diff --git a/.env b/.env
index eeb793e4..07ac1750 100644
--- a/.env
+++ b/.env
@@ -17,11 +17,11 @@ INCLUDE_COMPOSE_LOCAL_OPENSEARCH_DASHBOARDS=docker-compose.local-opensearch-dash
 # unset to prune them.
 COMPOSE_PROFILES=local-backends
 
-OPENSEARCH_DOCKER_REPO=opensearchproject
+OPENSEARCH_DOCKER_REPO=opensearchstaging
 
 
 # OpenSearch Configuration
-OPENSEARCH_VERSION=3.7.0
+OPENSEARCH_VERSION=3.8.0
 OPENSEARCH_USER=admin
 OPENSEARCH_PASSWORD='My_password_123!@#'
 OPENSEARCH_HOST=opensearch
@@ -39,7 +39,7 @@ OPENSEARCH_JAVA_OPTS=-Xms1g -Xmx1g
 OSD_DATASOURCE_ENDPOINT=${OPENSEARCH_PROTOCOL}://${OPENSEARCH_HOST}:${OPENSEARCH_PORT}
 
 # OpenSearch Dashboards Configuration
-OPENSEARCH_DASHBOARDS_VERSION=3.7.0
+OPENSEARCH_DASHBOARDS_VERSION=3.8.0
 OPENSEARCH_DASHBOARDS_HOST=opensearch-dashboards
 OPENSEARCH_DASHBOARDS_PORT=5601
 OPENSEARCH_DASHBOARDS_PROTOCOL=http
diff --git a/charts/observability-stack/Chart.yaml b/charts/observability-stack/Chart.yaml
index 158f1bf5..bf2656db 100644
--- a/charts/observability-stack/Chart.yaml
+++ b/charts/observability-stack/Chart.yaml
@@ -2,8 +2,8 @@ apiVersion: v2
 name: observability-stack
 description: OpenTelemetry-native observability platform for microservices, web apps, and AI agents
 type: application
-version: 0.4.0
-appVersion: "3.7.0"
+version: 0.4.1
+appVersion: "3.8.0"
 
 home: https://github.com/opensearch-project/observability-stack
 sources:
diff --git a/charts/observability-stack/values.yaml b/charts/observability-stack/values.yaml
index a139919b..5882efa2 100644
--- a/charts/observability-stack/values.yaml
+++ b/charts/observability-stack/values.yaml
@@ -13,8 +13,8 @@ opensearch:
   singleNode: false
   replicas: 3
   image:
-    repository: "opensearchproject/opensearch"
-    tag: "3.7.0"
+    repository: "opensearchstaging/opensearch"
+    tag: "3.8.0"
   resources:
     requests:
       memory: "4Gi"
@@ -77,8 +77,8 @@ opensearch-dashboards:
   enabled: true
   replicaCount: 3
   image:
-    repository: "opensearchproject/opensearch-dashboards"
-    tag: "3.7.0"
+    repository: "opensearchstaging/opensearch-dashboards"
+    tag: "3.8.0"
   resources:
     requests:
       cpu: "500m"
@@ -131,6 +131,8 @@ opensearch-dashboards:
       explore.discoverTraces.enabled: true
       explore.discoverMetrics.enabled: true
       explore.agentTraces.enabled: true
+      explore.logsQueryBuilder.enabled: true
+      explore.logsDrilldown.enabled: true
       workspace.enabled: true
       data_source.enabled: true
       data_source.ssl.verificationMode: none
diff --git a/docker-compose/opensearch-dashboards/opensearch_dashboards.template.yml b/docker-compose/opensearch-dashboards/opensearch_dashboards.template.yml
index 11e848f5..86ba39e9 100644
--- a/docker-compose/opensearch-dashboards/opensearch_dashboards.template.yml
+++ b/docker-compose/opensearch-dashboards/opensearch_dashboards.template.yml
@@ -78,6 +78,8 @@ explore.enabled: true
 explore.discoverTraces.enabled: true
 explore.discoverMetrics.enabled: true
 explore.agentTraces.enabled: true
+explore.logsQueryBuilder.enabled: true
+explore.logsDrilldown.enabled: true
 # Surfaces the Alert Manager UI in the Observability plugin, backed by the
 # alertmanager.uri configured on the Prometheus datasource.
 observability.alertManager.enabled: true