diff --git a/Makefile b/Makefile
index cbd8073838d..eeeabaf385b 100644
--- a/Makefile
+++ b/Makefile
@@ -312,7 +312,7 @@ create-management-cluster: $(KUSTOMIZE) $(ENVSUBST) $(KUBECTL) $(KIND) ## Create
 	./hack/create-custom-cloud-provider-config.sh
 
 	# Deploy CAPI
-	timeout --foreground 300 bash -c "until curl --retry $(CURL_RETRIES) -sSL https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.8/cluster-api-components.yaml | $(ENVSUBST) | $(KUBECTL) apply -f -; do sleep 5; done"
+	timeout --foreground 300 bash -c "until curl --retry $(CURL_RETRIES) -sSL https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.9/cluster-api-components.yaml | $(ENVSUBST) | $(KUBECTL) apply -f -; do sleep 5; done"
 
 	# Deploy CAAPH
 	timeout --foreground 300 bash -c "until curl --retry $(CURL_RETRIES) -sSL https://github.com/kubernetes-sigs/cluster-api-addon-provider-helm/releases/download/v0.1.0-alpha.10/addon-components.yaml | $(ENVSUBST) | $(KUBECTL) apply -f -; do sleep 5; done"
diff --git a/Tiltfile b/Tiltfile
index fe97685bf9a..8662f96edf9 100644
--- a/Tiltfile
+++ b/Tiltfile
@@ -20,7 +20,7 @@ settings = {
     "deploy_cert_manager": True,
     "preload_images_for_kind": True,
     "kind_cluster_name": "capz",
-    "capi_version": "v1.7.8",
+    "capi_version": "v1.7.9",
     "caaph_version": "v0.2.1",
     "cert_manager_version": "v1.16.1",
     "kubernetes_version": "v1.28.3",
diff --git a/go.mod b/go.mod
index dd06099510c..9d9911d40a0 100644
--- a/go.mod
+++ b/go.mod
@@ -2,7 +2,7 @@ module sigs.k8s.io/cluster-api-provider-azure
 
 go 1.22.0
 
-toolchain go1.22.5
+toolchain go1.22.10
 
 require (
 	github.com/Azure/azure-sdk-for-go/sdk/azcore v1.12.0
@@ -54,8 +54,8 @@ require (
 	k8s.io/kubectl v0.29.3
 	k8s.io/utils v0.0.0-20240502163921-fe8a2dddb1d0
 	sigs.k8s.io/cloud-provider-azure v1.29.3
-	sigs.k8s.io/cluster-api v1.7.8
-	sigs.k8s.io/cluster-api/test v1.7.8
+	sigs.k8s.io/cluster-api v1.7.9
+	sigs.k8s.io/cluster-api/test v1.7.9
 	sigs.k8s.io/controller-runtime v0.18.4
 	sigs.k8s.io/kind v0.23.0
 )
@@ -217,7 +217,7 @@ require (
 	sigs.k8s.io/yaml v1.4.0 // indirect
 )
 
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.7.8
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.7.9
 
