diff --git a/Cargo.lock b/Cargo.lock
index b7fe71048c..ac352c58c6 100755
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -266,9 +266,9 @@ dependencies = [
 
 [[package]]
 name = "bech32"
-version = "0.9.1"
+version = "0.11.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "d86b93f97252c47b41663388e6d155714a9d0c398b99f1005cbc5f978b29f445"
+checksum = "d965446196e3b7decd44aa7ee49e31d630118f90ef12f97900f262eb915c951d"
 
 [[package]]
 name = "benchmark-common"
diff --git a/framework/scenario/Cargo.toml b/framework/scenario/Cargo.toml
index 0e13cb71dd..796ab19bf0 100644
--- a/framework/scenario/Cargo.toml
+++ b/framework/scenario/Cargo.toml
@@ -21,7 +21,7 @@ base64 = "0.22"
 num-bigint = "0.4"
 num-traits = "0.2"
 hex = "0.4"
-bech32 = "0.9"
+bech32 = "0.11"
 log = "0.4.17"
 sha2 = "0.10.6"
 serde = "1.0"
diff --git a/framework/scenario/src/bech32.rs b/framework/scenario/src/bech32.rs
index aa224cee95..ef934cf225 100644
--- a/framework/scenario/src/bech32.rs
+++ b/framework/scenario/src/bech32.rs
@@ -1,10 +1,9 @@
-use bech32::{FromBase32, ToBase32, Variant};
+use bech32::{Bech32, Hrp};
 use multiversx_sc::types::heap::Address;
 
 pub fn decode(bech32_address: &str) -> Address {
-    let (_, dest_address_bytes_u5, _) = bech32::decode(bech32_address)
+    let (_hrp, dest_address_bytes) = bech32::decode(bech32_address)
         .unwrap_or_else(|err| panic!("bech32 decode error for {bech32_address}: {err}"));
-    let dest_address_bytes = Vec::<u8>::from_base32(&dest_address_bytes_u5).unwrap();
     if dest_address_bytes.len() != 32 {
         panic!("Invalid address length after decoding")
     }
@@ -13,6 +12,6 @@ pub fn decode(bech32_address: &str) -> Address {
 }
 
 pub fn encode(address: &Address) -> String {
-    bech32::encode("erd", address.as_bytes().to_base32(), Variant::Bech32)
-        .expect("bech32 encode error")
+    let hrp = Hrp::parse("erd").expect("invalid hrp");
+    bech32::encode::<Bech32>(hrp, address.as_bytes()).expect("bech32 encode error")
 }
diff --git a/sdk/core/Cargo.toml b/sdk/core/Cargo.toml
index e84f8cd4cb..2387e4cce8 100644
--- a/sdk/core/Cargo.toml
+++ b/sdk/core/Cargo.toml
@@ -31,7 +31,7 @@ hex = "0.4.3"
 base64 = "0.22"
 pbkdf2 = { version = "0.12.2", default-features = false }
 zeroize = "1.4.2"
-bech32 = "0.9"
+bech32 = "0.11"
 itertools = "0.13.0"
 pem = "3.0.2"
 log = "0.4.17"
diff --git a/sdk/core/src/crypto/public_key.rs b/sdk/core/src/crypto/public_key.rs
index 89b5211262..473a0388fe 100644
--- a/sdk/core/src/crypto/public_key.rs
+++ b/sdk/core/src/crypto/public_key.rs
@@ -2,7 +2,7 @@ use std::fmt::Display;
 
 use super::private_key::PrivateKey;
 use anyhow::Result;
-use bech32::{self, ToBase32, Variant};
+use bech32::{self, Bech32, Hrp};
 use serde::{
     de::{Deserialize, Deserializer},
     ser::{Serialize, Serializer},
@@ -23,7 +23,8 @@ impl PublicKey {
     }
 
     pub fn to_address(&self) -> Result<String> {
-        let address = bech32::encode("erd", self.0.to_base32(), Variant::Bech32)?;
+        let hrp = Hrp::parse("erd")?;
+        let address = bech32::encode::<Bech32>(hrp, &self.0)?;
         Ok(address)
     }
 
diff --git a/sdk/core/src/data/address.rs b/sdk/core/src/data/address.rs
index f8ac4212c3..49d92ea608 100644
--- a/sdk/core/src/data/address.rs
+++ b/sdk/core/src/data/address.rs
@@ -2,7 +2,7 @@ use std::fmt::{Debug, Display};
 
