diff --git a/.github/workflows/docker-image.yml b/.github/workflows/docker-image.yml
index 5a769883d..4747e0389 100644
--- a/.github/workflows/docker-image.yml
+++ b/.github/workflows/docker-image.yml
@@ -27,7 +27,7 @@ on:
 
 env:
   DOCKERHUB_REPO: ${{ github.repository }}
-  REQUIRED_IDF_VERSION: v5.2.3
+  REQUIRED_IDF_VERSION: v5.4.1
 
 jobs:
   build:
diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 2784c58d8..73f5f0a3f 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -22,7 +22,7 @@ variables:
     MATTER_CACHE_DIR: /cache/matter_build
     # This variable represents the latest idf version supported for the target branch.
     # Note: Do change this variable in case of idf version change MR.
-    IDF_CHECKOUT_REF: "v5.2.3"
+    IDF_CHECKOUT_REF: "v5.4.1"
     # This variable represents the short hash of the connectedhomeip submodule.
     # Note: Do change this short hash on submodule update MRs.
     CHIP_SHORT_HASH: "19aeeb3ba0"
@@ -209,7 +209,7 @@ build_image:
       # Change the idf version here in case of idf version change MR.
       - IDF_VERSION:
           - "v4.4.3"
-          - "v5.2.3"
+          - "v5.4.1"
 
 .build_examples_template:
   stage: build
diff --git a/README.md b/README.md
index c86efb1f6..7fd510c15 100644
--- a/README.md
+++ b/README.md
@@ -29,7 +29,7 @@ section in the ESP-Matter Programming Guide.
 ## Supported ESP-IDF and connectedhomeip versions
 
 - This SDK currently works with commit [19aeeb3ba0](https://github.com/project-chip/connectedhomeip/tree/19aeeb3ba0) of connectedhomeip.
-- For Matter projects development with this SDK, it is recommended to utilize ESP-IDF [v5.2.3](https://github.com/espressif/esp-idf/tree/v5.2.3).
+- For Matter projects development with this SDK, it is recommended to utilize ESP-IDF [v5.4.1](https://github.com/espressif/esp-idf/tree/v5.4.1).
 
 ## Documentation
 
diff --git a/docs/en/developing.rst b/docs/en/developing.rst
index 26c9d71e4..96adc5890 100644
--- a/docs/en/developing.rst
+++ b/docs/en/developing.rst
@@ -62,7 +62,7 @@ Cloning esp-idf:
    ::
 
       git clone --recursive https://github.com/espressif/esp-idf.git
-      cd esp-idf; git checkout v5.2.3; git submodule update --init --recursive;
+      cd esp-idf; git checkout v5.4.1; git submodule update --init --recursive;
       ./install.sh
       cd ..
 
diff --git a/docs/en/security.rst b/docs/en/security.rst
index 54ded72fb..d2a66424d 100644
--- a/docs/en/security.rst
+++ b/docs/en/security.rst
@@ -1,7 +1,7 @@
 5. Security Considerations
 ==========================
 
-{IDF_TARGET_RELEASE:default="v5.2.3"}
+{IDF_TARGET_RELEASE:default="v5.4.1"}
 
 5.1 Overview
 ------------
diff --git a/tools/docker/chip_idf/Dockerfile b/tools/docker/chip_idf/Dockerfile
index 0234b2631..733068311 100644
--- a/tools/docker/chip_idf/Dockerfile
+++ b/tools/docker/chip_idf/Dockerfile
@@ -4,7 +4,7 @@ FROM ghcr.io/project-chip/chip-build:${VERSION} as build
 # Use IDF_CHECKOUT_REF to specify a tag, a branch or a specific commit ID.
 
 ARG IDF_CLONE_URL=https://github.com/espressif/esp-idf.git
-ARG IDF_CHECKOUT_REF=v5.2.3
+ARG IDF_CHECKOUT_REF=v5.4.1
 
 # install requirements for pytest
 RUN set -x \