diff --git a/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/Manifest b/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/Manifest
index 00164c9e9c..b31d2c3322 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/Manifest
+++ b/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/Manifest
@@ -1 +1 @@
-DIST libsemanage-3.6.tar.gz 182583 BLAKE2B 3ed9ef06601093983fa41ad6ab9f7eeae241dce98937db04efca6f421afcfd3f59cf5e51d24c596ae03997a398949ed84fbdf629518e3c382a5453129b0a87ab SHA512 8998b6a1b254a9673b99ae4d70a1edc769bb728a44f573cdf62e0a9c9392b77644ee2d70e1936a2f8a9a7f8b063ce98a981f4b8b7060f5b82791889330d69364
+DIST libsemanage-3.7.tar.gz 182896 BLAKE2B e8a4a9a57f1862efac7e46b33f34f2fdcd116a14487ca07f65aebed62b3914bb1892606a76ed8addcbdb111f361507294ae3c75975a10b90f5d554ba59d2562d SHA512 4b6370b02116364964ff24b93fb6629c885611de78419f649a027db38b4f1c3b3adf3b438efb34a92b49407ab8f9446ed4091fe4c99fa4752f0f5e3e31589415
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/files/libsemanage-extra-config.patch b/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/files/libsemanage-extra-config.patch
deleted file mode 100644
index ecd0ffd920..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/files/libsemanage-extra-config.patch
+++ /dev/null
@@ -1,30 +0,0 @@
-diff -r -u libsemanage-3.6/src/semanage.conf libsemanage-3.6-patched/src/semanage.conf
---- libsemanage-3.6/src/semanage.conf	2023-12-13 15:46:22.000000000 +0100
-+++ libsemanage-3.6-patched/src/semanage.conf	2024-02-21 14:33:06.055611733 +0100
-@@ -40,3 +40,26 @@
- # By default, semanage will generate policies for the SELinux target.
- # To build policies for Xen, uncomment the following line.
- #target-platform = xen
-+
-+# Set this to true to save the linked policy.
-+# This is normally only useful for analysis
-+# or debugging of policy.
-+save-linked=false
-+
-+# Set this to 0 to disable assertion checking.
-+# This should speed up building the kernel policy
-+# from policy modules, but may leave you open to
-+# dangerous rules which assertion checking
-+# would catch.
-+expand-check=1
-+
-+# Modules in the module store can be compressed
-+# with bzip2.  Set this to the bzip2 blocksize
-+# 1-9 when compressing.  The higher the number,
-+# the more memory is traded off for disk space.
-+# Set to 0 to disable bzip2 compression.
-+bzip-blocksize=0
-+
-+# Reduce memory usage for bzip2 compression and
-+# decompression of modules in the module store.
-+bzip-small=true
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/libsemanage-3.6.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/libsemanage-3.6.ebuild
deleted file mode 100644
index 3de4516643..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/libsemanage-3.6.ebuild
+++ /dev/null
@@ -1,118 +0,0 @@
-# Copyright 1999-2024 Gentoo Authors
-# Distributed under the terms of the GNU General Public License v2
-
-EAPI=7
-PYTHON_COMPAT=( python3_{10..11} )
-
-inherit python-r1 toolchain-funcs multilib-minimal
-
-MY_PV="${PV//_/-}"
-MY_P="${PN}-${MY_PV}"
-
-DESCRIPTION="SELinux kernel and policy management library"
-HOMEPAGE="https://github.com/SELinuxProject/selinux/wiki"
-
-if [[ ${PV} == 9999 ]]; then
-	inherit git-r3
-	EGIT_REPO_URI="https://github.com/SELinuxProject/selinux.git"
-	S="${WORKDIR}/${P}/${PN}"
-else
-	SRC_URI="https://github.com/SELinuxProject/selinux/releases/download/${MY_PV}/${MY_P}.tar.gz"
