diff --git a/docker/prometheus/prometheus-v2-server/Dockerfile.j2 b/docker/prometheus/prometheus-server/Dockerfile.j2
similarity index 67%
rename from docker/prometheus/prometheus-v2-server/Dockerfile.j2
rename to docker/prometheus/prometheus-server/Dockerfile.j2
index f77fb158ff..584fe86ed4 100644
--- a/docker/prometheus/prometheus-v2-server/Dockerfile.j2
+++ b/docker/prometheus/prometheus-server/Dockerfile.j2
@@ -3,10 +3,10 @@ FROM {{ namespace }}/{{ image_prefix }}prometheus-base:{{ tag }}
 LABEL maintainer="{{ maintainer }}" name="{{ image_name }}" build-date="{{ build_date }}"
 {% endblock %}
 
-{% block prometheus_v2_server_header %}{% endblock %}
+{% block prometheus_server_header %}{% endblock %}
 
-{% block prometheus_v2_server_install %}
-ADD prometheus-v2-server-archive /prometheus-server-source
+{% block prometheus_server_install %}
+ADD prometheus-server-archive /prometheus-server-source
 
 RUN ln -s /prometheus-server-source/* prometheus-server \
     && mkdir -p /opt/prometheus \
@@ -14,7 +14,7 @@ RUN ln -s /prometheus-server-source/* prometheus-server \
     && mkdir -p /etc/prometheus /data
 {% endblock %}
 
-{% block prometheus_v2_server_footer %}{% endblock %}
+{% block prometheus_server_footer %}{% endblock %}
 {% block footer %}{% endblock %}
 
 USER prometheus
diff --git a/kolla/common/sources.py b/kolla/common/sources.py
index 63dbd74256..bf3d9856d0 100644
--- a/kolla/common/sources.py
+++ b/kolla/common/sources.py
@@ -408,12 +408,12 @@
                      'releases/download/v${version}/'
                      'ovn-exporter'
                      '_${version}_linux_${debian_arch}.tar.gz')},
-    'prometheus-v2-server': {
-        'version': '2.55.1',
+    'prometheus-server': {
+        'version': '3.2.1',
         'type': 'url',
         'sha256': {
-            'amd64': '19700bdd42ec31ee162e4079ebda4cd0a44432df4daa637141bdbea4b1cd8927',  # noqa: E501
-            'arm64': 'af43368bc6379c3c8bd5ac0b82208060bba22267bf01ad3ab5df56ad5725bf88'},  # noqa: E501
+            'amd64': 'a622e3007c9109a7f470e1433cbd29bf392596715cf7eea8b81b37fa9d26b7be',  # noqa: E501
+            'arm64': 'f2dec3178f1181c1b795b275750d056e71ead13f7fbfe08b76834c4ec20b748e'},  # noqa: E501
         'location': ('https://github.com/'
                      'prometheus/prometheus/'
                      'releases/download/v${version}/'
diff --git a/releasenotes/notes/upgrade-prometheus-to-v3-d305280498e0fcaf.yaml b/releasenotes/notes/upgrade-prometheus-to-v3-d305280498e0fcaf.yaml
new file mode 100644
index 0000000000..9c9eeb2357
--- /dev/null
+++ b/releasenotes/notes/upgrade-prometheus-to-v3-d305280498e0fcaf.yaml
@@ -0,0 +1,11 @@
+---
+features:
+  - |
+    Updates Prometheus version to v3.2.1. Also, switches back to
+    'prometheus-server' generic image name by removing 'v2' part.
+upgrade:
+  - |
+    Prometheus will be upgraded from v2 to v3 - which introduces minor breaking
+    changes. Make sure there's version 2.5.5 or later running before attempting
+    an upgrade. Read the official migration guide for more details:
+    https://prometheus.io/docs/prometheus/3.0/migration/.