diff --git a/.github/linters/.hadolint.yaml b/.github/linters/.hadolint.yaml
index 7ba514caff..570e43d0dd 100644
--- a/.github/linters/.hadolint.yaml
+++ b/.github/linters/.hadolint.yaml
@@ -2,3 +2,4 @@
 ignored:
   # sometimes pinned versions are removed from the package source so we decided to ignore this rule.
   - DL3008
+  - DL3018
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6d5e999fef..af2f635e24 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,7 @@
 FEATURES:
 
 ENHANCEMENTS:
+* Update Guacamole to version 1.5.1 ([#3443](https://github.com/microsoft/AzureTRE/issues/3443))
 
 BUG FIXES:
 
@@ -26,6 +27,7 @@ ENHANCEMENTS:
 * Update Porter (1.0.11), Docker (23.0.3), Terraform (1.4.5) ([#3430](https://github.com/microsoft/AzureTRE/issues/3430))
 * Build, publish and register Databricks bundles in workflow ([#3447](https://github.com/microsoft/AzureTRE/issues/3447))
 
+
 BUG FIXES:
 * Fix ENABLE_SWAGGER configuration being ignored in CI ([#3355](https://github.com/microsoft/AzureTRE/pull/3355))
 * Set yq output format when reading a json file ([#3441](https://github.com/microsoft/AzureTRE/pull/3441))
diff --git a/templates/workspace_services/guacamole/guacamole-server/docker/Dockerfile b/templates/workspace_services/guacamole/guacamole-server/docker/Dockerfile
index bfe4972bad..bee5402a43 100644
--- a/templates/workspace_services/guacamole/guacamole-server/docker/Dockerfile
+++ b/templates/workspace_services/guacamole/guacamole-server/docker/Dockerfile
@@ -1,4 +1,4 @@
-FROM maven:3-jdk-11 AS client_build
+FROM maven:3-jdk-11-slim AS client_build
 
 COPY ./guacamole-auth-azure/pom.xml /pom.xml
 COPY ./guacamole-auth-azure/src /src
@@ -8,9 +8,9 @@ RUN bash /tmp/maven_package_and_exit_succesfully.sh
 FROM scratch as test-results
 COPY --from=client_build /target/surefire-reports/* /
 
-FROM guacamole/guacd:1.4.0
+FROM guacamole/guacd:1.5.1
 
-ARG GUACAMOLE_AZURE_VERSION=0.2.0
+ARG GUACAMOLE_AZURE_VERSION=0.3.0
 
 ENV DEBIAN_FRONTEND=noninteractive
 
@@ -18,17 +18,8 @@ ENV DEBIAN_FRONTEND=noninteractive
 # hadolint ignore=DL3002
 USER root
 
-# dependencies
-RUN apt-get update && apt-get install wget curl openssh-server apt-transport-https gnupg -y --no-install-recommends && \
-    apt-get autoclean && apt-get autoremove && rm -rf /var/lib/apt/lists/*
-
-ENV JAVA_HOME=/usr/lib/jvm/java-11-openjdk-amd64
-RUN JAVA_ARCHIVE=java.tar.gz && \
-    wget -O "$JAVA_ARCHIVE" "https://github.com/adoptium/temurin11-binaries/releases/download/jdk-11.0.18%2B10/OpenJDK11U-jre_x64_linux_hotspot_11.0.18_10.tar.gz" --progress=dot:giga && \
-    mkdir -p "$JAVA_HOME" && \
-    tar xzf "$JAVA_ARCHIVE" -C "$JAVA_HOME" --strip-components=1 && \
-    rm -f "$JAVA_ARCHIVE" && \
-    export PATH="$JAVA_HOME"/bin:"$PATH" && java -version
+RUN apk add --update --no-cache wget openssh openjdk11-jre \
+    && ssh-keygen -A
 
 ENV CATALINA_BASE=/usr/share/tomcat9/
 RUN TOMCAT_ARCHIVE="tomcat.tar.gz" && \
@@ -59,7 +50,7 @@ COPY ./docker/services /etc/services.d/
 COPY --from=client_build /target/lib/* "${GUACAMOLE_LIB}"
 COPY --from=client_build "/target/guacamole-auth-tre-${GUACAMOLE_AZURE_VERSION}.jar" "${GUACAMOLE_HOME}/extensions/"
 
