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 bdbc4e5c9a..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
@@ -1,2 +1 @@
-DIST open-vm-tools-12.2.0-21223074.tar.gz 4365836 BLAKE2B ecac1ada523b9ba6e6f9e880f700a9c35200e9093c81f3367ce3b196365166f682f7d8ba290f624417b83c3573894020fe6b4cbd82a117412ebe80df283f32db SHA512 d663d8ea455264cad7d3eaac16c5d08672e8e10f7a9171be40fff69e208ae697bc0e8af498c978d8de470ed273351b42c54994b2c552fdc05b828c80f4826b84
-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-12.2.5.ebuild
deleted file mode 100644
index 7747d4c3c3..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.2.5.ebuild
+++ /dev/null
@@ -1,149 +0,0 @@
-# Copyright 2007-2023 Gentoo Authors
-# Distributed under the terms of the GNU General Public License v2
-
-EAPI=8
-
-inherit autotools linux-info pam systemd udev
-
-DESCRIPTION="Tools for VMware guests"
-HOMEPAGE="https://github.com/vmware/open-vm-tools"
-MY_P="${P}-21855600"
-SRC_URI="https://github.com/vmware/open-vm-tools/releases/download/stable-${PV}/${MY_P}.tar.gz"
-
-LICENSE="LGPL-2.1"
-SLOT="0"
-KEYWORDS="amd64 x86"
-IUSE="X +deploypkg +dnet doc +fuse gtkmm +icu multimon pam +resolutionkms +ssl +vgauth"
-REQUIRED_USE="
-	multimon? ( X )
-	vgauth? ( ssl )
-"
-
-RDEPEND="
-	dev-libs/glib
-	net-libs/libtirpc
-	deploypkg? ( dev-libs/libmspack )
-	fuse? ( sys-fs/fuse:0 )
-	pam? ( sys-libs/pam )
-	!pam? ( virtual/libcrypt:= )
-	ssl? ( dev-libs/openssl:0= )
-	vgauth? (
-		dev-libs/libxml2
-		dev-libs/xmlsec:=
-	)
-	X? (
-		x11-libs/libXext
-		multimon? ( x11-libs/libXinerama )
-		x11-libs/libXi
-		x11-libs/libXrender
-		x11-libs/libXrandr
-		x11-libs/libXtst
-		x11-libs/libSM
-		x11-libs/libXcomposite
-		x11-libs/gdk-pixbuf-xlib
-		x11-libs/gtk+:3
-		gtkmm? (
-			dev-cpp/gtkmm:3.0
-			dev-libs/libsigc++:2
-		)
-	)
-	dnet? ( dev-libs/libdnet )
-	icu? ( dev-libs/icu:= )
-	resolutionkms? (
-		x11-libs/libdrm[video_cards_vmware]
-		virtual/libudev
-	)
-"
-
-DEPEND="${RDEPEND}
-	net-libs/rpcsvc-proto
-"
-
-BDEPEND="
-	dev-util/glib-utils
-	virtual/pkgconfig
-	doc? ( app-doc/doxygen )
-"
-
-S="${WORKDIR}/${MY_P}"
-
-PATCHES=(
-	"${FILESDIR}/10.1.0-Werror.patch"
-	"${FILESDIR}/11.3.5-icu.patch"
-)
-
-pkg_setup() {
-	local CONFIG_CHECK="~VMWARE_BALLOON ~VMWARE_PVSCSI ~VMXNET3"
-	use X && CONFIG_CHECK+=" ~DRM_VMWGFX"
-	kernel_is -lt 3 9 || CONFIG_CHECK+=" ~VMWARE_VMCI ~VMWARE_VMCI_VSOCKETS"
-	kernel_is -lt 3 || CONFIG_CHECK+=" ~FUSE_FS"
-	kernel_is -lt 5 5 || CONFIG_CHECK+=" ~X86_IOPL_IOPERM"
-	linux-info_pkg_setup
-}
-
-src_prepare() {
-	eapply -p2 "${PATCHES[@]}"
-	eapply_user
-	eautoreconf
-}
-
-src_configure() {
-	local myeconfargs=(
-		--disable-glibc-check
-		--without-root-privileges
-		$(use_enable multimon)
-		$(use_with X x)
-		$(use_with X gtk3)
-		$(use_with gtkmm gtkmm3)
-		$(use_enable doc docs)
-		--disable-tests
-		$(use_enable resolutionkms)
-		--disable-static
-		$(use_enable deploypkg)
-		$(use_with pam)
-		$(use_enable vgauth)
-		$(use_with dnet)
-		$(use_with icu)
-		--with-udev-rules-dir="$(get_udevdir)/rules.d"
-	)
-	# Avoid a bug in configure.ac
-	use ssl || myeconfargs+=( --without-ssl )
-
-	econf "${myeconfargs[@]}"
-}
-
-src_install() {
-	default
-	find "${ED}" -name '*.la' -delete || die
-
-	if use pam; then
-		rm "${ED}"/etc/pam.d/vmtoolsd || die
-		pamd_mimic_system vmtoolsd auth account
-	fi
-
-	newinitd "${FILESDIR}/open-vm-tools.initd" vmware-tools
-	newconfd "${FILESDIR}/open-vm-tools.confd" vmware-tools
-
-	if use vgauth; then
-		systemd_newunit "${FILESDIR}"/vmtoolsd.vgauth.service vmtoolsd.service
-		systemd_dounit "${FILESDIR}"/vgauthd.service
-	else
-		systemd_dounit "${FILESDIR}"/vmtoolsd.service
-	fi
-
-	# Make fstype = vmhgfs-fuse work in fstab
-	dosym vmhgfs-fuse /usr/bin/mount.vmhgfs-fuse
-
-	if use X; then
-		fperms 4711 /usr/bin/vmware-user-suid-wrapper
-		dobin scripts/common/vmware-xdg-detect-de
-	fi
-}
-
-pkg_postinst() {
-	udev_reload
-}
-
-pkg_postrm() {
-	udev_reload
-}
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.2.0.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-12.2.0.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.3.0.ebuild
index 38806cfd25..28075b81f6 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/open-vm-tools/open-vm-tools-12.2.0.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 linux-info pam systemd udev
 
 DESCRIPTION="Tools for VMware guests"
 HOMEPAGE="https://github.com/vmware/open-vm-tools"
-MY_P="${P}-21223074"
+MY_P="${P}-22234872"
 SRC_URI="https://github.com/vmware/open-vm-tools/releases/download/stable-${PV}/${MY_P}.tar.gz"
 
 LICENSE="LGPL-2.1"