diff --git a/docs/labs.md b/docs/labs.md
index 50f9e589e..a3130c29a 100644
--- a/docs/labs.md
+++ b/docs/labs.md
@@ -106,3 +106,8 @@ To enable message previews for reactions in DMs, enable `feature_roomlist_previe
 represent what communities v2 will look/feel like and can/will change without notice. Due to the early
 stages this feature is in and the requirement for a compatible homeserver, we will not be accepting issues
 or feedback for this functionality at this time.
+
+## Dehydrated devices (`feature_dehydration`)
+
+Allows users to receive encrypted messages by creating a device that is stored
+encrypted on the server, as described in [MSC2697](https://github.com/matrix-org/matrix-doc/pull/2697).
diff --git a/package.json b/package.json
index 63b0398ca..df0bd330f 100644
--- a/package.json
+++ b/package.json
@@ -63,7 +63,7 @@
     "matrix-js-sdk": "8.4.1",
     "matrix-react-sdk": "3.5.0",
     "matrix-widget-api": "^0.1.0-beta.2",
-    "olm": "https://packages.matrix.org/npm/olm/olm-3.1.4.tgz",
+    "olm": "https://packages.matrix.org/npm/olm/olm-3.2.1.tgz",
     "prop-types": "^15.7.2",
     "react": "^16.9.0",
     "react-dom": "^16.9.0",
diff --git a/yarn.lock b/yarn.lock
index 5227b9e11..45326af31 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8187,9 +8187,9 @@ obuf@^1.0.0, obuf@^1.1.2:
   resolved "https://registry.yarnpkg.com/obuf/-/obuf-1.1.2.tgz#09bea3343d41859ebd446292d11c9d4db619084e"
   integrity sha512-PX1wu0AmAdPqOL1mWhqmlOd8kOIZQwGZw6rh7uby9fTc5lhaOWFLX3I6R1hrF9k3zUY40e6igsLGkDXK92LJNg==
 
-"olm@https://packages.matrix.org/npm/olm/olm-3.1.4.tgz":
-  version "3.1.4"
-  resolved "https://packages.matrix.org/npm/olm/olm-3.1.4.tgz#0f03128b7d3b2f614d2216409a1dfccca765fdb3"
+"olm@https://packages.matrix.org/npm/olm/olm-3.2.1.tgz":
+  version "3.2.1"
+  resolved "https://packages.matrix.org/npm/olm/olm-3.2.1.tgz#d623d76f99c3518dde68be8c86618d68bc7b004a"
 
 on-finished@~2.3.0:
   version "2.3.0"