diff --git a/Dockerfile b/Dockerfile
index f48105ee987..19a05cff182 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -4,7 +4,7 @@ ARG GO_VERSION=1.21
 ARG XX_VERSION=1.4.0
 
 # for testing
-ARG DOCKER_VERSION=25.0.2
+ARG DOCKER_VERSION=26.0.0
 ARG GOTESTSUM_VERSION=v1.9.0
 ARG REGISTRY_VERSION=2.8.0
 ARG BUILDKIT_VERSION=v0.12.5
diff --git a/commands/util.go b/commands/util.go
index d7e44f50bc0..3bde9b71fd9 100644
--- a/commands/util.go
+++ b/commands/util.go
@@ -1,17 +1,22 @@
 package commands
 
 import (
+	"bufio"
 	"context"
+	"fmt"
 	"io"
+	"os"
+	"runtime"
+	"strings"
 
-	"github.com/docker/cli/cli/command"
+	"github.com/docker/cli/cli/streams"
 )
 
 func prompt(ctx context.Context, ins io.Reader, out io.Writer, msg string) (bool, error) {
 	done := make(chan struct{})
 	var ok bool
 	go func() {
-		ok = command.PromptForConfirmation(ins, out, msg)
+		ok = promptForConfirmation(ins, out, msg)
 		close(done)
 	}()
 	select {
@@ -21,3 +26,32 @@ func prompt(ctx context.Context, ins io.Reader, out io.Writer, msg string) (bool
 		return ok, nil
 	}
 }
+
+// promptForConfirmation requests and checks confirmation from user.
+// This will display the provided message followed by ' [y/N] '. If
+// the user input 'y' or 'Y' it returns true other false.  If no
+// message is provided "Are you sure you want to proceed? [y/N] "
+// will be used instead.
+//
+// Copied from github.com/docker/cli since the upstream version changed
+// recently with an incompatible change.
+//
+// See https://github.com/docker/buildx/pull/2359#discussion_r1544736494
+// for discussion on the issue.
+func promptForConfirmation(ins io.Reader, outs io.Writer, message string) bool {
+	if message == "" {
+		message = "Are you sure you want to proceed?"
+	}
+	message += " [y/N] "
+
+	_, _ = fmt.Fprint(outs, message)
+
+	// On Windows, force the use of the regular OS stdin stream.
+	if runtime.GOOS == "windows" {
+		ins = streams.NewIn(os.Stdin)
+	}
+
+	reader := bufio.NewReader(ins)
+	answer, _, _ := reader.ReadLine()
+	return strings.ToLower(string(answer)) == "y"
+}
diff --git a/go.mod b/go.mod
index 540ada857a6..38ea139f5f1 100644
--- a/go.mod
+++ b/go.mod
@@ -14,7 +14,7 @@ require (
 	github.com/containerd/typeurl/v2 v2.1.1
 	github.com/creack/pty v1.1.18
 	github.com/distribution/reference v0.5.0
-	github.com/docker/cli v26.0.0-rc1+incompatible
+	github.com/docker/cli v26.0.0+incompatible
 	github.com/docker/cli-docs-tool v0.7.0
 	github.com/docker/docker v26.0.0-rc1+incompatible
 	github.com/docker/go-units v0.5.0
diff --git a/go.sum b/go.sum
index a95bbe559de..3cdc1005b42 100644
--- a/go.sum
+++ b/go.sum
@@ -121,8 +121,8 @@ github.com/davecgh/go-spew v1.1.1/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSs
 github.com/denisenkom/go-mssqldb v0.0.0-20191128021309-1d7a30a10f73/go.mod h1:xbL0rPBG9cCiLr28tMa8zpbdarY27NDyej4t/EjAShU=
 github.com/distribution/reference v0.5.0 h1:/FUIFXtfc/x2gpa5/VGfiGLuOIdYa1t65IKK2OFGvA0=
 github.com/distribution/reference v0.5.0/go.mod h1:BbU0aIcezP1/5jX/8MP0YiH4SdvB5Y4f/wlDRiLyi3E=
-github.com/docker/cli v26.0.0-rc1+incompatible h1:PVxv2ySd8iZHoNfoAoKcnWSC/hKP2qMb806PWM34v50=
-github.com/docker/cli v26.0.0-rc1+incompatible/go.mod h1:JLrzqnKDaYBop7H2jaqPtU4hHvMKP+vjCwu2uszcLI8=
+github.com/docker/cli v26.0.0+incompatible h1:90BKrx1a1HKYpSnnBFR6AgDq/FqkHxwlUyzJVPxD30I=
+github.com/docker/cli v26.0.0+incompatible/go.mod h1:JLrzqnKDaYBop7H2jaqPtU4hHvMKP+vjCwu2uszcLI8=
 github.com/docker/cli-docs-tool v0.7.0 h1:M2Da98Unz2kz3A5d4yeSGbhyOge2mfYSNjAFt01Rw0M=
 github.com/docker/cli-docs-tool v0.7.0/go.mod h1:zMjqTFCU361PRh8apiXzeAZ1Q/xupbIwTusYpzCXS/o=
 github.com/docker/distribution v2.7.1+incompatible/go.mod h1:J2gT2udsDAN96Uj4KfcMRqY0/ypR+oyYUYmja8H+y+w=
diff --git a/vendor/github.com/docker/cli/cli-plugins/manager/cobra.go b/vendor/github.com/docker/cli/cli-plugins/manager/cobra.go
index be3a0582018..feff8a8fd6f 100644
--- a/vendor/github.com/docker/cli/cli-plugins/manager/cobra.go
+++ b/vendor/github.com/docker/cli/cli-plugins/manager/cobra.go
@@ -2,11 +2,14 @@ package manager
 
