diff --git a/VERSION b/VERSION
index 886a8c276..63f192ec9 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-v0.12.1-dev
\ No newline at end of file
+v0.12.1
\ No newline at end of file
diff --git a/config/default/manager_image_patch.yaml b/config/default/manager_image_patch.yaml
index 8afeebea1..d8f6f543c 100644
--- a/config/default/manager_image_patch.yaml
+++ b/config/default/manager_image_patch.yaml
@@ -8,5 +8,5 @@ spec:
     spec:
       containers:
         # Change the value of image field below to your controller image URL
-        - image: eu.gcr.io/gardener-project/gardener/etcd-druid:v0.12.0
+        - image: eu.gcr.io/gardener-project/gardener/etcd-druid:v0.12.1
           name: druid