diff --git a/.github/workflows/airflow-distributions-tests.yml b/.github/workflows/airflow-distributions-tests.yml
index 3f0cbeff08c24..69d31d60dfc2d 100644
--- a/.github/workflows/airflow-distributions-tests.yml
+++ b/.github/workflows/airflow-distributions-tests.yml
@@ -113,7 +113,7 @@ jobs:
           USE_LOCAL_HATCH: "${{ inputs.use-local-venv }}"
         run: |
           uv tool uninstall hatch || true
-          uv tool install hatch==1.16.0
+          uv tool install hatch==1.16.1
           breeze release-management "${DISTRIBUTION_TYPE}" --distribution-format wheel
         if: ${{ matrix.python-version == inputs.default-python-version }}
       - name: "Verify wheel packages with twine"
diff --git a/dev/breeze/pyproject.toml b/dev/breeze/pyproject.toml
index 2434928961710..0857eabfa0a0b 100644
--- a/dev/breeze/pyproject.toml
+++ b/dev/breeze/pyproject.toml
@@ -54,7 +54,7 @@ dependencies = [
     "google-auth-httplib2>=0.2.0",
     "google-auth-oauthlib>=1.2.0",
     "gitpython>=3.1.40",
-    "hatch>=1.16.0",
+    "hatch>=1.16.1",
     "inputimeout>=1.0.4",
     "jinja2>=3.1.5",
     "jsonschema>=4.19.1",
diff --git a/dev/breeze/src/airflow_breeze/commands/release_management_commands.py b/dev/breeze/src/airflow_breeze/commands/release_management_commands.py
index c593103a7f184..e4086e86c0011 100644
--- a/dev/breeze/src/airflow_breeze/commands/release_management_commands.py
+++ b/dev/breeze/src/airflow_breeze/commands/release_management_commands.py
@@ -251,7 +251,7 @@ class VersionedFile(NamedTuple):
 GITPYTHON_VERSION = "3.1.45"
 RICH_VERSION = "14.2.0"
 PREK_VERSION = "0.2.19"
-HATCH_VERSION = "1.16.0"
+HATCH_VERSION = "1.16.1"
 PYYAML_VERSION = "6.0.3"
 
 # prek environment and this is done with node, no python installation is needed.
diff --git a/dev/breeze/uv.lock b/dev/breeze/uv.lock
index 35a9a86e8b48b..cd09c85fd7152 100644
--- a/dev/breeze/uv.lock
+++ b/dev/breeze/uv.lock
@@ -70,7 +70,7 @@ requires-dist = [
     { name = "google-api-python-client", specifier = ">=2.142.0" },
     { name = "google-auth-httplib2", specifier = ">=0.2.0" },
     { name = "google-auth-oauthlib", specifier = ">=1.2.0" },
-    { name = "hatch", specifier = ">=1.16.0" },
+    { name = "hatch", specifier = ">=1.16.1" },
     { name = "inputimeout", specifier = ">=1.0.4" },
     { name = "jinja2", specifier = ">=3.1.5" },
     { name = "jsonschema", specifier = ">=4.19.1" },