diff --git a/Dockerfile b/Dockerfile
index 2375e3f4d738..0ec6655ed449 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -10,7 +10,7 @@ ARG CUDA_VERSION=12.4.1
 # prepare basic build environment
 FROM nvidia/cuda:${CUDA_VERSION}-devel-ubuntu20.04 AS base
 ARG CUDA_VERSION=12.4.1
-ARG PYTHON_VERSION=3.10
+ARG PYTHON_VERSION=3.12
 ENV DEBIAN_FRONTEND=noninteractive
 
 # Install Python and other dependencies
@@ -133,7 +133,7 @@ RUN --mount=type=cache,target=/root/.cache/pip \
 # image with vLLM installed
 FROM nvidia/cuda:${CUDA_VERSION}-base-ubuntu20.04 AS vllm-base
 ARG CUDA_VERSION=12.4.1
-ARG PYTHON_VERSION=3.10
+ARG PYTHON_VERSION=3.12
 WORKDIR /vllm-workspace
 ENV DEBIAN_FRONTEND=noninteractive
 
@@ -179,6 +179,10 @@ FROM vllm-base AS test
 ADD . /vllm-workspace/
 
 # install development dependencies (for testing)
+# A newer setuptools is required for installing some test dependencies from source that do not publish python 3.12 wheels
+# This installation must complete before the test dependencies are collected and installed.
+RUN --mount=type=cache,target=/root/.cache/pip \
+    python3 -m pip install "setuptools>=74.1.1"
 RUN --mount=type=cache,target=/root/.cache/pip \
     python3 -m pip install -r requirements-dev.txt
 
diff --git a/requirements-common.txt b/requirements-common.txt
index e430753357ca..49a290317f81 100644
--- a/requirements-common.txt
+++ b/requirements-common.txt
@@ -27,3 +27,4 @@ gguf == 0.9.1
 importlib_metadata
 mistral_common >= 1.3.4
 pyyaml
+six>=1.16.0; python_version > '3.11' # transitive dependency of pandas that needs to be the latest version for python 3.12
diff --git a/tests/test_logger.py b/tests/test_logger.py
index 29346cd0878b..8f3d21841687 100644
--- a/tests/test_logger.py
+++ b/tests/test_logger.py
@@ -95,7 +95,7 @@ def test_logger_configuring_can_be_disabled():
     config behavior, however mocks are used to ensure no changes in behavior or
     configuration occur."""
 
-    with patch("logging.config.dictConfig") as dict_config_mock:
+    with patch("vllm.logger.dictConfig") as dict_config_mock:
         _configure_vllm_root_logger()
     dict_config_mock.assert_not_called()
 
@@ -175,9 +175,9 @@ def test_custom_logging_config_is_parsed_and_used_when_provided():
         logging_config_file.flush()
         with patch("vllm.logger.VLLM_LOGGING_CONFIG_PATH",
                    logging_config_file.name), patch(
-                       "logging.config.dictConfig") as dict_config_mock:
+                       "vllm.logger.dictConfig") as dict_config_mock:
             _configure_vllm_root_logger()
-            assert dict_config_mock.called_with(valid_logging_config)
+            dict_config_mock.assert_called_with(valid_logging_config)
 
 
 @patch("vllm.logger.VLLM_CONFIGURE_LOGGING", 0)