diff --git a/.changeset/popular-goats-perform.md b/.changeset/popular-goats-perform.md
new file mode 100644
index 0000000..758878a
--- /dev/null
+++ b/.changeset/popular-goats-perform.md
@@ -0,0 +1,5 @@
+---
+"@cartesi/sdk": minor
+---
+
+bump machine-emulator to 0.18.1
diff --git a/packages/sdk/Dockerfile b/packages/sdk/Dockerfile
index d5f65d2..7bc3b4d 100644
--- a/packages/sdk/Dockerfile
+++ b/packages/sdk/Dockerfile
@@ -1,67 +1,80 @@
 # syntax=docker.io/docker/dockerfile:1
 ARG BASE_IMAGE
-ARG SERVER_MANAGER_REGISTRY
-ARG SERVER_MANAGER_ORG
-ARG SERVER_MANAGER_VERSION
+ARG CARTESI_MACHINE_EMULATOR_VERSION
 ARG CARTESI_IMAGE_KERNEL_VERSION
 ARG LINUX_KERNEL_VERSION
 ARG XGENEXT2_VERSION
+ARG CRANE_VERSION
+ARG NODEJS_VERSION
+ARG SU_EXEC_VERSION
+ARG ANVIL_VERSION
+
+################################################################################
+# base image
+FROM ${BASE_IMAGE} AS base
+SHELL ["/bin/bash", "-euo", "pipefail", "-c"]
+ARG DEBIAN_FRONTEND=noninteractive
+RUN <<EOF
+apt-get update
+apt-get install -y --no-install-recommends \
+    ca-certificates \
+    curl
+EOF
 
-FROM ${BASE_IMAGE} AS builder
-
+################################################################################
+# builder image
+FROM base AS builder
 WORKDIR /usr/local/src
 ARG DEBIAN_FRONTEND=noninteractive
 RUN <<EOF
-set -e
-apt-get update
 apt-get install -y --no-install-recommends \
     autoconf \
     automake \
     build-essential \
-    ca-certificates \
-    curl \
     libarchive-dev \
     libtool
 rm -rf /var/lib/apt/lists/*
 EOF
 
+################################################################################
+# su-exec builder
 FROM builder AS su-exec
-
-# v0.2 -> f85e5bde1afef399021fbc2a99c837cf851ceafa
+ARG SU_EXEC_VERSION
 WORKDIR /usr/local/src
-ADD https://github.com/ncopa/su-exec.git#f85e5bde1afef399021fbc2a99c837cf851ceafa /usr/local/src
+ADD https://github.com/ncopa/su-exec.git#v${SU_EXEC_VERSION} /usr/local/src
 RUN make
 
-FROM builder AS crane
-ARG CRANE_VERSION=0.19.1
+################################################################################
+# crane installer
+FROM base AS crane
+ARG CRANE_VERSION
 RUN <<EOF
-set -e
-
 #FIXME: ugly hack to download the right go-containerregistry binary
 case "$(arch)" in
 aarch64) ARCH="arm64" ;;
 *) ARCH=$(arch) ;;
 esac
 
-curl -sSL https://github.com/google/go-containerregistry/releases/download/v${CRANE_VERSION}/go-containerregistry_Linux_${ARCH}.tar.gz | \
+curl -fsSL https://github.com/google/go-containerregistry/releases/download/v${CRANE_VERSION}/go-containerregistry_Linux_${ARCH}.tar.gz | \
     tar -zx -C /usr/local/bin
 EOF
 
-# alto
-FROM node:18.19.0-bookworm AS alto
+################################################################################
+# alto installer
+FROM node:${NODEJS_VERSION}-bookworm AS alto
 ARG ALTO_VERSION
 RUN npm install -g @pimlico/alto@${ALTO_VERSION}
 
-# devnet files
-FROM node:slim AS devnet
+################################################################################
+# devnet installer
+FROM node:${NODEJS_VERSION}-bookworm AS devnet
 ARG DEVNET_VERSION
 RUN npm install -g @cartesi/devnet@${DEVNET_VERSION}
 
-# sdk image
-FROM $SERVER_MANAGER_REGISTRY/$SERVER_MANAGER_ORG/server-manager:$SERVER_MANAGER_VERSION
-ARG SERVER_MANAGER_REGISTRY
-ARG SERVER_MANAGER_ORG
-ARG SERVER_MANAGER_VERSION
+################################################################################
+# sdk final image
+FROM base
+ARG CARTESI_MACHINE_EMULATOR_VERSION
 ARG CARTESI_IMAGE_KERNEL_VERSION
 ARG LINUX_KERNEL_VERSION
 ARG XGENEXT2_VERSION
@@ -70,20 +83,21 @@ ARG PAYMASTER_VERSION
 USER root
 ARG DEBIAN_FRONTEND=noninteractive
 RUN <<EOF
-set -e
-echo 'deb http://deb.debian.org/debian bookworm-backports main' > /etc/apt/sources.list.d/backports.list
-apt-get update
 apt-get install -y --no-install-recommends \
-    ca-certificates \
-    curl \
     jq \
     libarchive-tools \
+    libslirp0 \
     locales \
+    lua5.4 \
     nodejs \
     npm \
     squashfs-tools \
     xxd \
     xz-utils
+
+# Install e2fsprogs from backports
+echo 'deb http://deb.debian.org/debian bookworm-backports main' > /etc/apt/sources.list.d/backports.list
+apt-get update
 apt-get install -y --no-install-recommends -t bookworm-backports \
     e2fsprogs
 rm -rf /var/lib/apt/lists/*
@@ -96,24 +110,22 @@ EOF
 # Install dpkg release of xgenext2fs
 RUN <<EOF
 ARCH=$(dpkg --print-architecture)
-curl -sSL https://github.com/cartesi/genext2fs/releases/download/v${XGENEXT2_VERSION}/xgenext2fs_${ARCH}.deb \
-    -o ./xgenext2fs.deb
-dpkg -i ./xgenext2fs.deb
-rm ./xgenext2fs.deb
+curl -fsSL https://github.com/cartesi/genext2fs/releases/download/v${XGENEXT2_VERSION}/xgenext2fs_${ARCH}.deb \
+    -o /tmp/xgenext2fs.deb
+dpkg -i /tmp/xgenext2fs.deb
+rm /tmp/xgenext2fs.deb
 xgenext2fs --version
 EOF
 
