diff --git a/README.md b/README.md
index fecd0202f..4ffeb3ceb 100644
--- a/README.md
+++ b/README.md
@@ -155,7 +155,7 @@ Are you developing a DID method and Universal Resolver driver? Click [Driver Dev
 | [did-indy](https://github.com/decentralized-identity/uni-resolver-driver-did-indy)                    | 0.9.0          | [0.1](https://hyperledger.github.io/indy-did-method/)                                                             | [universalresolver/driver-did-indy](https://hub.docker.com/r/universalresolver/driver-did-indy)                                                                    | Hyperledger Indy                                                                    |
 | [did-everscale](https://git.defispace.com/ssi-4/everscale-resolver-driver)                            | 0.1            | [0.1](https://git.defispace.com/ssi-4/everscale-did-registry/-/blob/master/docs/documentation.md)                 | [radianceteamssi/everscale-did-resolver-driver](https://hub.docker.com/r/radianceteamssi/everscale-did-resolver-driver)                                            | Everscale Blockchain                                                                |
 | [did-alastria-mvp2](https://github.com/alastria/uni-resolver-driver-did-alastria)                     | 1.0.0          | [MVP2](https://github.com/alastria/alastria-identity/wiki)                                                        | [alastria/universal-resolver](https://hub.docker.com/r/alastria/uni-resolver-driver-did-alastria)                                                                  | AlastriaID MVP2                                                                     |
-| [did-cheqd](https://github.com/cheqd/did-resolver)                                                    | 3.2.1          | [1.0](https://docs.cheqd.io/identity/architecture/adr-list/adr-001-cheqd-did-method)                              | [cheqd/did-resolver](https://github.com/cheqd/did-resolver)                                                                                                        | cheqd network                                                                       |
+| [did-cheqd](https://github.com/cheqd/did-resolver)                                                    | 3.5.4          | [1.0](https://docs.cheqd.io/identity/architecture/adr-list/adr-001-cheqd-did-method)                              | [cheqd/did-resolver](https://github.com/cheqd/did-resolver)                                                                                                        | cheqd network                                                                       |
 | [did-com](https://github.com/commercionetwork/uni-resolver-driver-did-com/)                           | 1.0.0          | [1.0](https://docs.commercio.network/modules/did/)                                                                | [ghcr.io/commercionetwork/uni-resolver-driver-did-com](https://github.com/commercionetwork/uni-resolver-driver-did-com/pkgs/container/uni-resolver-driver-did-com) | Commercio public ledger                                                             |
 | [did-dyne](https://github.com/dyne/W3C-DID)                                                           | 0.1            | [1.0](https://dyne.github.io/W3C-DID/#/)                                                                          | [dyne/w3c-did-driver](https://hub.docker.com/r/dyne/w3c-did-driver/)                                                                                               | Dyne.org Decentralized Identifiers                                                  |
 | [did-jwk](https://github.com/transmute-industries/restricted-resolver)                                | 0.1            | [1.0](https://github.com/quartzjer/did-jwk/blob/main/spec.md)                                                     | [transmute/restricted-resolver](https://hub.docker.com/repository/docker/transmute/restricted-resolver)                                                            | DID Json Web Key                                                                    |
diff --git a/docker-compose.yml b/docker-compose.yml
index f981ee39c..825a3c75c 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -209,7 +209,7 @@ services:
     ports:
       - "8130:8080"
   cheqd-did-driver:
-    image: ghcr.io/cheqd/did-resolver:3.2.1
+    image: ghcr.io/cheqd/did-resolver:3.5.4
     ports:
       - "8131:8080"
     environment: