diff --git a/.github/actions/create-k3d-cluster/action.yaml b/.github/actions/create-k3d-cluster/action.yaml
index 65c252b..0a419cd 100644
--- a/.github/actions/create-k3d-cluster/action.yaml
+++ b/.github/actions/create-k3d-cluster/action.yaml
@@ -1,16 +1,17 @@
-name: 'Create k3d cluster'
-description: 'Action for creating single cluster'
+name: "Create k3d cluster"
+description: "Action for creating single cluster"
 
 runs:
-  using: 'composite'
+  using: "composite"
   steps:
     - name: create k3d cluster
       uses: AbsaOSS/k3d-action@4e8b3239042be1dc0aed6c5eb80c13b18200fc79 #v2.4.0
       with:
         cluster-name: "k3dCluster"
+        k3d-version: "v5.7.4"
         args: >-
           --agents 1
-          --image rancher/k3s:v1.30.0-k3s1
+          --image rancher/k3s:v1.31.2-k3s1
           --port 80:80@loadbalancer
           --port 443:443@loadbalancer
           --wait
diff --git a/Makefile b/Makefile
index 52bc1d8..0e75da5 100644
--- a/Makefile
+++ b/Makefile
@@ -2,7 +2,7 @@
 # Image URL to use all building/pushing image targets
 IMG ?= controller:latest
 # ENVTEST_K8S_VERSION refers to the version of kubebuilder assets to be downloaded by envtest binary.
-ENVTEST_K8S_VERSION = 1.27.1
+ENVTEST_K8S_VERSION = 1.30.0
 
 # TEST_COVER_OUT determines path for the output file with coverage 
 TEST_COVER_OUT ?= $(shell pwd)/cover.out
@@ -218,8 +218,8 @@ CONTROLLER_GEN ?= $(LOCALBIN)/controller-gen
 ENVTEST ?= $(LOCALBIN)/setup-envtest
 
 ## Tool Versions
-KUSTOMIZE_VERSION ?= v4.5.5
-CONTROLLER_TOOLS_VERSION ?= v0.14.0
+KUSTOMIZE_VERSION ?= v5.5.0
+CONTROLLER_TOOLS_VERSION ?= v0.16.5
 HELM_VERSION ?= v3.13.1
 
 KUSTOMIZE_INSTALL_SCRIPT ?= "https://raw.githubusercontent.com/kubernetes-sigs/kustomize/master/hack/install_kustomize.sh"