 # Install mock-verifying-paymaster
-RUN <<EOF
-npm install -g @cartesi/mock-verifying-paymaster@${PAYMASTER_VERSION}
-EOF
+RUN npm install -g @cartesi/mock-verifying-paymaster@${PAYMASTER_VERSION}
 
 ENV LC_ALL=en_US.UTF-8
 ENV LANG=en_US.UTF-8
 ENV LANGUAGE=en_US:en
 
 # download anvil pre-compiled binaries
-ARG ANVIL_VERSION=e90348416c3a831ab75bb43f6fa5f0a0be4106c4
+ARG ANVIL_VERSION
 RUN curl -sSL https://github.com/foundry-rs/foundry/releases/download/nightly-${ANVIL_VERSION}/foundry_nightly_linux_$(dpkg --print-architecture).tar.gz | \
     tar -zx -C /usr/local/bin
 
@@ -133,13 +145,25 @@ COPY --from=devnet /usr/local/lib/node_modules/@cartesi/devnet/export/abi/localh
 COPY --from=devnet /usr/local/lib/node_modules/@cartesi/devnet/build/anvil_state.json /usr/share/cartesi/
 RUN mkdir -p /tmp/.cartesi && chmod 1777 /tmp/.cartesi
 
+# Install cartesi-machine emulator
+RUN <<EOF
+ARCH=$(dpkg --print-architecture)
+curl -fsSL https://github.com/cartesi/machine-emulator/releases/download/v${CARTESI_MACHINE_EMULATOR_VERSION}/cartesi-machine-v${CARTESI_MACHINE_EMULATOR_VERSION}_${ARCH}.deb \
+    -o /tmp/cartesi-machine.deb
+dpkg -i /tmp/cartesi-machine.deb
+rm /tmp/cartesi-machine.deb
+cartesi-machine --version-json
+EOF
+
+# Install linux kernel image
 ADD --chmod=644 \
-    --checksum=sha256:1dc36e05bf04d3fff097e51408556cef4d5ac09792e245b37c470d9188a4c173 \
+    --checksum=sha256:65dd100ff6204346ac2f50f772721358b5c1451450ceb39a154542ee27b4c947 \
     https://github.com/cartesi/image-kernel/releases/download/v${CARTESI_IMAGE_KERNEL_VERSION}/linux-${LINUX_KERNEL_VERSION}.bin \
     /usr/share/cartesi-machine/images/linux.bin
 
+# Install linux headers
 ADD --chmod=644 \
-    --checksum=sha256:58d1b232e6c2ed735f362ef0454802ae72a39798d472c0253cabec041703a16a \
+    --checksum=sha256:4a4714bfa8c0028cb443db2036fad4f8da07065c1cb4ac8e0921a259fddd731b \
     https://github.com/cartesi/image-kernel/releases/download/v$CARTESI_IMAGE_KERNEL_VERSION/linux-headers-$LINUX_KERNEL_VERSION.tar.xz \
     /usr/share/cartesi-machine/images/linux-headers.tar.xz
 RUN tar -xJf /usr/share/cartesi-machine/images/linux-headers.tar.xz -C / && \
diff --git a/packages/sdk/docker-bake.hcl b/packages/sdk/docker-bake.hcl
index b4fd7e8..8b80dfc 100644
--- a/packages/sdk/docker-bake.hcl
+++ b/packages/sdk/docker-bake.hcl
@@ -4,15 +4,17 @@ target "docker-platforms" {}
 target "default" {
   inherits = ["docker-metadata-action", "docker-platforms"]
   args = {
-    BASE_IMAGE                    = "debian:bookworm-20240311"
-    SERVER_MANAGER_REGISTRY       = "docker.io"
-    SERVER_MANAGER_ORG            = "cartesi"
-    SERVER_MANAGER_VERSION        = "0.9.1"
-    CARTESI_IMAGE_KERNEL_VERSION  = "0.19.1"
-    ALTO_VERSION                  = "0.0.4"
-    PAYMASTER_VERSION             = "0.2.0"
-    DEVNET_VERSION                = "1.8.0"
-    LINUX_KERNEL_VERSION          = "6.5.9-ctsi-1-v0.19.1"
-    XGENEXT2_VERSION              = "1.5.6"
+    BASE_IMAGE                        = "debian:bookworm-20240926"
+    CARTESI_MACHINE_EMULATOR_VERSION  = "0.18.1"
+    CARTESI_IMAGE_KERNEL_VERSION      = "0.20.0"
+    ALTO_VERSION                      = "0.0.4"
+    PAYMASTER_VERSION                 = "0.2.0"
+    DEVNET_VERSION                    = "1.8.0"
+    LINUX_KERNEL_VERSION              = "6.5.13-ctsi-1-v0.20.0"
+    XGENEXT2_VERSION                  = "1.5.6"
+    CRANE_VERSION                     = "0.19.1"
+    NODEJS_VERSION                    = "18.19.0"
+    SU_EXEC_VERSION                   = "0.2"
+    ANVIL_VERSION                     = "e90348416c3a831ab75bb43f6fa5f0a0be4106c4"
   }
 }