 import (
 	"fmt"
+	"net/url"
 	"os"
+	"strings"
 	"sync"
 
 	"github.com/docker/cli/cli/command"
 	"github.com/spf13/cobra"
+	"go.opentelemetry.io/otel/attribute"
 )
 
 const (
@@ -30,6 +33,10 @@ const (
 	// is, one which failed it's candidate test) and contains the
 	// reason for the failure.
 	CommandAnnotationPluginInvalid = "com.docker.cli.plugin-invalid"
+
+	// CommandAnnotationPluginCommandPath is added to overwrite the
+	// command path for a plugin invocation.
+	CommandAnnotationPluginCommandPath = "com.docker.cli.plugin.command_path"
 )
 
 var pluginCommandStubsOnce sync.Once
@@ -98,3 +105,44 @@ func AddPluginCommandStubs(dockerCli command.Cli, rootCmd *cobra.Command) (err e
 	})
 	return err
 }
+
+const (
+	dockerCliAttributePrefix = attribute.Key("docker.cli")
+
+	cobraCommandPath = attribute.Key("cobra.command_path")
+)
+
+func getPluginResourceAttributes(cmd *cobra.Command, plugin Plugin) attribute.Set {
+	commandPath := cmd.Annotations[CommandAnnotationPluginCommandPath]
+	if commandPath == "" {
+		commandPath = fmt.Sprintf("%s %s", cmd.CommandPath(), plugin.Name)
+	}
+
+	attrSet := attribute.NewSet(
+		cobraCommandPath.String(commandPath),
+	)
+
+	kvs := make([]attribute.KeyValue, 0, attrSet.Len())
+	for iter := attrSet.Iter(); iter.Next(); {
+		attr := iter.Attribute()
+		kvs = append(kvs, attribute.KeyValue{
+			Key:   dockerCliAttributePrefix + "." + attr.Key,
+			Value: attr.Value,
+		})
+	}
+	return attribute.NewSet(kvs...)
+}
+
+func appendPluginResourceAttributesEnvvar(env []string, cmd *cobra.Command, plugin Plugin) []string {
+	if attrs := getPluginResourceAttributes(cmd, plugin); attrs.Len() > 0 {
+		// values in environment variables need to be in baggage format
+		// otel/baggage package can be used after update to v1.22, currently it encodes incorrectly
+		attrsSlice := make([]string, attrs.Len())
+		for iter := attrs.Iter(); iter.Next(); {
+			i, v := iter.IndexedAttribute()
+			attrsSlice[i] = string(v.Key) + "=" + url.PathEscape(v.Value.AsString())
+		}
+		env = append(env, ResourceAttributesEnvvar+"="+strings.Join(attrsSlice, ","))
+	}
+	return env
+}
diff --git a/vendor/github.com/docker/cli/cli-plugins/manager/manager.go b/vendor/github.com/docker/cli/cli-plugins/manager/manager.go
index d23934940d9..d3b7b7b5260 100644
--- a/vendor/github.com/docker/cli/cli-plugins/manager/manager.go
+++ b/vendor/github.com/docker/cli/cli-plugins/manager/manager.go
@@ -17,11 +17,17 @@ import (
 	"golang.org/x/sync/errgroup"
 )
 
