diff --git a/board/qemu/powerpc-g3beige/linux-3.6.config b/board/qemu/powerpc-g3beige/linux-3.7.config
similarity index 100%
rename from board/qemu/powerpc-g3beige/linux-3.6.config
rename to board/qemu/powerpc-g3beige/linux-3.7.config
diff --git a/board/qemu/powerpc-g3beige/readme.txt b/board/qemu/powerpc-g3beige/readme.txt
index 01f0baf..05aa380 100644
--- a/board/qemu/powerpc-g3beige/readme.txt
+++ b/board/qemu/powerpc-g3beige/readme.txt
@@ -5,4 +5,4 @@ Run the emulation with:
 The login prompt will appear in the terminal that started Qemu. The
 graphical window is the framebuffer.
 
-Tested with QEMU 1.2.0
+Tested with QEMU 1.3.0
diff --git a/configs/qemu_ppc_g3beige_defconfig b/configs/qemu_ppc_g3beige_defconfig
index 420710b..5aef9bf 100644
--- a/configs/qemu_ppc_g3beige_defconfig
+++ b/configs/qemu_ppc_g3beige_defconfig
@@ -6,15 +6,15 @@ BR2_powerpc_750=y
 BR2_TARGET_ROOTFS_EXT2=y
 # BR2_TARGET_ROOTFS_TAR is not set
 
-# Lock to 3.6 headers to avoid breaking with newer kernels
-BR2_KERNEL_HEADERS_3_6=y
+# Lock to 3.7 headers to avoid breaking with newer kernels
+BR2_KERNEL_HEADERS_3_7=y
 
 # Kernel
 BR2_LINUX_KERNEL=y
 BR2_LINUX_KERNEL_CUSTOM_VERSION=y
-BR2_LINUX_KERNEL_CUSTOM_VERSION_VALUE="3.6.6"
+BR2_LINUX_KERNEL_CUSTOM_VERSION_VALUE="3.7.1"
 BR2_LINUX_KERNEL_USE_CUSTOM_CONFIG=y
-BR2_LINUX_KERNEL_CUSTOM_CONFIG_FILE="board/qemu/powerpc-g3beige/linux-3.6.config"
+BR2_LINUX_KERNEL_CUSTOM_CONFIG_FILE="board/qemu/powerpc-g3beige/linux-3.7.config"
 BR2_LINUX_KERNEL_VMLINUX=y
 
 # Serial port config