diff --git a/cluster/core/system-upgrade/kustomization.yaml b/cluster/core/system-upgrade/kustomization.yaml
index 5039cf2a..fc7ba9e7 100644
--- a/cluster/core/system-upgrade/kustomization.yaml
+++ b/cluster/core/system-upgrade/kustomization.yaml
@@ -2,7 +2,7 @@
 apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization
 resources:
-  - github.com/rancher/system-upgrade-controller?ref=v0.7.3
+  - github.com/rancher/system-upgrade-controller?ref=v0.7.4
 images:
   - name: rancher/system-upgrade-controller
-    newTag: v0.7.3
+    newTag: v0.7.4