diff --git a/.devcontainer/cuda12.5-pip/devcontainer.json b/.devcontainer/cuda12.5-pip/devcontainer.json
index 1c53bd9925d..6e2bf45700a 100644
--- a/.devcontainer/cuda12.5-pip/devcontainer.json
+++ b/.devcontainer/cuda12.5-pip/devcontainer.json
@@ -5,7 +5,7 @@
     "args": {
       "CUDA": "12.5",
       "PYTHON_PACKAGE_MANAGER": "pip",
-      "BASE": "rapidsai/devcontainers:24.10-cpp-cuda12.5-ucx1.15.0-openmpi-ubuntu22.04"
+      "BASE": "rapidsai/devcontainers:24.10-cpp-cuda12.5-ucx1.17.0-openmpi-ubuntu22.04"
     }
   },
   "runArgs": [
diff --git a/ci/release/update-version.sh b/ci/release/update-version.sh
index ce2488ad0bf..08c22fca02e 100755
--- a/ci/release/update-version.sh
+++ b/ci/release/update-version.sh
@@ -69,18 +69,19 @@ DEPENDENCIES=(
   pyraft
   raft-dask
   rmm
-  ucx-py
   rapids-dask-dependency
 )
-for DEP in "${DEPENDENCIES[@]}"; do
-  for FILE in dependencies.yaml conda/environments/*.yaml python/cugraph-{pyg,dgl}/conda/*.yaml; do
+for FILE in dependencies.yaml conda/environments/*.yaml python/cugraph-{pyg,dgl}/conda/*.yaml; do
+  for DEP in "${DEPENDENCIES[@]}"; do
     sed_runner "/-.* ${DEP}\(-cu[[:digit:]]\{2\}\)\{0,1\}==/ s/==.*/==${NEXT_SHORT_TAG_PEP440}.*,>=0.0.0a0/g" "${FILE}"
-    sed_runner "/-.* ucx-py==/ s/==.*/==${NEXT_UCX_PY_VERSION}.*,>=0.0.0a0/g" "${FILE}"
   done
-  for FILE in python/**/pyproject.toml python/**/**/pyproject.toml; do
+  sed_runner "/-.* ucx-py\(-cu[[:digit:]]\{2\}\)\{0,1\}==/ s/==.*/==${NEXT_UCX_PY_VERSION}.*,>=0.0.0a0/g" "${FILE}"
+done
+for FILE in python/**/pyproject.toml python/**/**/pyproject.toml; do
+  for DEP in "${DEPENDENCIES[@]}"; do
     sed_runner "/\"${DEP}\(-cu[[:digit:]]\{2\}\)\{0,1\}==/ s/==.*\"/==${NEXT_SHORT_TAG_PEP440}.*,>=0.0.0a0\"/g" "${FILE}"
-    sed_runner "/\"ucx-py==/ s/==.*\"/==${NEXT_UCX_PY_VERSION}.*,>=0.0.0a0\"/g" "${FILE}"
   done
+  sed_runner "/\"ucx-py\(-cu[[:digit:]]\{2\}\)\{0,1\}==/ s/==.*\"/==${NEXT_UCX_PY_VERSION}.*,>=0.0.0a0\"/g" "${FILE}"
 done
 
 # ucx-py version
diff --git a/dependencies.yaml b/dependencies.yaml
index b0e4834a50c..9e9cfcc63a3 100644
--- a/dependencies.yaml
+++ b/dependencies.yaml
@@ -506,12 +506,12 @@ dependencies:
               cuda: "11.*"
               cuda_suffixed: "true"
             packages:
-              - &ucx_py_cu11 ucx-py-cu11==24.10.*,>=0.0.0a0
+              - &ucx_py_cu11 ucx-py-cu11==0.40.*,>=0.0.0a0
           - matrix:
               cuda: "12.*"
               cuda_suffixed: "true"
             packages:
-              - &ucx_py_cu12 ucx-py-cu12==24.10.*,>=0.0.0a0
+              - &ucx_py_cu12 ucx-py-cu12==0.40.*,>=0.0.0a0
           - matrix:
             packages:
               - *ucx_py_unsuffixed