-	KEYWORDS="amd64 arm arm64 ~mips ~riscv x86"
-	S="${WORKDIR}/${MY_P}"
-fi
-
-LICENSE="GPL-2"
-SLOT="0/2"
-IUSE="+python"
-REQUIRED_USE="python? ( ${PYTHON_REQUIRED_USE} )"
-
-RDEPEND="
-	app-arch/bzip2[${MULTILIB_USEDEP}]
-	>=sys-libs/libsepol-${PV}:=[${MULTILIB_USEDEP}]
-	>=sys-libs/libselinux-${PV}:=[${MULTILIB_USEDEP}]
-	>=sys-process/audit-2.2.2[${MULTILIB_USEDEP}]
-	python? ( ${PYTHON_DEPS} )
-"
-DEPEND="${RDEPEND}"
-BDEPEND="
-	app-alternatives/yacc
-	app-alternatives/lex
-	python? (
-		>=dev-lang/swig-2.0.4-r1
-		virtual/pkgconfig
-	)
-"
-
-# tests are not meant to be run outside of the
-# full SELinux userland repo
-RESTRICT="test"
-
-PATCHES=(
-    "${FILESDIR}/libsemanage-extra-config.patch"
-)
-
-src_prepare() {
-	default
-	multilib_copy_sources
-}
-
-multilib_src_compile() {
-	local -x CFLAGS="${CFLAGS} -fno-semantic-interposition"
-
-	emake \
-		AR="$(tc-getAR)" \
-		CC="$(tc-getCC)" \
-		LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
-		all
-
-	if use python && multilib_is_native_abi; then
-		building_py() {
-			emake \
-				AR="$(tc-getAR)" \
-				CC="$(tc-getCC)" \
-				PKG_CONFIG="$(tc-getPKG_CONFIG)" \
-				LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
-				"$@"
-		}
-		python_foreach_impl building_py swigify
-		python_foreach_impl building_py pywrap
-	fi
-}
-
-multilib_src_install() {
-	emake \
-		LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
-		DESTDIR="${ED}" install
-
-	if use python && multilib_is_native_abi; then
-		installation_py() {
-			emake DESTDIR="${ED}" \
-				LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
-				PKG_CONFIG="$(tc-getPKG_CONFIG)" \
-				install-pywrap
-			python_optimize # bug 531638
-		}
-		python_foreach_impl installation_py
-	fi
-}
-
-multiib_src_install_all() {
-	if use python; then
-		python_setup
-		python_fix_shebang "${ED}"/usr/libexec/selinux/semanage_migrate_store
-	fi
-}
-
-pkg_postinst() {
-	# Migrate the SELinux semanage configuration store if not done already
-	local selinuxtype=$(awk -F'=' '/SELINUXTYPE=/ {print $2}' "${EROOT}"/etc/selinux/config 2>/dev/null)
-	if [ -n "${selinuxtype}" ] && [ ! -d "${EROOT}"/var/lib/selinux/${selinuxtype}/active ] ; then
-		ewarn "Since the 2.4 SELinux userspace, the policy module store is moved"
-		ewarn "from /etc/selinux to /var/lib/selinux. The migration will be run now."
-		ewarn "If there are any issues, it can be done manually by running:"
-		ewarn "/usr/libexec/selinux/semanage_migrate_store"
-		ewarn "For more information, please see"
-		ewarn "- https://github.com/SELinuxProject/selinux/wiki/Policy-Store-Migration"
-	fi
-}
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/libsemanage-3.7.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/libsemanage-3.7.ebuild
new file mode 100644
index 0000000000..bf5e4bb664
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/sys-libs/libsemanage/libsemanage-3.7.ebuild
@@ -0,0 +1,117 @@
+# Copyright 1999-2025 Gentoo Authors
+# Distributed under the terms of the GNU General Public License v2
+
+EAPI="8"
+PYTHON_COMPAT=( python3_{10..12} )
+
+inherit python-r1 toolchain-funcs multilib-minimal
+
+MY_PV="${PV//_/-}"
+MY_P="${PN}-${MY_PV}"
+
+DESCRIPTION="SELinux kernel and policy management library"
+HOMEPAGE="https://github.com/SELinuxProject/selinux/wiki"
+
+if [[ ${PV} == 9999 ]]; then
+	inherit git-r3
+	EGIT_REPO_URI="https://github.com/SELinuxProject/selinux.git"
