diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0c1a1b2ef..a16e34ba9 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,22 @@
 
 All notable changes to this project are documented in this file.
 
+## 0.26.1
+
+**Release date:** 2022-08-11
+
+This prerelease comes with panic recovery, to protect the controller from crashing 
+when reconciliations lead to a crash. It also adds OCI documentation and improvements
+to the controllers CI pipeline.
+
+Improvements:
+- Enable panic recovery
+  [#859](https://github.com/fluxcd/source-controller/pull/859)
+- build: Ignore CI workflows for markdown files
+  [#858](https://github.com/fluxcd/source-controller/pull/858)
+- oci: Document Auto-Login usage in SC
+  [#860](https://github.com/fluxcd/source-controller/pull/860)
+
 ## 0.26.0
 
 **Release date:** 2022-08-08
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 403f22a67..7a7a6f472 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -6,4 +6,4 @@ resources:
 images:
 - name: fluxcd/source-controller
   newName: fluxcd/source-controller
-  newTag: v0.26.0
+  newTag: v0.26.1
diff --git a/go.mod b/go.mod
index 2e359d317..0e77d7784 100644
--- a/go.mod
+++ b/go.mod
@@ -43,7 +43,7 @@ require (
 	github.com/fluxcd/pkg/testserver v0.2.0
 	github.com/fluxcd/pkg/untar v0.1.0
 	github.com/fluxcd/pkg/version v0.1.0
-	github.com/fluxcd/source-controller/api v0.26.0
+	github.com/fluxcd/source-controller/api v0.26.1
 	github.com/go-git/go-billy/v5 v5.3.1
 	github.com/go-git/go-git/v5 v5.4.2
 	github.com/go-logr/logr v1.2.3