-RUN wget -O "${GUACAMOLE_HOME}/guacamole.war" "http://apache.org/dyn/closer.cgi?action=download&filename=guacamole/1.4.0/binary/guacamole-1.4.0.war" --progress=dot:giga
+RUN wget -O "${GUACAMOLE_HOME}/guacamole.war" "http://apache.org/dyn/closer.cgi?action=download&filename=guacamole/1.5.1/binary/guacamole-1.5.1.war" --progress=dot:giga
 
 ENV OAUTH2_PROXY_HOME=/etc/oauth2-proxy
 RUN OAUTH2_PROXY_ARCHIVE=oauth2-proxy.tar.gz && \
diff --git a/templates/workspace_services/guacamole/guacamole-server/docker/services/guacd/run b/templates/workspace_services/guacamole/guacamole-server/docker/services/guacd/run
index 3d3466ba8d..a008af93e0 100644
--- a/templates/workspace_services/guacamole/guacamole-server/docker/services/guacd/run
+++ b/templates/workspace_services/guacamole/guacamole-server/docker/services/guacd/run
@@ -1,3 +1,3 @@
 #!/usr/bin/with-contenv sh
 echo >&2 "starting guacd"
-exec /usr/local/guacamole/sbin/guacd -f -b 0.0.0.0  -L $GUACD_LOG_LEVEL  -l 4822
\ No newline at end of file
+exec /opt/guacamole/sbin/guacd -f -b 0.0.0.0  -L $GUACD_LOG_LEVEL  -l 4822
diff --git a/templates/workspace_services/guacamole/guacamole-server/docker/version.txt b/templates/workspace_services/guacamole/guacamole-server/docker/version.txt
index 63af88769b..49e0fc1e09 100644
--- a/templates/workspace_services/guacamole/guacamole-server/docker/version.txt
+++ b/templates/workspace_services/guacamole/guacamole-server/docker/version.txt
@@ -1 +1 @@
-__version__ = "0.6.3"
+__version__ = "0.7.0"
diff --git a/templates/workspace_services/guacamole/guacamole-server/guacamole-auth-azure/pom.xml b/templates/workspace_services/guacamole/guacamole-server/guacamole-auth-azure/pom.xml
index 23590006e9..1581aac336 100644
--- a/templates/workspace_services/guacamole/guacamole-server/guacamole-auth-azure/pom.xml
+++ b/templates/workspace_services/guacamole/guacamole-server/guacamole-auth-azure/pom.xml
@@ -6,7 +6,7 @@
 
     <groupId>org.apache.guacamole</groupId>
     <artifactId>guacamole-auth-tre</artifactId>
-    <version>0.2.0</version>
+    <version>0.3.0</version>
     <packaging>jar</packaging>
     <name>guacamole-azure-tre</name>
 
@@ -27,7 +27,6 @@
             <artifactId>java-jwt</artifactId>
             <version>4.3.0</version>
         </dependency>
-        <!-- Guice -->
         <dependency>
             <groupId>com.google.inject</groupId>
             <artifactId>guice</artifactId>
@@ -42,7 +41,7 @@
         <dependency>
             <groupId>org.apache.guacamole</groupId>
             <artifactId>guacamole-ext</artifactId>
-            <version>1.5.0</version>
+            <version>1.5.1</version>
             <scope>provided</scope>
         </dependency>
         <!-- MS Azure dependencies -->
diff --git a/templates/workspace_services/guacamole/porter.yaml b/templates/workspace_services/guacamole/porter.yaml
index 6dcd5f2893..09172500af 100644
--- a/templates/workspace_services/guacamole/porter.yaml
+++ b/templates/workspace_services/guacamole/porter.yaml
@@ -1,7 +1,7 @@
 ---
 schemaVersion: 1.0.0
 name: tre-service-guacamole
-version: 0.8.4
+version: 0.9.0
 description: "An Azure TRE service for Guacamole"
 dockerfile: Dockerfile.tmpl
 registry: azuretre
@@ -123,7 +123,7 @@ outputs:
 mixins:
   - exec
   - terraform:
-      clientVersion: 1.3.6
+      clientVersion: 1.4.5
 
 install:
   - terraform:
@@ -187,7 +187,6 @@ upgrade:
         - name: authentication_callback_uri
         - name: web_apps_addresses
 