+	S="${WORKDIR}/${P}/${PN}"
+else
+	SRC_URI="https://github.com/SELinuxProject/selinux/releases/download/${MY_PV}/${MY_P}.tar.gz"
+	KEYWORDS="amd64 ~arm ~arm64 ~mips ~riscv x86"
+	S="${WORKDIR}/${MY_P}"
+fi
+
+LICENSE="GPL-2"
+SLOT="0/2"
+REQUIRED_USE="${PYTHON_REQUIRED_USE}"
+
+RDEPEND="app-arch/bzip2[${MULTILIB_USEDEP}]
+	>=sys-libs/libsepol-${PV}:=[${MULTILIB_USEDEP}]
+	>=sys-libs/libselinux-${PV}:=[${MULTILIB_USEDEP}]
+	>=sys-process/audit-2.2.2[${MULTILIB_USEDEP}]
+	${PYTHON_DEPS}"
+DEPEND="${RDEPEND}"
+BDEPEND=">=dev-lang/swig-2.0.4-r1
+	app-alternatives/yacc
+	app-alternatives/lex
+	virtual/pkgconfig"
+
+# tests are not meant to be run outside of the
+# full SELinux userland repo
+RESTRICT="test"
+
+src_prepare() {
+	eapply_user
+
+	echo >> "${S}/src/semanage.conf"
+	echo "# Set this to true to save the linked policy." >> "${S}/src/semanage.conf"
+	echo "# This is normally only useful for analysis" >> "${S}/src/semanage.conf"
+	echo "# or debugging of policy." >> "${S}/src/semanage.conf"
+	echo "save-linked=false" >> "${S}/src/semanage.conf"
+	echo >> "${S}/src/semanage.conf"
+	echo "# Set this to 0 to disable assertion checking." >> "${S}/src/semanage.conf"
+	echo "# This should speed up building the kernel policy" >> "${S}/src/semanage.conf"
+	echo "# from policy modules, but may leave you open to" >> "${S}/src/semanage.conf"
+	echo "# dangerous rules which assertion checking" >> "${S}/src/semanage.conf"
+	echo "# would catch." >> "${S}/src/semanage.conf"
+	echo "expand-check=1" >> "${S}/src/semanage.conf"
+	echo >> "${S}/src/semanage.conf"
+	echo "# Modules in the module store can be compressed" >> "${S}/src/semanage.conf"
+	echo "# with bzip2.  Set this to the bzip2 blocksize" >> "${S}/src/semanage.conf"
+	echo "# 1-9 when compressing.  The higher the number," >> "${S}/src/semanage.conf"
+	echo "# the more memory is traded off for disk space." >> "${S}/src/semanage.conf"
+	echo "# Set to 0 to disable bzip2 compression." >> "${S}/src/semanage.conf"
+	echo "bzip-blocksize=0" >> "${S}/src/semanage.conf"
+	echo >> "${S}/src/semanage.conf"
+	echo "# Reduce memory usage for bzip2 compression and" >> "${S}/src/semanage.conf"
+	echo "# decompression of modules in the module store." >> "${S}/src/semanage.conf"
+	echo "bzip-small=true" >> "${S}/src/semanage.conf"
+
+	multilib_copy_sources
+}
+
+multilib_src_compile() {
+	local -x CFLAGS="${CFLAGS} -fno-semantic-interposition"
+
+	emake \
+		AR="$(tc-getAR)" \
+		CC="$(tc-getCC)" \
+		LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
+		all
+
+	if multilib_is_native_abi; then
+		building_py() {
+			emake \
+				AR="$(tc-getAR)" \
+				CC="$(tc-getCC)" \
+				PKG_CONFIG="$(tc-getPKG_CONFIG)" \
+				LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
+				"$@"
+		}
+		python_foreach_impl building_py swigify
+		python_foreach_impl building_py pywrap
+	fi
+}
+
+multilib_src_install() {
+	emake \
+		LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
+		DESTDIR="${ED}" install
+
+	if multilib_is_native_abi; then
+		installation_py() {
+			emake DESTDIR="${ED}" \
+				LIBDIR="${EPREFIX}/usr/$(get_libdir)" \
+				PKG_CONFIG="$(tc-getPKG_CONFIG)" \
+				install-pywrap
+			python_optimize # bug 531638
+		}
+		python_foreach_impl installation_py
+	fi
+}
+
+multiib_src_install_all() {
+	python_setup
+	python_fix_shebang "${ED}"/usr/libexec/selinux/semanage_migrate_store
+}