diff --git a/bootstrap/templates/addons/system-upgrade-controller/app/kustomization.yaml.j2 b/bootstrap/templates/addons/system-upgrade-controller/app/kustomization.yaml.j2
index d8822d643..789d35816 100644
--- a/bootstrap/templates/addons/system-upgrade-controller/app/kustomization.yaml.j2
+++ b/bootstrap/templates/addons/system-upgrade-controller/app/kustomization.yaml.j2
@@ -4,7 +4,7 @@ kind: Kustomization
 resources:
   # renovate: datasource=github-releases depName=rancher/system-upgrade-controller
   - https://github.com/rancher/system-upgrade-controller/releases/download/v0.16.2/crd.yaml
-  - https://github.com/rancher/system-upgrade-controller?ref=v0.16.3
+  - https://github.com/rancher/system-upgrade-controller?ref=v0.18.0
 images:
   - name: rancher/system-upgrade-controller
     newTag: v0.16.2