diff --git a/CHANGELOG.md b/CHANGELOG.md
index bcad0b7..f89fef8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,11 @@
 
 * Nothing
 
+## v1.2.7
+
+* Updated to Prosody version [0.12.0](https://blog.prosody.im/prosody-0.12.0-released/).
+* Updated luarocks to version 3.9.0.
+
 ## v1.2.6
 
 * Updated to Prosody version [0.11.13](https://blog.prosody.im/prosody-0.11.13-released/).
diff --git a/Dockerfile b/Dockerfile
index 3ec04ef..a2e6184 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -4,11 +4,11 @@ ARG BUILD_DATE
 ARG VCS_REF
 ARG VERSION
 
-ARG LUAROCKS_VERSION=3.8.0
-ARG PROSODY_VERSION=0.11.13
+ARG LUAROCKS_VERSION=3.9.0
+ARG PROSODY_VERSION=0.12.0
 
-ARG LUAROCKS_SHA256=56ab9b90f5acbc42eb7a94cf482e6c058a63e8a1effdf572b8b2a6323a06d923
-ARG PROSODY_DOWNLOAD_SHA256=39c61b346a09b5125b604cb969e14206cbbcb86c81156ffc6ba2d62527cf0432
+ARG LUAROCKS_SHA256=5e840f0224891de96be4139e9475d3b1de7af3a32b95c1bdf05394563c60175f
+ARG PROSODY_DOWNLOAD_SHA256=752ff32015dac565fc3417c2196af268971c358ee066e51f5d912413580d889a
 
 LABEL luarocks.version="${LUAROCKS_VERSION}"
 LABEL org.opencontainers.image.authors="Sara Smiseth"
@@ -26,6 +26,7 @@ LABEL prosody.version="${PROSODY_VERSION}"
 RUN apt-get update \
  && DEBIAN_FRONTEND=noninteractive apt-get install -y \
       libevent-dev `# this is no build dependency, but needed for luaevent` \
+      libicu67 \
       libidn11 \
       libpq-dev \
       libsqlite3-0 \
@@ -36,11 +37,12 @@ RUN apt-get update \
       lua-filesystem \
       lua-socket \
       lua-sec \
+      lua-unbound \
       wget \
  && apt-get clean \
  && rm -rf /var/lib/apt/lists/*
 
-RUN buildDeps='gcc git libc6-dev libidn11-dev liblua5.2-dev libsqlite3-dev libssl-dev make unzip' \
+RUN buildDeps='gcc git libc6-dev libidn11-dev liblua5.2-dev libsqlite3-dev libssl-dev libicu-dev make unzip' \
  && set -x \
  && apt-get update && apt-get install -y $buildDeps --no-install-recommends \
  && rm -rf /var/lib/apt/lists/* \
diff --git a/tests/docker-compose.yml b/tests/docker-compose.yml
index 8c59053..f854381 100644
--- a/tests/docker-compose.yml
+++ b/tests/docker-compose.yml
@@ -1,4 +1,4 @@
-version: '3.7'
+version: '3.9'
 
 services:
   prosody:
diff --git a/tests/requirements.txt b/tests/requirements.txt
index 7bb2363..c97b92d 100644
--- a/tests/requirements.txt
+++ b/tests/requirements.txt
@@ -1,3 +1,3 @@
-aioxmpp==0.12.2
+aioxmpp==0.13.2
 pip-chill==1.0.1
-pytest-asyncio==0.15.1
+pytest-asyncio==0.18.3
diff --git a/tests/test.bash b/tests/test.bash
index 7b1e436..9646ab5 100755
--- a/tests/test.bash
+++ b/tests/test.bash
@@ -18,7 +18,7 @@ generateCert() {
 registerTestUser() {
     local userName="$1"
     local containerName="$2"
-    sudo docker exec "$containerName" /bin/bash -c "/entrypoint.bash register $userName localhost 12345678"
+    sudo docker compose exec "$containerName" /bin/bash -c "/entrypoint.bash register $userName localhost 12345678"
 }
 
 registerTestUsers() {
@@ -60,12 +60,12 @@ sudo docker-compose down \
 && sleep 10 \
 && sudo docker-compose up -d prosody_postgres
 
