diff --git a/tools/test_idf_tools/test_idf_tools.py b/tools/test_idf_tools/test_idf_tools.py
index ef804953b..c9ecc38bf 100755
--- a/tools/test_idf_tools/test_idf_tools.py
+++ b/tools/test_idf_tools/test_idf_tools.py
@@ -71,7 +71,7 @@ class TestUsage(unittest.TestCase):
             idf_tools.main(['list'])
         output = output_stream.getvalue()
 
-        xtensa_esp32_elf_version = 'esp-2020r2-8.2.0'
+        xtensa_esp32_elf_version = 'esp-2020r3-8.4.0'
         esp32ulp_version = '2.28.51.20170517'
 
         self.assertIn('* xtensa-esp32-elf:', output)
diff --git a/tools/toolchain_versions.mk b/tools/toolchain_versions.mk
index ba15d521c..349040501 100644
--- a/tools/toolchain_versions.mk
+++ b/tools/toolchain_versions.mk
@@ -1,6 +1,6 @@
-SUPPORTED_TOOLCHAIN_COMMIT_DESC = esp-2020r2
-SUPPORTED_TOOLCHAIN_GCC_VERSIONS = 8.2.0
+SUPPORTED_TOOLCHAIN_COMMIT_DESC = esp-2020r3
+SUPPORTED_TOOLCHAIN_GCC_VERSIONS = 8.4.0
 
-CURRENT_TOOLCHAIN_COMMIT_DESC = esp-2020r2
-CURRENT_TOOLCHAIN_COMMIT_DESC_SHORT = esp-2020r2
-CURRENT_TOOLCHAIN_GCC_VERSION = 8.2.0
+CURRENT_TOOLCHAIN_COMMIT_DESC = esp-2020r3
+CURRENT_TOOLCHAIN_COMMIT_DESC_SHORT = esp-2020r3
+CURRENT_TOOLCHAIN_GCC_VERSION = 8.4.0
diff --git a/tools/tools.json b/tools/tools.json
index ad9f4fa7e..e9d76e441 100644
--- a/tools/tools.json
+++ b/tools/tools.json
@@ -22,36 +22,36 @@
       "versions": [
         {
           "linux-amd64": {
-            "sha256": "6c73b9e9d252810a63ca5e94b497c6c09fb8c903fe9c477f385bdc2ab4d2187e",
-            "size": 85520229,
-            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_2_0-esp-2020r2-linux-amd64.tar.gz"
+            "sha256": "674080a12f9c5ebe5a3a5ce51c6deaeffe6dfb06d6416233df86f25b574e9279",
+            "size": 85731226,
+            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_4_0-esp-2020r3-linux-amd64.tar.gz"
           },
           "linux-armel": {
-            "sha256": "51dd318c4f2ac1fe2b206d029e1d2080c922107cc56e4a3802b1acafd7b436db",
-            "size": 83672167,
-            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_2_0-esp-2020r2-linux-armel.tar.gz"
+            "sha256": "6771e011dffa2438ef84ff3474538b4a69df8f9d4cfae3b3707ca31c782ed7db",
+            "size": 83888892,
+            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_4_0-esp-2020r3-linux-armel.tar.gz"
           },
           "linux-i686": {
-            "sha256": "a003c7bc9b9f0dd82170480aadd62c0586fc6e3d69119c637c957125164f40e5",
-            "size": 87467927,
-            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_2_0-esp-2020r2-linux-i686.tar.gz"
+            "sha256": "076b7e05304e26aa6ec105c9e0dc74addca079bc2cae6e42ee7575c5ded29877",
+            "size": 87715092,
+            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_4_0-esp-2020r3-linux-i686.tar.gz"
           },
           "macos": {
-            "sha256": "48b288e3e5c60623851616bf545b8e4fc5382dc980d6b9682373f11013fe5776",
-            "size": 92201363,
-            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_2_0-esp-2020r2-macos.tar.gz"
+            "sha256": "6845f786303b26c4a55ede57487ba65bd25737232fe6104be03f25bb62f4631c",
+            "size": 92424226,
+            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_4_0-esp-2020r3-macos.tar.gz"
           },
-          "name": "esp-2020r2-8.2.0",
+          "name": "esp-2020r3-8.4.0",
           "status": "recommended",
           "win32": {
-            "sha256": "f2ba6bdb1c4b2178955e5e7a204552bb754709e02eaf9d8febe770d46629db8f",
-            "size": 103885422,
-            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_2_0-esp-2020r2-win32.zip"
+            "sha256": "81cecd5493a3fcf2118977f3fd60bd0a13a4aeac8fe6760d912f96d2c34fab66",
+            "size": 104226379,
+            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_4_0-esp-2020r3-win32.zip"
           },
           "win64": {
-            "sha256": "036ae8c737e7a4ced7121881f10747cf7b18914648ef611c78b3d543a0f00d8f",
-            "size": 106505186,
-            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_2_0-esp-2020r2-win64.zip"
+            "sha256": "58419852fefb7111fdec056ac2fd7c4bd09c1f4c17610a761a97b788413527cf",
+            "size": 106855139,
+            "url": "https://dl.espressif.com/dl/xtensa-esp32-elf-gcc8_4_0-esp-2020r3-win64.zip"
           }
         }
       ]
diff --git a/tools/windows/windows_install_prerequisites.sh b/tools/windows/windows_install_prerequisites.sh
index 6148dfbad..c3b2c25fe 100644
--- a/tools/windows/windows_install_prerequisites.sh
+++ b/tools/windows/windows_install_prerequisites.sh
@@ -42,7 +42,7 @@ if [ -n "$IDF_PATH" ]; then
 fi
 
 # Automatically download precompiled toolchain, unpack at /opt/xtensa-esp32-elf/
-TOOLCHAIN_ZIP=xtensa-esp32-elf-gcc8_2_0-esp-2020r2-win32.zip
+TOOLCHAIN_ZIP=xtensa-esp32-elf-gcc8_4_0-esp-2020r3-win32.zip
 echo "Downloading precompiled toolchain ${TOOLCHAIN_ZIP}..."
 cd ~
 curl -LO --retry 10 https://dl.espressif.com/dl/${TOOLCHAIN_ZIP}