diff --git a/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml b/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml
index 4e70a60635a5..1047e71f4c4e 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: v0.16.5
+    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 8744ff49303e..426bf9c5b930 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 441461afe24f..f805f22eef30 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 6e8dcea42af5..84f5eb5a931c 100644
--- a/go.mod
+++ b/go.mod
@@ -30,7 +30,7 @@ require (
 	k8s.io/utils v0.0.0-20240711033017-18e509b52bc8
 	knative.dev/pkg v0.0.0-20240926013127-c4843b746d24
 	sigs.k8s.io/controller-runtime v0.18.2
-	sigs.k8s.io/karpenter v0.37.6
+	sigs.k8s.io/karpenter v0.37.7-0.20250115214633-9fc1bbe2ddb1
 	sigs.k8s.io/yaml v1.4.0
 )
 
diff --git a/go.sum b/go.sum
index 0a067f0584d0..2d0f8de73c93 100644
--- a/go.sum
+++ b/go.sum
@@ -750,8 +750,8 @@ sigs.k8s.io/controller-runtime v0.18.2 h1:RqVW6Kpeaji67CY5nPEfRz6ZfFMk0lWQlNrLql
 sigs.k8s.io/controller-runtime v0.18.2/go.mod h1:tuAt1+wbVsXIT8lPtk5RURxqAnq7xkpv2Mhttslg7Hw=
 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 v0.37.6 h1:jgTrPbOxgsx6T/uWOr1d+1SP0j1dUzmFgzoO9YHNxMw=
-sigs.k8s.io/karpenter v0.37.6/go.mod h1:RLrHXZpfM+JNjjfOo3RViPcCz9BsMxVpOfi3oAhzxz8=
+sigs.k8s.io/karpenter v0.37.7-0.20250115214633-9fc1bbe2ddb1 h1:EbuO7YHNvcJVlpRmnSiCdbehzo3OZ6ao0WV000Bt33c=
+sigs.k8s.io/karpenter v0.37.7-0.20250115214633-9fc1bbe2ddb1/go.mod h1:RLrHXZpfM+JNjjfOo3RViPcCz9BsMxVpOfi3oAhzxz8=
 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/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml b/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml
index aef2476ff36c..133ba68492f2 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: v0.16.5
+    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 e2ec362c3bf7..8e661946f34b 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 21112a2ff4a5..9c50c88f825a 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