-// ReexecEnvvar is the name of an ennvar which is set to the command
-// used to originally invoke the docker CLI when executing a
-// plugin. Assuming $PATH and $CWD remain unchanged this should allow
-// the plugin to re-execute the original CLI.
-const ReexecEnvvar = "DOCKER_CLI_PLUGIN_ORIGINAL_CLI_COMMAND"
+const (
+	// ReexecEnvvar is the name of an ennvar which is set to the command
+	// used to originally invoke the docker CLI when executing a
+	// plugin. Assuming $PATH and $CWD remain unchanged this should allow
+	// the plugin to re-execute the original CLI.
+	ReexecEnvvar = "DOCKER_CLI_PLUGIN_ORIGINAL_CLI_COMMAND"
+
+	// ResourceAttributesEnvvar is the name of the envvar that includes additional
+	// resource attributes for OTEL.
+	ResourceAttributesEnvvar = "OTEL_RESOURCE_ATTRIBUTES"
+)
 
 // errPluginNotFound is the error returned when a plugin could not be found.
 type errPluginNotFound string
@@ -236,6 +242,7 @@ func PluginRunCommand(dockerCli command.Cli, name string, rootcmd *cobra.Command
 
 		cmd.Env = os.Environ()
 		cmd.Env = append(cmd.Env, ReexecEnvvar+"="+os.Args[0])
+		cmd.Env = appendPluginResourceAttributesEnvvar(cmd.Env, rootcmd, plugin)
 
 		return cmd, nil
 	}
diff --git a/vendor/github.com/docker/cli/cli/cobra.go b/vendor/github.com/docker/cli/cli/cobra.go
index 627096bb3e8..d07a3b218a2 100644
--- a/vendor/github.com/docker/cli/cli/cobra.go
+++ b/vendor/github.com/docker/cli/cli/cobra.go
@@ -470,7 +470,7 @@ Common Commands:
 Management Commands:
 
 {{- range managementSubCommands . }}
-  {{rpad (decoratedName .) (add .NamePadding 1)}}{{.Short}}{{ if isPlugin .}} {{vendorAndVersion .}}{{ end}}
+  {{rpad (decoratedName .) (add .NamePadding 1)}}{{.Short}}
 {{- end}}
 
 {{- end}}
@@ -479,7 +479,7 @@ Management Commands:
 Swarm Commands:
 
 {{- range orchestratorSubCommands . }}
-  {{rpad (decoratedName .) (add .NamePadding 1)}}{{.Short}}{{ if isPlugin .}} {{vendorAndVersion .}}{{ end}}
+  {{rpad (decoratedName .) (add .NamePadding 1)}}{{.Short}}
 {{- end}}
 
 {{- end}}
diff --git a/vendor/github.com/docker/cli/cli/command/events_utils.go b/vendor/github.com/docker/cli/cli/command/events_utils.go
index 497886cd90c..bb656fbf90b 100644
--- a/vendor/github.com/docker/cli/cli/command/events_utils.go
+++ b/vendor/github.com/docker/cli/cli/command/events_utils.go
@@ -9,12 +9,16 @@ import (
 
 // EventHandler is abstract interface for user to customize
 // own handle functions of each type of events
+//
+// Deprecated: EventHandler is no longer used, and will be removed in the next release.
 type EventHandler interface {
 	Handle(action events.Action, h func(events.Message))
 	Watch(c <-chan events.Message)
 }
 
