diff --git a/Dockerfile b/Dockerfile
index 663eb4fbc..a7a5be87f 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -15,7 +15,7 @@ WORKDIR /workspace
 # Copy binaries
 COPY ${HELM} helm
 COPY --from=thirdparty /binaries/helm/latest/$BIN_TYPE/$TARGETARCH/helm helm
-COPY ${HELM_CHART} vcluster-0.18.1.tgz
+COPY ${HELM_CHART} vcluster-0.16.4.tgz
 
 # Install Delve for debugging
 RUN if [ "${TARGETARCH}" = "amd64" ]; then go install github.com/go-delve/delve/cmd/dlv@latest; fi
@@ -43,7 +43,7 @@ FROM --platform=linux/amd64 gcr.io/distroless/static:nonroot
 WORKDIR /
 COPY --from=builder /workspace/manager .
 COPY --from=builder /workspace/helm .
-COPY --from=builder /workspace/vcluster-0.18.1.tgz .
+COPY --from=builder /workspace/vcluster-0.16.4.tgz .
 USER 65532:65532
 
 ENTRYPOINT ["/manager"]
diff --git a/Makefile b/Makefile
index 714b2cb5d..dc3677ec1 100644
--- a/Makefile
+++ b/Makefile
@@ -20,7 +20,7 @@ BUILD_ARGS = --build-arg CRYPTO_LIB=${FIPS_ENABLE} --build-arg BUILDER_GOLANG_VE
 ENVTEST_K8S_VERSION = 1.23
 # HELM_VERSION = 3.12.0
 HELM_VERSION = 3.11.2-20230627
-VCLUSTER_CHART_VERSION = 0.18.1
+VCLUSTER_CHART_VERSION = 0.16.4
 
 # Get the currently used golang install path (in GOPATH/bin, unless GOBIN is set)
 ifeq (,$(shell go env GOBIN))
@@ -183,6 +183,6 @@ binaries: download-chart ## Download binaries
 HELM=$(BIN_DIR)/helm-$(GOOS)-$(GOARCH)
 
 .PHONY: download-chart
-download-chart: ## Download vcluster chart
-	$(HELM) repo add loft https://charts.loft.sh
-	$(HELM) pull loft/vcluster --version $(VCLUSTER_CHART_VERSION) -d $(BIN_DIR)
\ No newline at end of file
+download-chart: bin-dir ## Download vcluster chart
+	helm repo add loft https://charts.loft.sh
+	helm pull loft/vcluster --version $(VCLUSTER_CHART_VERSION) -d $(BIN_DIR)
\ No newline at end of file
diff --git a/pkg/constants/constants.go b/pkg/constants/constants.go
index 2a5d16526..7a2b37b24 100644
--- a/pkg/constants/constants.go
+++ b/pkg/constants/constants.go
@@ -4,7 +4,7 @@ import "os"
 
 var (
 	// DefaultVClusterVersion is the default version of the virtual cluster to use
-	DefaultVClusterVersion = "0.19.5"
+	DefaultVClusterVersion = "0.16.4"
 
 	// DefaultVClusterChartName is the default chart name of the virtual cluster to use
 	DefaultVClusterChartName = "vcluster"