diff --git a/scripts/config.ts b/scripts/config.ts
index 0803230f..3236bd5b 100644
--- a/scripts/config.ts
+++ b/scripts/config.ts
@@ -310,7 +310,7 @@ function writeConfigs(argv: any) {
     if (argv.simple) {
         let simpleConfig = JSON.parse(baseConfJSON)
         simpleConfig.node.staker.enable = true
-        simpleConfig.node.staker["use-smart-contract-wallet"] = false // TODO: set to true when fixed
+        simpleConfig.node.staker["use-smart-contract-wallet"] = true
         simpleConfig.node.staker.dangerous["without-block-validator"] = true
         simpleConfig.node.sequencer = true
         simpleConfig.node.dangerous["no-sequencer-coordinator"] = true
@@ -325,7 +325,7 @@ function writeConfigs(argv: any) {
     } else {
         let validatorConfig = JSON.parse(baseConfJSON)
         validatorConfig.node.staker.enable = true
-        validatorConfig.node.staker["use-smart-contract-wallet"] = false // TODO: set to true when fixed
+        validatorConfig.node.staker["use-smart-contract-wallet"] = true
         let validconfJSON = JSON.stringify(validatorConfig)
         fs.writeFileSync(path.join(consts.configpath, "validator_config.json"), validconfJSON)
 
@@ -367,7 +367,7 @@ function writeConfigs(argv: any) {
     const l3ChainInfoFile = path.join(consts.configpath, "l3_chain_info.json")
     l3Config.chain["info-files"] = [l3ChainInfoFile]
     l3Config.node.staker.enable = true
-    l3Config.node.staker["use-smart-contract-wallet"] = false // TODO: set to true when fixed
+    l3Config.node.staker["use-smart-contract-wallet"] = true
     l3Config.node.sequencer = true
     l3Config.execution["sequencer"].enable = true
     l3Config.node["dangerous"]["no-sequencer-coordinator"] = true
diff --git a/test-node.bash b/test-node.bash
index cc8400d0..7f14a6c3 100755
--- a/test-node.bash
+++ b/test-node.bash
@@ -2,7 +2,7 @@
 
 set -eu
 
-NITRO_NODE_VERSION=offchainlabs/nitro-node:v3.7.4-9244576
+NITRO_NODE_VERSION=offchainlabs/nitro-node:v3.8.0-62c0aa7
 BLOCKSCOUT_VERSION=offchainlabs/blockscout:v1.1.0-0e716c8
 
 # nitro-contract workaround for testnode