diff --git a/changelog/updates/2023-09-01-open-vm-tools-12.3.0-update.md b/changelog/updates/2023-09-01-open-vm-tools-12.3.0-update.md
new file mode 100644
index 0000000000..0fc2020acc
--- /dev/null
+++ b/changelog/updates/2023-09-01-open-vm-tools-12.3.0-update.md
@@ -0,0 +1 @@
+- VMware: open-vm-tools ([12.3.0](https://github.com/vmware/open-vm-tools/releases/tag/stable-12.3.0))
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/Manifest b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/Manifest
index d78ae08b21..4c435b607b 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/Manifest
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/Manifest
@@ -1 +1 @@
-DIST open-vm-tools-12.2.5-21855600.tar.gz 4365531 BLAKE2B 1df621aea3d349af45c41268f3ab9ef6dc012bc7b74b8ff399a3819f75c92b408f272c03e31ff74d7f1aceda8a88e5755064236b87403d8ef2717567de174434 SHA512 72db3b88f61624d26e8ff7e37e4fc52ecd0bec0b6f076d935870c03312321c5e0b406d05eae7012872734a50626ed760dff2cf872e26ec18ebf200aff5ed12ef
+DIST open-vm-tools-12.3.0-22234872.tar.gz 4362694 BLAKE2B dbbcc3af51737cd9f4ed67a5d77e74dc3040e872b1af58e06a691c74987c3f39b9923c837a18629d758a807c81237f9398c436212d2acef687d35cc8acee2b43 SHA512 942be3c225d5724e236959dc0d422358b99d2844ed8f1c2d2ca06ea5959c12b1a5ac4fa47ee48c27d1c1291f6d783d1cf87303bf64b8117fd96f226ae4d632e5
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.2.5.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.0.ebuild
similarity index 99%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.2.5.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.0.ebuild
index 9cf66c9bb6..2ca1c4dd56 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.2.5.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.0.ebuild
@@ -7,7 +7,7 @@ inherit autotools flag-o-matic multilib toolchain-funcs
 
 DESCRIPTION="Opensourced tools for VMware guests"
 HOMEPAGE="https://github.com/vmware/open-vm-tools"
-MY_P="${P}-21855600"
+MY_P="${P}-22234872"
 SRC_URI="https://github.com/vmware/open-vm-tools/releases/download/stable-${PV}/${MY_P}.tar.gz"
 
 LICENSE="LGPL-2.1"
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-12.2.5.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-12.3.0.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-12.2.5.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-12.3.0.ebuild