diff --git a/CHANGELOG.md b/CHANGELOG.md
index c512e0af..98964a61 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -19,6 +19,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Updated manifest format, added meta with related images (<https://github.com/openvinotoolkit/cvat/pull/3122>)
 - Update of COCO format documentation (<https://github.com/openvinotoolkit/cvat/pull/3197>)
 - Updated Webpack Dev Server config to add proxxy (<https://github.com/openvinotoolkit/cvat/pull/3368>)
+- Update to Django 3.1.12 (<https://github.com/openvinotoolkit/cvat/pull/3378>)
 
 ### Deprecated
 
diff --git a/cvat/apps/engine/models.py b/cvat/apps/engine/models.py
index cbcc5f2d..78ec751a 100644
--- a/cvat/apps/engine/models.py
+++ b/cvat/apps/engine/models.py
@@ -275,7 +275,8 @@ class MyFileSystemStorage(FileSystemStorage):
         return name
 
 def upload_path_handler(instance, filename):
-    return os.path.join(instance.data.get_upload_dirname(), filename)
+    # relative path is required since Django 3.1.11
+    return os.path.join(os.path.relpath(instance.data.get_upload_dirname(), settings.BASE_DIR), filename)
 
 # For client files which the user is uploaded
 class ClientFile(models.Model):
@@ -612,4 +613,4 @@ class CloudStorage(models.Model):
         return {
             item.split('=')[0].strip(): item.split('=')[1].strip()
                 for item in specific_attributes.split('&')
-        } if specific_attributes else dict()
\ No newline at end of file
+        } if specific_attributes else dict()
diff --git a/cvat/requirements/base.txt b/cvat/requirements/base.txt
index a0433b1d..ad9de267 100644
--- a/cvat/requirements/base.txt
+++ b/cvat/requirements/base.txt
@@ -1,5 +1,5 @@
 click==7.1.2
-Django==3.1.10
+Django==3.1.12
 django-appconf==1.0.4
 django-auth-ldap==2.2.0
 django-cacheops==5.0.1
diff --git a/cvat/settings/testing.py b/cvat/settings/testing.py
index e79b0f39..992ba866 100644
--- a/cvat/settings/testing.py
+++ b/cvat/settings/testing.py
@@ -5,12 +5,13 @@
 from .development import *
 import tempfile
 
-_temp_dir = tempfile.TemporaryDirectory(suffix="cvat")
+_temp_dir = tempfile.TemporaryDirectory(dir=BASE_DIR, suffix="cvat")
+BASE_DIR = _temp_dir.name
 
-DATA_ROOT = os.path.join(_temp_dir.name, 'data')
+DATA_ROOT = os.path.join(BASE_DIR, 'data')
 os.makedirs(DATA_ROOT, exist_ok=True)
 
-SHARE_ROOT = os.path.join(_temp_dir.name, 'share')
+SHARE_ROOT = os.path.join(BASE_DIR, 'share')
 os.makedirs(SHARE_ROOT, exist_ok=True)
 
 MEDIA_DATA_ROOT = os.path.join(DATA_ROOT, 'data')
@@ -30,7 +31,7 @@ os.makedirs(CACHE_ROOT, exist_ok=True)
 
 # To avoid ERROR django.security.SuspiciousFileOperation:
 # The joined path (...) is located outside of the base path component
-MEDIA_ROOT = _temp_dir.name
+MEDIA_ROOT = BASE_DIR
 
 # Suppress all logs by default
 for logger in LOGGING["loggers"].values():