diff --git a/config/default/kustomization.yaml b/config/default/kustomization.yaml
index 9b603ff92..41df10e05 100644
--- a/config/default/kustomization.yaml
+++ b/config/default/kustomization.yaml
@@ -2,8 +2,8 @@ apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization
 namespace: helm-system
 resources:
-- https://github.com/fluxcd/source-controller/releases/download/v1.1.2/source-controller.crds.yaml
-- https://github.com/fluxcd/source-controller/releases/download/v1.1.2/source-controller.deployment.yaml
+- https://github.com/fluxcd/source-controller/releases/download/v1.2.1/source-controller.crds.yaml
+- https://github.com/fluxcd/source-controller/releases/download/v1.2.1/source-controller.deployment.yaml
 - ../crd
 - ../rbac
 - ../manager
diff --git a/go.mod b/go.mod
index e80edb20d..81d50f30b 100644
--- a/go.mod
+++ b/go.mod
@@ -24,7 +24,7 @@ require (
 	github.com/fluxcd/pkg/runtime v0.43.0
 	github.com/fluxcd/pkg/ssa v0.35.0
 	github.com/fluxcd/pkg/testserver v0.5.0
-	github.com/fluxcd/source-controller/api v1.1.2
+	github.com/fluxcd/source-controller/api v1.2.1
 	github.com/go-logr/logr v1.3.0
 	github.com/google/go-cmp v0.6.0
 	github.com/hashicorp/go-retryablehttp v0.7.5
diff --git a/go.sum b/go.sum
index 658dff04a..aff4347e3 100644
--- a/go.sum
+++ b/go.sum
@@ -104,8 +104,8 @@ github.com/fluxcd/pkg/ssa v0.35.0 h1:8T3WY4P9SQWApa2hq1rU1u2WE8oqP3MMTsAiEWwhmfo
 github.com/fluxcd/pkg/ssa v0.35.0/go.mod h1:rhVh0EtYVUOznKXlz6E7JOSgdc8xWbIwA4L5HVtJRLA=
 github.com/fluxcd/pkg/testserver v0.5.0 h1:n/Iskk0tXNt2AgIgjz9qeFK/VhEXGfqeazABXZmO2Es=
 github.com/fluxcd/pkg/testserver v0.5.0/go.mod h1:/p4st6d0uPLy8wXydeF/kDJgxUYO9u2NqySuXb9S+Fo=
-github.com/fluxcd/source-controller/api v1.1.2 h1:FfKDKVWnopo+Q2pOAxgHEjrtr4MP41L8aapR4mqBhBk=
-github.com/fluxcd/source-controller/api v1.1.2/go.mod h1:ZLkaUd1KQIjtLPCvO63Ni5zpnSTVBAkeRgFBzMItbDQ=
+github.com/fluxcd/source-controller/api v1.2.1 h1:zWRfwMB/BkV0A/duZQwHEcrE/abWJQt7DUgYTzn4IzM=
+github.com/fluxcd/source-controller/api v1.2.1/go.mod h1:n+PMCJXl/AYCjWHn5N/MUuoIFKfDg4kCDviFIa7fDvI=
 github.com/foxcpp/go-mockdns v1.0.0 h1:7jBqxd3WDWwi/6WhDvacvH1XsN3rOLXyHM1uhvIx6FI=
 github.com/frankban/quicktest v1.14.3 h1:FJKSZTDHjyhriyC81FLQ0LY93eSai0ZyR/ZIkd3ZUKE=
 github.com/fsnotify/fsnotify v1.6.0 h1:n+5WquG0fcWoWp6xPWfHdbskMCQaFnG6PfBrh1Ky4HY=