diff --git a/.gitmodules b/.gitmodules
index 7274b9acd2..1f6da08484 100644
--- a/.gitmodules
+++ b/.gitmodules
@@ -28,7 +28,7 @@
[submodule "fates"]
path = src/fates
url = https://github.com/NGEET/fates
-fxtag = sci.1.78.2_api.36.0.0
+fxtag = sci.1.78.3_api.36.1.0
fxrequired = AlwaysRequired
# Standard Fork to compare to with "git fleximod test" to ensure personal forks aren't committed
fxDONOTUSEurl = https://github.com/NCAR/fates-release
diff --git a/bld/namelist_files/namelist_defaults_ctsm.xml b/bld/namelist_files/namelist_defaults_ctsm.xml
index 650b21cb8d..34910ec900 100644
--- a/bld/namelist_files/namelist_defaults_ctsm.xml
+++ b/bld/namelist_files/namelist_defaults_ctsm.xml
@@ -560,7 +560,8 @@ attributes from the config_cache.xml file (with keys converted to upper-case).
-lnd/clm2/paramdata/fates_params_api.36.0.0_12pft_c240517.nc
+lnd/clm2/paramdata/fates_params_api.36.1.0_14pft_c241003.nc
+
diff --git a/cime_config/testdefs/ExpectedTestFails.xml b/cime_config/testdefs/ExpectedTestFails.xml
index 30b19ce862..7b17d5743b 100644
--- a/cime_config/testdefs/ExpectedTestFails.xml
+++ b/cime_config/testdefs/ExpectedTestFails.xml
@@ -280,6 +280,13 @@
+
+
+ FAIL
+ #2810
+
+
+
diff --git a/cime_config/testdefs/testmods_dirs/clm/FatesColdHydro/shell_commands b/cime_config/testdefs/testmods_dirs/clm/FatesColdHydro/shell_commands
new file mode 100644
index 0000000000..e629e7ca34
--- /dev/null
+++ b/cime_config/testdefs/testmods_dirs/clm/FatesColdHydro/shell_commands
@@ -0,0 +1,8 @@
+SRCDIR=`./xmlquery SRCROOT --value`
+CASEDIR=`./xmlquery CASEROOT --value`
+FATESDIR=$SRCDIR/src/fates
+FATESPARAMFILE=$CASEDIR/fates_params_hydrograsstempfix.nc
+
+ncgen -o $FATESPARAMFILE $FATESDIR/parameter_files/fates_params_default.cdl
+
+$FATESDIR/tools/modify_fates_paramfile.py --O --fin $FATESPARAMFILE --fout $FATESPARAMFILE --var fates_allom_smode --val 1 --allpfts
diff --git a/cime_config/testdefs/testmods_dirs/clm/FatesColdHydro/user_nl_clm b/cime_config/testdefs/testmods_dirs/clm/FatesColdHydro/user_nl_clm
index f0bdb388eb..318a34dfec 100644
--- a/cime_config/testdefs/testmods_dirs/clm/FatesColdHydro/user_nl_clm
+++ b/cime_config/testdefs/testmods_dirs/clm/FatesColdHydro/user_nl_clm
@@ -2,6 +2,7 @@ hist_mfilt = 365
hist_nhtfrq = -24
hist_empty_htapes = .true.
use_fates_planthydro= .true.
+fates_paramfile = '$CASEROOT/fates_params_hydrograsstempfix.nc'
hist_fincl1 = 'FATES_ERRH2O_SZPF', 'FATES_TRAN_SZPF',
'FATES_SAPFLOW_SZPF', 'FATES_ITERH1_SZPF','FATES_ABSROOT_H2O_SZPF',
'FATES_TRANSROOT_H2O_SZPF','FATES_STEM_H2O_SZPF','FATES_LEAF_H2O_SZPF',
diff --git a/cime_config/testdefs/testmods_dirs/clm/FatesColdLandUse/shell_commands b/cime_config/testdefs/testmods_dirs/clm/FatesColdLandUse/shell_commands
index c97c0dfea7..6152f0bd0c 100644
--- a/cime_config/testdefs/testmods_dirs/clm/FatesColdLandUse/shell_commands
+++ b/cime_config/testdefs/testmods_dirs/clm/FatesColdLandUse/shell_commands
@@ -1,3 +1,3 @@
#!/bin/bash
-./xmlchange CLM_BLDNML_OPTS="-i-clm_demand -flanduse_timeseries" --append
+./xmlchange CLM_BLDNML_OPTS="-clm_demand flanduse_timeseries" --append
diff --git a/doc/ChangeLog b/doc/ChangeLog
index ded12c54f8..8e76002a92 100644
--- a/doc/ChangeLog
+++ b/doc/ChangeLog
@@ -1,4 +1,91 @@
===============================================================
+Tag name: ctsm5.3.003
+Originator(s): rgknox (Ryan Knox, LBNL, rgknox@lbl.gov)
+ glemieux (Gregory Lemieux, LBNL, glemieux@lbl.gov)
+Date: Mon Oct 07 10:33:14 AM MDT 2024
+One-line Summary: FATES default parameter file update
+
+Purpose and description of changes
+----------------------------------
+
+This tag updates the default parameter file for FATES bringing in a number of updates:
+ - adds two new arctic shrub pfts
+ - updates the default sapwood allometry mode for grass pfts
+ - updates understory leaf turnover specifications for longer turnover rates
+ - changes the default behavior of nutrient uptake
+
+Significant changes to scientifically-supported configurations
+--------------------------------------------------------------
+
+Does this tag change answers significantly for any of the following physics configurations?
