diff --git a/CHANGELOG.md b/CHANGELOG.md
index bca0640e..90d1595c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,27 @@
 
 All notable changes to this project are documented in this file.
 
+## 0.26.3
+
+**Release date:** 2022-07-13
+
+This prerelease adds a retry mechanism for "not found" errors when
+downloading artifacts and recovers from SOPS store panics.
+Some dependencies have also been updated to patch upstream CVEs.
+
+Fixes:
+- decryptor: recover from SOPS store panic
+  [#691](https://github.com/fluxcd/kustomize-controller/pull/691)
+
+Improvements:
+- Retry downloading artifacts on not found errors
+  [#689](https://github.com/fluxcd/kustomize-controller/pull/689)
+- Update dependencies
+  [#692](https://github.com/fluxcd/kustomize-controller/pull/692)
+  [#696](https://github.com/fluxcd/kustomize-controller/pull/696)
+- build: Upgrade to Go 1.18
+  [#694](https://github.com/fluxcd/kustomize-controller/pull/694)
+
 ## 0.26.2
 
 **Release date:** 2022-06-29
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 055cff96..e35d668b 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
   - name: fluxcd/kustomize-controller
     newName: fluxcd/kustomize-controller
-    newTag: v0.26.2
+    newTag: v0.26.3
diff --git a/go.mod b/go.mod
index bf61954b..c4dd1d5d 100644
--- a/go.mod
+++ b/go.mod
@@ -19,7 +19,7 @@ require (
 	github.com/cyphar/filepath-securejoin v0.2.3
 	github.com/dimchansky/utfbom v1.1.1
 	github.com/drone/envsubst v1.0.3
-	github.com/fluxcd/kustomize-controller/api v0.26.2
+	github.com/fluxcd/kustomize-controller/api v0.26.3
 	github.com/fluxcd/pkg/apis/acl v0.0.3
 	github.com/fluxcd/pkg/apis/kustomize v0.4.2
 	github.com/fluxcd/pkg/apis/meta v0.14.2