diff --git a/integrations/docker/images/base/chip-build/version b/integrations/docker/images/base/chip-build/version
index e399e5d9e7a368..d69741af1bd3f2 100644
--- a/integrations/docker/images/base/chip-build/version
+++ b/integrations/docker/images/base/chip-build/version
@@ -1 +1 @@
-107 : Tizen - fix rpm unpacking for stage-3 build
+108 : Update vscode docker with java17 and fix java_home in java docker
diff --git a/integrations/docker/images/stage-2/chip-build-java/Dockerfile b/integrations/docker/images/stage-2/chip-build-java/Dockerfile
index 1619a9d12b8e93..a8f328153c2dff 100644
--- a/integrations/docker/images/stage-2/chip-build-java/Dockerfile
+++ b/integrations/docker/images/stage-2/chip-build-java/Dockerfile
@@ -13,11 +13,11 @@ RUN set -x \
 # Download and install kotlin compiler
 RUN set -x \
     && cd /usr/lib \
-    && wget -q https://github.com/JetBrains/kotlin/releases/download/v1.8.10/kotlin-compiler-1.8.10.zip \
+    && wget -q https://github.com/JetBrains/kotlin/releases/download/v2.1.10/kotlin-compiler-2.1.10.zip \
     && unzip kotlin-compiler-*.zip \
     && rm kotlin-compiler-*.zip \
     && rm -f kotlinc/bin/*.bat \
     && : # last line
 
 ENV PATH $PATH:/usr/lib/kotlinc/bin
-ENV JAVA_PATH=/usr/lib/jvm/java-17-openjdk-amd64
+ENV JAVA_HOME=/usr/lib/jvm/java-17-openjdk-amd64
diff --git a/integrations/docker/images/vscode/chip-build-vscode/Dockerfile b/integrations/docker/images/vscode/chip-build-vscode/Dockerfile
index ba46b7c10f06a3..62ee7f5bd899ab 100644
--- a/integrations/docker/images/vscode/chip-build-vscode/Dockerfile
+++ b/integrations/docker/images/vscode/chip-build-vscode/Dockerfile
@@ -91,7 +91,7 @@ RUN set -x \
 #   - telnet
 #   - srecord
 # For java builds:
-#   - openjdk-8-jdk
+#   - openjdk-17-jdk
 RUN set -x \
     && apt-get update \
     && DEBIAN_FRONTEND=noninteractive apt-get install -fy --no-install-recommends \
@@ -119,7 +119,7 @@ ENV WIFI_SDK_ROOT=/opt/silabs/wifi_sdk
 ENV IDF_PATH=/opt/espressif/esp-idf/
 ENV IDF_TOOLS_PATH=/opt/espressif/tools
 ENV IMX_SDK_ROOT=/opt/fsl-imx-xwayland/6.1-langdale
-ENV JAVA_PATH=/usr/lib/jvm/java-8-openjdk-amd64
+ENV JAVA_PATH=/usr/lib/jvm/java-17-openjdk-amd64
 ENV NRF5_TOOLS_ROOT=/opt/NordicSemiconductor/nRF5_tools
 ENV OPENOCD_PATH=/opt/openocd/
 ENV QEMU_ESP32=/opt/espressif/qemu/qemu-system-xtensa