diff --git a/_service b/_service
index 54c4b42..5eba6ce 100644
--- a/_service
+++ b/_service
@@ -3,8 +3,8 @@
     <param name="url">https://github.com/containers/fuse-overlayfs.git</param>
     <param name="scm">git</param>
     <param name="filename">fuse-overlayfs</param>
-    <param name="versionformat">0.7.7</param>
-    <param name="revision">v0.7.7</param>
+    <param name="versionformat">0.7.8</param>
+    <param name="revision">v0.7.8</param>
   </service>
   <service name="set_version" mode="disabled">
     <param name="basename">fuse-overlayfs</param>
diff --git a/fuse-overlayfs-0.7.7.tar.xz b/fuse-overlayfs-0.7.7.tar.xz
deleted file mode 100644
index f9ad1dd..0000000
--- a/fuse-overlayfs-0.7.7.tar.xz
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:766b333673132079ef5f7da3bfe71a23da0f0c68428de58a7b8729d0a75a21b5
-size 79932
diff --git a/fuse-overlayfs-0.7.8.tar.xz b/fuse-overlayfs-0.7.8.tar.xz
new file mode 100644
index 0000000..06d01c0
--- /dev/null
+++ b/fuse-overlayfs-0.7.8.tar.xz
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:f7507fe1742eaefd105bf36642fc860767fb14562ae8a6afcb08224291717ded
+size 80000
diff --git a/fuse-overlayfs.changes b/fuse-overlayfs.changes
index c7b4ae6..efb8fd2 100644
--- a/fuse-overlayfs.changes
+++ b/fuse-overlayfs.changes
@@ -1,3 +1,12 @@
+-------------------------------------------------------------------
+Tue Mar 17 16:04:37 UTC 2020 - Sascha Grunert <sgrunert@suse.com>
+
+- Update to v0.7.8
+  - report correctly the number of links for a directory also for
+    subsequent stat calls
+  - stop looking up the ino in the lower layers if the file could
+    not be opened
+
 -------------------------------------------------------------------
 Wed Mar  4 10:58:45 UTC 2020 - Sascha Grunert <sgrunert@suse.com>
 
diff --git a/fuse-overlayfs.spec b/fuse-overlayfs.spec
index 910b306..bdd2763 100644
--- a/fuse-overlayfs.spec
+++ b/fuse-overlayfs.spec
@@ -17,7 +17,7 @@
 
 
 Name:           fuse-overlayfs
-Version:        0.7.7
+Version:        0.7.8
 Release:        0
 Summary:        FUSE implementation for overlayfs
 License:        GPL-3.0-only