diff --git a/changelog/security/2023-11-06-open-vm-tools-12.3.5-update.md b/changelog/security/2023-11-06-open-vm-tools-12.3.5-update.md
new file mode 100644
index 0000000000..ba6a9cd118
--- /dev/null
+++ b/changelog/security/2023-11-06-open-vm-tools-12.3.5-update.md
@@ -0,0 +1 @@
+- VMWare: open-vm-tools ([CVE-2023-34058](https://nvd.nist.gov/vuln/detail/CVE-2023-34058), [CVE-2023-34059](https://nvd.nist.gov/vuln/detail/CVE-2023-34059))
diff --git a/changelog/updates/2023-11-01-open-vm-tools-12.3.5-update.md b/changelog/updates/2023-11-01-open-vm-tools-12.3.5-update.md
new file mode 100644
index 0000000000..05378970d1
--- /dev/null
+++ b/changelog/updates/2023-11-01-open-vm-tools-12.3.5-update.md
@@ -0,0 +1 @@
+- VMWare: open-vm-tools ([12.3.5](https://github.com/vmware/open-vm-tools/releases/tag/stable-12.3.5))
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 4c435b607b..420df13cfc 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-12.3.0-22234872.tar.gz 4362694 BLAKE2B dbbcc3af51737cd9f4ed67a5d77e74dc3040e872b1af58e06a691c74987c3f39b9923c837a18629d758a807c81237f9398c436212d2acef687d35cc8acee2b43 SHA512 942be3c225d5724e236959dc0d422358b99d2844ed8f1c2d2ca06ea5959c12b1a5ac4fa47ee48c27d1c1291f6d783d1cf87303bf64b8117fd96f226ae4d632e5
+DIST open-vm-tools-12.3.5-22544099.tar.gz 4364646 BLAKE2B 465165f5d23dbfac1c8aa9f12bdb42563a62ad111fce1b8cc4647f564c7a3d49e13431e5085b315f34b0caeee92b43b785f693f7b1dcf18777d7b2a56cfaffc2 SHA512 7a81d929ea4871b8af0af0fa3dc62a821ac4286235255103f1bcf014e3b04b5bbbfa178a9328a16d67cfd595c4ce726dc9e195adbe21ec5c68a4d1abb1561ff6
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.0-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.5.ebuild
similarity index 99%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.0-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.5.ebuild
index e582b2cce3..27c5613f38 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.0-r1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.5.ebuild
@@ -7,7 +7,7 @@ inherit autotools linux-info pam systemd udev
 
 DESCRIPTION="Tools for VMware guests"
 HOMEPAGE="https://github.com/vmware/open-vm-tools"
-MY_P="${P}-22234872"
+MY_P="${P}-22544099"
 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-12.3.0-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-12.3.5.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-12.3.0-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-vmware/oem-vmware-12.3.5.ebuild