diff --git a/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml b/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml
index ace6d1776560..bb14a7fdf8ff 100644
--- a/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml
+++ b/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: ec2nodeclasses.karpenter.k8s.aws
 spec:
   group: karpenter.k8s.aws
diff --git a/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml b/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml
index 9a00f213e91e..2a545f77e32b 100644
--- a/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml
+++ b/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodeclaims.karpenter.sh
 spec:
   group: karpenter.sh
diff --git a/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml b/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml
index 92db80558a2e..1a3e136aa8bb 100644
--- a/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml
+++ b/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodepools.karpenter.sh
 spec:
   group: karpenter.sh
diff --git a/go.mod b/go.mod
index e2e46a1579c0..2d36640b78d4 100644
--- a/go.mod
+++ b/go.mod
@@ -28,7 +28,7 @@ require (
 	k8s.io/utils v0.0.0-20240711033017-18e509b52bc8
 	knative.dev/pkg v0.0.0-20240926013127-c4843b746d24
 	sigs.k8s.io/controller-runtime v0.18.4
-	sigs.k8s.io/karpenter v0.34.12
+	sigs.k8s.io/karpenter v0.34.13-0.20250115234433-cb0a42192b77
 )
 
 require (
diff --git a/go.sum b/go.sum
index 8572a81c9cdd..9dbb6f51a1b7 100644
--- a/go.sum
+++ b/go.sum
@@ -750,8 +750,8 @@ sigs.k8s.io/controller-runtime v0.18.4 h1:87+guW1zhvuPLh1PHybKdYFLU0YJp4FhJRmiHv
 sigs.k8s.io/controller-runtime v0.18.4/go.mod h1:TVoGrfdpbA9VRFaRnKgk9P5/atA0pMwq+f+msb9M8Sg=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd h1:EDPBXCAspyGV4jQlpZSudPeMmr1bNJefnuqLsRAsHZo=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd/go.mod h1:B8JuhiUyNFVKdsE8h686QcCxMaH6HrOAZj4vswFpcB0=
-sigs.k8s.io/karpenter v0.34.12 h1:OdYVQQsP8O6VVN5aPOeNHxieqwZ8LNdUV/HyJpDXFFE=
-sigs.k8s.io/karpenter v0.34.12/go.mod h1:+mYbvFR6FtY+3MdprIJFTGv8GMR2DP5rA2umbYRfrmY=
+sigs.k8s.io/karpenter v0.34.13-0.20250115234433-cb0a42192b77 h1:DnVZc6OIaeWW81H5q2pTEqvlXpsYuYemw9NXqxxsU10=
+sigs.k8s.io/karpenter v0.34.13-0.20250115234433-cb0a42192b77/go.mod h1:+mYbvFR6FtY+3MdprIJFTGv8GMR2DP5rA2umbYRfrmY=
 sigs.k8s.io/structured-merge-diff/v4 v4.4.1 h1:150L+0vs/8DA78h1u02ooW1/fFq/Lwr+sGiqlzvrtq4=
 sigs.k8s.io/structured-merge-diff/v4 v4.4.1/go.mod h1:N8hJocpFajUSSeSJ9bOZ77VzejKZaXsTtZo4/u7Io08=
 sigs.k8s.io/yaml v1.4.0 h1:Mk1wCc2gy/F0THH0TAp1QYyJNzRm2KCLy3o5ASXVI5E=
diff --git a/hack/toolchain.sh b/hack/toolchain.sh
index 9fc60a0b4462..7b8f509e78b1 100755
--- a/hack/toolchain.sh
+++ b/hack/toolchain.sh
@@ -16,7 +16,7 @@ tools() {
     go install github.com/mikefarah/yq/v4@latest
     go install github.com/norwoodj/helm-docs/cmd/helm-docs@latest
     go install sigs.k8s.io/controller-runtime/tools/setup-envtest@latest
-    go install sigs.k8s.io/controller-tools/cmd/controller-gen@v0.16.3
+    go install sigs.k8s.io/controller-tools/cmd/controller-gen@latest
     go install github.com/sigstore/cosign/v2/cmd/cosign@latest
     go install -tags extended github.com/gohugoio/hugo@v0.110.0
     go install golang.org/x/vuln/cmd/govulncheck@latest
diff --git a/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml b/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml
index 948923887225..180add628887 100644
--- a/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml
+++ b/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: ec2nodeclasses.karpenter.k8s.aws
 spec:
   group: karpenter.k8s.aws
diff --git a/pkg/apis/crds/karpenter.sh_nodeclaims.yaml b/pkg/apis/crds/karpenter.sh_nodeclaims.yaml
index d24cc36ed35f..09d8d88f221b 100644
--- a/pkg/apis/crds/karpenter.sh_nodeclaims.yaml
+++ b/pkg/apis/crds/karpenter.sh_nodeclaims.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodeclaims.karpenter.sh
 spec:
   group: karpenter.sh
diff --git a/pkg/apis/crds/karpenter.sh_nodepools.yaml b/pkg/apis/crds/karpenter.sh_nodepools.yaml
index e0f2585a64b7..eeaeed397f4b 100644
--- a/pkg/apis/crds/karpenter.sh_nodepools.yaml
+++ b/pkg/apis/crds/karpenter.sh_nodepools.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodepools.karpenter.sh
 spec:
   group: karpenter.sh