 // kube-openapi should match the version imported by CAPI.
 replace k8s.io/kube-openapi => k8s.io/kube-openapi v0.0.0-20231010175941-2dd684a91f00
diff --git a/go.sum b/go.sum
index 94cdacaa283..be3aba57a0e 100644
--- a/go.sum
+++ b/go.sum
@@ -154,10 +154,10 @@ github.com/cloudflare/circl v1.3.7 h1:qlCDlTPz2n9fu58M0Nh1J/JzcFpfgkFHHX3O35r5vc
 github.com/cloudflare/circl v1.3.7/go.mod h1:sRTcRWXGLrKw6yIGJ+l7amYJFfAXbZG0kBSc8r4zxgA=
 github.com/containerd/log v0.1.0 h1:TCJt7ioM2cr/tfR8GPbGf9/VRAX8D2B4PjzCpfX540I=
 github.com/containerd/log v0.1.0/go.mod h1:VRRf09a7mHDIRezVKTRCrOq78v577GXq3bSa3EhrzVo=
-github.com/coredns/caddy v1.1.0 h1:ezvsPrT/tA/7pYDBZxu0cT0VmWk75AfIaf6GSYCNMf0=
-github.com/coredns/caddy v1.1.0/go.mod h1:A6ntJQlAWuQfFlsd9hvigKbo2WS0VUs2l1e2F+BawD4=
-github.com/coredns/corefile-migration v1.0.21 h1:W/DCETrHDiFo0Wj03EyMkaQ9fwsmSgqTCQDHpceaSsE=
-github.com/coredns/corefile-migration v1.0.21/go.mod h1:XnhgULOEouimnzgn0t4WPuFDN2/PJQcTxdWKC5eXNGE=
+github.com/coredns/caddy v1.1.1 h1:2eYKZT7i6yxIfGP3qLJoJ7HAsDJqYB+X68g4NYjSrE0=
+github.com/coredns/caddy v1.1.1/go.mod h1:A6ntJQlAWuQfFlsd9hvigKbo2WS0VUs2l1e2F+BawD4=
+github.com/coredns/corefile-migration v1.0.24 h1:NL/zRKijhJZLYlNnMr891DRv5jXgfd3Noons1M6oTpc=
+github.com/coredns/corefile-migration v1.0.24/go.mod h1:56DPqONc3njpVPsdilEnfijCwNGC3/kTJLl7i7SPavY=
 github.com/coreos/go-semver v0.3.1 h1:yi21YpKnrx1gt5R+la8n5WgS0kCrsPp33dmEyHReZr4=
 github.com/coreos/go-semver v0.3.1/go.mod h1:irMmmIw/7yzSRPWryHsK7EYSg09caPQL03VsM8rvUec=
 github.com/coreos/go-systemd v0.0.0-20191104093116-d3cd4ed1dbcf h1:iW4rZ826su+pqaw19uhpSCzhj44qo35pNgKFGqzDKkU=
@@ -718,10 +718,10 @@ sigs.k8s.io/cloud-provider-azure/pkg/azclient v0.0.2 h1:9Zp+uWnxdUOoy/FaQK1DjPfL
 sigs.k8s.io/cloud-provider-azure/pkg/azclient v0.0.2/go.mod h1:JKWYkoOyET3wsN0Kk9WxA+zpopkuCy+v4+mrnJ60Yyk=
 sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.1 h1:Lp0nALZmvMJoiVeVV6XjnZv1uClfArnThhuDAjaqE5A=
 sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.1/go.mod h1:pPkJPx/eMVWP3R+LhPoOYGoY7lywcMJev5L2uSfH+Jo=
-sigs.k8s.io/cluster-api v1.7.8 h1:7gN7kWQVAv2l+UMJdDdK0K3s8FTmNTaTsaoblj3r24Y=
-sigs.k8s.io/cluster-api v1.7.8/go.mod h1:wmlCVPoxbFcHeZzp4Vgphi7I8nSXAgY3cqJFeaF2QLM=
-sigs.k8s.io/cluster-api/test v1.7.8 h1:PgGpPyK4Vs7/ZpOMNvuwcX5QP9KXQ4LeRmMKGSaf1/E=
-sigs.k8s.io/cluster-api/test v1.7.8/go.mod h1:ckOdUw20CBIuoUxohDAYtC5Ko9UVHN5vdgXCQJbZ4XE=
+sigs.k8s.io/cluster-api v1.7.9 h1:BsxYnCCY4/zaQSqu3lLL+27ohhxY6kH0N6clbRtNn9M=
+sigs.k8s.io/cluster-api v1.7.9/go.mod h1:DF2mpdrTP5OSwU++3Gdi3Yck2a7nD6P9MqV+0v3rV4k=
+sigs.k8s.io/cluster-api/test v1.7.9 h1:rdLCo1/cTCdrnDY1AkTYh2Ly0dMWIMMIXlEo4b37Os4=
+sigs.k8s.io/cluster-api/test v1.7.9/go.mod h1:ckOdUw20CBIuoUxohDAYtC5Ko9UVHN5vdgXCQJbZ4XE=
 sigs.k8s.io/controller-runtime v0.17.3 h1:65QmN7r3FWgTxDMz9fvGnO1kbf2nu+acg9p2R9oYYYk=
