diff --git a/package/libyang/libyang.hash b/package/libyang/libyang.hash
index 94685cb4de..755ecf390a 100644
--- a/package/libyang/libyang.hash
+++ b/package/libyang/libyang.hash
@@ -1,3 +1,3 @@
 # Locally calculated
-sha256  1b736443d2c69b5d7a71ac412655e6edab0647b18f35f7bf504b0a24e06cb046  libyang-1.0.225.tar.gz
+sha256  8576cad398b451b1c622b0652a2030fcf83ee1d9a39e6cd93d17b0a5a43118d6  libyang-1.0.240.tar.gz
 sha256  f942fe693e03e4e3ff67a351c00dc8f468a042e0d7273b0aa6bc53060b568112  LICENSE
diff --git a/package/libyang/libyang.mk b/package/libyang/libyang.mk
index ed61ec97d2..f784367ea3 100644
--- a/package/libyang/libyang.mk
+++ b/package/libyang/libyang.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-LIBYANG_VERSION = 1.0.225
+LIBYANG_VERSION = 1.0.240
 LIBYANG_SITE = $(call github,CESNET,libyang,v$(LIBYANG_VERSION))
 LIBYANG_LICENSE = BSD-3-Clause
 LIBYANG_LICENSE_FILES = LICENSE