diff --git a/class/defaults.yml b/class/defaults.yml
index 69548e018..179e1ce41 100644
--- a/class/defaults.yml
+++ b/class/defaults.yml
@@ -40,7 +40,7 @@ parameters:
       provider-kubernetes:
         registry: ghcr.io
         repository: crossplane-contrib/provider-kubernetes
-        tag: v1.1.0
+        tag: v1.2.0
       provider-helm:
         registry: ghcr.io
         repository: crossplane-contrib/provider-helm
diff --git a/tests/golden/control-plane/appcat/appcat/10_provider_kubernetes.yaml b/tests/golden/control-plane/appcat/appcat/10_provider_kubernetes.yaml
index 10f604617..f21fb7df0 100644
--- a/tests/golden/control-plane/appcat/appcat/10_provider_kubernetes.yaml
+++ b/tests/golden/control-plane/appcat/appcat/10_provider_kubernetes.yaml
@@ -8,7 +8,7 @@ metadata:
     name: provider-kubernetes
   name: provider-kubernetes
 spec:
-  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.1.0
+  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.2.0
   packagePullPolicy: IfNotPresent
   runtimeConfigRef:
     name: provider-kubernetes
diff --git a/tests/golden/dev/appcat/appcat/10_provider_kubernetes.yaml b/tests/golden/dev/appcat/appcat/10_provider_kubernetes.yaml
index 1d6c57982..29154dfb4 100644
--- a/tests/golden/dev/appcat/appcat/10_provider_kubernetes.yaml
+++ b/tests/golden/dev/appcat/appcat/10_provider_kubernetes.yaml
@@ -8,7 +8,7 @@ metadata:
     name: provider-kubernetes
   name: provider-kubernetes
 spec:
-  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.1.0
+  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.2.0
   packagePullPolicy: Always
   runtimeConfigRef:
     name: provider-kubernetes
diff --git a/tests/golden/exodev/appcat/appcat/10_provider_kubernetes.yaml b/tests/golden/exodev/appcat/appcat/10_provider_kubernetes.yaml
index d55af4c17..0ee14b80a 100644
--- a/tests/golden/exodev/appcat/appcat/10_provider_kubernetes.yaml
+++ b/tests/golden/exodev/appcat/appcat/10_provider_kubernetes.yaml
@@ -8,7 +8,7 @@ metadata:
     name: provider-kubernetes
   name: provider-kubernetes
 spec:
-  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.1.0
+  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.2.0
   packagePullPolicy: IfNotPresent
   runtimeConfigRef:
     name: provider-kubernetes
diff --git a/tests/golden/vshn-cloud/appcat/appcat/10_provider_kubernetes.yaml b/tests/golden/vshn-cloud/appcat/appcat/10_provider_kubernetes.yaml
index d55af4c17..0ee14b80a 100644
--- a/tests/golden/vshn-cloud/appcat/appcat/10_provider_kubernetes.yaml
+++ b/tests/golden/vshn-cloud/appcat/appcat/10_provider_kubernetes.yaml
@@ -8,7 +8,7 @@ metadata:
     name: provider-kubernetes
   name: provider-kubernetes
 spec:
-  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.1.0
+  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.2.0
   packagePullPolicy: IfNotPresent
   runtimeConfigRef:
     name: provider-kubernetes
diff --git a/tests/golden/vshn-managed/appcat/appcat/10_provider_kubernetes.yaml b/tests/golden/vshn-managed/appcat/appcat/10_provider_kubernetes.yaml
index d55af4c17..0ee14b80a 100644
--- a/tests/golden/vshn-managed/appcat/appcat/10_provider_kubernetes.yaml
+++ b/tests/golden/vshn-managed/appcat/appcat/10_provider_kubernetes.yaml
@@ -8,7 +8,7 @@ metadata:
     name: provider-kubernetes
   name: provider-kubernetes
 spec:
-  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.1.0
+  package: ghcr.io/crossplane-contrib/provider-kubernetes:v1.2.0
   packagePullPolicy: IfNotPresent
   runtimeConfigRef:
     name: provider-kubernetes