diff --git a/core/.changelog.d/1789.changed b/core/.changelog.d/1789.changed
new file mode 100644
index 000000000..5dc211c4e
--- /dev/null
+++ b/core/.changelog.d/1789.changed
@@ -0,0 +1 @@
+Updated micropython to version 1.17.
diff --git a/core/SConscript.boardloader b/core/SConscript.boardloader
index 300f4fffa..a5c5b5fa4 100644
--- a/core/SConscript.boardloader
+++ b/core/SConscript.boardloader
@@ -34,7 +34,7 @@ SOURCE_MOD += [
 
 # modtrezorui
 CPPPATH_MOD += [
-        'vendor/micropython/extmod/uzlib',
+        'vendor/micropython/lib/uzlib',
 ]
 SOURCE_MOD += [
     'embed/extmod/modtrezorui/display.c',
diff --git a/core/SConscript.bootloader b/core/SConscript.bootloader
index bd1ed6238..317b467dc 100644
--- a/core/SConscript.bootloader
+++ b/core/SConscript.bootloader
@@ -37,7 +37,7 @@ SOURCE_MOD += [
 
 # modtrezorui
 CPPPATH_MOD += [
-        'vendor/micropython/extmod/uzlib',
+        'vendor/micropython/lib/uzlib',
 ]
 CPPDEFINES_MOD += [
     'TREZOR_FONT_NORMAL_ENABLE',
@@ -48,9 +48,9 @@ SOURCE_MOD += [
     'embed/extmod/modtrezorui/font_bitmap.c',
     'embed/extmod/modtrezorui/font_roboto_regular_20.c',
     'embed/extmod/modtrezorui/font_robotomono_regular_20.c',
-    'vendor/micropython/extmod/uzlib/adler32.c',
-    'vendor/micropython/extmod/uzlib/crc32.c',
-    'vendor/micropython/extmod/uzlib/tinflate.c',
+    'vendor/micropython/lib/uzlib/adler32.c',
+    'vendor/micropython/lib/uzlib/crc32.c',
+    'vendor/micropython/lib/uzlib/tinflate.c',
 ]
 
 SOURCE_STMHAL = [
diff --git a/core/SConscript.bootloader_ci b/core/SConscript.bootloader_ci
index ce986e3d0..cb947fc81 100644
--- a/core/SConscript.bootloader_ci
+++ b/core/SConscript.bootloader_ci
@@ -37,7 +37,7 @@ SOURCE_MOD += [
 
 # modtrezorui
 CPPPATH_MOD += [
-        'vendor/micropython/extmod/uzlib',
+        'vendor/micropython/lib/uzlib',
 ]
 CPPDEFINES_MOD += [
     'TREZOR_FONT_NORMAL_ENABLE',
@@ -48,9 +48,9 @@ SOURCE_MOD += [
     'embed/extmod/modtrezorui/font_bitmap.c',
     'embed/extmod/modtrezorui/font_roboto_regular_20.c',
     'embed/extmod/modtrezorui/font_robotomono_regular_20.c',
-    'vendor/micropython/extmod/uzlib/adler32.c',
-    'vendor/micropython/extmod/uzlib/crc32.c',
-    'vendor/micropython/extmod/uzlib/tinflate.c',
+    'vendor/micropython/lib/uzlib/adler32.c',
+    'vendor/micropython/lib/uzlib/crc32.c',
+    'vendor/micropython/lib/uzlib/tinflate.c',
 ]
 
 SOURCE_STMHAL = [
diff --git a/core/SConscript.firmware b/core/SConscript.firmware
index ba0f33c22..80f5fd636 100644
--- a/core/SConscript.firmware
+++ b/core/SConscript.firmware
@@ -149,7 +149,7 @@ if TREZOR_MODEL == "T":
 
 # modtrezorui
 CPPPATH_MOD += [
-        'vendor/micropython/extmod/uzlib',
+        'vendor/micropython/lib/uzlib',
 ]
 CPPDEFINES_MOD += [
     'TREZOR_FONT_BOLD_ENABLE',
@@ -167,9 +167,9 @@ SOURCE_MOD += [
     'embed/extmod/modtrezorui/font_pixeloperatormono_regular_8.c',
     'embed/extmod/modtrezorui/modtrezorui.c',
     'embed/extmod/modtrezorui/qr-code-generator/qrcodegen.c',
-    'vendor/micropython/extmod/uzlib/adler32.c',
-    'vendor/micropython/extmod/uzlib/crc32.c',
-    'vendor/micropython/extmod/uzlib/tinflate.c',
+    'vendor/micropython/lib/uzlib/adler32.c',
+    'vendor/micropython/lib/uzlib/crc32.c',
+    'vendor/micropython/lib/uzlib/tinflate.c',
 ]
 
