diff --git a/CHANGELOG.md b/CHANGELOG.md
index eaf001dc..63305be3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,26 @@ This is a new major version that contains several backwards-compatibility breaks
 
 * #1309 Drop ESLint integration (@Kocal) 
 
+* #1316 Drop support of sass-loader ^13 and ^14, add support for sass-loader ^16 (@Kocal)
+
+The sass-loader's options have changed, [the `modern` options](https://sass-lang.com/documentation/js-api/interfaces/options) are now used by default. 
+Though not recommended,
+you must specify the option `api: 'legacy'`
+if you want to keep [the `legacy` options](https://sass-lang.com/documentation/js-api/interfaces/legacystringoptions/).
+For example:
+```js
+// With the legacy API:
+Encore.enableSassLoader((options) => {
+    options.api = 'legacy';
+    options.includePaths = [/*...*/];
+});
+
+// With the modern API (default):
+Encore.enableSassLoader((options) => {
+   options.loadPaths = [/*...*/];
+});
+```
+
 ## 4.7.0
 
 ### Features
diff --git a/package.json b/package.json
index f0aee60a..f267340f 100755
--- a/package.json
+++ b/package.json
@@ -84,7 +84,7 @@
     "preact": "^10.5.0",
     "preact-compat": "^3.17.0",
     "sass": "^1.17.0",
-    "sass-loader": "^13.0.0 || ^14.0.0",
+    "sass-loader": "^16.0.1",
     "sinon": "^14.0.0",
     "strip-ansi": "^6.0.0",
     "stylus": "^0.60.0",
@@ -120,7 +120,7 @@
     "postcss": "^8.3.0",
     "postcss-loader": "^7.0.0 || ^8.1.0",
     "sass": "^1.17.0",
-    "sass-loader": "^13.0.0 || ^14.0.0",
+    "sass-loader": "^16.0.1",
     "stylus": "^0.58.1",
     "stylus-loader": "^7.0.0 || ^8.1.0",
     "ts-loader": "^9.0.0",
diff --git a/yarn.lock b/yarn.lock
index 1b21cca6..135fa2e7 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -6412,10 +6412,10 @@ safe-regex-test@^1.0.0:
   resolved "https://registry.yarnpkg.com/safer-buffer/-/safer-buffer-2.1.2.tgz#44fa161b0187b9549dd84bb91802f9bd8385cd6a"
   integrity sha512-YZo3K82SD7Riyi0E1EQPojLz7kpepnSQI9IyPbHHg1XXXevb5dJI7tpyN2ADxGcQbHG7vcyRHk0cbwqcQriUtg==
 
-"sass-loader@^13.0.0 || ^14.0.0":
-  version "14.0.0"
-  resolved "https://registry.yarnpkg.com/sass-loader/-/sass-loader-14.0.0.tgz#fc8390f7cc16863622cd16f3ea07b36ba6ea8f91"
-  integrity sha512-oceP9wWbep/yRJ2+sMbCzk0UsXsDzdNis+N8nu9i5GwPXjy6v3DNB6TqfJLSpPO9k4+B8x8p/CEgjA9ZLkoLug==
+sass-loader@^16.0.1:
+  version "16.0.1"
+  resolved "https://registry.yarnpkg.com/sass-loader/-/sass-loader-16.0.1.tgz#57049c1787076e923b21a1dccc612546ecaf4295"
+  integrity sha512-xACl1ToTsKnL9Ce5yYpRxrLj9QUDCnwZNhzpC7tKiFyA8zXsd3Ap+HGVnbCgkdQcm43E+i6oKAWBsvGA6ZoiMw==
   dependencies:
     neo-async "^2.6.2"