diff --git a/package/libyang/libyang.hash b/package/libyang/libyang.hash
index e03278adfd..169dbb5485 100644
--- a/package/libyang/libyang.hash
+++ b/package/libyang/libyang.hash
@@ -1,3 +1,3 @@
 # Locally calculated
-sha256  77a0aaaeb3df720aeb70d6896e32e2c2be099d48df73e3cfb52567051af3e44b  libyang-2.1.148.tar.gz
-sha256  0b7ec43747d211a1e49c53588b0822062947bab6bdcc95238578beab34cba5bb  LICENSE
+sha256  a2ae94ce43d8b4b084f67c05902f97cbc0ec882d38ef5ddf1d601659f64d5c66  libyang-3.12.2.tar.gz
+sha256  f4fbaa09c8b2faa6a873a38181ff860e2ff90808320f71deb369f03ddfb920da  LICENSE
diff --git a/package/libyang/libyang.mk b/package/libyang/libyang.mk
index fca0cd63f8..94f9ba3b8a 100644
--- a/package/libyang/libyang.mk
+++ b/package/libyang/libyang.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-LIBYANG_VERSION = 2.1.148
+LIBYANG_VERSION = 3.12.2
 LIBYANG_SITE = $(call github,CESNET,libyang,v$(LIBYANG_VERSION))
 LIBYANG_LICENSE = BSD-3-Clause
 LIBYANG_LICENSE_FILES = LICENSE