-
 uninstall:
   - terraform:
       description: "Delete the Guacamole Service"
diff --git a/templates/workspace_services/guacamole/terraform/.terraform.lock.hcl b/templates/workspace_services/guacamole/terraform/.terraform.lock.hcl
index 1e627ddb3b..abcf373060 100644
--- a/templates/workspace_services/guacamole/terraform/.terraform.lock.hcl
+++ b/templates/workspace_services/guacamole/terraform/.terraform.lock.hcl
@@ -2,41 +2,41 @@
 # Manual edits may be lost in future updates.
 
 provider "registry.terraform.io/hashicorp/azurerm" {
-  version     = "3.41.0"
-  constraints = "3.41.0"
+  version     = "3.52.0"
+  constraints = "3.52.0"
   hashes = [
-    "h1:Kn7sqPk/YpsvORFEd/zHXa8U7KkVB551DXUMwvqiU0s=",
-    "zh:123838b581a27499d0a1e3a9804a6f57304969f58c4ea7fbd938ae2a795b2a19",
-    "zh:761a7bff3872a192202411aa62e3e6aedc3046f0df86967a1f9ed5a74207f451",
-    "zh:83092681a9e14d5e548edccece5086d822f86de6ff8227bb78706b41f0041697",
-    "zh:95fd6be4a3b995dc8ad40054646e2261e01365af7e8f8ebe0e62133cee8250cd",
-    "zh:995c3eb0aa23fc6948f45e68173034facc4bd92f4865abc3bba4bd305596fc86",
-    "zh:9f7b158d39f3e9fbc01ee27e6a63600838e34b7364715ebeea7d62717e48cb56",
-    "zh:b23193883592a4889942e82e73782e70dfbb517561a4f24b09f8ab6cbdc46866",
-    "zh:c4884d654d03a0546ec78f348563e32220ae35a2c76f22cb3c960f989dc6be48",
-    "zh:dda1c6720c6cef052db2fb4886a9cd46dee849e4367d6d66b45ad9d5bb607b94",
-    "zh:f0bc878d67785343bfc36a7d14ec58a67fa436f5b8b497221aea3931e3dccefd",
+    "h1:XEJUCnUuDeTuhPgilkiNQ3mCTCmgJ1iEA0wE58IzYX8=",
+    "zh:0c3029da7454f2fe7058939d95c458d9930842f06430cfcd0713713f3d788216",
+    "zh:826584f11eaaec7f179e85d9cc4833ec7a1d854ed4883c94317427ddfa7ffd11",
+    "zh:8fff204176ee1b08d168848d4bd7a051d7fd189688ca8b5f26eb31855ea060a6",
+    "zh:a170ebe199b93ea1f20357d848dfd0f5e50538236f09939d1a11a61dfbfded0f",
+    "zh:acea54d715186101f8a7725997578b231e4db50eea0fb9f9868ecd867008e6e6",
+    "zh:ae0f6a61677282a2f605ca9d0a74a08ae78ae2efeb372a33b9d4c7210fbbfd2c",
+    "zh:c2c2329f3864e10ee15993c1a48e79bf72d570bb6d08003038a37b73e551dbf9",
+    "zh:c7a4a117628ff0ad24e9c73f1087e9a02b8eca633b0913ee1687b0b4b5c7f377",
+    "zh:e1a290e708e7dbbde8747a98680f7a1aace97694a243ba7a11cc5c77e982e9cc",
+    "zh:e82aa1c5e8ead3087968d7f44b6f644ef3092a0d243b4b575ff8847616e290b3",
+    "zh:f4d57d3c5f3c7fe064b88151036037b7852be6bcfa661e3f4fe0fda2871006d9",
     "zh:f569b65999264a9416862bca5cd2a6177d94ccb0424f3a4ef424428912b9cb3c",
-    "zh:f6aa3c25f7106619cc6760e1d34b29b0956c50f285994f009939890a85e7b058",
   ]
 }
 
