diff --git a/bom/application/pom.xml b/bom/application/pom.xml
index 19cfb0e8de73c..bdcd578e4bf4e 100644
--- a/bom/application/pom.xml
+++ b/bom/application/pom.xml
@@ -188,7 +188,7 @@
         <jna.version>5.8.0</jna.version><!-- should satisfy both testcontainers and mongodb -->
         <antlr.version>4.10.1</antlr.version><!-- needs to align with same property in build-parent/pom.xml -->
         <quarkus-security.version>2.0.2.Final</quarkus-security.version>
-        <keycloak.version>20.0.3</keycloak.version>
+        <keycloak.version>21.0.1</keycloak.version>
         <logstash-gelf.version>1.15.0</logstash-gelf.version>
         <checker-qual.version>3.32.0</checker-qual.version>
         <error-prone-annotations.version>2.18.0</error-prone-annotations.version>
diff --git a/build-parent/pom.xml b/build-parent/pom.xml
index 0f81ec8450c04..886a2085cc53a 100644
--- a/build-parent/pom.xml
+++ b/build-parent/pom.xml
@@ -101,7 +101,7 @@
 
         <!-- The image to use for tests that run Keycloak -->
         <!-- IMPORTANT: If this is changed you must also update bom/application/pom.xml and KeycloakBuildTimeConfig/DevServicesConfig in quarkus-oidc/deployment to match the version -->
-        <keycloak.version>20.0.3</keycloak.version>
+        <keycloak.version>21.0.1</keycloak.version>
         <keycloak.wildfly.version>19.0.3</keycloak.wildfly.version>
         <keycloak.docker.image>quay.io/keycloak/keycloak:${keycloak.version}</keycloak.docker.image>
         <keycloak.docker.legacy.image>quay.io/keycloak/keycloak:${keycloak.wildfly.version}-legacy</keycloak.docker.legacy.image>
diff --git a/docs/src/main/asciidoc/security-openid-connect-dev-services.adoc b/docs/src/main/asciidoc/security-openid-connect-dev-services.adoc
index 59eba5678cf86..2c11b1d732446 100644
--- a/docs/src/main/asciidoc/security-openid-connect-dev-services.adoc
+++ b/docs/src/main/asciidoc/security-openid-connect-dev-services.adoc
@@ -217,7 +217,7 @@ For more information, see xref:security-oidc-bearer-authentication-concept.adoc#
 [[keycloak-initialization]]
 === Keycloak Initialization
 
-The `quay.io/keycloak/keycloak:20.0.3` image which contains a Keycloak distribution powered by Quarkus is used to start a container by default.
+The `quay.io/keycloak/keycloak:21.0.1` image which contains a Keycloak distribution powered by Quarkus is used to start a container by default.
 `quarkus.keycloak.devservices.image-name` can be used to change the Keycloak image name. For example, set it to `quay.io/keycloak/keycloak:19.0.3-legacy` to use a Keycloak distribution powered by WildFly.
 Note that only a Quarkus based Keycloak distribution is available starting from Keycloak `20.0.0`.
 
diff --git a/extensions/oidc/deployment/src/main/java/io/quarkus/oidc/deployment/devservices/keycloak/DevServicesConfig.java b/extensions/oidc/deployment/src/main/java/io/quarkus/oidc/deployment/devservices/keycloak/DevServicesConfig.java
index 8e642fc0335c5..2550cc7cea229 100644
--- a/extensions/oidc/deployment/src/main/java/io/quarkus/oidc/deployment/devservices/keycloak/DevServicesConfig.java
+++ b/extensions/oidc/deployment/src/main/java/io/quarkus/oidc/deployment/devservices/keycloak/DevServicesConfig.java
@@ -35,7 +35,7 @@ public class DevServicesConfig {
      * string.
      * Set 'quarkus.keycloak.devservices.keycloak-x-image' to override this check.
      */
-    @ConfigItem(defaultValue = "quay.io/keycloak/keycloak:20.0.3")
+    @ConfigItem(defaultValue = "quay.io/keycloak/keycloak:21.0.1")
     public String imageName;
 
     /**
diff --git a/integration-tests/oidc-token-propagation/src/test/java/io/quarkus/it/keycloak/OidcTokenPropagationTest.java b/integration-tests/oidc-token-propagation/src/test/java/io/quarkus/it/keycloak/OidcTokenPropagationTest.java
index bcd717025d989..29a9327e6d87b 100644
--- a/integration-tests/oidc-token-propagation/src/test/java/io/quarkus/it/keycloak/OidcTokenPropagationTest.java
+++ b/integration-tests/oidc-token-propagation/src/test/java/io/quarkus/it/keycloak/OidcTokenPropagationTest.java
@@ -53,7 +53,7 @@ public void testGetUserNameWithAccessTokenPropagation() {
                 //.statusCode(200)
                 //.body(equalTo("alice"));
                 .statusCode(500)
-                .body(containsString("Client not allowed to exchange"));
+                .body(containsString("Feature not enabled"));
     }
 
     @Test