diff --git a/iis-setup.sh b/iis-setup.sh
index c77be7bec..5738136a0 100755
--- a/iis-setup.sh
+++ b/iis-setup.sh
@@ -4,7 +4,7 @@
 # SPDX-License-Identifier: Apache-2.0
 
 # Define environment variables
-export BENDER=bender-0.27.1
+export BENDER=bender-0.28.1
 export CC=gcc-9.2.0
 export CXX=g++-9.2.0
 export VCS_SEPP=vcs-2020.12
diff --git a/target/common/common.mk b/target/common/common.mk
index c54dff0fd..77d0e79d3 100644
--- a/target/common/common.mk
+++ b/target/common/common.mk
@@ -47,13 +47,15 @@ VLT_ROOT        ?= ${VERILATOR_ROOT}
 VLT_JOBS        ?= $(shell nproc)
 VLT_NUM_THREADS ?= 1
 
-MATCH_REMOVE := 's/+incdir+\/[^ ]*//g'
-SED_SRCS     := sed -e ${MATCH_REMOVE}
+MATCH_END := '/+incdir+/ s/$$/\/*\/*/'
+MATCH_BGN := 's/+incdir+//g'
+MATCH_DEF := '/+define+/d'
+SED_SRCS  := sed -e ${MATCH_END} -e ${MATCH_BGN} -e ${MATCH_DEF}
 
 COMMON_BENDER_FLAGS += -t rtl
 
 VSIM_BENDER   += $(COMMON_BENDER_FLAGS) -t test -t simulation -t vsim
-VSIM_SOURCES   = $(shell ${BENDER} script flist ${VSIM_BENDER} | ${SED_SRCS})
+VSIM_SOURCES   = $(shell ${BENDER} script flist-plus ${VSIM_BENDER} | ${SED_SRCS})
 VSIM_BUILDDIR ?= work-vsim
 VSIM_FLAGS    += -t 1ps
 ifeq ($(DEBUG), ON)
@@ -66,7 +68,7 @@ endif
 # VCS_BUILDDIR should to be the same as the `DEFAULT : ./work-vcs`
 # in target/snitch_cluster/synopsys_sim.setup
 VCS_BENDER   += $(COMMON_BENDER_FLAGS) -t test -t simulation -t vcs
-VCS_SOURCES   = $(shell ${BENDER} script flist ${VCS_BENDER} | ${SED_SRCS})
+VCS_SOURCES   = $(shell ${BENDER} script flist-plus ${VCS_BENDER} | ${SED_SRCS})
 VCS_BUILDDIR := work-vcs
 
 # fesvr is being installed here
@@ -74,7 +76,7 @@ FESVR         ?= ${MKFILE_DIR}work
 FESVR_VERSION ?= 35d50bc40e59ea1d5566fbd3d9226023821b1bb6
 
 VLT_BENDER   += $(COMMON_BENDER_FLAGS) -DCOMMON_CELLS_ASSERTS_OFF
-VLT_SOURCES   = $(shell ${BENDER} script flist ${VLT_BENDER} | ${SED_SRCS})
+VLT_SOURCES   = $(shell ${BENDER} script flist-plus ${VLT_BENDER} | ${SED_SRCS})
 VLT_BUILDDIR := $(abspath work-vlt)
 VLT_FESVR     = $(VLT_BUILDDIR)/riscv-isa-sim
 VLT_FLAGS    += --timing
diff --git a/util/container/Dockerfile b/util/container/Dockerfile
index 65670487f..4cd5c8ea5 100644
--- a/util/container/Dockerfile
+++ b/util/container/Dockerfile
@@ -10,7 +10,7 @@ ARG UBUNTU_VERSION=22.04
 
 # 1. Stage: Install additional IIS tools
 FROM ubuntu:${UBUNTU_VERSION} AS builder
-ARG BENDER_VERSION=0.27.1
+ARG BENDER_VERSION=0.28.1
 ARG DOXYGEN_VERSION=1.12.0
 ARG VERIBLE_VERSION=0.0-3318-g8d254167
 ARG SNITCH_LLVM_VERSION=latest