diff --git a/.bumpversion.cfg b/.bumpversion.cfg
index 76dc4fc8..2564589d 100644
--- a/.bumpversion.cfg
+++ b/.bumpversion.cfg
@@ -1,5 +1,5 @@
 [bumpversion]
-current_version = 0.25.0
+current_version = 0.25.1
 commit = True
 message = Bumps version to {new_version}
 tag = False
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 78f7fedd..a25e1fc7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,27 @@ All notable changes to this project will be documented in this file.
 
 The format is based on [Keep a Changelog](http://keepachangelog.com/) and this project adheres to [Semantic Versioning](http://semver.org/).
 
+### [0.25.1](https://github.com/plus3it/tardigrade-ci/releases/tag/0.25.1)
+
+**Released**: 2024.08.06
+
+**Summary**:
+
+* Ensures moto 5 and its dependencies are installed in localstack container
+
+* Updates tool versions:
+    * black 24.8.0
+    * cfn-lint 1.9.5
+    * editorconfig-checker 3.0.3
+    * golang 1.22.5
+    * localstack 3.6.0
+    * packer 1.11.2
+    * pylint 3.2.6
+    * pytest 8.3.2
+    * python 3.12.4
+    * terraform 1.9.3
+    * terragrunt 0.66.1
+
 ### [0.25.0](https://github.com/plus3it/tardigrade-ci/releases/tag/0.25.0)
 
 **Released**: 2024.07.02
diff --git a/tests/terraform_pytest/docker-compose-localstack.yml b/tests/terraform_pytest/docker-compose-localstack.yml
index d83bb88e..d8181235 100644
--- a/tests/terraform_pytest/docker-compose-localstack.yml
+++ b/tests/terraform_pytest/docker-compose-localstack.yml
@@ -17,5 +17,4 @@ services:
       - LAMBDA_DOCKER_NETWORK=terraform_pytest_default
       - MOTO_DOCKER_NETWORK_NAME=terraform_pytest_default
     volumes:
-      - "/var/run/docker.sock:/var/run/docker.sock"
       - "${TERRAFORM_PYTEST_DIR}/ready.d:/etc/localstack/init/ready.d"
diff --git a/tests/terraform_pytest/ready.d/start.sh b/tests/terraform_pytest/ready.d/start.sh
index ebfcaf31..b504bd9a 100755
--- a/tests/terraform_pytest/ready.d/start.sh
+++ b/tests/terraform_pytest/ready.d/start.sh
@@ -1,5 +1,6 @@
 #!/bin/bash
 set -eu -o pipefail
+"$PWD"/.venv/bin/pip install 'moto["server"] == 5.*'
 nohup "$PWD"/.venv/bin/moto_server --host 0.0.0.0 --port 4615 &
 echo "Pausing for moto to warm up ..." >&2
 sleep 2