diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index d774b8fc..c58a532e 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
   - name: fluxcd/kustomize-controller
     newName: fluxcd/kustomize-controller
-    newTag: v1.1.0
+    newTag: v1.2.0
diff --git a/go.mod b/go.mod
index b13d383d..f49d341b 100644
--- a/go.mod
+++ b/go.mod
@@ -17,7 +17,7 @@ require (
 	github.com/cyphar/filepath-securejoin v0.2.4
 	github.com/dimchansky/utfbom v1.1.1
 	github.com/fluxcd/cli-utils v0.36.0-flux.2
-	github.com/fluxcd/kustomize-controller/api v1.1.1
+	github.com/fluxcd/kustomize-controller/api v1.2.0
 	github.com/fluxcd/pkg/apis/acl v0.1.0
 	github.com/fluxcd/pkg/apis/event v0.6.0
 	github.com/fluxcd/pkg/apis/kustomize v1.2.0