diff --git a/chart/templates/logging/fluentbit/values.yaml b/chart/templates/logging/fluentbit/values.yaml
index 91ae644c1fc97749069a644ff2ae6dfe42b00efd..43c80552cd7e3d905092413db894d1758797716f 100644
--- a/chart/templates/logging/fluentbit/values.yaml
+++ b/chart/templates/logging/fluentbit/values.yaml
@@ -70,7 +70,7 @@ config:
         match                  kube.*
         labels                 job=fluentbit, container=$kubernetes['container_name'], pod=$kubernetes['pod_name'], namespace=$kubernetes['namespace_name'], node_name=$kubernetes['host']
         {{- if eq .Values.loki.strategy "monolith" }}
-        host                   loki
+        host                   logging-loki
         {{- else }}
         host                   logging-loki-write
         {{- end }}
@@ -84,7 +84,7 @@ config:
         match                  host.*
         labels                 job=fluentbit, container=$kubernetes['container_name'], pod=$kubernetes['pod_name'], namespace=$kubernetes['namespace_name'], node_name=$kubernetes['host']
         {{- if eq .Values.loki.strategy "monolith" }}
-        host                   loki
+        host                   logging-loki
         {{- else }}
         host                   logging-loki-write
         {{- end }}
diff --git a/chart/templates/logging/loki/values.yaml b/chart/templates/logging/loki/values.yaml
index 50fc216e4ae34047f9c9a427ffc2b0a773a1b546..f75d5401d37cd066df344a23d947f90ddecc2184 100644
--- a/chart/templates/logging/loki/values.yaml
+++ b/chart/templates/logging/loki/values.yaml
@@ -18,10 +18,10 @@ image:
 
 networkPolicies:
   enabled: {{ .Values.networkPolicies.enabled }}
+  controlPlaneCidr: {{ .Values.networkPolicies.controlPlaneCidr }}
 
 monitoring:
   enabled: {{ .Values.monitoring.enabled }}
-{{- if (eq .Values.loki.strategy "scalable") }}
   serviceMonitor:
     enabled: {{ .Values.monitoring.enabled }}
     # conditional passes only for default istio: enabled, mTLS: SCRICT
@@ -33,13 +33,16 @@ monitoring:
       keyFile: /etc/prom-certs/key.pem
       insecureSkipVerify: true  # Prometheus does not support Istio security naming, thus skip verifying target pod certificate
     {{- end }}
-{{- end }}
 
 istio:
   enabled: {{ .Values.istio.enabled }} 
 
 loki:
   storage:
+    {{- if (eq .Values.loki.strategy "monolith") }}
+    type: "filesystem"
+    {{- else }}
+    type: "s3"
     bucketNames:
       {{- toYaml .Values.loki.objectStorage.bucketNames | nindent 6 }}
     s3:
@@ -47,6 +50,20 @@ loki:
       region: {{ .Values.loki.objectStorage.region }}
       accessKeyId: {{ .Values.loki.objectStorage.accessKey }}
       secretAccessKey: {{ .Values.loki.objectStorage.accessSecret }}
+    {{- end }}
+  {{- if (eq .Values.loki.strategy "monolith") }}
+  rulerConfig:
+    storage:
+      type: local
+  storage_config:
+    boltdb_shipper:
+      active_index_directory: /var/loki/boltdb-shipper-active
+      cache_location: /var/loki/boltdb-shipper-cache
+      cache_ttl: 24h
+      shared_store: filesystem
+    filesystem:
+      directory: /var/loki/chunks
+  {{- end }}
   {{- if .Values.istio.enabled }}
   podAnnotations:
     {{ include "istioAnnotation" . }}
@@ -56,33 +73,8 @@ loki:
 {{- if and (eq $.Values.loki.strategy "scalable") (not (and .endpoint .region)) }}
 minio:
   enabled: true
-{{- end }}
-{{- end }}
 
