diff --git a/.gitlab/ci/common.yml b/.gitlab/ci/common.yml
index b811b9c8e4..6fde5691cb 100644
--- a/.gitlab/ci/common.yml
+++ b/.gitlab/ci/common.yml
@@ -39,7 +39,7 @@ variables:
   GIT_FETCH_EXTRA_FLAGS: "--no-recurse-submodules --prune --prune-tags"
   # we're using .cache folder for caches
   GIT_CLEAN_FLAGS: -ffdx -e .cache/
-  LATEST_GIT_TAG: v5.3-dev
+  LATEST_GIT_TAG: v5.4-dev
 
   SUBMODULE_FETCH_TOOL: "tools/ci/ci_fetch_submodule.py"
   # by default we will fetch all submodules
@@ -54,9 +54,9 @@ variables:
   CHECKOUT_REF_SCRIPT: "$CI_PROJECT_DIR/tools/ci/checkout_project_ref.py"
 
   # Docker images
-  ESP_ENV_IMAGE: "${CI_DOCKER_REGISTRY}/esp-env-v5.3:1"
-  ESP_IDF_DOC_ENV_IMAGE: "${CI_DOCKER_REGISTRY}/esp-idf-doc-env-v5.3:1-1"
-  TARGET_TEST_ENV_IMAGE: "${CI_DOCKER_REGISTRY}/target-test-env-v5.3:1"
+  ESP_ENV_IMAGE: "${CI_DOCKER_REGISTRY}/esp-env-v5.4:1"
+  ESP_IDF_DOC_ENV_IMAGE: "${CI_DOCKER_REGISTRY}/esp-idf-doc-env-v5.4:1-1"
+  TARGET_TEST_ENV_IMAGE: "${CI_DOCKER_REGISTRY}/target-test-env-v5.4:1"
   SONARQUBE_SCANNER_IMAGE: "${CI_DOCKER_REGISTRY}/sonarqube-scanner:5"
   PRE_COMMIT_IMAGE: "${CI_DOCKER_REGISTRY}/esp-idf-pre-commit:1"
 
@@ -72,7 +72,7 @@ variables:
   CI_PYTHON_CONSTRAINT_BRANCH: ""
 
   # Update the filename for a specific ESP-IDF release. It is used only with CI_PYTHON_CONSTRAINT_BRANCH.
-  CI_PYTHON_CONSTRAINT_FILE: "espidf.constraints.v5.3.txt"
+  CI_PYTHON_CONSTRAINT_FILE: "espidf.constraints.v5.4.txt"
 
   # Set this variable to repository name of a Python tool you wish to install and test in the context of ESP-IDF CI.
   # Keep the variable empty when not used.
diff --git a/components/esp_common/include/esp_idf_version.h b/components/esp_common/include/esp_idf_version.h
index 4cb488257a..74aea26b78 100644
--- a/components/esp_common/include/esp_idf_version.h
+++ b/components/esp_common/include/esp_idf_version.h
@@ -13,7 +13,7 @@ extern "C" {
 /** Major version number (X.x.x) */
 #define ESP_IDF_VERSION_MAJOR   5
 /** Minor version number (x.X.x) */
-#define ESP_IDF_VERSION_MINOR   3
+#define ESP_IDF_VERSION_MINOR   4
 /** Patch version number (x.x.X) */
 #define ESP_IDF_VERSION_PATCH   0
 
diff --git a/tools/cmake/version.cmake b/tools/cmake/version.cmake
index 4db536bdaa..6293abcca1 100644
--- a/tools/cmake/version.cmake
+++ b/tools/cmake/version.cmake
@@ -1,5 +1,5 @@
 set(IDF_VERSION_MAJOR 5)
-set(IDF_VERSION_MINOR 3)
+set(IDF_VERSION_MINOR 4)
 set(IDF_VERSION_PATCH 0)
 
 set(ENV{IDF_VERSION} "${IDF_VERSION_MAJOR}.${IDF_VERSION_MINOR}.${IDF_VERSION_PATCH}")