 provider "registry.terraform.io/hashicorp/local" {
-  version     = "2.2.3"
-  constraints = "2.2.3"
+  version     = "2.4.0"
+  constraints = "2.4.0"
   hashes = [
-    "h1:aWp5iSUxBGgPv1UnV5yag9Pb0N+U1I0sZb38AXBFO8A=",
-    "zh:04f0978bb3e052707b8e82e46780c371ac1c66b689b4a23bbc2f58865ab7d5c0",
-    "zh:6484f1b3e9e3771eb7cc8e8bab8b35f939a55d550b3f4fb2ab141a24269ee6aa",
-    "zh:78a56d59a013cb0f7eb1c92815d6eb5cf07f8b5f0ae20b96d049e73db915b238",
+    "h1:R97FTYETo88sT2VHfMgkPU3lzCsZLunPftjSI5vfKe8=",
+    "zh:53604cd29cb92538668fe09565c739358dc53ca56f9f11312b9d7de81e48fab9",
+    "zh:66a46e9c508716a1c98efbf793092f03d50049fa4a83cd6b2251e9a06aca2acf",
+    "zh:70a6f6a852dd83768d0778ce9817d81d4b3f073fab8fa570bff92dcb0824f732",
     "zh:78d5eefdd9e494defcb3c68d282b8f96630502cac21d1ea161f53cfe9bb483b3",
-    "zh:8aa9950f4c4db37239bcb62e19910c49e47043f6c8587e5b0396619923657797",
-    "zh:996beea85f9084a725ff0e6473a4594deb5266727c5f56e9c1c7c62ded6addbb",
-    "zh:9a7ef7a21f48fabfd145b2e2a4240ca57517ad155017e86a30860d7c0c109de3",
-    "zh:a63e70ac052aa25120113bcddd50c1f3cfe61f681a93a50cea5595a4b2cc3e1c",
-    "zh:a6e8d46f94108e049ad85dbed60354236dc0b9b5ec8eabe01c4580280a43d3b8",
-    "zh:bb112ce7efbfcfa0e65ed97fa245ef348e0fd5bfa5a7e4ab2091a9bd469f0a9e",
-    "zh:d7bec0da5c094c6955efed100f3fe22fca8866859f87c025be1760feb174d6d9",
-    "zh:fb9f271b72094d07cef8154cd3d50e9aa818a0ea39130bc193132ad7b23076fd",
+    "zh:82a803f2f484c8b766e2e9c32343e9c89b91997b9f8d2697f9f3837f62926b35",
+    "zh:9708a4e40d6cc4b8afd1352e5186e6e1502f6ae599867c120967aebe9d90ed04",
+    "zh:973f65ce0d67c585f4ec250c1e634c9b22d9c4288b484ee2a871d7fa1e317406",
+    "zh:c8fa0f98f9316e4cfef082aa9b785ba16e36ff754d6aba8b456dab9500e671c6",
+    "zh:cfa5342a5f5188b20db246c73ac823918c189468e1382cb3c48a9c0c08fc5bf7",
+    "zh:e0e2b477c7e899c63b06b38cd8684a893d834d6d0b5e9b033cedc06dd7ffe9e2",
+    "zh:f62d7d05ea1ee566f732505200ab38d94315a4add27947a60afa29860822d3fc",
+    "zh:fa7ce69dde358e172bd719014ad637634bbdabc49363104f4fca759b4b73f2ce",
   ]
 }
diff --git a/templates/workspace_services/guacamole/terraform/providers.tf b/templates/workspace_services/guacamole/terraform/providers.tf
index 1305357c74..9cb7a988b4 100644
--- a/templates/workspace_services/guacamole/terraform/providers.tf
+++ b/templates/workspace_services/guacamole/terraform/providers.tf
@@ -2,11 +2,11 @@ terraform {
   required_providers {
     azurerm = {
       source  = "hashicorp/azurerm"
-      version = "=3.41.0"
+      version = "=3.52.0"
     }
     local = {
       source  = "hashicorp/local"
-      version = "=2.2.3"
+      version = "=2.4.0"
     }
   }
   backend "azurerm" {