diff --git a/sdk_container/src/third_party/portage-stable/sys-auth/sssd/Manifest b/sdk_container/src/third_party/portage-stable/sys-auth/sssd/Manifest
index 0a61b4a456..7d2e750c76 100644
--- a/sdk_container/src/third_party/portage-stable/sys-auth/sssd/Manifest
+++ b/sdk_container/src/third_party/portage-stable/sys-auth/sssd/Manifest
@@ -1,2 +1,3 @@
-DIST sssd-2.11.1.tar.gz 9247352 BLAKE2B 94cad491dfc9c52db369849b2058774a966fbd405c968f949220fa1b1bc1d6865253c32d9214d0203d61bccc11198997c70923a536b889423b6e0c43bd1aa7ec SHA512 e65897bcb9ddd64f6c01787ad7b7eab3c9916e10f9ead02a6e92de503a4ea71c091e998ccf0344576b520bea75abfe5fd2880e8401237a26274d764d291f6fa4
+DIST sssd-2.12.0.tar.gz 9739617 BLAKE2B d5629a24ee6db3e0a7a205a387acb01d0cc102b6bfc1131a208ea03c609941dd5ccfefd790ca1dc10f6e57d698828ff38364be9c8f6a7f7aeaec4b8a07346494 SHA512 3bd90a88a43019b00d3f0a674ef4d2473bf6895e749a54bec8ac1661e7d289083e0cbd64846dacc8bdd4b2447f171dddb2d0ba108962dbd862bce86c2247b038
 DIST sssd-2.9.7.tar.gz 9161891 BLAKE2B 1658f3a6447c58665fccf144292deda759a72e1dbe0913e49f510fa8342e0fa09569319a40293a63c360c17ede0e8051c93b81e488549ed8e3bbeff37ce86389 SHA512 ba2bcab28491971e420b8bb8769574e88af4059cad5cec5320668cabf31c11314fce6dcab45b097d7b0876dfebe1cad22a0104c0856c80cdc07c21b19a95a3f2
+DIST sssd-2.9.8.tar.gz 9330244 BLAKE2B f5f88287b4bf7936e56e44c9ba7eba728c8546663304f9c6881d5bb427ff5f3dfb635536110f198439b41b481a7b9a2980138acd0d90d7334d439559425d9170 SHA512 9b10cb5e343d32402a437dab3304c16596e9eb7b51a452ca3e2b3fea4aa8dc879abe06a57ccc716bece8024847211abf5affa83e1d2ca2cac101132133a6619a
diff --git a/sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.11.1.ebuild b/sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.12.0.ebuild
similarity index 99%
rename from sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.11.1.ebuild
rename to sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.12.0.ebuild
index 525ddb890f..74bc1a8794 100644
--- a/sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.11.1.ebuild
+++ b/sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.12.0.ebuild
@@ -1,4 +1,4 @@
-# Copyright 1999-2025 Gentoo Authors
+# Copyright 1999-2026 Gentoo Authors
 # Distributed under the terms of the GNU General Public License v2
 
 EAPI=8
@@ -110,7 +110,6 @@ CONFIG_CHECK="~KEYS"
 PATCHES=(
 	"${FILESDIR}/${PN}-2.8.2-krb5_pw_locked.patch"
 	"${FILESDIR}/${PN}-2.9.6-conditional-python-install.patch"
-	"${FILESDIR}/${PN}-2.9.7-kerberos-1-22.patch"
 	"${FILESDIR}/${PN}-2.10.0_beta2-fix-systemd-systemconfdir.patch"
 )
 
diff --git a/sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.9.8.ebuild b/sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.9.8.ebuild
new file mode 100644
index 0000000000..b98cd99c4b
--- /dev/null
+++ b/sdk_container/src/third_party/portage-stable/sys-auth/sssd/sssd-2.9.8.ebuild
@@ -0,0 +1,341 @@
+# Copyright 1999-2026 Gentoo Authors
+# Distributed under the terms of the GNU General Public License v2
+
+EAPI=8
+