 sigs.k8s.io/controller-runtime v0.17.3/go.mod h1:N0jpP5Lo7lMTF9aL56Z/B2oWBJjey6StQM0jRbKQXtY=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd h1:EDPBXCAspyGV4jQlpZSudPeMmr1bNJefnuqLsRAsHZo=
diff --git a/test/e2e/config/azure-dev.yaml b/test/e2e/config/azure-dev.yaml
index 66534e68673..efd04aec507 100644
--- a/test/e2e/config/azure-dev.yaml
+++ b/test/e2e/config/azure-dev.yaml
@@ -3,11 +3,11 @@ managementClusterName: capz-e2e
 images:
   - name: ${MANAGER_IMAGE}
     loadBehavior: mustLoad
-  - name: registry.k8s.io/cluster-api/cluster-api-controller:v1.7.8
+  - name: registry.k8s.io/cluster-api/cluster-api-controller:v1.7.9
     loadBehavior: tryLoad
-  - name: registry.k8s.io/cluster-api/kubeadm-bootstrap-controller:v1.7.8
+  - name: registry.k8s.io/cluster-api/kubeadm-bootstrap-controller:v1.7.9
     loadBehavior: tryLoad
-  - name: registry.k8s.io/cluster-api/kubeadm-control-plane-controller:v1.7.8
+  - name: registry.k8s.io/cluster-api/kubeadm-control-plane-controller:v1.7.9
     loadBehavior: tryLoad
   - name: registry.k8s.io/cluster-api-helm/cluster-api-helm-controller:v0.1.1-alpha.1
     loadBehavior: tryLoad
@@ -25,8 +25,8 @@ providers:
           new: --metrics-addr=:8080
       files:
         - sourcePath: "../data/shared/v1beta1/metadata.yaml"
-    - name: v1.7.8
-      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.8/core-components.yaml
+    - name: v1.7.9
+      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.9/core-components.yaml
       type: url
       contract: v1beta1
       files:
@@ -48,8 +48,8 @@ providers:
           new: --metrics-addr=:8080
       files:
         - sourcePath: "../data/shared/v1beta1/metadata.yaml"
-    - name: v1.7.8
-      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.8/bootstrap-components.yaml
+    - name: v1.7.9
+      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.9/bootstrap-components.yaml
       type: url
       contract: v1beta1
       files:
@@ -70,8 +70,8 @@ providers:
           new: --metrics-addr=:8080
       files:
         - sourcePath: "../data/shared/v1beta1/metadata.yaml"
-    - name: v1.7.8
-      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.8/control-plane-components.yaml
+    - name: v1.7.9
+      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.9/control-plane-components.yaml
       type: url
       contract: v1beta1
       files:
@@ -224,7 +224,7 @@ variables:
   SECURITY_SCAN_CONTAINER: "${SECURITY_SCAN_CONTAINER:-quay.io/armosec/kubescape:v2.0.167}"
   AZURE_CNI_V1_MANIFEST_PATH: "${PWD}/templates/addons/azure-cni-v1.yaml"
   OLD_CAPI_UPGRADE_VERSION: "v1.6.8"
-  LATEST_CAPI_UPGRADE_VERSION: "v1.7.8"
+  LATEST_CAPI_UPGRADE_VERSION: "v1.7.9"
   OLD_PROVIDER_UPGRADE_VERSION: "v1.14.5"
   LATEST_PROVIDER_UPGRADE_VERSION: "v1.15.1"
   OLD_CAAPH_UPGRADE_VERSION: "v0.1.0-alpha.10"