diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6d0b7b31e6..3c4451d3ea 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -23,6 +23,8 @@ release.
   ([#1266](https://github.com/open-telemetry/opentelemetry-demo/pull/1266))
 * [accountingservice] Add additional attributes to Kafka spans
   ([#1286](https://github.com/open-telemetry/opentelemetry-demo/pull/1286))
+* fix env var for pinning trace-based test tool version
+  ([#1283](https://github.com/open-telemetry/opentelemetry-demo/pull/1283))
 
 ## 1.6.0
 
diff --git a/docker-compose.minimal.yml b/docker-compose.minimal.yml
index 20617d9df9..08bfeb24f5 100644
--- a/docker-compose.minimal.yml
+++ b/docker-compose.minimal.yml
@@ -639,6 +639,8 @@ services:
     build:
       context: ./
       dockerfile: ./test/tracetesting/Dockerfile
+      args:
+        - TRACETEST_IMAGE_VERSION
     environment:
       - AD_SERVICE_ADDR
       - CART_SERVICE_ADDR
diff --git a/docker-compose.yml b/docker-compose.yml
index d224dad9a4..934da68c22 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -784,6 +784,8 @@ services:
     build:
       context: ./
       dockerfile: ./test/tracetesting/Dockerfile
+      args:
+        - TRACETEST_IMAGE_VERSION
     environment:
       - AD_SERVICE_ADDR
       - CART_SERVICE_ADDR
diff --git a/test/tracetesting/Dockerfile b/test/tracetesting/Dockerfile
index 392f3d986c..c5c8d4d18d 100644
--- a/test/tracetesting/Dockerfile
+++ b/test/tracetesting/Dockerfile
@@ -6,6 +6,8 @@ FROM alpine
 
 WORKDIR /app
 
+ARG TRACETEST_IMAGE_VERSION
+
 RUN apk --update add bash jq curl
 RUN curl -L https://raw.githubusercontent.com/kubeshop/tracetest/main/install-cli.sh | bash -s -- ${TRACETEST_IMAGE_VERSION}