diff --git a/package/mtools/mtools.hash b/package/mtools/mtools.hash
index 5d1bca486f..a162bfdc95 100644
--- a/package/mtools/mtools.hash
+++ b/package/mtools/mtools.hash
@@ -1,5 +1,5 @@
 # Locally calculated after checking pgp signature
-sha256  f4dd1fb4b4d72f344f7efcfb05219de3882c6c6fce678d75e7cfb29ca162c7ca  mtools-4.0.37.tar.lz
+sha256  7086821b399a39b8a3c5a372d064de4860f3c195b4911dd4e8b76219fcabe75c  mtools-4.0.38.tar.lz
 
 # Locally calculated
 sha256  8ceb4b9ee5adedde47b31e975c1d90c73ad27b6b165a1dcd80c7c545eb65b903  COPYING
diff --git a/package/mtools/mtools.mk b/package/mtools/mtools.mk
index f73fd5d231..c875814bc7 100644
--- a/package/mtools/mtools.mk
+++ b/package/mtools/mtools.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-MTOOLS_VERSION = 4.0.37
+MTOOLS_VERSION = 4.0.38
 MTOOLS_SOURCE = mtools-$(MTOOLS_VERSION).tar.lz
 MTOOLS_SITE = $(BR2_GNU_MIRROR)/mtools
 MTOOLS_LICENSE = GPL-3.0+