diff --git a/config/install.yaml b/config/install.yaml
index 56792783..ffe27a14 100644
--- a/config/install.yaml
+++ b/config/install.yaml
@@ -2769,7 +2769,7 @@ spec:
           valueFrom:
             fieldRef:
               fieldPath: metadata.namespace
-        image: clastix/capsule:v0.3.0
+        image: clastix/capsule:v0.3.1
         imagePullPolicy: IfNotPresent
         name: manager
         ports:
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 40d1a6e2..1f8911a3 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -7,4 +7,4 @@ kind: Kustomization
 images:
 - name: controller
   newName: clastix/capsule
-  newTag: v0.3.0
+  newTag: v0.3.1