diff --git a/packaging/flavorgen/flavors/generators.go b/packaging/flavorgen/flavors/generators.go
index bbe5266706..f415b9a7ab 100644
--- a/packaging/flavorgen/flavors/generators.go
+++ b/packaging/flavorgen/flavors/generators.go
@@ -571,7 +571,7 @@ func kubeVIPPodSpec() *corev1.Pod {
 			Containers: []corev1.Container{
 				{
 					Name:            "kube-vip",
-					Image:           "ghcr.io/kube-vip/kube-vip:v0.5.11",
+					Image:           "ghcr.io/kube-vip/kube-vip:v0.6.3",
 					ImagePullPolicy: corev1.PullIfNotPresent,
 					Args: []string{
 						"manager",
@@ -623,6 +623,16 @@ func kubeVIPPodSpec() *corev1.Pod {
 							Name:  "vip_retryperiod",
 							Value: "2",
 						},
+						{
+							// Enables kube-vip to watch Services of type LoadBalancer
+							Name:  "svc_enable",
+							Value: "true",
+						},
+						{
+							// Enables a leadership Election for each Service, allowing them to be distributed
+							Name:  "svc_election",
+							Value: "true",
+						},
 					},
 					SecurityContext: &corev1.SecurityContext{
 						Capabilities: &corev1.Capabilities{
diff --git a/templates/cluster-template-ignition.yaml b/templates/cluster-template-ignition.yaml
index a8afdfc648..dbf4b0ad9d 100644
--- a/templates/cluster-template-ignition.yaml
+++ b/templates/cluster-template-ignition.yaml
@@ -107,7 +107,11 @@ spec:
               value: "10"
             - name: vip_retryperiod
               value: "2"
-            image: ghcr.io/kube-vip/kube-vip:v0.5.11
+            - name: svc_enable
+              value: "true"
+            - name: svc_election
+              value: "true"
+            image: ghcr.io/kube-vip/kube-vip:v0.6.3
             imagePullPolicy: IfNotPresent
             name: kube-vip
             resources: {}
diff --git a/templates/cluster-template-node-ipam.yaml b/templates/cluster-template-node-ipam.yaml
index 17c9925dd8..27e285ee83 100644
--- a/templates/cluster-template-node-ipam.yaml
+++ b/templates/cluster-template-node-ipam.yaml
@@ -144,7 +144,11 @@ spec:
               value: "10"
             - name: vip_retryperiod
               value: "2"
-            image: ghcr.io/kube-vip/kube-vip:v0.5.11
+            - name: svc_enable
+              value: "true"
+            - name: svc_election
+              value: "true"
+            image: ghcr.io/kube-vip/kube-vip:v0.6.3
             imagePullPolicy: IfNotPresent
             name: kube-vip
             resources: {}
diff --git a/templates/cluster-template-topology.yaml b/templates/cluster-template-topology.yaml
index 2e175f72a1..c6bbc00370 100644
--- a/templates/cluster-template-topology.yaml
+++ b/templates/cluster-template-topology.yaml
@@ -48,7 +48,11 @@ spec:
               value: "10"
             - name: vip_retryperiod
               value: "2"
-            image: ghcr.io/kube-vip/kube-vip:v0.5.11
+            - name: svc_enable
+              value: "true"
+            - name: svc_election
+              value: "true"
+            image: ghcr.io/kube-vip/kube-vip:v0.6.3
             imagePullPolicy: IfNotPresent
             name: kube-vip
             resources: {}
diff --git a/templates/cluster-template.yaml b/templates/cluster-template.yaml
index 3e2b4d3c43..eca335c36b 100644
--- a/templates/cluster-template.yaml
+++ b/templates/cluster-template.yaml
@@ -134,7 +134,11 @@ spec:
               value: "10"
             - name: vip_retryperiod
               value: "2"
-            image: ghcr.io/kube-vip/kube-vip:v0.5.11
+            - name: svc_enable
+              value: "true"
+            - name: svc_election
+              value: "true"
+            image: ghcr.io/kube-vip/kube-vip:v0.6.3
             imagePullPolicy: IfNotPresent
             name: kube-vip
             resources: {}