diff --git a/config/install.yaml b/config/install.yaml
index 9823b511..c5a57338 100644
--- a/config/install.yaml
+++ b/config/install.yaml
@@ -1411,7 +1411,7 @@ spec:
           valueFrom:
             fieldRef:
               fieldPath: metadata.namespace
-        image: quay.io/clastix/capsule:v0.1.0
+        image: quay.io/clastix/capsule:v0.1.1-rc0
         imagePullPolicy: IfNotPresent
         name: manager
         ports:
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 0c275e6b..cbe2bcf7 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -7,4 +7,4 @@ kind: Kustomization
 images:
 - name: controller
   newName: quay.io/clastix/capsule
-  newTag: v0.1.0
+  newTag: v0.1.1-rc0