diff --git a/UPSTREAM_PROJECTS.yaml b/UPSTREAM_PROJECTS.yaml
index 0ae751907c..7572f3ad8c 100644
--- a/UPSTREAM_PROJECTS.yaml
+++ b/UPSTREAM_PROJECTS.yaml
@@ -175,8 +175,8 @@ projects:
     repos:
       - name: cluster-api
         versions:
-          - tag: v1.6.1
-            go_version: "1.20"
+          - tag: v1.6.3
+            go_version: "1.21"
       - name: cluster-api-provider-cloudstack
         versions:
           - tag: v0.4.10-rc1
diff --git a/projects/kubernetes-sigs/cluster-api/GIT_TAG b/projects/kubernetes-sigs/cluster-api/GIT_TAG
index 0236045093..78d19a2970 100644
--- a/projects/kubernetes-sigs/cluster-api/GIT_TAG
+++ b/projects/kubernetes-sigs/cluster-api/GIT_TAG
@@ -1 +1 @@
-v1.6.1
+v1.6.3
diff --git a/projects/kubernetes-sigs/cluster-api/GOLANG_VERSION b/projects/kubernetes-sigs/cluster-api/GOLANG_VERSION
index 5fb5a6b4f5..d2ab029d32 100644
--- a/projects/kubernetes-sigs/cluster-api/GOLANG_VERSION
+++ b/projects/kubernetes-sigs/cluster-api/GOLANG_VERSION
@@ -1 +1 @@
-1.20
+1.21
diff --git a/projects/kubernetes-sigs/cluster-api/README.md b/projects/kubernetes-sigs/cluster-api/README.md
index a328d98922..ea8de00a2e 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-v1.6.1-blue)
+![Version](https://img.shields.io/badge/version-v1.6.3-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.