 # modtrezorutils
@@ -193,14 +193,14 @@ SOURCE_MICROPYTHON = [
     'vendor/micropython/extmod/moduheapq.c',
     'vendor/micropython/extmod/modutimeq.c',
     'vendor/micropython/extmod/utime_mphal.c',
-    'vendor/micropython/lib/embed/abort_.c',
-    #'vendor/micropython/lib/mp-readline/readline.c',
-    'vendor/micropython/lib/utils/gchelper_m3.s',
-    'vendor/micropython/lib/utils/gchelper_native.c',
-    'vendor/micropython/lib/utils/interrupt_char.c',
-    'vendor/micropython/lib/utils/printf.c',
-    'vendor/micropython/lib/utils/pyexec.c',
-    'vendor/micropython/lib/utils/stdout_helpers.c',
+    'vendor/micropython/shared/libc/abort_.c',
+    'vendor/micropython/shared/libc/printf.c',
+    #'vendor/micropython/shared/readline/readline.c',
+    'vendor/micropython/shared/runtime/gchelper_m3.s',
+    'vendor/micropython/shared/runtime/gchelper_native.c',
+    'vendor/micropython/shared/runtime/interrupt_char.c',
+    'vendor/micropython/shared/runtime/pyexec.c',
+    'vendor/micropython/shared/runtime/stdout_helpers.c',
     'vendor/micropython/ports/stm32/gccollect.c',
     'vendor/micropython/ports/stm32/pendsv.c',
     'vendor/micropython/ports/stm32/softtimer.c',
diff --git a/core/SConscript.prodtest b/core/SConscript.prodtest
index f906567b6..eefeb884f 100644
--- a/core/SConscript.prodtest
+++ b/core/SConscript.prodtest
@@ -23,7 +23,7 @@ SOURCE_MOD += [
 
 # modtrezorui
 CPPPATH_MOD += [
-        'vendor/micropython/extmod/uzlib',
+        'vendor/micropython/lib/uzlib',
 ]
 CPPDEFINES_MOD += [
     'TREZOR_FONT_BOLD_ENABLE',
@@ -33,9 +33,9 @@ SOURCE_MOD += [
     'embed/extmod/modtrezorui/font_bitmap.c',
     'embed/extmod/modtrezorui/font_roboto_bold_20.c',
     'embed/extmod/modtrezorui/qr-code-generator/qrcodegen.c',
-    'vendor/micropython/extmod/uzlib/adler32.c',
-    'vendor/micropython/extmod/uzlib/crc32.c',
-    'vendor/micropython/extmod/uzlib/tinflate.c',
+    'vendor/micropython/lib/uzlib/adler32.c',
+    'vendor/micropython/lib/uzlib/crc32.c',
+    'vendor/micropython/lib/uzlib/tinflate.c',
 ]
 
 SOURCE_STMHAL = [
diff --git a/core/SConscript.reflash b/core/SConscript.reflash
index 007863285..f322265b4 100644
--- a/core/SConscript.reflash
+++ b/core/SConscript.reflash
@@ -19,7 +19,7 @@ SOURCE_MOD += [
 
 # modtrezorui
 CPPPATH_MOD += [
-        'vendor/micropython/extmod/uzlib',
+        'vendor/micropython/lib/uzlib',
 ]
 CPPDEFINES_MOD += [
     'TREZOR_FONT_BOLD_ENABLE',
@@ -28,9 +28,9 @@ SOURCE_MOD += [
     'embed/extmod/modtrezorui/display.c',
     'embed/extmod/modtrezorui/font_bitmap.c',
     'embed/extmod/modtrezorui/font_roboto_bold_20.c',
-    'vendor/micropython/extmod/uzlib/adler32.c',
-    'vendor/micropython/extmod/uzlib/crc32.c',
-    'vendor/micropython/extmod/uzlib/tinflate.c',
+    'vendor/micropython/lib/uzlib/adler32.c',
+    'vendor/micropython/lib/uzlib/crc32.c',
+    'vendor/micropython/lib/uzlib/tinflate.c',
 ]
 
 SOURCE_STMHAL = [
diff --git a/core/SConscript.unix b/core/SConscript.unix
index c0f75917d..db441ed06 100644
--- a/core/SConscript.unix
+++ b/core/SConscript.unix
@@ -144,7 +144,7 @@ if TREZOR_MODEL == "T":
 
