diff --git a/akka-javasdk-maven/akka-javasdk-parent/pom.xml b/akka-javasdk-maven/akka-javasdk-parent/pom.xml
index 460f15041..bd6ca5abd 100644
--- a/akka-javasdk-maven/akka-javasdk-parent/pom.xml
+++ b/akka-javasdk-maven/akka-javasdk-parent/pom.xml
@@ -38,7 +38,7 @@
 
         <!-- These are dependent on runtime environment and cannot be customized by users -->
         <maven.compiler.release>21</maven.compiler.release>
-        <kalix-runtime.version>1.3.0-2909c94</kalix-runtime.version>
+        <kalix-runtime.version>1.3.0-2909c94-1-37f8654f-SNAPSHOT</kalix-runtime.version>
 
         <project.build.sourceEncoding>UTF-8</project.build.sourceEncoding>
         <skip.docker>false</skip.docker>
diff --git a/akka-javasdk/src/main/scala/akka/javasdk/impl/SdkRunner.scala b/akka-javasdk/src/main/scala/akka/javasdk/impl/SdkRunner.scala
index ff025888f..da73e1c90 100644
--- a/akka-javasdk/src/main/scala/akka/javasdk/impl/SdkRunner.scala
+++ b/akka-javasdk/src/main/scala/akka/javasdk/impl/SdkRunner.scala
@@ -96,6 +96,7 @@ import scala.jdk.CollectionConverters._
 import akka.javasdk.impl.eventsourcedentity.EventSourcedEntityImpl
 import akka.javasdk.impl.timedaction.TimedActionImpl
 import akka.runtime.sdk.spi.EventSourcedEntityDescriptor
+import akka.runtime.sdk.spi.SpiEventSourcedEntity
 import akka.runtime.sdk.spi.TimedActionDescriptor
 
 /**
@@ -361,12 +362,13 @@ private final class Sdk(
       .collect {
         case clz if classOf[EventSourcedEntity[_, _]].isAssignableFrom(clz) =>
           val componentId = clz.getAnnotation(classOf[ComponentId]).value
-          val entitySpi =
+          val instanceFactory: SpiEventSourcedEntity.FactoryContext => SpiEventSourcedEntity = { factoryContext =>
             new EventSourcedEntityImpl[AnyRef, AnyRef, EventSourcedEntity[AnyRef, AnyRef]](
               sdkSettings,
               sdkTracerFactory,
               componentId,
               clz,
+              factoryContext.entityId,
               messageCodec,
               context =>
                 wiredInstance(clz.asInstanceOf[Class[EventSourcedEntity[AnyRef, AnyRef]]]) {
@@ -374,7 +376,8 @@ private final class Sdk(
                   case p if p == classOf[EventSourcedEntityContext] => context
                 },
               sdkSettings.snapshotEvery)
-          new EventSourcedEntityDescriptor(componentId, entitySpi)
+          }
+          new EventSourcedEntityDescriptor(componentId, instanceFactory)
       }
 
   private val timedActionDescriptors =
diff --git a/akka-javasdk/src/main/scala/akka/javasdk/impl/eventsourcedentity/EventSourcedEntityImpl.scala b/akka-javasdk/src/main/scala/akka/javasdk/impl/eventsourcedentity/EventSourcedEntityImpl.scala
index fde399f93..79e056081 100644
--- a/akka-javasdk/src/main/scala/akka/javasdk/impl/eventsourcedentity/EventSourcedEntityImpl.scala
+++ b/akka-javasdk/src/main/scala/akka/javasdk/impl/eventsourcedentity/EventSourcedEntityImpl.scala
@@ -87,6 +87,7 @@ private[impl] final class EventSourcedEntityImpl[S, E, ES <: EventSourcedEntity[
     tracerFactory: () => Tracer,
     componentId: String,
     componentClass: Class[_],
+    entityId: String,
     messageCodec: JsonMessageCodec,
     factory: EventSourcedEntityContext => ES,
     snapshotEvery: Int)
@@ -102,29 +103,24 @@ private[impl] final class EventSourcedEntityImpl[S, E, ES <: EventSourcedEntity[
   private val componentDescriptor = ComponentDescriptor.descriptorFor(componentClass, messageCodec)
 
   // FIXME remove EventSourcedEntityRouter altogether, and only keep stateless ReflectiveEventSourcedEntityRouter
-  private def createRouter(context: EventSourcedEntityContext)
-      : ReflectiveEventSourcedEntityRouter[AnyRef, AnyRef, EventSourcedEntity[AnyRef, AnyRef]] =
+  private val router: ReflectiveEventSourcedEntityRouter[AnyRef, AnyRef, EventSourcedEntity[AnyRef, AnyRef]] = {
+    val context = new EventSourcedEntityContextImpl(entityId)
     new ReflectiveEventSourcedEntityRouter[S, E, ES](
       factory(context),
       componentDescriptor.commandHandlers,
       messageCodec)
       .asInstanceOf[ReflectiveEventSourcedEntityRouter[AnyRef, AnyRef, EventSourcedEntity[AnyRef, AnyRef]]]
-
-  override def emptyState: SpiEventSourcedEntity.State = {
-    // FIXME rather messy with the contexts here
-    val context = new EventSourcedEntityContextImpl("FIXME_ID")
-    val router = createRouter(context)
-    try {
-      router.entity.emptyState()
-    } finally {
-      router.entity._internalSetCommandContext(Optional.empty())
-    }
   }
 
