diff --git a/docker/Dockerfile.xpu b/docker/Dockerfile.xpu
index 5d5b82c4fa5a..adac43c6accb 100644
--- a/docker/Dockerfile.xpu
+++ b/docker/Dockerfile.xpu
@@ -1,4 +1,4 @@
-FROM intel/deep-learning-essentials:2025.1.3-0-devel-ubuntu24.04 AS vllm-base
+FROM intel/deep-learning-essentials:2025.2.2-0-devel-ubuntu24.04 AS vllm-base
 
 RUN wget -O- https://apt.repos.intel.com/intel-gpg-keys/GPG-PUB-KEY-INTEL-SW-PRODUCTS.PUB | gpg --dearmor | tee /usr/share/keyrings/oneapi-archive-keyring.gpg > /dev/null && \
     echo "deb [signed-by=/usr/share/keyrings/oneapi-archive-keyring.gpg] https://apt.repos.intel.com/oneapi all main" | tee /etc/apt/sources.list.d/oneAPI.list && \
@@ -25,10 +25,14 @@ RUN apt clean && apt-get update -y && \
 RUN update-alternatives --install /usr/bin/python3 python3 /usr/bin/python3.12 1
 RUN update-alternatives --install /usr/bin/python python /usr/bin/python3.12 1
 
-RUN apt install -y libze1 libze-dev libze-intel-gpu1 intel-opencl-icd libze-intel-gpu-raytracing
+RUN apt install -y libze1 libze-dev libze-intel-gpu1 intel-opencl-icd libze-intel-gpu-raytracing intel-ocloc
+
+# This oneccl contains the BMG support which is not the case for default version of oneapi 2025.2.
+RUN wget https://github.com/uxlfoundation/oneCCL/releases/download/2021.15.6/intel-oneccl-2021.15.6.9_offline.sh
+RUN bash intel-oneccl-2021.15.6.9_offline.sh -a --silent --eula accept && \
+    echo "source /opt/intel/oneapi/setvars.sh --force" >> /root/.bashrc && \
+    echo "source /opt/intel/oneapi/ccl/2021.15/env/vars.sh --force" >> /root/.bashrc
 
-RUN wget https://github.com/uxlfoundation/oneCCL/releases/download/2021.15.4/intel-oneccl-2021.15.4.11_offline.sh
-RUN bash intel-oneccl-2021.15.4.11_offline.sh -a --silent --eula accept && echo "source /opt/intel/oneapi/setvars.sh --force" >> /root/.bashrc
 SHELL ["bash", "-c"]
 CMD ["bash", "-c", "source /root/.bashrc && exec bash"]
 
@@ -72,6 +76,7 @@ RUN python3 -m pip install -e tests/vllm_test_utils
 ENV NIXL_VERSION=0.7.0
 RUN python3 /workspace/vllm/tools/install_nixl_from_source_ubuntu.py
 
+# remove torch bundled oneccl to avoid conflicts
 RUN --mount=type=cache,target=/root/.cache/pip \
     pip uninstall oneccl oneccl-devel -y
 
diff --git a/requirements/xpu.txt b/requirements/xpu.txt
index 59ea710684a2..c1dc4195b523 100644
--- a/requirements/xpu.txt
+++ b/requirements/xpu.txt
@@ -10,9 +10,9 @@ wheel
 jinja2>=3.1.6
 datasets # for benchmark scripts
 numba == 0.61.2 # Required for N-gram speculative decoding
-torch==2.8.0+xpu
+--extra-index-url=https://download.pytorch.org/whl/xpu
+torch==2.9.0+xpu
 torchaudio
 torchvision
---extra-index-url=https://download.pytorch.org/whl/xpu
 
-intel-extension-for-pytorch @ https://intel-extension-for-pytorch.s3.us-east-1.amazonaws.com/ipex_dev/xpu/intel_extension_for_pytorch-2.8.10.post1%2Bxpu-cp312-cp312-linux_x86_64.whl
+intel-extension-for-pytorch @ https://intel-extension-for-pytorch.s3.us-east-1.amazonaws.com/ipex_dev/xpu/intel_extension_for_pytorch-2.9.10.post0%2Bxpu-cp312-cp312-linux_x86_64.whl