diff --git a/securedrop/dockerfiles/xenial/Dockerfile b/securedrop/dockerfiles/xenial/Dockerfile
index e64c65b1658..21f0b73854c 100644
--- a/securedrop/dockerfiles/xenial/Dockerfile
+++ b/securedrop/dockerfiles/xenial/Dockerfile
@@ -24,6 +24,9 @@ COPY requirements requirements
 RUN pip install -r requirements/securedrop-app-code-requirements.txt && \
     pip install -r requirements/test-requirements.txt
 
+# Fixes #4036 pybabel requires latest version of setuptools
+RUN pip install --upgrade setuptools
+
 RUN if test $USER_NAME != root ; then useradd --no-create-home --home-dir /tmp --uid $USER_ID $USER_NAME && echo "$USER_NAME ALL=(ALL) NOPASSWD:ALL" >> /etc/sudoers ; fi
 
 STOPSIGNAL SIGKILL