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 f5477221253..45fb9fff272 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: v0.15.3@sha256:b8f3ae8be508b6c80340bf9e3733332ecdaddd80dc573626a42a62e30e6a51bb
+              tag: v0.16.0@sha256:1d874e5034a565d29086db8f936c968afcbed1123c83fa880d62de382b89b501
             env:
               SYSTEM_UPGRADE_CONTROLLER_DEBUG: false
               SYSTEM_UPGRADE_CONTROLLER_THREADS: 2