-monolith:
-  enabled: {{ eq .Values.loki.strategy "monolith" }}
-  serviceMonitor:
-    enabled: {{ .Values.monitoring.enabled }}
-    # conditional passes only for default istio: enabled, mTLS: SCRICT
-    {{- if and .Values.istio.enabled (eq (dig "istio" "mtls" "mode" "STRICT" .Values.loki.values) "STRICT") }}
-    scheme: https
-    tlsConfig:
-      caFile: /etc/prom-certs/root-cert.pem
-      certFile: /etc/prom-certs/cert-chain.pem
-      keyFile: /etc/prom-certs/key.pem
-      insecureSkipVerify: true  # Prometheus does not support Istio security naming, thus skip verifying target pod certificate
-    {{- end }}
-
-  {{- if .Values.istio.enabled }}
-  podAnnotations:
-    {{ include "istioAnnotation" . }}
-  {{- end }}
-
-{{- if (eq .Values.loki.strategy "monolith") }}
-read:
-  disabled: true
-write:
-  disabled: true
+{{- end }}
 {{- end }}
 
 {{- end -}}
diff --git a/chart/templates/logging/promtail/values.yaml b/chart/templates/logging/promtail/values.yaml
index 7f2aed3b217053f60eded6bfdc71d52003f66694..693d6c45597f7abae9421ad25929ea7c7dbcda57 100644
--- a/chart/templates/logging/promtail/values.yaml
+++ b/chart/templates/logging/promtail/values.yaml
@@ -47,7 +47,7 @@ imagePullSecrets:
 config:
   clients:
     {{- if eq .Values.loki.strategy "monolith" }}
-    - url: http://loki.logging.svc.cluster.local:3100/loki/api/v1/push
+    - url: http://logging-loki.logging.svc.cluster.local:3100/loki/api/v1/push
     {{- else }}
     - url: http://logging-loki-write.logging.svc.cluster.local:3100/loki/api/v1/push
     {{- end }}
diff --git a/chart/templates/monitoring/values.yaml b/chart/templates/monitoring/values.yaml
index 96960687d6851fc5364627de51b0725e3889a8eb..6cb85b2cd6964248a58f2e2ba2f6cdc0725bf9e0 100644
--- a/chart/templates/monitoring/values.yaml
+++ b/chart/templates/monitoring/values.yaml
@@ -254,7 +254,7 @@ grafana:
   - name: Loki
     type: loki
     {{- if eq .Values.loki.strategy "monolith" }}
-    url: http://loki.logging.svc.cluster.local:3100
+    url: http://logging-loki.logging.svc.cluster.local:3100
     {{- else }}
     url: http://logging-loki-read.logging.svc.cluster.local:3100
     {{- end }}
diff --git a/chart/values.yaml b/chart/values.yaml
index cc75b083fd20dadebb24a0baf2253ba2287308e6..8c9bc8cd79bc4fb7700d9cfc65792d501b86c83a 100644
--- a/chart/values.yaml
+++ b/chart/values.yaml
@@ -526,7 +526,7 @@ loki:
   git:
     repo: https://repo1.dso.mil/platform-one/big-bang/apps/sandbox/loki.git
     path: "./chart"
-    tag: "1.8.10-bb.2"
+    tag: "3.2.1-bb.1"
 
   # -- Flux reconciliation overrides specifically for the Loki Package
   flux: {}
diff --git a/tests/test-values.yaml b/tests/test-values.yaml
index c2ce258fd39d11381ff642afc49c5b83fce327c0..cf76e2ee1f96bbbe623d9b2829276db57389b6ab 100644
--- a/tests/test-values.yaml
+++ b/tests/test-values.yaml
@@ -166,7 +166,7 @@ gatekeeper:
           - jaeger/jaeger-operator-cypress-test
           - monitoring/kube-prometheus-stack-cypress-test
           - vault/vault-cypress-test
-          - logging/loki-simple-scalable-cypress-test
+          - logging/loki-cypress-test
           - twistlock/twistlock-cypress-test
           - sonarqube/sonarqube-cypress-test
           - logging/logging-cypress-test
@@ -268,7 +268,7 @@ gatekeeper:
           - jaeger/jaeger-operator-cypress-test
           - monitoring/kube-prometheus-stack-cypress-test
           - vault/vault-cypress-test
-          - logging/loki-simple-scalable-cypress-test
+          - logging/loki-cypress-test
           - twistlock/twistlock-cypress-test
           - sonarqube/sonarqube-cypress-test
           - logging/logging-cypress-test