diff --git a/run-basic-rails-application/runtest.sh b/run-basic-rails-application/runtest.sh
index 200fd1a..1c7cc36 100755
--- a/run-basic-rails-application/runtest.sh
+++ b/run-basic-rails-application/runtest.sh
@@ -46,7 +46,11 @@ rlJournalStart
         rlRun "rails new app --skip-bundle" 0 "Creating new rails application"
         rlRun "pushd app/"
         rlAssertExists "app"
-        rlRun "sed -i.orig -E -e '/^gem \"rails\"/ s/~> //' Gemfile" 0 \
+        # There are two variants of the `gem "rails"` line:
+        # https://github.com/rails/rails/blob/main/railties/lib/rails/generators/app_base.rb#L482-L493
+        rlRun "sed -i.orig -E \
+            -e '/^gem \"rails\"/ s/\"~> [^\"]+\", \">= ([^\"]+)\"/\"\1\"/' \
+            -e '/^gem \"rails\"/ s/~> //' Gemfile" 0 \
             "Updating Gemfile to ensure Rails RPM version is used"
         rlRun -t "diff Gemfile.orig Gemfile" 1 \
             "Printing the Gemfile modifications"