diff --git a/dd-sdk-android-gradle-plugin/src/test/kotlin/com/datadog/gradle/plugin/DdAndroidGradlePluginFunctionalTest.kt b/dd-sdk-android-gradle-plugin/src/test/kotlin/com/datadog/gradle/plugin/DdAndroidGradlePluginFunctionalTest.kt
index 8d9a8f7..b865ebf 100644
--- a/dd-sdk-android-gradle-plugin/src/test/kotlin/com/datadog/gradle/plugin/DdAndroidGradlePluginFunctionalTest.kt
+++ b/dd-sdk-android-gradle-plugin/src/test/kotlin/com/datadog/gradle/plugin/DdAndroidGradlePluginFunctionalTest.kt
@@ -1440,7 +1440,7 @@ internal class DdAndroidGradlePluginFunctionalTest {
         """.trimIndent()
 
         const val LATEST_GRADLE_VERSION = "8.7"
-        const val LATEST_AGP_VERSION = "8.4.1"
+        const val LATEST_AGP_VERSION = "8.5.0"
 
         val LATEST_VERSIONS_TEST_CONFIGURATION = BuildVersionConfig(
             agpVersion = LATEST_AGP_VERSION,
diff --git a/gradle/libs.versions.toml b/gradle/libs.versions.toml
index ed48553..5d7b1ed 100644
--- a/gradle/libs.versions.toml
+++ b/gradle/libs.versions.toml
@@ -5,7 +5,7 @@ json = "20180813"
 okHttp = "4.12.0"
 
 # Android
-androidToolsPlugin = "8.4.1"
+androidToolsPlugin = "8.5.0"
 
 # AndroidX
 androidx-core ="1.3.2"