 use crate::crypto::public_key::PublicKey;
 use anyhow::Result;
-use bech32::{FromBase32, ToBase32, Variant};
+use bech32::{Bech32, Hrp};
 use serde::{
     de::{Deserialize, Deserializer},
     ser::{Serialize, Serializer},
@@ -21,8 +21,7 @@ impl Address {
     }
 
     pub fn from_bech32_string(bech32: &str) -> Result<Self> {
-        let (_, data, _) = bech32::decode(bech32)?;
-        let data = Vec::<u8>::from_base32(&data)?;
+        let (_hrp, data) = bech32::decode(bech32)?;
 
         let mut bits: [u8; 32] = [0u8; 32];
         bits.copy_from_slice(&data);
@@ -31,7 +30,8 @@ impl Address {
     }
 
     pub fn to_bech32_string(&self) -> Result<String> {
-        let address = bech32::encode("erd", self.0.to_base32(), Variant::Bech32)?;
+        let hrp = Hrp::parse("erd")?;
+        let address = bech32::encode::<Bech32>(hrp, &self.0)?;
         Ok(address)
     }
 
diff --git a/sdk/scenario-format/Cargo.toml b/sdk/scenario-format/Cargo.toml
index b66e3403ce..a79c6c31a7 100644
--- a/sdk/scenario-format/Cargo.toml
+++ b/sdk/scenario-format/Cargo.toml
@@ -20,4 +20,4 @@ num-bigint = "0.4"
 num-traits = "0.2"
 hex = "0.4"
 sha3 = "0.10.8"
-bech32 = "0.9.0"
+bech32 = "0.11.0"
diff --git a/sdk/scenario-format/src/value_interpreter/functions.rs b/sdk/scenario-format/src/value_interpreter/functions.rs
index 32895e84d7..b4ce547ad7 100644
--- a/sdk/scenario-format/src/value_interpreter/functions.rs
+++ b/sdk/scenario-format/src/value_interpreter/functions.rs
@@ -1,5 +1,4 @@
 use crate::value_interpreter::*;
-use bech32::FromBase32;
 use sha3::{Digest, Keccak256};
 
 pub const SC_ADDRESS_NUM_LEADING_ZEROS: usize = 8;
@@ -71,6 +70,6 @@ pub(crate) fn sc_address_expression(input: &str, vm_type: &VMIdentifier) -> Vec<
 }
 
 pub(crate) fn bech32(input: &str) -> Vec<u8> {
-    let (_, decoded, _) = bech32::decode(input).expect("bech32 decode error");
-    Vec::<u8>::from_base32(&decoded).expect("bech32 base64 decode error")
+    let (_hrp, decoded) = bech32::decode(input).expect("bech32 decode error");
+    decoded
 }
diff --git a/tools/mxpy-snippet-generator/Cargo.toml b/tools/mxpy-snippet-generator/Cargo.toml
index 58236c7f78..838f8a1dc2 100644
--- a/tools/mxpy-snippet-generator/Cargo.toml
+++ b/tools/mxpy-snippet-generator/Cargo.toml
@@ -14,7 +14,7 @@ version = "0.52.3"
 path = "../../framework/base"
 
 [dependencies]
-bech32 = "0.9"
+bech32 = "0.11"
 num-bigint = "0.4"
 num-traits = "0.2"
 hex = "0.4"
diff --git a/tools/mxpy-snippet-generator/src/helper_types.rs b/tools/mxpy-snippet-generator/src/helper_types.rs
index d2cb746a51..e012ef2cb6 100644
--- a/tools/mxpy-snippet-generator/src/helper_types.rs
+++ b/tools/mxpy-snippet-generator/src/helper_types.rs
@@ -1,4 +1,3 @@
-use bech32::FromBase32;
 use multiversx_sc::types::heap::Address;
 
 use crate::constants::*;
@@ -79,8 +78,7 @@ impl TransactionType {
 }
 
 pub fn bech32_to_bytes(bech32_address: &str) -> Address {
-    let (_, dest_address_bytes_u5, _) = bech32::decode(bech32_address).unwrap();
-    let dest_address_bytes = Vec::<u8>::from_base32(&dest_address_bytes_u5).unwrap();
+    let (_hrp, dest_address_bytes) = bech32::decode(bech32_address).unwrap();
     if dest_address_bytes.len() != ADDRESS_LEN {
         panic!("Invalid address length after decoding")
     }