diff --git a/cluster/core/system-upgrade/controller/kustomization.yaml b/cluster/core/system-upgrade/controller/kustomization.yaml
index 0a1b63e9f..9d24574dc 100644
--- a/cluster/core/system-upgrade/controller/kustomization.yaml
+++ b/cluster/core/system-upgrade/controller/kustomization.yaml
@@ -2,7 +2,7 @@
 apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization
 resources:
-  - github.com/rancher/system-upgrade-controller?ref=v0.7.5
+  - github.com/rancher/system-upgrade-controller?ref=v0.7.7
 images:
   - name: rancher/system-upgrade-controller
-    newTag: v0.7.5
+    newTag: v0.7.7