diff --git a/README.md b/README.md
index 9bfdff95b02bd441187ba3f60935019a8d0949bb..0bfc04e74797ee6f520298bd5afbc6c76a68d91b 100644
--- a/README.md
+++ b/README.md
@@ -219,6 +219,7 @@ beautifully renders the inputs for each templates - check it out!
 
 The following OpenTofu versions are available with this component via the `opentofu_version` input:
 
+- [`1.8.5`](https://github.com/opentofu/opentofu/releases/tag/v1.8.5)
 - [`1.8.4`](https://github.com/opentofu/opentofu/releases/tag/v1.8.4)
 - [`1.8.3`](https://github.com/opentofu/opentofu/releases/tag/v1.8.3)
 - [`1.8.2`](https://github.com/opentofu/opentofu/releases/tag/v1.8.2)
diff --git a/default.json b/default.json
index 1f5faf038d15643191087c719ca162da88c53963..a526bc1dd26641659091fc38f1fa4a1bd162d812 100644
--- a/default.json
+++ b/default.json
@@ -12,7 +12,7 @@
                 "templates/**/*.yml",
                 "templates/**/*.yaml"
             ],
-            "allowedVersions": "<=1.8.4"
+            "allowedVersions": "<=1.8.5"
         }
     ],
     "customManagers": [
diff --git a/opentofu_versions.yaml b/opentofu_versions.yaml
index 5e933af4a2279b3014faa386bb78b04886cad06f..961d15ae645589f53872fea7eafbb4d4313fa8a4 100644
--- a/opentofu_versions.yaml
+++ b/opentofu_versions.yaml
@@ -1,6 +1,7 @@
 .data:
-  latest_version: '1.8.4'
+  latest_version: '1.8.5'
   supported_versions: &supported_versions
+    - '1.8.5'
     - '1.8.4'
     - '1.8.3'
     - '1.8.2'
diff --git a/templates/apply.yml b/templates/apply.yml
index 718414586561db956fe71b519c8700aab998bc2d..fef507a0acdddf636cc9ecbc0bda6a3cfac34042 100644
--- a/templates/apply.yml
+++ b/templates/apply.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/custom-command.yml b/templates/custom-command.yml
index 762d46af498c9f2b107c2247545aebbd104aab39..e8189501ee931990ea28607265bff8c4e97c7b94 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: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/destroy.yml b/templates/destroy.yml
index 69af6285da96d68bb752ba651fc4c99412d6a325..d67ec80a95ec1890717f657fc381c01aaabc751d 100644
--- a/templates/destroy.yml
+++ b/templates/destroy.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/fmt.yml b/templates/fmt.yml
index 59ac9ce40039cbf609c7570a44d71760caea5df5..e24997386251b10721d34a15b5509a0a3ccccd4a 100644
--- a/templates/fmt.yml
+++ b/templates/fmt.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/full-pipeline.yml b/templates/full-pipeline.yml
index 38aabd5f56920b58a33b439a54acb707b2f45cd3..8de4bd5e41ce2ab9b5e744ce55abefc776a184a8 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: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/graph.yml b/templates/graph.yml
index 0e57dee3abe9799a754028817a1f4821d22f1798..41f965709538ba1d76a75171816773df133e91f8 100644
--- a/templates/graph.yml
+++ b/templates/graph.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/job-templates.yml b/templates/job-templates.yml
index 6fd140b7e4d94d46ede041c6c15c9d7bfa177e1a..a34f45fbe6f9734833a0705549911682f3ba54e4 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: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/plan.yml b/templates/plan.yml
index 659903c12ee97c68e988b434ea30c292170eefdb..b08502ab78490f2bf3c66b23177cef59132702b1 100644
--- a/templates/plan.yml
+++ b/templates/plan.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/test.yml b/templates/test.yml
index ff98fccc6837370adabd445b663f875c2d794703..f6ef6ef6b529fd6f0b76b7706df8711271e59fc5 100644
--- a/templates/test.yml
+++ b/templates/test.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/validate-plan-apply.yml b/templates/validate-plan-apply.yml
index 0c7be75f84f303482a9b9546c96a3b3fcfd9e171..67540ec9deead237b7f33f0c226e7ef9de656f13 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: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/validate-plan-destroy.yml b/templates/validate-plan-destroy.yml
index ebd35b4e436b7b6adfa4068c5e2fbfe853193fe0..7e81b35661dbcd1f7fcc61f983c7e29a4c44ba26 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: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/validate-plan.yml b/templates/validate-plan.yml
index 235bf6f6debf93c4957a278b03d620ea7f22b27a..b89473abdd91a55211e6acf8772c4cc29db301df 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: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'
diff --git a/templates/validate.yml b/templates/validate.yml
index 49b58274b748450d5787c13342b1b6ad1c8936f0..c5077efe75963b06a9cb522344feb50a6a2cdd77 100644
--- a/templates/validate.yml
+++ b/templates/validate.yml
@@ -24,8 +24,9 @@ spec:
       description: 'Base OS of GitLab OpenTofu image.'
 
     opentofu_version:
-      default: '1.8.4'
+      default: '1.8.5'
       options:
+        - '1.8.5'
         - '1.8.4'
         - '1.8.3'
         - '1.8.2'