diff --git a/README.md b/README.md
index 60aa504a..3aecd8ef 100644
--- a/README.md
+++ b/README.md
@@ -19,12 +19,12 @@ To install the operator in an existing cluster, make sure you have [`cert-manage
 ### 2. Install the Operator
 #### 2.a Kubernetes
 ```
-kubectl apply -f https://github.com/signalfx/splunk-otel-collector-operator/releases/download/v0.0.2/splunk-otel-operator.yaml
+kubectl apply -f https://github.com/signalfx/splunk-otel-collector-operator/releases/download/v0.0.3/splunk-otel-operator.yaml
 ```
 
 #### 2.b OpenShift
 ```
-kubectl apply -f https://github.com/signalfx/splunk-otel-collector-operator/releases/download/v0.0.2/splunk-otel-operator-openshift.yaml
+kubectl apply -f https://github.com/signalfx/splunk-otel-collector-operator/releases/download/v0.0.3/splunk-otel-operator-openshift.yaml
 ```
 
 ### 3. Add your Splunk APM token
diff --git a/apis/otel/v1alpha1/splunkotelagent_webhook.go b/apis/otel/v1alpha1/splunkotelagent_webhook.go
index 6436df10..60f485a5 100644
--- a/apis/otel/v1alpha1/splunkotelagent_webhook.go
+++ b/apis/otel/v1alpha1/splunkotelagent_webhook.go
@@ -28,7 +28,7 @@ import (
 )
 
 const (
-	defaultJavaAgentImage = "quay.io/signalfx/splunk-otel-instrumentation-java:v1.6.0"
+	defaultJavaAgentImage = "quay.io/signalfx/splunk-otel-instrumentation-java:v1.7.1"
 )
 
 // log is for logging in this package.
diff --git a/bundle/manifests/splunk-otel-collector-operator.clusterserviceversion.yaml b/bundle/manifests/splunk-otel-collector-operator.clusterserviceversion.yaml
index fe8e5fe7..b5cf8c6a 100644
--- a/bundle/manifests/splunk-otel-collector-operator.clusterserviceversion.yaml
+++ b/bundle/manifests/splunk-otel-collector-operator.clusterserviceversion.yaml
@@ -16,7 +16,7 @@ metadata:
     capabilities: Basic Install
     operators.operatorframework.io/builder: operator-sdk-v1.14.0+git
     operators.operatorframework.io/project_layout: go.kubebuilder.io/v3
-  name: splunk-otel-collector-operator.v0.0.2
+  name: splunk-otel-collector-operator.v0.0.3
   namespace: placeholder
 spec:
   apiservicedefinitions: {}
@@ -397,7 +397,7 @@ spec:
                 - --leader-elect
                 command:
                 - /manager
-                image: quay.io/signalfx/splunk-otel-operator:v0.0.2
+                image: quay.io/signalfx/splunk-otel-operator:v0.0.3
                 livenessProbe:
                   httpGet:
                     path: /healthz
@@ -497,7 +497,7 @@ spec:
   provider:
     name: Splunk Inc
     url: github.com/signalfx/splunk-otel-collector-operator
-  version: 0.0.2
+  version: 0.0.3
   webhookdefinitions:
   - admissionReviewVersions:
     - v1
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 22c08733..ce7fa4d1 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -13,4 +13,4 @@ kind: Kustomization
 images:
 - name: controller
   newName: quay.io/signalfx/splunk-otel-operator
-  newTag: v0.0.2
+  newTag: v0.0.3
diff --git a/tests/e2e/smoke-default/01-assert.yaml b/tests/e2e/smoke-default/01-assert.yaml
index 41ad0f65..ba9df922 100644
--- a/tests/e2e/smoke-default/01-assert.yaml
+++ b/tests/e2e/smoke-default/01-assert.yaml
@@ -459,7 +459,7 @@ spec:
             fieldRef:
               apiVersion: v1
               fieldPath: metadata.namespace
-        image: quay.io/signalfx/splunk-otel-collector:0.41.0
+        image: quay.io/signalfx/splunk-otel-collector:0.42.0
         imagePullPolicy: IfNotPresent
         name: otc-container
         resources: {}
diff --git a/versions.txt b/versions.txt
index b5b7b381..23cab24b 100644
--- a/versions.txt
+++ b/versions.txt
@@ -2,7 +2,7 @@
 # by default with the OpenTelemetry Operator. This would usually be the latest
 # stable OpenTelemetry version. When you update this file, make sure to update the
 # the docs as well.
-splunk-otel-collector=0.41.0
+splunk-otel-collector=0.42.0
 
 # Represents the current release of the OpenTelemetry Operator.
-operator=0.0.2
+operator=0.0.3