diff --git a/functions/kubernetes-provider/000-state-init.yaml.gotmpl b/functions/kubernetes-provider/000-state-init.yaml.gotmpl
index 3b79c1b..c16fa69 100644
--- a/functions/kubernetes-provider/000-state-init.yaml.gotmpl
+++ b/functions/kubernetes-provider/000-state-init.yaml.gotmpl
@@ -39,7 +39,7 @@
     {{- $pkg := $spec.package | default dict }}
     {{- $packageName := $pkg.name | default "xpkg.crossplane.io/crossplane-contrib/provider-kubernetes" }}
     # renovate: datasource=docker depName=crossplane-contrib/provider-kubernetes registryUrl=https://xpkg.crossplane.io
-    {{- $packageVersion := $pkg.version | default "v1.4.0" }}
+    {{- $packageVersion := $pkg.version | default "v1.4.1" }}
     {{- $skipDependencyResolution := true }}
     {{- if hasKey $pkg "skipDependencyResolution" }}
       {{- $skipDependencyResolution = $pkg.skipDependencyResolution }}
diff --git a/tests/test-kubernetes-provider-stack/main.k b/tests/test-kubernetes-provider-stack/main.k
index 69fda38..0bb918a 100644
--- a/tests/test-kubernetes-provider-stack/main.k
+++ b/tests/test-kubernetes-provider-stack/main.k
@@ -39,7 +39,7 @@ _items = [
                         kind = "Provider"
                         metadata.name = "crossplane-contrib-provider-kubernetes"
                         spec = {
-                            package = "xpkg.crossplane.io/crossplane-contrib/provider-kubernetes:v1.4.0"
+                            package = "xpkg.crossplane.io/crossplane-contrib/provider-kubernetes:v1.4.1"
                             skipDependencyResolution = True
                         }
                     }