diff --git a/.gitmodules b/.gitmodules
index 7657480a..8fda0192 100644
--- a/.gitmodules
+++ b/.gitmodules
@@ -8,4 +8,4 @@
 [submodule "providers/openfeature-provider-flagd/openfeature/test-harness"]
 	path = providers/openfeature-provider-flagd/openfeature/test-harness
 	url = https://github.com/open-feature/flagd-testbed.git
-	branch = v2.7.4
+	branch = v2.8.0
diff --git a/providers/openfeature-provider-flagd/openfeature/test-harness b/providers/openfeature-provider-flagd/openfeature/test-harness
index f251ff13..8dca72ca 160000
--- a/providers/openfeature-provider-flagd/openfeature/test-harness
+++ b/providers/openfeature-provider-flagd/openfeature/test-harness
@@ -1 +1 @@
-Subproject commit f251ff13e1cb461a91c0e2332452eab50af440cd
+Subproject commit 8dca72ca3877e009b3b76664749f3f604403dfd6
diff --git a/providers/openfeature-provider-flagd/src/openfeature/contrib/provider/flagd/config.py b/providers/openfeature-provider-flagd/src/openfeature/contrib/provider/flagd/config.py
index e4f69dd7..2a21ba36 100644
--- a/providers/openfeature-provider-flagd/src/openfeature/contrib/provider/flagd/config.py
+++ b/providers/openfeature-provider-flagd/src/openfeature/contrib/provider/flagd/config.py
@@ -47,7 +47,7 @@ class CacheType(Enum):
 ENV_VAR_RETRY_BACKOFF_MAX_MS = "FLAGD_RETRY_BACKOFF_MAX_MS"
 ENV_VAR_RETRY_GRACE_PERIOD_SECONDS = "FLAGD_RETRY_GRACE_PERIOD"
 ENV_VAR_SELECTOR = "FLAGD_SOURCE_SELECTOR"
-ENV_VAR_PROVIDER_ID = "FLAGD_SOURCE_PROVIDER_ID"
+ENV_VAR_PROVIDER_ID = "FLAGD_PROVIDER_ID"
 ENV_VAR_STREAM_DEADLINE_MS = "FLAGD_STREAM_DEADLINE_MS"
 ENV_VAR_TLS = "FLAGD_TLS"
 ENV_VAR_TLS_CERT = "FLAGD_SERVER_CERT_PATH"