-registerTestUsers tests_prosody_postgres_1
+registerTestUsers prosody_postgres
 runTests prosody_postgres
 sudo docker-compose down
 
 # Run tests for second container with SQLite
 sudo docker-compose up -d prosody
-registerTestUsers tests_prosody_1
+registerTestUsers prosody
 runTests prosody
 sudo docker-compose down
diff --git a/tests/tests.bats b/tests/tests.bats
index 31dac1e..bbac09d 100644
--- a/tests/tests.bats
+++ b/tests/tests.bats
@@ -3,41 +3,40 @@
 load 'bats/bats-support/load'
 load 'bats/bats-assert/load'
 
-# group alternation in regex because the xml properties switch around. sometimes 'type=...' comes after 'to=...' and sometimes before
 @test "Should send 5 messages" {
-  run bash -c "sudo docker-compose logs $batsContainerName | grep -E \"Received\[c2s\]: <message (type='chat'|to='.*@localhost'|id=':.*') (type='chat'|to='.*@localhost'|id=':.*') (type='chat'|to='.*@localhost'|id=':.*')>\" | wc -l"
+  run bash -c "sudo docker-compose logs $batsContainerName | grep -E \"Received\[c2s\]: <message\" | wc -l"
   assert_success
   assert_output "5"
 }
 
 @test "Should select certificate for localhost" {
-  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Selecting certificate /usr/local/etc/prosody/certs/localhost/fullchain.pem with key /usr/local/etc/prosody/certs/localhost/privkey.pem for localhost\" | wc -l"
+  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Certificates loaded\" | grep \" localhost:tls\" | wc -l"
   assert_success
-  assert_output "3"
+  assert_output "1"
 }
 
 @test "Should select certificate for conference.localhost" {
-  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Selecting certificate /usr/local/etc/prosody/certs/conference.localhost/fullchain.pem with key /usr/local/etc/prosody/certs/conference.localhost/privkey.pem for conference.localhost\" | wc -l"
+  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Certificates loaded\" | grep \"conference.localhost:tls\" | wc -l"
   assert_success
-  assert_output "3"
+  assert_output "1"
 }
 
 @test "Should select certificate for proxy.localhost" {
-  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Selecting certificate /usr/local/etc/prosody/certs/proxy.localhost/fullchain.pem with key /usr/local/etc/prosody/certs/proxy.localhost/privkey.pem for proxy.localhost\" | wc -l"
+  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Certificates loaded\" | grep \"proxy.localhost:tls\" | wc -l"
   assert_success
-  assert_output "3"
+  assert_output "1"
 }
 
 @test "Should select certificate for pubsub.localhost" {
-  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Selecting certificate /usr/local/etc/prosody/certs/pubsub.localhost/fullchain.pem with key /usr/local/etc/prosody/certs/pubsub.localhost/privkey.pem for pubsub.localhost\" | wc -l"
+  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Certificates loaded\" | grep \"pubsub.localhost:tls\" | wc -l"
   assert_success
-  assert_output "3"
+  assert_output "1"
 }
 
 @test "Should select certificate for upload.localhost" {
-  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Selecting certificate /usr/local/etc/prosody/certs/upload.localhost/fullchain.pem with key /usr/local/etc/prosody/certs/upload.localhost/privkey.pem for upload.localhost\" | wc -l"
+  run bash -c "sudo docker-compose logs $batsContainerName | grep \"Certificates loaded\" | grep \"upload.localhost:tls\" | wc -l"
   assert_success
-  assert_output "3"
+  assert_output "1"
 }
 
 @test "Should log error for user with wrong password" {
@@ -70,12 +69,6 @@ load 'bats/bats-assert/load'
   assert_output
 }
 
-@test "Should activate http" {
-  run bash -c "sudo docker-compose logs $batsContainerName | grep -E \"Activated service 'http' on (\[::\]:5280|\[\*\]:5280), (\[::\]:5280|\[\*\]:5280)\""
-  assert_success
-  assert_output
-}
-
 @test "Should activate https" {
   run bash -c "sudo docker-compose logs $batsContainerName | grep -E \"Activated service 'https' on (\[::\]:5281|\[\*\]:5281), (\[::\]:5281|\[\*\]:5281)\""
   assert_success