diff --git a/.gitignore b/.gitignore
index 8002906..5e0c7e5 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,2 +1,2 @@
 /dalli-*.gem
-/dalli-*-tests.tgz
+/dalli-*-tests.txz
diff --git a/rubygem-dalli.spec b/rubygem-dalli.spec
index 12226e8..357f512 100644
--- a/rubygem-dalli.spec
+++ b/rubygem-dalli.spec
@@ -1,33 +1,25 @@
 %global gem_name dalli
 
 # Depends on Rails and its needed by Rails
-%global enable_test 0
+%bcond_with tests
 
 Name: rubygem-%{gem_name}
-Version: 2.7.8
-Release: 9%{?dist}
+Version: 3.2.0
+Release: 1%{?dist}
 Summary: High performance memcached client for Ruby
 License: MIT
 URL: https://github.com/petergoldstein/dalli
 Source0: https://rubygems.org/gems/%{gem_name}-%{version}.gem
-# git clone https://github.com/petergoldstein/dalli.git && cd dalli
-# git checkout v2.7.8 && tar czvf dalli-2.7.8-tests.tgz test/
-Source1: %{gem_name}-%{version}-tests.tgz
-
-# Use 'assert_nil ...' instead of 'assert_equal nil, ...'
-# https://github.com/petergoldstein/dalli/pull/661
-Patch0: rubygem-dalli-2.7.6-Use-assert_nil-in-tests.patch
-# Fix memcached 1.5.4 test compatibility.
-# https://github.com/petergoldstein/dalli/pull/672
-Patch1: rubygem-dalli-2.7.6-Fix-memcached-1.5.4-compatibility.patch
+# Tests are not shipped with the gem, you may get them like so
+# git clone https://github.com/petergoldstein/dalli.git --no-checkout
+# git -C dalli archive -v -o dalli-3.2.0-tests.txz v3.2.0 test/
+Source1: %{gem_name}-%{version}-tests.txz
 
 BuildRequires: ruby(release)
 BuildRequires: rubygems-devel
-%if 0%{enable_test} > 0
+%if %{with tests}
 BuildRequires: memcached
 BuildRequires: rubygem(minitest)
-BuildRequires: rubygem(mocha)
-BuildRequires: rubygem(rails)
 BuildRequires: rubygem(connection_pool)
 %endif
 BuildRequires: ruby
@@ -46,7 +38,7 @@ BuildArch: noarch
 Documentation for %{name}
 
 %prep
-%setup -q -n %{gem_name}-%{version}
+%setup -q -n %{gem_name}-%{version} -b1
 
 %build
 gem build ../%{gem_name}-%{version}.gemspec
@@ -58,13 +50,13 @@ cp -pa .%{gem_dir}/* \
         %{buildroot}%{gem_dir}/
 
 %check
-%if 0%{enable_test} > 0
+%if %{with tests}
 pushd .%{gem_instdir}
-tar xzvf %{SOURCE1}
-cat %{PATCH0} | patch -p1
-cat %{PATCH1} | patch -p1
+# Symlink tests into place
+ln -s %{_builddir}/test .
+
 sed -i '/bundler/ s/^/#/' test/helper.rb
-ruby -Ilib:test -e "Dir.glob('./test/test_*.rb').sort.each{ |x| require x }"
+ruby -Ilib:test -rdalli -e "Dir.glob('./test/test_*.rb').sort.each{ |x| require x }"
 popd
 %endif
 
@@ -82,6 +74,10 @@ popd
 %{gem_instdir}/Gemfile
 
 %changelog
+* Mon Feb 07 2022 Pavel Valena <pvalena@redhat.com> - 3.2.0-1
+- Update to dalli 3.2.0.
+  Resolves: rhbz#1689613
+
 * Fri Jan 21 2022 Fedora Release Engineering <releng@fedoraproject.org> - 2.7.8-9
 - Rebuilt for https://fedoraproject.org/wiki/Fedora_36_Mass_Rebuild
 
diff --git a/sources b/sources
index 4e0a279..9f247cf 100644
--- a/sources
+++ b/sources
@@ -1,2 +1,2 @@
-SHA512 (dalli-2.7.8.gem) = d564e9df2ee4d4a8411e02c7bfb98096423c371d2f5ef637c1a1d33832abf84278ca2d9b997f82f20487ff12e42ca34bc04bba3b98f2aa7c6e60cf5558317f77
-SHA512 (dalli-2.7.8-tests.tgz) = 91b3aa64f901fc0440b014c256e23cef6c0f63a6ba1c69a5e5528a83210ed85d54292446f809efdf1bcc20c1799face4dfb03c260a30a7e28197d4f523195443
+SHA512 (dalli-3.2.0.gem) = 38ad6d254f1786ffd5bc7ecdae815ca5dc5cdbae5fb390d25a83b1a473fe737c63cf6f5c4bc5b2aefaaf536f3804eeb4bc6ed1e2d86035f534901db6a8de1f4d
+SHA512 (dalli-3.2.0-tests.txz) = bd1534b9b042960415705e2d7c0dcabc47221b2b01967b567be1715d9adc984f994429538a42ba1243284d40af99ba6abe1cd0cc0b99d7fbe6df58b29b2806f2