 # modtrezorui
 CPPPATH_MOD += [
-        'vendor/micropython/extmod/uzlib',
+        'vendor/micropython/lib/uzlib',
 ]
 CPPDEFINES_MOD += [
     'TREZOR_FONT_BOLD_ENABLE',
@@ -162,9 +162,9 @@ SOURCE_MOD += [
     'embed/extmod/modtrezorui/font_pixeloperatormono_regular_8.c',
     'embed/extmod/modtrezorui/modtrezorui.c',
     'embed/extmod/modtrezorui/qr-code-generator/qrcodegen.c',
-    'vendor/micropython/extmod/uzlib/adler32.c',
-    'vendor/micropython/extmod/uzlib/crc32.c',
-    'vendor/micropython/extmod/uzlib/tinflate.c',
+    'vendor/micropython/lib/uzlib/adler32.c',
+    'vendor/micropython/lib/uzlib/crc32.c',
+    'vendor/micropython/lib/uzlib/tinflate.c',
 ]
 if FROZEN:
     CPPDEFINES_MOD += ['TREZOR_EMULATOR_FROZEN']
@@ -190,7 +190,7 @@ SOURCE_MICROPYTHON = [
     'vendor/micropython/extmod/moduheapq.c',
     'vendor/micropython/extmod/modutimeq.c',
     'vendor/micropython/extmod/utime_mphal.c',
-    'vendor/micropython/lib/mp-readline/readline.c',
+    'vendor/micropython/shared/readline/readline.c',
     'vendor/micropython/ports/unix/modos.c',
     'vendor/micropython/py/argcheck.c',
     'vendor/micropython/py/asmarm.c',
@@ -317,7 +317,7 @@ SOURCE_UNIX = [
     'embed/unix/rng.c',
     'embed/unix/touch.c',
     'embed/unix/usb.c',
-    'vendor/micropython/lib/utils/gchelper_generic.c',
+    'vendor/micropython/shared/runtime/gchelper_generic.c',
     'vendor/micropython/ports/unix/alloc.c',
     'vendor/micropython/ports/unix/gccollect.c',
     'vendor/micropython/ports/unix/input.c',
diff --git a/core/embed/firmware/main.c b/core/embed/firmware/main.c
index f6f032bfa..132eefdd4 100644
--- a/core/embed/firmware/main.c
+++ b/core/embed/firmware/main.c
@@ -23,7 +23,6 @@
 #include <stdio.h>
 #include <string.h>
 
-#include "lib/utils/pyexec.h"
 #include "py/compile.h"
 #include "py/gc.h"
 #include "py/mperrno.h"
@@ -31,6 +30,7 @@
 #include "py/repl.h"
 #include "py/runtime.h"
 #include "py/stackctrl.h"
+#include "shared/runtime/pyexec.h"
 
 #include "ports/stm32/gccollect.h"
 #include "ports/stm32/pendsv.h"
diff --git a/core/embed/firmware/mphalport.h b/core/embed/firmware/mphalport.h
index 052623879..8954eec63 100644
--- a/core/embed/firmware/mphalport.h
+++ b/core/embed/firmware/mphalport.h
@@ -17,7 +17,7 @@
  * along with this program.  If not, see <http://www.gnu.org/licenses/>.
  */
 
-#include "lib/utils/interrupt_char.h"
+#include "shared/runtime/interrupt_char.h"
 
 static inline mp_uint_t mp_hal_ticks_cpu(void) { return 0; }
 
diff --git a/core/embed/unix/main.c b/core/embed/unix/main.c
index cfe364712..44446b6f5 100644
--- a/core/embed/unix/main.c
+++ b/core/embed/unix/main.c
@@ -140,9 +140,9 @@ STATIC int execute_from_lexer(int source_kind, const void *source,
       // execute it
       mp_call_function_0(module_fun);
       // check for pending exception
-      if (MP_STATE_VM(mp_pending_exception) != MP_OBJ_NULL) {
-        mp_obj_t obj = MP_STATE_VM(mp_pending_exception);
-        MP_STATE_VM(mp_pending_exception) = MP_OBJ_NULL;
+      if (MP_STATE_MAIN_THREAD(mp_pending_exception) != MP_OBJ_NULL) {
+        mp_obj_t obj = MP_STATE_MAIN_THREAD(mp_pending_exception);
+        MP_STATE_MAIN_THREAD(mp_pending_exception) = MP_OBJ_NULL;
         nlr_raise(obj);
       }
     }
@@ -159,7 +159,7 @@ STATIC int execute_from_lexer(int source_kind, const void *source,
 }
 
 #if MICROPY_USE_READLINE == 1
-#include "lib/mp-readline/readline.h"
+#include "shared/readline/readline.h"
 #else
 STATIC char *strjoin(const char *s1, int sep_char, const char *s2) {
   int l1 = strlen(s1);
diff --git a/vendor/micropython b/vendor/micropython
index c0013200d..fce614cbe 160000
--- a/vendor/micropython
+++ b/vendor/micropython
@@ -1 +1 @@
-Subproject commit c0013200d9a951276b6706616cfeb910ac9afb34
+Subproject commit fce614cbe213e3f6c9e1a2a9634d2c1edae7c57b