+PLOCALES="ca de es fr ja ko pt_BR ru sv tr uk"
+PLOCALES_BIN="${PLOCALES} bg cs eu fi hu id it ka nb nl pl pt tg zh_TW zh_CN"
+PLOCALE_BACKUP="sv"
+PYTHON_COMPAT=( python3_{10..13} )
+
+inherit autotools linux-info multilib-minimal optfeature plocale \
+	python-single-r1 pam systemd toolchain-funcs
+
+DESCRIPTION="System Security Services Daemon provides access to identity and authentication"
+HOMEPAGE="https://github.com/SSSD/sssd"
+if [[ ${PV} != 9999 ]]; then
+	SRC_URI="https://github.com/SSSD/sssd/releases/download/${PV}/${P}.tar.gz"
+	KEYWORDS="~amd64 ~arm ~arm64 ~hppa ~m68k ~mips ~ppc ~ppc64 ~riscv ~sparc ~x86"
+else
+	inherit git-r3
+	EGIT_REPO_URI="https://github.com/SSSD/sssd.git"
+	EGIT_BRANCH="master"
+fi
+
+LICENSE="GPL-3"
+SLOT="0"
+IUSE="acl doc +netlink nfsv4 nls passkey python samba selinux systemd systemtap test"
+REQUIRED_USE="python? ( ${PYTHON_REQUIRED_USE} )"
+RESTRICT="!test? ( test )"
+
+DEPEND="
+	>=app-crypt/mit-krb5-1.19.1[${MULTILIB_USEDEP}]
+	app-crypt/p11-kit
+	>=dev-libs/ding-libs-0.2
+	>=dev-libs/cyrus-sasl-2.1.25-r3[kerberos]
+	dev-libs/jansson:=
+	dev-libs/libpcre2:=
+	dev-libs/libunistring:=[${MULTILIB_USEDEP}]
+	>=dev-libs/popt-1.16
+	>=dev-libs/openssl-1.0.2:=
+	>=net-dns/bind-9.9[gssapi]
+	>=net-dns/c-ares-1.10.0-r1:=[${MULTILIB_USEDEP}]
+	>=net-nds/openldap-2.4.30:=[sasl,experimental]
+	>=sys-apps/dbus-1.6
+	>=sys-apps/keyutils-1.5:=
+	>=sys-libs/pam-0-r1[${MULTILIB_USEDEP}]
+	>=sys-libs/talloc-2.0.7
+	>=sys-libs/tdb-1.2.9
+	>=sys-libs/tevent-0.9.16
+	virtual/ldb:=
+	virtual/libintl
+	acl? ( net-fs/cifs-utils[acl] )
+	netlink? ( dev-libs/libnl:3 )
+	nfsv4? ( >=net-fs/nfs-utils-2.3.1-r2 )
+	nls? ( >=sys-devel/gettext-0.18 )
+	passkey? ( dev-libs/libfido2:= )
+	python? (
+		${PYTHON_DEPS}
+		systemd? (
+			$(python_gen_cond_dep '
+				dev-python/python-systemd[${PYTHON_USEDEP}]
+			')
+		)
+	)
+	samba? ( >=net-fs/samba-4.10.2[winbind] )
+	selinux? (
+		>=sys-libs/libselinux-2.1.9
+		>=sys-libs/libsemanage-2.1
+	)
+	systemd? (
+		sys-apps/systemd:=
+		sys-apps/util-linux
+	)
+	systemtap? ( dev-debug/systemtap )"
+RDEPEND="${DEPEND}
+	passkey? ( sys-apps/pcsc-lite[policykit] )
+	selinux? ( >=sec-policy/selinux-sssd-2.20120725-r9 )"
+DEPEND+="
+	sys-apps/shadow"
+BDEPEND="
+	virtual/pkgconfig
+	app-text/docbook-xml-dtd:4.4
+	>=dev-libs/libxslt-1.1.26
+	${PYTHON_DEPS}
+	doc? ( app-text/doxygen )
+	nls? ( sys-devel/gettext
+	       app-text/po4a )
+	test? (
+		dev-libs/check
+		dev-libs/softhsm:2
+		dev-util/cmocka
+		net-libs/gnutls[pkcs11,tools]
+		sys-libs/libfaketime
+		sys-libs/nss_wrapper
+		sys-libs/pam_wrapper
+		sys-libs/uid_wrapper
+	)
+"
+
+CONFIG_CHECK="~KEYS"
+
+PATCHES=(
+	"${FILESDIR}/${PN}-2.8.2-krb5_pw_locked.patch"
+	"${FILESDIR}/${PN}-2.9.6-conditional-python-install.patch"
+	"${FILESDIR}/${PN}-2.9.7-kerberos-1-22.patch"
+)
+
+MULTILIB_WRAPPED_HEADERS=(
+	/usr/include/ipa_hbac.h
+	/usr/include/sss_idmap.h
+	/usr/include/sss_nss_idmap.h
+	# --with-ifp
+	/usr/include/sss_sifp.h
