diff --git a/Makefile b/Makefile
index 85934430..37ca23f4 100644
--- a/Makefile
+++ b/Makefile
@@ -23,7 +23,7 @@ TEST_CREDENTIALS_JSON ?= $(TEST_CREDENTIALS_DIR)/credentials.json
 TEST_LOGANALYTICS_JSON ?= $(TEST_CREDENTIALS_DIR)/loganalytics.json
 export TEST_CREDENTIALS_JSON TEST_LOGANALYTICS_JSON TEST_AKS_CREDENTIALS_JSON
 
-VERSION ?= v1.6.1
+VERSION ?= v1.6.2
 REGISTRY ?= ghcr.io
 IMG_NAME ?= virtual-kubelet
 INIT_IMG_NAME ?= init-validation
@@ -35,7 +35,7 @@ E2E_CLUSTER_NAME := $(CLUSTER_NAME)
 OUTPUT_TYPE ?= type=docker
 BUILDPLATFORM ?= linux/amd64
 IMG_TAG ?= $(subst v,,$(VERSION))
-INIT_IMG_TAG ?= 0.2.0
+INIT_IMG_TAG ?= v0.3.0
 
 BUILD_DATE ?= $(shell date '+%Y-%m-%dT%H:%M:%S')
 VERSION_FLAGS := "-ldflags=-X main.buildVersion=$(IMG_TAG) -X main.buildTime=$(BUILD_DATE)"
diff --git a/charts/virtual-kubelet/values.yaml b/charts/virtual-kubelet/values.yaml
index a0e1aac0..2a825944 100644
--- a/charts/virtual-kubelet/values.yaml
+++ b/charts/virtual-kubelet/values.yaml
@@ -8,7 +8,7 @@ image:
 initImage:
   repository: mcr.microsoft.com
   name: oss/virtual-kubelet/init-validation
-  initTag: 0.3.0
+  initTag: v0.3.0
   pullPolicy: IfNotPresent
 
 namespace: vk-azure-aci