diff --git a/package/squashfs/0001-musl.patch b/package/squashfs/0001-musl.patch
deleted file mode 100644
index 891b1717a2..0000000000
--- a/package/squashfs/0001-musl.patch
+++ /dev/null
@@ -1,71 +0,0 @@
-Fix musl build
-
-Downloaded from
-http://cgit.openembedded.org/openembedded-core/tree/meta/recipes-devtools/squashfs-tools/squashfs-tools/fix-compat.patch
-and adjusted paths.
-
-Signed-off-by: Bernd Kuhls <bernd.kuhls@t-online.de>
-
-Define FNM_EXTMATCH if not defined its glibc specific define
-include missing sys/stat.h for stat* function declarations
-
-Upstream-Status: Pending
-Signed-off-by: Khem Raj <raj.khem@gmail.com>
-
-Index: squashfs-tools/action.c
-===================================================================
---- a/squashfs-tools.orig/action.c
-+++ b/squashfs-tools/action.c
-@@ -44,6 +44,10 @@
- #include "action.h"
- #include "error.h"
- 
-+#if !defined(FNM_EXTMATCH)
-+#define FNM_EXTMATCH 0
-+#endif
-+
- /*
-  * code to parse actions
-  */
-Index: squashfs-tools/mksquashfs.c
-===================================================================
---- a/squashfs-tools.orig/mksquashfs.c
-+++ b/squashfs-tools/mksquashfs.c
-@@ -1286,6 +1286,10 @@ void write_dir(squashfs_inode *inode, st
- 		dir_size + 3, directory_block, directory_offset, NULL, NULL,
- 		dir, 0);
- 
-+#if !defined(FNM_EXTMATCH)
-+#define FNM_EXTMATCH 0
-+#endif
-+
- #ifdef SQUASHFS_TRACE
- 	{
- 		unsigned char *dirp;
-Index: squashfs-tools/pseudo.c
-===================================================================
---- a/squashfs-tools.orig/pseudo.c
-+++ b/squashfs-tools/pseudo.c
-@@ -32,6 +32,7 @@
- #include <stdlib.h>
- #include <sys/types.h>
- #include <sys/wait.h>
-+#include <sys/stat.h>
- #include <ctype.h>
- 
- #include "pseudo.h"
-Index: squashfs-tools/unsquashfs.c
-===================================================================
---- a/squashfs-tools.orig/unsquashfs.c
-+++ b/squashfs-tools/unsquashfs.c
-@@ -38,6 +38,10 @@
- #include <limits.h>
- #include <ctype.h>
- 
-+#ifndef FNM_EXTMATCH
-+#define FNM_EXTMATCH 0
-+#endif
-+
- struct cache *fragment_cache, *data_cache;
- struct queue *to_reader, *to_inflate, *to_writer, *from_writer;
- pthread_t *thread, *inflator_thread;
diff --git a/package/squashfs/squashfs.hash b/package/squashfs/squashfs.hash
index 74fdb44354..82a650022c 100644
--- a/package/squashfs/squashfs.hash
+++ b/package/squashfs/squashfs.hash
@@ -1,2 +1,2 @@
 # Locally computed
-sha256	2c49392816615b73bf5d6cdce9776cb66a01f5a1494b1d9af580667e32bab001  squashfs-3de1687d7432ea9b302c2db9521996f506c140a3.tar.gz
+sha256 bd0aa3011320b8ebee68aa406060de277bef16daf81bad5b9f70cbea6db1a779 squashfs-e38956b92f738518c29734399629e7cdb33072d3.tar.gz
diff --git a/package/squashfs/squashfs.mk b/package/squashfs/squashfs.mk
index 9599d892b2..e656218f97 100644
--- a/package/squashfs/squashfs.mk
+++ b/package/squashfs/squashfs.mk
@@ -4,12 +4,12 @@
 #
 ################################################################################
 
-SQUASHFS_VERSION = 3de1687d7432ea9b302c2db9521996f506c140a3
+SQUASHFS_VERSION = e38956b92f738518c29734399629e7cdb33072d3
 SQUASHFS_SITE = https://git.kernel.org/pub/scm/fs/squashfs/squashfs-tools.git
 SQUASHFS_SITE_METHOD = git
 SQUASHFS_LICENSE = GPL-2.0+
 SQUASHFS_LICENSE_FILES = COPYING
-SQUASHFS_MAKE_ARGS = XATTR_SUPPORT=1
+SQUASHFS_MAKE_ARGS = XATTR_SUPPORT=1 ZSTD_SUPPORT=0
 
 ifeq ($(BR2_PACKAGE_SQUASHFS_LZ4),y)
 SQUASHFS_DEPENDENCIES += lz4
@@ -54,7 +54,8 @@ HOST_SQUASHFS_MAKE_ARGS = \
 	GZIP_SUPPORT=1 \
 	LZ4_SUPPORT=1 \
 	LZO_SUPPORT=1 \
-	LZMA_XZ_SUPPORT=1
+	LZMA_XZ_SUPPORT=1 \
+	ZSTD_SUPPORT=0
 
 define SQUASHFS_BUILD_CMDS
 	$(TARGET_MAKE_ENV) $(MAKE) \