diff --git a/.github/workflows/update_chart_dependencies.yaml b/.github/workflows/update_chart_dependencies.yaml
index 2dfb8a6bec..fb0b273f29 100644
--- a/.github/workflows/update_chart_dependencies.yaml
+++ b/.github/workflows/update_chart_dependencies.yaml
@@ -5,8 +5,9 @@ name: Check for new chart dependency updates
 # Specifically, it:
 #   1. Checks for new versions of (subchart) dependencies listed in chart.yaml.
 #   2. Updates chart.yaml with new versions where applicable.
-#   3. If the 'opentelemetry-operator' subchart is updated in chart.yaml, it also updates related
-#      image tags in values.yaml.
+#   3. Updates related values.yaml defaults when a subchart version bump requires it.
+#   4. If the 'opentelemetry-operator' subchart is updated in chart.yaml, it also updates related
+#      image tags in values.yaml and CRD assets when needed.
 
 on:
   schedule:
@@ -35,6 +36,10 @@ jobs:
             component: 'operator'
             yaml_file_path: 'helm-charts/splunk-otel-collector/Chart.yaml'
             dependency_name: 'opentelemetry-operator'
+          - name: 'obi'
+            component: 'chart'
+            yaml_file_path: 'helm-charts/splunk-otel-collector/Chart.yaml'
+            dependency_name: 'opentelemetry-ebpf-instrumentation'
     env:
       DEBUG_MODE: ${{ github.event.inputs.DEBUG_MODE }}
     steps:
@@ -59,6 +64,7 @@ jobs:
           make update-operator-crds DEBUG_MODE="$DEBUG_MODE"
 
       - name: Install Skopeo
+        if: ${{ matrix.name == 'operator' }}
         run: |
           sudo apt-get update
           sudo apt-get install -y skopeo
diff --git a/ci_scripts/update-chart-dependency.sh b/ci_scripts/update-chart-dependency.sh
index 4b6626de29..08d012b085 100755
--- a/ci_scripts/update-chart-dependency.sh
+++ b/ci_scripts/update-chart-dependency.sh
@@ -38,6 +38,66 @@ update_operator_images() {
     $SCRIPT_DIR/update-images-operator-otel.sh
 }
 
+# Function: update_obi_image_tag
+# Description: Keeps the parent chart's default OBI image tag aligned with the subchart version.
+update_obi_image_tag() {
+    local values_file="$VALUES_FILE_PATH"
+    local normalized_ver="${LATEST_VER#v}"  # Strip leading 'v' if present
+    local target_tag="v$normalized_ver"
+    local current_tag
+
+    current_tag=$(yq eval '.obi.image.tag' "$values_file")
+    echo "Current OBI image tag in values.yaml is $current_tag"
+
+    if [ "$current_tag" != "$target_tag" ]; then
+        echo "Updating OBI image tag to $target_tag in values.yaml"
+        if (
+            updated_file=$(mktemp "${values_file}.XXXXXX")
+            trap 'if [ -n "$updated_file" ] && [ -f "$updated_file" ]; then rm -f "$updated_file"; fi' EXIT
+
+            if awk -v target_tag="$target_tag" '
+                BEGIN {
+                    in_obi=0
+                    in_image=0
+                    updated=0
+                    image_indent=""
+                }
+                /^obi:/ { in_obi=1 }
+                in_obi && /^[^[:space:]][^:]*:/ && !/^obi:/ { in_obi=0; in_image=0 }
+                in_obi && match($0, /^[[:space:]]+image:/) {
+                    in_image=1
+                    image_indent=substr($0, RSTART, RLENGTH - length("image:"))
+                }
+                in_image && $0 ~ ("^" image_indent "[^[:space:]][^:]*:") && $0 !~ ("^" image_indent "image:") { in_image=0 }
+                in_image && $0 ~ ("^" image_indent "[[:space:]]+tag: ") {
+                    print image_indent "  tag: \"" target_tag "\""
+                    updated=1
+                    in_image=0
+                    next
+                }
+                { print }
+                END {
+                    if (!updated) {
+                        exit 1
+                    }
+                }
+            ' "$values_file" > "$updated_file"; then
+                mv "$updated_file" "$values_file"
+                updated_file=""
+            else
+                echo "Error: Failed to update obi.image.tag in $values_file; expected to find obi.image.tag and rewrite it to $target_tag." >&2
+                exit 1
+            fi
+        ); then
+            :
+        else
+            return 1
+        fi
+    else
+        echo "OBI image tag is already up to date in values.yaml"
+    fi
+}
+
 # Function: maybe_update_chart_dependency_version
 # Description: Updates the chart dependency version if a newer version is available.
 maybe_update_chart_dependency_version() {
@@ -61,6 +121,8 @@ maybe_update_chart_dependency_version() {
 
       if [ "$SUBCHART_NAME" == "opentelemetry-operator" ]; then
         update_operator_images
+      elif [ "$SUBCHART_NAME" == "opentelemetry-ebpf-instrumentation" ]; then
+        update_obi_image_tag
       fi
 
       emit_output "NEED_UPDATE"