diff --git a/clustertool/embed/generic/kubernetes/system/system-upgrade-controller/app/helm-release.yaml b/clustertool/embed/generic/kubernetes/system/system-upgrade-controller/app/helm-release.yaml
index b6298191873..c1de67010fd 100644
--- a/clustertool/embed/generic/kubernetes/system/system-upgrade-controller/app/helm-release.yaml
+++ b/clustertool/embed/generic/kubernetes/system/system-upgrade-controller/app/helm-release.yaml
@@ -33,7 +33,7 @@ spec:
           app:
             image:
               repository: docker.io/rancher/system-upgrade-controller
-              tag: v0.16.0@sha256:1d874e5034a565d29086db8f936c968afcbed1123c83fa880d62de382b89b501
+              tag: v0.16.2@sha256:ae933d9d81e9c42e316989a0ce7b1fb0dfe93afe5469631b8f384141b89b106a
             env:
               SYSTEM_UPGRADE_CONTROLLER_DEBUG: false
               SYSTEM_UPGRADE_CONTROLLER_THREADS: 2