diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/files/open-vm-tools-10.1.5-0001-configure-Add-options-for-fuse-hgfs-and-udev.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/files/open-vm-tools-10.1.5-0001-configure-Add-options-for-fuse-hgfs-and-udev.patch
new file mode 100644
index 0000000000..cbc16cf366
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/files/open-vm-tools-10.1.5-0001-configure-Add-options-for-fuse-hgfs-and-udev.patch
@@ -0,0 +1,68 @@
+From 8e133dc233f420c8b19f01ff275d7fb4ff9e36ff Mon Sep 17 00:00:00 2001
+From: Benjamin Gilbert <benjamin.gilbert@coreos.com>
+Date: Tue, 21 Mar 2017 16:04:30 -0700
+Subject: [PATCH] configure: Add options for fuse, hgfs, and udev
+
+---
+ open-vm-tools/configure.ac | 24 +++++++++++++++++++++++-
+ 1 file changed, 23 insertions(+), 1 deletion(-)
+
+diff --git a/open-vm-tools/configure.ac b/open-vm-tools/configure.ac
+index 20370ae..578894b 100644
+--- a/open-vm-tools/configure.ac
++++ b/open-vm-tools/configure.ac
+@@ -393,6 +393,13 @@ fi
+ #
+ # Check for fuse.
+ #
++AC_ARG_WITH([fuse],
++   [AS_HELP_STRING([--without-fuse],
++   [compiles without fuse support.])],
++   [],
++   [with_fuse=yes])
++
++if test "$with_fuse" = "yes"; then
+ AC_VMW_CHECK_LIB([fuse],
+                  [FUSE],
+                  [fuse],
+@@ -403,6 +410,7 @@ AC_VMW_CHECK_LIB([fuse],
+                  [have_fuse=yes],
+                  [have_fuse=no;
+                   AC_MSG_WARN([Fuse is missing, vmblock-fuse/vmhgfs-fuse will be disabled.])])
++fi
+ 
+ #
+ # Check for PAM.
+@@ -1332,7 +1340,13 @@ if test "$os" = "solaris"; then
+    fi
+ fi
+ 
+-if test "$os" = "linux"; then
++AC_ARG_WITH([udev-rules],
++   [AS_HELP_STRING([--without-udev-rules],
++   [don't install udev rules])],
++   [],
++   [with_udev_rules=yes])
++
++if test "$os" = "linux" -a "$with_udev_rules" = "yes"; then
+     have_udev="yes"
+     AC_ARG_WITH([udev-rules-dir],
+                 [AS_HELP_STRING([--with-udev-rules-dir=DIR],
+@@ -1352,6 +1366,14 @@ else
+     UDEVRULESDIR=""
+ fi
+ 
++if test "$buildHgfsmounter" = "yes"; then
++    AC_ARG_ENABLE([hgfs-mounter],
++                  [AS_HELP_STRING([--disable-hgfs-mounter],
++                                  [disables mount.vmhgfs])],
++                  [buildHgfsmounter="$enableval"],
++                  [])
++fi
++
+ AM_CONDITIONAL(BUILD_HGFSMOUNTER, test "$buildHgfsmounter" = "yes")
+ AM_CONDITIONAL(LINUX, test "$os" = "linux")
+ AM_CONDITIONAL(SOLARIS, test "$os" = "solaris")
+-- 
+2.9.3
+
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/files/open-vm-tools-9.10.0-0001-configure-Add-options-for-fuse-and-hgfs.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/files/open-vm-tools-9.10.0-0001-configure-Add-options-for-fuse-and-hgfs.patch
deleted file mode 100644
index 4cf8c02954..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/files/open-vm-tools-9.10.0-0001-configure-Add-options-for-fuse-and-hgfs.patch
+++ /dev/null
@@ -1,53 +0,0 @@
-From aa50490f8dcb3111f49035bd8ed85bf47f304f31 Mon Sep 17 00:00:00 2001
-From: Michael Marineau <mike@marineau.org>
-Date: Sun, 30 Mar 2014 20:28:05 -0700
-Subject: [PATCH 1/3] configure: Add options for fuse and hgfs
-
----
- configure.ac | 16 ++++++++++++++++
- 1 file changed, 16 insertions(+)
-
-diff --git a/configure.ac b/configure.ac
-index 549736f..4964364 100644
---- a/configure.ac
-+++ b/configure.ac
-@@ -355,6 +355,13 @@ fi
- #
- # Check for fuse.
- #
-+AC_ARG_WITH([fuse],
-+   [AS_HELP_STRING([--without-fuse],
-+   [compiles without fuse support.])],
-+   [],
-+   [with_fuse=yes])
-+
-+if test "$with_fuse" = "yes"; then
- AC_VMW_CHECK_LIB([fuse],
-                  [FUSE],
-                  [fuse],
-@@ -365,6 +372,7 @@ AC_VMW_CHECK_LIB([fuse],
-                  [have_fuse=yes],
-                  [have_fuse=no;
-                   AC_MSG_WARN([Fuse is missing, vmblock-fuse will be disabled.])])
-+fi
- 
- #
- # Check for PAM.
-@@ -1013,6 +1021,14 @@ if test "$os" = "solaris"; then
-    fi
- fi
- 
-+if test "$buildHgfsmounter" = "yes"; then
-+    AC_ARG_ENABLE([hgfs-mounter],
-+                  [AS_HELP_STRING([--disable-hgfs-mounter],
-+                                  [disables mount.vmhgfs])],
-+                  [buildHgfsmounter="$enableval"],
-+                  [])
-+fi
-+
- AM_CONDITIONAL(BUILD_HGFSMOUNTER, test "$buildHgfsmounter" = "yes")
- AM_CONDITIONAL(LINUX, test "$os" = "linux")
- AM_CONDITIONAL(SOLARIS, test "$os" = "solaris")
--- 
-2.0.4
-
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-9.10.0-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-10.1.5.ebuild
similarity index 90%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-9.10.0-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-10.1.5.ebuild
index 5e7c511c59..50dbeefd2d 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-9.10.0-r1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-10.1.5.ebuild
@@ -9,10 +9,10 @@ AUTOTOOLS_IN_SOURCE_BUILD=1
 inherit autotools-utils flag-o-matic git-2 multilib toolchain-funcs
 