+  private def entity: EventSourcedEntity[AnyRef, AnyRef] =
+    router.entity
+
+  override def emptyState: SpiEventSourcedEntity.State =
+    entity.emptyState()
+
   override def handleCommand(
       state: SpiEventSourcedEntity.State,
       command: SpiEntity.Command): Future[SpiEventSourcedEntity.Effect] = {
-    val entityId = command.entityId
 
     val span: Option[Span] = None // FIXME traceInstrumentation.buildSpan(service, command)
     span.foreach(s => MDC.put(Telemetry.TRACE_ID, s.getSpanContext.getTraceId))
@@ -146,11 +142,9 @@ private[impl] final class EventSourcedEntityImpl[S, E, ES <: EventSourcedEntity[
         span,
         tracerFactory)
 
-    val context = new EventSourcedEntityContextImpl(entityId)
-    val router = createRouter(context)
-    router.entity._internalSetCommandContext(Optional.of(cmdContext))
+    entity._internalSetCommandContext(Optional.of(cmdContext))
     try {
-      router.entity._internalSetCurrentState(state)
+      entity._internalSetCurrentState(state)
       val commandEffect = router
         .handleCommand(command.name, state, cmd, cmdContext)
         .asInstanceOf[EventSourcedEntityEffectImpl[AnyRef, E]] // FIXME improve?
@@ -221,7 +215,7 @@ private[impl] final class EventSourcedEntityImpl[S, E, ES <: EventSourcedEntity[
           entityId,
           0, // FIXME remove commandId
           command.name,
-          s"No command handler found for command [$name] on ${router.entity.getClass}")
+          s"No command handler found for command [$name] on ${entity.getClass}")
       case BadRequestException(msg) =>
         Future.successful(
           new SpiEventSourcedEntity.Effect(
@@ -240,8 +234,8 @@ private[impl] final class EventSourcedEntityImpl[S, E, ES <: EventSourcedEntity[
           s"Unexpected failure: $error",
           Some(error))
     } finally {
-      router.entity._internalSetCommandContext(Optional.empty())
-      router.entity._internalClearCurrentState()
+      entity._internalSetCommandContext(Optional.empty())
+      entity._internalClearCurrentState()
       cmdContext.deactivate() // Very important!
 
       span.foreach { s =>
@@ -259,7 +253,7 @@ private[impl] final class EventSourcedEntityImpl[S, E, ES <: EventSourcedEntity[
       messageCodec
         .decodeMessage(eventEnv.payload)
         .asInstanceOf[AnyRef] // FIXME empty?
-    entityHandleEvent(state, event, eventEnv.entityId, eventEnv.sequenceNumber)
+    entityHandleEvent(state, event, entityId, eventEnv.sequenceNumber)
   }
 
   def entityHandleEvent(
@@ -268,15 +262,14 @@ private[impl] final class EventSourcedEntityImpl[S, E, ES <: EventSourcedEntity[
       entityId: String,
       sequenceNumber: Long): SpiEventSourcedEntity.State = {
     val eventContext = new EventContextImpl(entityId, sequenceNumber)
-    val router = createRouter(eventContext) // FIXME reuse router instance?
-    router.entity._internalSetEventContext(Optional.of(eventContext))
+    entity._internalSetEventContext(Optional.of(eventContext))
     try {
       router.handleEvent(state, event)
     } catch {
       case EventHandlerNotFound(eventClass) =>
-        throw new IllegalArgumentException(s"Unknown event type [$eventClass] on ${router.entity.getClass}")
+        throw new IllegalArgumentException(s"Unknown event type [$eventClass] on ${entity.getClass}")
     } finally {
-      router.entity._internalSetEventContext(Optional.empty())
+      entity._internalSetEventContext(Optional.empty())
     }
   }
 
diff --git a/project/Dependencies.scala b/project/Dependencies.scala
index 65ba1896b..9bb0ca6ee 100644
--- a/project/Dependencies.scala
+++ b/project/Dependencies.scala
@@ -8,7 +8,7 @@ object Dependencies {
     val ProtocolVersionMinor = 1
     val RuntimeImage = "gcr.io/kalix-public/kalix-runtime"
     // Remember to bump kalix-runtime.version in akka-javasdk-maven/akka-javasdk-parent if bumping this
-    val RuntimeVersion = sys.props.getOrElse("kalix-runtime.version", "1.3.0-2909c94")
+    val RuntimeVersion = sys.props.getOrElse("kalix-runtime.version", "1.3.0-2909c94-1-37f8654f-SNAPSHOT")
   }
   // NOTE: embedded SDK should have the AkkaVersion aligned, when updating RuntimeVersion, make sure to check
   // if AkkaVersion and AkkaHttpVersion are aligned