diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1bc454f8..78b9193b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,22 @@
 
 All notable changes to this project are documented in this file.
 
+## 0.16.0
+
+**Release date:** 2021-10-19
+
+This prerelease comes with support for SOPS encrypted `.env` files used in kustomize secret generator.
+
+Improvements:
+* SOPS: Decrypt dotenv files used in kustomize secret generator
+  [#463](https://github.com/fluxcd/kustomize-controller/pull/463)
+* SOPS: Document dotenv secret generator
+  [#469](https://github.com/fluxcd/kustomize-controller/pull/469)
+
+Fixes:
+* Fix cluster scope detection of applied objects
+  [#465](https://github.com/fluxcd/kustomize-controller/pull/465)
+
 ## 0.15.5
 
 **Release date:** 2021-10-13
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 01ff8846..a1a49da5 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: v0.15.5
+    newTag: v0.16.0
diff --git a/go.mod b/go.mod
index 16d569b2..6982d316 100644
--- a/go.mod
+++ b/go.mod
@@ -8,7 +8,7 @@ require (
 	filippo.io/age v1.0.0
 	github.com/cyphar/filepath-securejoin v0.2.2
 	github.com/drone/envsubst v1.0.3-0.20200804185402-58bc65f69603
-	github.com/fluxcd/kustomize-controller/api v0.15.5
+	github.com/fluxcd/kustomize-controller/api v0.16.0
 	github.com/fluxcd/pkg/apis/kustomize v0.2.0
 	github.com/fluxcd/pkg/apis/meta v0.10.1
 	github.com/fluxcd/pkg/runtime v0.12.2