diff --git a/.buildkite/pipeline-intel.yaml b/.buildkite/pipeline-intel.yaml
index 379da253e..4f461746d 100644
--- a/.buildkite/pipeline-intel.yaml
+++ b/.buildkite/pipeline-intel.yaml
@@ -10,7 +10,7 @@ steps:
           DOCKER_BUILDKIT: "1"
           # Buildkite will automatically replace this with the actual commit hash
           VLLM_IMAGE_TAG: "${BUILDKITE_COMMIT}"
-          VLLM_VERSION: "v0.20.0"
+          VLLM_VERSION: "v0.21.0"
         priority: 100
         timeout_in_minutes: 60
         soft_fail: false
diff --git a/.buildkite/scripts/hardware_ci/run-xpu-test.sh b/.buildkite/scripts/hardware_ci/run-xpu-test.sh
index e1d464ef0..afed05852 100755
--- a/.buildkite/scripts/hardware_ci/run-xpu-test.sh
+++ b/.buildkite/scripts/hardware_ci/run-xpu-test.sh
@@ -52,5 +52,5 @@ time timeout -k 30 30m docker run \
     pip install tblib==3.1.0
     cd /workspace/vllm-omni
     pytest -v -s -m "core_model and xpu and B60"
-    pytest -v -s -m "advanced_model and xpu and B60"
+    pytest -v -s -m "advanced_model and xpu and B60" -k "not omni_expansion"
 '
diff --git a/docker/Dockerfile.xpu b/docker/Dockerfile.xpu
index 4a3e675c2..2c49dded1 100644
--- a/docker/Dockerfile.xpu
+++ b/docker/Dockerfile.xpu
@@ -88,7 +88,7 @@ ENV UV_EXTRA_INDEX_URL=${PIP_EXTRA_INDEX_URL}
 ENV UV_INDEX_STRATEGY="unsafe-best-match"
 ENV UV_LINK_MODE="copy"
 
-ARG VLLM_VERSION=v0.20.0
+ARG VLLM_VERSION=v0.21.0
 RUN git clone -b ${VLLM_VERSION} https://github.com/vllm-project/vllm
 WORKDIR /workspace/vllm