diff --git a/README.md b/README.md
index 243d5649afcd84c089706c9ed241122981ce2fce..cfe642cd9f82ce2c6861534f86aad418c6264035 100644
--- a/README.md
+++ b/README.md
@@ -243,6 +243,7 @@ beautifully renders the inputs for each templates - check it out!
 
 The following OpenTofu versions are available with this component via the `opentofu_version` input:
 
+- [`1.8.6`](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)
 - [`1.8.4`](https://github.com/opentofu/opentofu/releases/tag/v1.8.4)
diff --git a/default.json b/default.json
index a526bc1dd26641659091fc38f1fa4a1bd162d812..1208e575f992870c0587e04840834fa0e0e1eb04 100644
--- a/default.json
+++ b/default.json
@@ -12,7 +12,7 @@
                 "templates/**/*.yml",
                 "templates/**/*.yaml"
             ],
-            "allowedVersions": "<=1.8.5"
+            "allowedVersions": "<=1.8.6"
         }
     ],
     "customManagers": [
diff --git a/opentofu_versions.yaml b/opentofu_versions.yaml
index 5b5b0099acc81f1d9c3d0e88181348a83cbb5957..1feeb4151208a43ee5534c04a215edd7e354c0d0 100644
--- a/opentofu_versions.yaml
+++ b/opentofu_versions.yaml
@@ -1,6 +1,7 @@
 .data:
-  latest_version: '1.8.5'
+  latest_version: '1.8.6'
   supported_versions: &supported_versions
+    - '1.8.6'
     - '1.8.5'
     - '1.9.0-alpha1'
     - '1.8.4'
diff --git a/templates/apply.yml b/templates/apply.yml
index f8f6b4801b94db63692c76733a084e7930680c7a..af617ec685761fc7416b1f67d9a76c740ae54019 100644
--- a/templates/apply.yml
+++ b/templates/apply.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/custom-command.yml b/templates/custom-command.yml
index c0b129b7593b86b64a94efd51097f10f5bd6f2aa..e302a31545d2513b2acbf57dc39b881e7abc02ea 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: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/destroy.yml b/templates/destroy.yml
index 56306cc5bf4f9a72f5a1fadd96861f206f76cf6d..0e1fb04ecc29d393793c1ed732ab150b4d2b1b77 100644
--- a/templates/destroy.yml
+++ b/templates/destroy.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/fmt.yml b/templates/fmt.yml
index 096ed6c26486c20bace7685c8175f011b534ac7f..925a1c70db9c99e9089594018cc73442d1a66568 100644
--- a/templates/fmt.yml
+++ b/templates/fmt.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/full-pipeline.yml b/templates/full-pipeline.yml
index ae3a72bb587061285e960adb15f7224e06b51343..9b83944d2525fd611117c0f6cc177ec51aaab2c0 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: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/graph.yml b/templates/graph.yml
index 5b1a7ed0636b89405b26672fe2ee163bbc1a52cf..561d44ee074660c77a3b16ae474dd837aaa2f8d5 100644
--- a/templates/graph.yml
+++ b/templates/graph.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/job-templates.yml b/templates/job-templates.yml
index 21cb933e72bd8e168942b06db9dd8baf30cd23ae..6e7aa58cb3401421d6f15b3c94cd17504c3008c8 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: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/plan.yml b/templates/plan.yml
index f016c3522f9b151f12ce300ead942a2bec960955..85710bec4e3a787999ea45a8f93f6162aad04b71 100644
--- a/templates/plan.yml
+++ b/templates/plan.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/test.yml b/templates/test.yml
index dac7cbcb8e6b7d08c52ae94fec1038942171acff..7634385f54c2b360ed8c9032e240b400fd42f84a 100644
--- a/templates/test.yml
+++ b/templates/test.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/validate-plan-apply.yml b/templates/validate-plan-apply.yml
index 45f31ef70cb476fbcb5e51745e3db8a262089c84..1e8aad05cfe3042c4dab76baf06ba6cc0ec8df60 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: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/validate-plan-destroy.yml b/templates/validate-plan-destroy.yml
index e5abfde2274426ea35bd4f5de0a045e03f123318..15cc048c667288abde142016a4b3c079deb17b69 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: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/validate-plan.yml b/templates/validate-plan.yml
index acd3d4dbf3cf0eff823e4b6153256d88ace6ac68..e17200705769e050f050dfb9f38e55160c45b6de 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: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'
diff --git a/templates/validate.yml b/templates/validate.yml
index 8ffc7b880dd33c37d02fdbaf2a7cd090d96cd9a8..072d953bd204ce7350f3bd11af0626d8dd55d553 100644
--- a/templates/validate.yml
+++ b/templates/validate.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.5'
+      default: '1.8.6'
       options:
+        - '1.8.6'
         - '1.8.5'
         - '1.9.0-alpha1'
         - '1.8.4'