diff --git a/site_scons/components/__init__.py b/site_scons/components/__init__.py
index 5b539353e6b..1f58c5e5b91 100644
--- a/site_scons/components/__init__.py
+++ b/site_scons/components/__init__.py
@@ -344,6 +344,7 @@ def define_components(reqs):
                 retriever=GitRepoRetriever(),
                 commands=[['meson', 'setup', '--prefix=$FUSED_PREFIX', '-Ddisable-mtab=True',
                            '-Dudevrulesdir=$FUSED_PREFIX/udev', '-Dutils=False',
+                           '-Dexamples=False', '-Dtests=False',
                            '--default-library', 'static', '../fused'],
                           ['meson', 'setup', '--reconfigure', '../fused'],
                           ['ninja', 'install']],
diff --git a/utils/build.config b/utils/build.config
index fd4ff8c9208..eb768690f31 100644
--- a/utils/build.config
+++ b/utils/build.config
@@ -3,7 +3,7 @@ component=daos
 
 [commit_versions]
 argobots=v1.2
-fused=v1.0.0
+fused=v1.2.0
 pmdk=2.1.4
 isal=v2.31.1
 isal_crypto=v2.26.1
diff --git a/utils/rpms/fused.changelog b/utils/rpms/fused.changelog
index b7cb46f87d0..a12438924e6 100644
--- a/utils/rpms/fused.changelog
+++ b/utils/rpms/fused.changelog
@@ -1,3 +1,6 @@
+* Tue Nov 03 2026 Mohamad Chaarawi <mohamad.chaarawi@hpe.com> - 1.2.0-1
+- Update to libfuse 3.18.3, keep fork+exec for fusermount3
+
 * Sun Jan 12 2025 Jeff Olivier <jeffolivier@google.com> - 1.0.0-3.0
 - Remove dependence on fused
 
diff --git a/utils/rpms/package_info.sh b/utils/rpms/package_info.sh
index 2a65f0168e3..d56e4d4ae4a 100644
--- a/utils/rpms/package_info.sh
+++ b/utils/rpms/package_info.sh
@@ -57,8 +57,8 @@ export spdk_major_version="26.01"
 export daos_spdk_version=${spdk_major_version}
 export daos_spdk_release="3${distro_name}"
 export daos_spdk_full="${daos_spdk_version}-${daos_spdk_release}"
-export fused_version="1.0.0"
-export fused_release="3${distro_name}"
+export fused_version="1.2.0"
+export fused_release="1${distro_name}"
 export fused_full="${fused_version}-${fused_release}"
 
 set_lib_name openmpi lib openmpi openmpi3 openmpi