+(Details of any changes will be given in the "Answer changes" section below.)
+
+ [Put an [X] in the box for any configuration with significant answer changes.]
+
+[ ] clm6_0
+
+[ ] clm5_1
+
+[ ] clm5_0
+
+[ ] ctsm5_0-nwp
+
+[ ] clm4_5
+
+
+Bugs fixed
+----------
+List of CTSM issues fixed (include CTSM Issue # and description) [one per line]:
+ Fixes #2783 -- Error in FatescoldLandUse testmod
+ Fixes FATES#1211 -- Switching the default fates_cnp_prescribed_* parameters from 1 to 0
+
+Notes of particular relevance for developers:
+---------------------------------------------
+Changes to tests or testing:
+ FatesColdLandUse build has been added to the list of expected failures due to #2810
+
+Testing summary:
+----------------
+
+ [PASS means all tests PASS; OK means tests PASS other than expected fails.]
+
+ regular tests (aux_clm: https://github.com/ESCOMP/CTSM/wiki/System-Testing-Guide#pre-merge-system-testing):
+
+ derecho ----- OK
+ izumi ------- OK
+
+ fates tests: (give name of baseline if different from CTSM tagname, normally fates baselines are fates--)
+ derecho ----- OK
+ izumi ------- OK
+
+Answer changes
+--------------
+
+Changes answers relative to baseline:
+
+ Summarize any changes to answers, i.e.,
+ - what code configurations: FATES mode
+ - what platforms/compilers: ALL
+ - nature of change (roundoff; larger than roundoff/same climate; new climate): larger than roundoff
+
+Other details
+-------------
+List any git submodules updated (cime, rtm, mosart, cism, fates, etc.):
+ fates: sci.1.78.2_api.36.0.0 -> sci.1.78.3_api.36.1.0
+
+Pull Requests that document the changes (include PR ids):
+ https://github.com/ESCOMP/CTSM/pull/2700
+ https://github.com/NGEET/fates/pull/1255
+
+===============================================================
+===============================================================
+Tag name: ctsm5.3.002
+Originator(s): slevis (Samuel Levis,UCAR/TSS,303-665-1310)
+Date: Thu 26 Sep 2024 03:10:40 PM MDT
+One-line Summary: Duplicate tag of ctsm5.3.001
+
+===============================================================
+===============================================================
Tag name: ctsm5.3.001
Originator(s): slevis (Samuel Levis,UCAR/TSS,303-665-1310)
Date: Thu 26 Sep 2024 03:10:40 PM MDT
diff --git a/doc/ChangeSum b/doc/ChangeSum
index 1014612b40..c16940615b 100644
--- a/doc/ChangeSum
+++ b/doc/ChangeSum
@@ -1,5 +1,7 @@
Tag Who Date Summary
============================================================================================================================
+ ctsm5.3.003 multiple 10/07/2024 FATES default parameter file update
+ ctsm5.3.002 multiple 09/26/2024 Duplicate tag (same as 5.3.001)
ctsm5.3.001 multiple 09/26/2024 Merge b4b-dev
ctsm5.3.0 multiple 09/24/2024 Update surface datasets, CN Matrix, CLM60: excess ice on, explicit A/C on, crop calendars, Sturm snow, Leung dust emissions, prigent roughness data
ctsm5.2.029 multiple 09/24/2024 New surface datasets: double tag of ctsm5.3.0
diff --git a/src/fates b/src/fates
index e06e0dfcaf..825579d0b4 160000
--- a/src/fates
+++ b/src/fates
@@ -1 +1 @@
-Subproject commit e06e0dfcaf6347993d47dc29944e952d3e4412f7
+Subproject commit 825579d0b406fe99344591b5ed8356e5c7aeebec