 DESCRIPTION="VMware tools for distribution via /usr/share/oem"
-HOMEPAGE="http://open-vm-tools.sourceforge.net/"
+HOMEPAGE="https://github.com/vmware/open-vm-tools"
 
 EGIT_REPO_URI="https://github.com/vmware/open-vm-tools"
-EGIT_COMMIT="0696234c3905bf91cfba2cf909dbf92fc30ee6fc"
+EGIT_COMMIT="854c0bb374612f7e633b448ca273f970f154458b"
 EGIT_SOURCEDIR="${WORKDIR}"
 
 LICENSE="LGPL-2"
@@ -36,7 +36,7 @@ RDEPEND="dnet? ( dev-libs/libdnet )
 S="${WORKDIR}/${PN}"
 
 PATCHES=(
-	"${FILESDIR}/${P}-0001-configure-Add-options-for-fuse-and-hgfs.patch"
+	"${FILESDIR}/${P}-0001-configure-Add-options-for-fuse-hgfs-and-udev.patch"
 )
 
 #pkg_setup() {
@@ -93,6 +93,7 @@ src_configure() {
 		--without-icu
 		--without-kernel-modules
 		--without-pam
+		--without-udev-rules
 		--without-x
 		--disable-vgauth
 		$(use_with dnet)
@@ -107,7 +108,8 @@ src_configure() {
 }
 
 src_install() {
-	# Relocate event scripts, a symlink will be created by cloudinit.
+	# Relocate event scripts, a symlink will be created by the systemd
+	# unit.
 	emake DESTDIR="${D}" confdir=/usr/share/oem/vmware-tools install
 
 	rm "${D}"/etc/pam.d/vmtoolsd
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/files/units/vmtoolsd.service b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/files/units/vmtoolsd.service
index 726eea11ef..0cc3af343c 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/files/units/vmtoolsd.service
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/files/units/vmtoolsd.service
@@ -1,6 +1,6 @@
 [Unit]
 Description=VMware Tools Agent
-Documentation=http://open-vm-tools.sourceforge.net/
+Documentation=https://github.com/vmware/open-vm-tools
 ConditionVirtualization=vmware
 
 [Service]
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-9.10.0-r5.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-10.1.5.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-9.10.0-r5.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-10.1.5.ebuild