diff --git a/Makefile b/Makefile
index 08f074aaa..bcaa1d419 100644
--- a/Makefile
+++ b/Makefile
@@ -60,7 +60,7 @@ ARCH ?= amd64
 ALL_ARCH ?= amd64 ppc64le
 PULL_POLICY ?= Always
 
-KUBEBUILDER_ENVTEST_KUBERNETES_VERSION ?= 1.24.1
+KUBEBUILDER_ENVTEST_KUBERNETES_VERSION ?= 1.25.0
 
 # main controller
 CORE_IMAGE_NAME ?= cluster-api-ibmcloud-controller
diff --git a/scripts/fetch_ext_bins.sh b/scripts/fetch_ext_bins.sh
index d58c055a8..bc5b18f35 100755
--- a/scripts/fetch_ext_bins.sh
+++ b/scripts/fetch_ext_bins.sh
@@ -26,7 +26,7 @@ if [[ -n "${TRACE}" ]]; then
   set -x
 fi
 
-k8s_version=1.24.1
+k8s_version=1.25.0
 goarch=amd64
 goos="unknown"