diff --git a/package/Dockerfile b/package/Dockerfile
index ab0090a862..5178a4d108 100644
--- a/package/Dockerfile
+++ b/package/Dockerfile
@@ -74,7 +74,7 @@ ENV CATTLE_WINS_AGENT_UNINSTALL_SCRIPT https://raw.githubusercontent.com/rancher
 ENV CATTLE_WINS_AGENT_UPGRADE_IMAGE rancher/wins:${CATTLE_WINS_AGENT_VERSION}
 ENV CATTLE_CSI_PROXY_AGENT_VERSION v1.1.3
 # make sure the CATTLE_SYSTEM_AGENT_VERSION is consistent with tests/v2/codecoverage/package/Dockerfile
-ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.8
+ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.9-rc.2
 ENV CATTLE_SYSTEM_AGENT_DOWNLOAD_PREFIX https://github.com/rancher/system-agent/releases/download
 ENV CATTLE_SYSTEM_AGENT_UPGRADE_IMAGE rancher/system-agent:${CATTLE_SYSTEM_AGENT_VERSION}-suc
 ENV CATTLE_SYSTEM_AGENT_INSTALLER_IMAGE rancher/system-agent-installer-
diff --git a/pkg/settings/setting.go b/pkg/settings/setting.go
index f46aa28cad..5a523e5963 100644
--- a/pkg/settings/setting.go
+++ b/pkg/settings/setting.go
@@ -103,7 +103,7 @@ var (
 	WinsAgentVersion                    = NewSetting("wins-agent-version", "")
 	CSIProxyAgentVersion                = NewSetting("csi-proxy-agent-version", "")
 	CSIProxyAgentURL                    = NewSetting("csi-proxy-agent-url", "https://acs-mirror.azureedge.net/csi-proxy/%[1]s/binaries/csi-proxy-%[1]s.tar.gz")
-	SystemAgentInstallScript            = NewSetting("system-agent-install-script", "https://github.com/rancher/system-agent/releases/download/v0.3.8/install.sh") // To ensure consistency between SystemAgentInstallScript default value and CATTLE_SYSTEM_AGENT_INSTALL_SCRIPT to utilize the local system-agent-install.sh script when both values are equal.
+	SystemAgentInstallScript            = NewSetting("system-agent-install-script", "https://github.com/rancher/system-agent/releases/download/v0.3.9-rc.2/install.sh") // To ensure consistency between SystemAgentInstallScript default value and CATTLE_SYSTEM_AGENT_INSTALL_SCRIPT to utilize the local system-agent-install.sh script when both values are equal.
 	WinsAgentInstallScript              = NewSetting("wins-agent-install-script", "https://raw.githubusercontent.com/rancher/wins/v0.4.17/install.ps1")
 	SystemAgentInstallerImage           = NewSetting("system-agent-installer-image", "") // Defined via environment variable
 	SystemAgentUpgradeImage             = NewSetting("system-agent-upgrade-image", "")   // Defined via environment variable
diff --git a/tests/v2/codecoverage/package/Dockerfile b/tests/v2/codecoverage/package/Dockerfile
index c885232796..43dbaf7325 100644
--- a/tests/v2/codecoverage/package/Dockerfile
+++ b/tests/v2/codecoverage/package/Dockerfile
@@ -73,7 +73,7 @@ ENV CATTLE_WINS_AGENT_UNINSTALL_SCRIPT https://raw.githubusercontent.com/rancher
 ENV CATTLE_WINS_AGENT_UPGRADE_IMAGE rancher/wins:${CATTLE_WINS_AGENT_VERSION}
 ENV CATTLE_CSI_PROXY_AGENT_VERSION v1.1.3
 # make sure the CATTLE_SYSTEM_AGENT_VERSION is consistent with tests/v2/codecoverage/package/Dockerfile
-ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.8
+ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.9-rc.2
 ENV CATTLE_SYSTEM_AGENT_DOWNLOAD_PREFIX https://github.com/rancher/system-agent/releases/download
 ENV CATTLE_SYSTEM_AGENT_UPGRADE_IMAGE rancher/system-agent:${CATTLE_SYSTEM_AGENT_VERSION}-suc
 ENV CATTLE_SYSTEM_AGENT_INSTALLER_IMAGE rancher/system-agent-installer-