+	/usr/include/sss_sifp_dbus.h
+	# from 1.15.3
+	/usr/include/sss_certmap.h
+)
+
+pkg_setup() {
+	linux-info_pkg_setup
+	python-single-r1_pkg_setup
+}
+
+src_prepare() {
+	default
+
+	plocale_get_locales > src/man/po/LINGUAS || die
+
+	sed -i \
+		-e "/_langs]/ s/ .*//" \
+		src/man/po/po4a.cfg \
+		|| die
+	enable_locale() {
+		local locale=${1}
+
+		sed -i \
+			-e "/_langs]/ s/$/ ${locale}/" \
+			src/man/po/po4a.cfg \
+			|| die
+	}
+
+	plocale_for_each_locale enable_locale
+
+	PLOCALES="${PLOCALES_BIN}"
+	plocale_get_locales > po/LINGUAS || die
+
+	sed -i \
+		-e 's:/var/run:/run:' \
+		src/examples/logrotate \
+		|| die
+
+	# disable flaky test, see https://github.com/SSSD/sssd/issues/5631
+	sed -i \
+		-e '/^\s*pam-srv-tests[ \\]*$/d' \
+		Makefile.am \
+		|| die
+
+	eautoreconf
+
+	multilib_copy_sources
+}
+
+src_configure() {
+	local native_dbus_cflags=$($(tc-getPKG_CONFIG) --cflags dbus-1 || die)
+
+	# Workaround for bug #938302
+	if use systemtap && has_version "dev-debug/systemtap[-dtrace-symlink(+)]" ; then
+		export DTRACE="${BROOT}"/usr/bin/stap-dtrace
+	fi
+
+	multilib-minimal_src_configure
+}
+
+multilib_src_configure() {
+	local myconf=()
+
+	myconf+=(
+		--libexecdir="${EPREFIX}"/usr/libexec
+		--localstatedir="${EPREFIX}"/var
+		--runstatedir="${EPREFIX}"/run
+		--sbindir="${EPREFIX}"/usr/sbin
+		--with-pid-path="${EPREFIX}"/run
+		--with-plugin-path="${EPREFIX}"/usr/$(get_libdir)/sssd
+		--enable-pammoddir="${EPREFIX}$(getpam_mod_dir)"
+		--with-ldb-lib-dir="${EPREFIX}"/usr/$(get_libdir)/samba/ldb
+		--with-db-path="${EPREFIX}"/var/lib/sss/db
+		--with-gpo-cache-path="${EPREFIX}"/var/lib/sss/gpo_cache
+		--with-pubconf-path="${EPREFIX}"/var/lib/sss/pubconf
+		--with-pipe-path="${EPREFIX}"/var/lib/sss/pipes
+		--with-mcache-path="${EPREFIX}"/var/lib/sss/mc
+		--with-secrets-db-path="${EPREFIX}"/var/lib/sss/secrets
+		--with-log-path="${EPREFIX}"/var/log/sssd
+		--with-kcm
+		--enable-kcm-renewal
+		--with-os=gentoo
+		--disable-rpath
+		--disable-static
+		# Valgrind is only used for tests
+		--disable-valgrind
+		$(use_with samba)
+		--with-smb-idmap-interface-version=6
+		$(multilib_native_use_enable acl cifs-idmap-plugin)
+		$(multilib_native_use_with selinux)
+		$(multilib_native_use_with selinux semanage)
+		--enable-krb5-locator-plugin
+		$(use_enable samba pac-responder)
+		$(multilib_native_use_with nfsv4 nfsv4-idmapd-plugin)
+		$(use_enable nls)
+		$(multilib_native_use_with netlink libnl)
+		--with-manpages
+		--with-sudo
+		$(multilib_native_with autofs)
+		$(multilib_native_with ssh)
+		--without-oidc-child
+		$(multilib_native_with passkey)
+		--with-subid
+		$(use_enable systemtap)
+		--without-python2-bindings
+		$(multilib_native_use_with python python3-bindings)
+		# Annoyingly configure requires that you pick systemd XOR sysv
+		--with-initscript=$(usex systemd systemd sysv)
+		KRB5_CONFIG="${ESYSROOT}"/usr/bin/krb5-config
+		# Needed for Samba 4.21