 // InitEventHandler initializes and returns an EventHandler
+//
+// Deprecated: InitEventHandler is no longer used, and will be removed in the next release.
 func InitEventHandler() EventHandler {
 	return &eventHandler{handlers: make(map[events.Action]func(events.Message))}
 }
diff --git a/vendor/github.com/docker/cli/cli/command/utils.go b/vendor/github.com/docker/cli/cli/command/utils.go
index 5c83efc9867..df1f876faf0 100644
--- a/vendor/github.com/docker/cli/cli/command/utils.go
+++ b/vendor/github.com/docker/cli/cli/command/utils.go
@@ -5,12 +5,15 @@ package command
 
 import (
 	"bufio"
+	"context"
 	"fmt"
 	"io"
 	"os"
+	"os/signal"
 	"path/filepath"
 	"runtime"
 	"strings"
+	"syscall"
 
 	"github.com/docker/cli/cli/streams"
 	"github.com/docker/docker/api/types/filters"
@@ -72,12 +75,21 @@ func PrettyPrint(i any) string {
 	}
 }
 
-// PromptForConfirmation requests and checks confirmation from user.
-// This will display the provided message followed by ' [y/N] '. If
-// the user input 'y' or 'Y' it returns true other false.  If no
-// message is provided "Are you sure you want to proceed? [y/N] "
-// will be used instead.
-func PromptForConfirmation(ins io.Reader, outs io.Writer, message string) bool {
+type PromptError error
+
+var ErrPromptTerminated = PromptError(errors.New("prompt terminated"))
+
+// PromptForConfirmation requests and checks confirmation from the user.
+// This will display the provided message followed by ' [y/N] '. If the user
+// input 'y' or 'Y' it returns true otherwise false. If no message is provided,
+// "Are you sure you want to proceed? [y/N] " will be used instead.
+//
+// If the user terminates the CLI with SIGINT or SIGTERM while the prompt is
+// active, the prompt will return false with an ErrPromptTerminated error.
+// When the prompt returns an error, the caller should propagate the error up
+// the stack and close the io.Reader used for the prompt which will prevent the
+// background goroutine from blocking indefinitely.
+func PromptForConfirmation(ctx context.Context, ins io.Reader, outs io.Writer, message string) (bool, error) {
 	if message == "" {
 		message = "Are you sure you want to proceed?"
 	}
@@ -90,9 +102,31 @@ func PromptForConfirmation(ins io.Reader, outs io.Writer, message string) bool {
 		ins = streams.NewIn(os.Stdin)
 	}
 
-	reader := bufio.NewReader(ins)
-	answer, _, _ := reader.ReadLine()
-	return strings.ToLower(string(answer)) == "y"
+	result := make(chan bool)
+
+	// Catch the termination signal and exit the prompt gracefully.
+	// The caller is responsible for properly handling the termination.
+	notifyCtx, notifyCancel := signal.NotifyContext(ctx, syscall.SIGINT, syscall.SIGTERM)
+	defer notifyCancel()
+
+	go func() {
+		var res bool
+		scanner := bufio.NewScanner(ins)
+		if scanner.Scan() {
+			answer := strings.TrimSpace(scanner.Text())
+			if strings.EqualFold(answer, "y") {
+				res = true
+			}
+		}
+		result <- res
+	}()
+
+	select {
+	case <-notifyCtx.Done():
+		return false, ErrPromptTerminated
+	case r := <-result:
+		return r, nil
+	}
 }
 
 // PruneFilters returns consolidated prune filters obtained from config.json and cli
diff --git a/vendor/modules.txt b/vendor/modules.txt
index fc7e3e187cb..45b5d0ad746 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -215,7 +215,7 @@ github.com/davecgh/go-spew/spew
 # github.com/distribution/reference v0.5.0
 ## explicit; go 1.20
 github.com/distribution/reference
-# github.com/docker/cli v26.0.0-rc1+incompatible
+# github.com/docker/cli v26.0.0+incompatible
 ## explicit
 github.com/docker/cli/cli
 github.com/docker/cli/cli-plugins/manager