diff --git a/factory/.env b/factory/.env
index 30d7d38b48..f2ce7b8be5 100644
--- a/factory/.env
+++ b/factory/.env
@@ -14,7 +14,7 @@ FACTORY_DEFAULT_NODE_VERSION='20.13.1'
 NODE_VERSION="${FACTORY_DEFAULT_NODE_VERSION}"
 
 # Update this to deploy the docker factory if you make changes to factory.Dockerfile or install scripts
-FACTORY_VERSION='4.0.0'
+FACTORY_VERSION='4.0.1'
 
 # Chrome versions: https://www.ubuntuupdates.org/package/google_chrome/stable/main/base/google-chrome-stable
 CHROME_VERSION='125.0.6422.60-1'
diff --git a/factory/CHANGELOG.md b/factory/CHANGELOG.md
index fba7330059..5b49a8e081 100644
--- a/factory/CHANGELOG.md
+++ b/factory/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Change log
 
+## 4.0.1
+
+* Removed obsolete environment variable `npm_config_unsafe_perm`, not used or needed in npm `v7` and later. Addressed in [#1078](https://github.com/cypress-io/cypress-docker-images/pull/1078)
+
 ## 4.0.0
 
 * Updated Debian base image to `debian:12-slim` (codename `bookworm`). Addressed in [#1057](https://github.com/cypress-io/cypress-docker-images/pull/1057)
diff --git a/factory/factory.Dockerfile b/factory/factory.Dockerfile
index b8264076d4..067b9b5c53 100644
--- a/factory/factory.Dockerfile
+++ b/factory/factory.Dockerfile
@@ -11,8 +11,6 @@ ENV DBUS_SESSION_BUS_ADDRESS=/dev/null \
   TERM=xterm \
   # avoid million NPM install messages
   npm_config_loglevel=warn \
-  # allow installing when the main user is root
-  npm_config_unsafe_perm=true \
   # avoid too many progress messages
   # https://github.com/cypress-io/cypress/issues/1243
   CI=1 \