diff --git a/dev/env/defaults/00-defaults.env b/dev/env/defaults/00-defaults.env
index 940adda887..b144024b53 100644
--- a/dev/env/defaults/00-defaults.env
+++ b/dev/env/defaults/00-defaults.env
@@ -21,7 +21,7 @@ export INSTALL_OPENSHIFT_GITOPS="false"
 export ARGOCD_NAMESPACE="argocd"
 export ARGOCD_TENANT_APP_TARGET_REVISION_DEFAULT="HEAD"
 export INSTALL_EXTERNAL_SECRETS_DEFAULT="true" # pragma: allowlist secret
-export EXTERNAL_SECRETS_VERSION_DEFAULT="v1.2.1" # pragma: allowlist secret
+export EXTERNAL_SECRETS_VERSION_DEFAULT="v1.3.1" # pragma: allowlist secret
 export INSTALL_EXTERNAL_DNS_DEFAULT="false"
 
 export ENABLE_EMAIL_SENDER_DEFAULT="false"