diff --git a/UPSTREAM_PROJECTS.yaml b/UPSTREAM_PROJECTS.yaml
index a43d425624..461936e857 100644
--- a/UPSTREAM_PROJECTS.yaml
+++ b/UPSTREAM_PROJECTS.yaml
@@ -175,7 +175,7 @@ projects:
     repos:
       - name: cluster-api
         versions:
-          - tag: v1.6.0
+          - tag: v1.6.1
             go_version: "1.20"
       - name: cluster-api-provider-cloudstack
         versions:
diff --git a/projects/kubernetes-sigs/cluster-api/GIT_TAG b/projects/kubernetes-sigs/cluster-api/GIT_TAG
index b7c0a9b1d9..0236045093 100644
--- a/projects/kubernetes-sigs/cluster-api/GIT_TAG
+++ b/projects/kubernetes-sigs/cluster-api/GIT_TAG
@@ -1 +1 @@
-v1.6.0
+v1.6.1
diff --git a/projects/kubernetes-sigs/cluster-api/README.md b/projects/kubernetes-sigs/cluster-api/README.md
index 4c2c8750ba..a328d98922 100644
--- a/projects/kubernetes-sigs/cluster-api/README.md
+++ b/projects/kubernetes-sigs/cluster-api/README.md
@@ -1,5 +1,5 @@
 ## **Cluster API**
-![Version](https://img.shields.io/badge/version-v1.6.0-blue)
+![Version](https://img.shields.io/badge/version-v1.6.1-blue)
 ![Build Status](https://codebuild.us-west-2.amazonaws.com/badges?uuid=eyJlbmNyeXB0ZWREYXRhIjoiQVZ3TDBZZVVXZUZiVmtqLzVoOVcrV2FaMmxRRzJXRmJCRlZtQkNodXdWZ0FrNm0zQ3l5UzNqTkdsQXgwdzc0bTBZc1RIcjBhMUVFbEhIK3d2VDVPek1rPSIsIml2UGFyYW1ldGVyU3BlYyI6IkVuOGJxNXBPZEtDek81Q3giLCJtYXRlcmlhbFNldFNlcmlhbCI6MX0%3D&branch=main)
 
 [Cluster API](https://github.com/kubernetes-sigs/cluster-api) is a Kubernetes sub-project focused on providing declarative APIs and tooling to simplify provisioning, upgrading, and operating multiple Kubernetes clusters. It uses Kubernetes-style APIs and patterns to automate cluster lifecycle management for platform operators. The supporting infrastructure, like virtual machines, networks, load balancers, and VPCs, as well as the Kubernetes cluster configuration are all defined in the same way that application developers operate deploying and managing their workloads. This enables consistent and repeatable cluster deployments across a wide variety of infrastructure environments. Cluster API can be extended to support any infrastructure provider (AWS, Azure, vSphere, etc.) or bootstrap provider (kubeadm is default) as required by the customer.