8.6'
diff --git a/templates/apply.yml b/templates/apply.yml
index 330e609470f092635ea6118343bb8eb670d596d1..5b8dc58967a507837e227b0520f8c7d68cae1124 100644
--- a/templates/apply.yml
+++ b/templates/apply.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/custom-command.yml b/templates/custom-command.yml
index 6046ce6df3f5bf8b25fa541ccb4056657672205e..a5ae3acd00a789b35655c3f0b209ef89655aec30 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: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/destroy.yml b/templates/destroy.yml
index 5f4a055b35acf5f0035b18fcaf5ff2cbf2e52aff..e6baf5f27efb8b112dc58c515f52119a38e6e9a7 100644
--- a/templates/destroy.yml
+++ b/templates/destroy.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/fmt.yml b/templates/fmt.yml
index 7ba56ec3f9da4bd11f005184dfa2a33f895ca5f4..5d7942c38fa3198f37626756908b057b17dc64d4 100644
--- a/templates/fmt.yml
+++ b/templates/fmt.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/full-pipeline.yml b/templates/full-pipeline.yml
index 0f4b27f44af2038de1987992579c7706ad0eb22d..74569d35e7d0b9fbb62e856c14c8cdd0d4a5fcab 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: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/graph.yml b/templates/graph.yml
index 99700fd8fde065cf23979cbdcaae17228741189e..8c44505ce9f43e53eb1c896390f8df9e82938968 100644
--- a/templates/graph.yml
+++ b/templates/graph.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/job-templates.yml b/templates/job-templates.yml
index b64ecd4a599e633ee1801e45767052f413491617..260fa77a995787b4c9a8430dff516be5023e1157 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: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/plan.yml b/templates/plan.yml
index 69dae9552cf5686951750f45e55ebf6131e0fe9b..a90f792598161b4c2ac0bfd5341f490e13a67a3a 100644
--- a/templates/plan.yml
+++ b/templates/plan.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/test.yml b/templates/test.yml
index a7fcc3335e5566790f661f1aa76f384d1d504f43..58e1466d38b11b5f488e6ac12766fc36fdd42e0d 100644
--- a/templates/test.yml
+++ b/templates/test.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/validate-plan-apply.yml b/templates/validate-plan-apply.yml
index b89116f3e3e823da6b880ce70c3cb361ba1ee86f..a6eb37214087330d4762d166e7055aee611d70e4 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: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/validate-plan-destroy.yml b/templates/validate-plan-destroy.yml
index 5fc8a720faf228badc58953182f431c322cbceca..b2079f88e62ca4f913773fe4e8fb899c41e024ee 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: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/validate-plan.yml b/templates/validate-plan.yml
index 8262da9c6d010d2d29211b2c14ec788834f65b61..bc8f6bff5d3daec6bdf7d1cec2da5e7168b4ac83 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: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'
diff --git a/templates/validate.yml b/templates/validate.yml
index 2c1d4d83eadce706945a525b1fd4ed72315934ed..49487688cb8244ee136fd5b7bdaf34bacc65c306 100644
--- a/templates/validate.yml
+++ b/templates/validate.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.7'
+      default: '1.8.8'
       options:
+        - '1.8.8'
         - '1.8.7'
         - '1.9.0-beta2'
         - '1.8.6'