How to update gradle in android studio?

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Step 1 (Use default gradle wrapper)

File→Settings→Build, Execution, Deployment→Build Tools→Gradle→Use default Gradle wrapper (recommended)

Android studio settings Gradle Wrapper

Changing to Gradle Wrapper in the new version of Android Studio:
Android Studio Setting Gradle Wrapper new version

Step 2 (Select desired gradle version)

File→Project Structure→Project

Android Studio project structure

The following table shows compatibility between Android plugin for Gradle and Gradle:

Compatibility table

Latest stable versions you can use with Android Studio 4.1.2 (March 2021):

Android Gradle Plugin version: 4.1.2
Gradle version: 6.5

Official links

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