diff --git a/ecs-cluster-infrastructure-instance-refresh-lambda.tf b/ecs-cluster-infrastructure-instance-refresh-lambda.tf
index 50aac4c..60cdd04 100644
--- a/ecs-cluster-infrastructure-instance-refresh-lambda.tf
+++ b/ecs-cluster-infrastructure-instance-refresh-lambda.tf
@@ -98,7 +98,9 @@ resource "aws_lambda_function" "ecs_cluster_infrastructure_instance_refresh" {
 
   environment {
     variables = {
-      asgName = aws_autoscaling_group.infrastructure_ecs_cluster[0].name
+      asgName            = aws_autoscaling_group.infrastructure_ecs_cluster[0].name
+      launchTemplateName = aws_launch_template.infrastructure_ecs_cluster[0].name
+      amiVersion         = local.infrastructure_ecs_cluster_ami_version
     }
   }
 
diff --git a/ecs-cluster-infrastructure.tf b/ecs-cluster-infrastructure.tf
index 86f9e90..ec62f0a 100644
--- a/ecs-cluster-infrastructure.tf
+++ b/ecs-cluster-infrastructure.tf
@@ -176,7 +176,7 @@ resource "aws_autoscaling_group" "infrastructure_ecs_cluster" {
 
   launch_template {
     id      = aws_launch_template.infrastructure_ecs_cluster[0].id
-    version = aws_launch_template.infrastructure_ecs_cluster[0].latest_version
+    version = "$Latest"
   }
 
   vpc_zone_identifier = local.infrastructure_ecs_cluster_publicly_avaialble ? [
diff --git a/lambdas/ecs-asg-instance-refresh/function.py b/lambdas/ecs-asg-instance-refresh/function.py
index be2592a..7283afd 100644
--- a/lambdas/ecs-asg-instance-refresh/function.py
+++ b/lambdas/ecs-asg-instance-refresh/function.py
@@ -3,9 +3,47 @@
 import os
 
 asgName = os.environ['asgName']
+launchTemplateName = os.environ['launchTemplateName']
+amiVersion = os.environ['amiVersion']
 
 def lambda_handler(event, context):
     asgClient = boto3.client('autoscaling')
+    ec2Client = boto3.client('ec2')
+
+    # Update launch template to use the latest AMI
+    response = ec2Client.describe_images(
+        Owners=['amazon'],
+        Filters=[
+            {'Name': 'name', 'Values': [amiVersion]},
+            {'Name': 'state', 'Values': ['available']},
+            {'Name': 'architecture', 'Values': ['x86_64']}
+        ]
+    )
+
+    images = sorted(
+        response['Images'],
+        key=lambda x: x['CreationDate'],
+        reverse=True
+    )
+    if not images:
+        raise Exception("No AMIs found!")
+
+    latest_ami_id = images[0]['ImageId']
+    print(f"Latest ECS-optimized AMI: {latest_ami_id}")
+
+    try:
+        response = ec2Client.modify_launch_template(
+            LaunchTemplateName=launchTemplateName,
+            LaunchTemplateData={
+                'ImageId': latest_ami_id
+            }
+        )
+        print(f"Launch template updated successfully: {response}")
+    except Exception as e:
+        print(f"Error updating launch template: {e}")
+        raise
+
+    # Start instance refresh
     try:
         response = asgClient.start_instance_refresh(
             AutoScalingGroupName=asgName,