+		CPPFLAGS="${CPPFLAGS} -I${ESYSROOT}/usr/include/samba-4.0"
+	)
+
+	use systemd && myconf+=(
+		--with-systemdunitdir=$(systemd_get_systemunitdir)
+	)
+
+	if ! multilib_is_native_abi; then
+		# work-around all the libraries that are used for CLI and server
+		myconf+=(
+			{POPT,TALLOC,TDB,TEVENT,LDB}_{CFLAGS,LIBS}=' '
+			# ldb headers are fine since native needs it
+			# ldb lib fails... but it does not seem to bother
+			{DHASH,UNISTRING,INI_CONFIG_V{0,1,1_1,1_3}}_{CFLAGS,LIBS}=' '
+			{PCRE,CARES,SYSTEMD_LOGIN,SASL,DBUS,CRYPTO,P11_KIT}_{CFLAGS,LIBS}=' '
+			{NDR_NBT,SAMBA_UTIL,SMBCLIENT,NDR_KRB5PAC,JANSSON}_{CFLAGS,LIBS}=' '
+
+			# use native include path for dbus (needed for build)
+			DBUS_CFLAGS="${native_dbus_cflags}"
+
+			# non-pkgconfig checks
+			ac_cv_lib_ldap_ldap_search=yes
+			--without-kcm
+			--without-manpages
+		)
+	fi
+
+	econf "${myconf[@]}"
+}
+
+multilib_src_compile() {
+	if multilib_is_native_abi; then
+		default
+		use doc && emake docs
+	else
+		emake libnss_sss.la pam_sss.la pam_sss_gss.la
+		emake sssd_krb5_locator_plugin.la
+		use samba && emake sssd_pac_plugin.la
+	fi
+}
+
+multilib_src_test() {
+	if multilib_is_native_abi; then
+		local -x CK_TIMEOUT_MULTIPLIER=10
+		emake check VERBOSE=yes
+	fi
+}
+
+multilib_src_install() {
+	if multilib_is_native_abi; then
+		emake -j1 DESTDIR="${D}" install
+		if use python; then
+			python_fix_shebang "${ED}"
+			python_optimize
+		fi
+	else
+		# easier than playing with automake...
+		dopammod .libs/pam_sss.so
+		dopammod .libs/pam_sss_gss.so
+
+		into /
+		dolib.so .libs/libnss_sss.so*
+
+		exeinto /usr/$(get_libdir)/krb5/plugins/libkrb5
+		doexe .libs/sssd_krb5_locator_plugin.so
+
+		if use samba; then
+			exeinto /usr/$(get_libdir)/krb5/plugins/authdata
+			doexe .libs/sssd_pac_plugin.so
+		fi
+	fi
+}
+
+multilib_src_install_all() {
+	einstalldocs
+
+	insinto /etc/sssd
+	insopts -m600
+	doins src/examples/sssd-example.conf
+
+	insinto /etc/logrotate.d
+	insopts -m644
+	newins src/examples/logrotate sssd
+
+	newconfd "${FILESDIR}"/sssd.conf sssd
+
+	keepdir /var/lib/sss/db
+	keepdir /var/lib/sss/deskprofile
+	keepdir /var/lib/sss/gpo_cache
+	keepdir /var/lib/sss/keytabs
+	keepdir /var/lib/sss/mc
+	keepdir /var/lib/sss/pipes/private
+	keepdir /var/lib/sss/pubconf/krb5.include.d
+	keepdir /var/lib/sss/secrets
+	keepdir /var/log/sssd
+
+	# strip empty dirs
+	if ! use doc; then
+		rm -r "${ED}"/usr/share/doc/"${PF}"/doc || die
+		rm -r "${ED}"/usr/share/doc/"${PF}"/{hbac,idmap,nss_idmap}_doc || die
+	fi
+
+	rm -r "${ED}"/run || die
+	find "${ED}" -type f -name '*.la' -delete || die
+}
+
+pkg_postinst() {
+	elog "You must set up sssd.conf (default installed into /etc/sssd)"
+	elog "and (optionally) configuration in /etc/pam.d in order to use SSSD"
+	elog "features."
+	echo
+	optfeature "Kerberos keytab renew (see krb5_renew_interval)" app-crypt/adcli
+
+	if ! use python; then
+		echo
+		ewarn "sssctl analyze will not work because the python USE flag is disabled."
+	fi
+}