diff --git a/README.md b/README.md
index 7ff4a0b7..a39d53ff 100644
--- a/README.md
+++ b/README.md
@@ -517,11 +517,11 @@ module "es_kubernetes_secret" {
 | Name | Description | Type | Default | Required |
 |------|-------------|------|---------|:--------:|
 | <a name="input_eso_chart_location"></a> [eso\_chart\_location](#input\_eso\_chart\_location) | The location of the External Secrets Operator Helm chart. | `string` | `"https://charts.external-secrets.io"` | no |
-| <a name="input_eso_chart_version"></a> [eso\_chart\_version](#input\_eso\_chart\_version) | The version of the External Secrets Operator Helm chart. Ensure that the chart version is compatible with the image version specified in eso\_image\_version. | `string` | `"0.16.1"` | no |
+| <a name="input_eso_chart_version"></a> [eso\_chart\_version](#input\_eso\_chart\_version) | The version of the External Secrets Operator Helm chart. Ensure that the chart version is compatible with the image version specified in eso\_image\_version. | `string` | `"0.16.2"` | no |
 | <a name="input_eso_cluster_nodes_configuration"></a> [eso\_cluster\_nodes\_configuration](#input\_eso\_cluster\_nodes\_configuration) | Configuration to use to customise ESO deployment on specific cluster nodes. Setting appropriate values will result in customising ESO helm release. Default value is null to keep ESO standard deployment. | <pre>object({<br/>    nodeSelector = object({<br/>      label = string<br/>      value = string<br/>    })<br/>    tolerations = object({<br/>      key      = string<br/>      operator = string<br/>      value    = string<br/>      effect   = string<br/>    })<br/>  })</pre> | `null` | no |
 | <a name="input_eso_enroll_in_servicemesh"></a> [eso\_enroll\_in\_servicemesh](#input\_eso\_enroll\_in\_servicemesh) | Flag to enroll ESO into istio servicemesh | `bool` | `false` | no |
 | <a name="input_eso_image"></a> [eso\_image](#input\_eso\_image) | The External Secrets Operator image in the format of `[registry-url]/[namespace]/[image]`. | `string` | `"ghcr.io/external-secrets/external-secrets"` | no |
-| <a name="input_eso_image_version"></a> [eso\_image\_version](#input\_eso\_image\_version) | The version or digest for the external secrets image to deploy. If changing the value, ensure it is compatible with the chart version set in eso\_chart\_version. | `string` | `"v0.16.1-ubi@sha256:329ecbb3b0f1e70d9fa81a6de403325eae39ef95f89b1633cc3bc627ba3204b5"` | no |
+| <a name="input_eso_image_version"></a> [eso\_image\_version](#input\_eso\_image\_version) | The version or digest for the external secrets image to deploy. If changing the value, ensure it is compatible with the chart version set in eso\_chart\_version. | `string` | `"v0.16.2-ubi@sha256:8bebcd31c654a626f513428021f5733177411afa8fd49ff467fe4efbf926a43c"` | no |
 | <a name="input_eso_namespace"></a> [eso\_namespace](#input\_eso\_namespace) | Namespace to create and be used to install ESO components including helm releases. If eso\_store\_scope == cluster, this will also be used to deploy ClusterSecretStore/cluster\_store in it | `string` | `null` | no |
 | <a name="input_eso_pod_configuration"></a> [eso\_pod\_configuration](#input\_eso\_pod\_configuration) | Configuration to use to customise ESO deployment on specific pods. Setting appropriate values will result in customising ESO helm release. Default value is {} to keep ESO standard deployment. Ignore the key if not required. | <pre>object({<br/>    annotations = optional(object({<br/>      # The annotations for external secret controller pods.<br/>      external_secrets = optional(map(string), {})<br/>      # The annotations for external secret cert controller pods.<br/>      external_secrets_cert_controller = optional(map(string), {})<br/>      # The annotations for external secret controller pods.<br/>      external_secrets_webhook = optional(map(string), {})<br/>    }), {})<br/><br/>    labels = optional(object({<br/>      # The labels for external secret controller pods.<br/>      external_secrets = optional(map(string), {})<br/>      # The labels for external secret cert controller pods.<br/>      external_secrets_cert_controller = optional(map(string), {})<br/>      # The labels for external secret controller pods.<br/>      external_secrets_webhook = optional(map(string), {})<br/>    }), {})<br/>  })</pre> | `{}` | no |
 | <a name="input_existing_eso_namespace"></a> [existing\_eso\_namespace](#input\_existing\_eso\_namespace) | Existing Namespace to be used to install ESO components including helm releases. If eso\_store\_scope == cluster, this will also be used to deploy ClusterSecretStore/cluster\_store in it | `string` | `null` | no |
diff --git a/variables.tf b/variables.tf
index 47acfc7f..363358e7 100644
--- a/variables.tf
+++ b/variables.tf
@@ -77,7 +77,7 @@ variable "eso_image" {
 variable "eso_image_version" {
   type        = string
   description = "The version or digest for the external secrets image to deploy. If changing the value, ensure it is compatible with the chart version set in eso_chart_version."
-  default     = "v0.16.1-ubi@sha256:329ecbb3b0f1e70d9fa81a6de403325eae39ef95f89b1633cc3bc627ba3204b5" # datasource: ghcr.io/external-secrets/external-secrets
+  default     = "v0.16.2-ubi@sha256:8bebcd31c654a626f513428021f5733177411afa8fd49ff467fe4efbf926a43c" # datasource: ghcr.io/external-secrets/external-secrets
   nullable    = false
   validation {
     condition     = can(regex("(^v\\d+\\.\\d+.\\d+(\\-\\w+)?(\\@sha256\\:\\w+){0,1})$", var.eso_image_version))
@@ -95,7 +95,7 @@ variable "eso_chart_location" {
 variable "eso_chart_version" {
   type        = string
   description = "The version of the External Secrets Operator Helm chart. Ensure that the chart version is compatible with the image version specified in eso_image_version."
-  default     = "0.16.1" # registryUrl: charts.external-secrets.io
+  default     = "0.16.2" # registryUrl: charts.external-secrets.io
   nullable    = false
 }