diff --git a/scripts/local-observability/docker-compose.yaml b/scripts/local-observability/docker-compose.yaml
index c25ad9407c..7720301919 100644
--- a/scripts/local-observability/docker-compose.yaml
+++ b/scripts/local-observability/docker-compose.yaml
@@ -25,7 +25,7 @@ services:
 
   # Collector
   otel-collector:
-    image: docker.io/otel/opentelemetry-collector-contrib:0.103.1@sha256:19a8facab166afc9b5b46bd27040430906cc7d1525ee1fa3f77a62bf97ae8be5
+    image: docker.io/otel/opentelemetry-collector-contrib:0.104.0@sha256:e07e325e303e86f4a87a617491e921b579a92da6d404007394757ac910bf9587
     command: ["--config=/etc/otel-collector-config.yaml"]
     volumes:
       - ./otel-collector-config.yaml:/etc/otel-collector-config.yaml