diff --git a/.github/workflows/scripts/release-against-charts.sh b/.github/workflows/scripts/release-against-charts.sh
index e8c525e8..b52da74e 100755
--- a/.github/workflows/scripts/release-against-charts.sh
+++ b/.github/workflows/scripts/release-against-charts.sh
@@ -1,4 +1,4 @@
-#!/bin/bash
+#!/bin/sh
 #
 # Bumps Webhook version in a locally checked out rancher/charts repository
 #
@@ -19,11 +19,37 @@ Usage:
 EOF
 }
 
+bump_patch() {
+    version=$1
+    major=$(echo "$version" | cut -d. -f1)
+    minor=$(echo "$version" | cut -d. -f2)
+    patch=$(echo "$version" | cut -d. -f3)
+    new_patch=$((patch + 1))
+    echo "${major}.${minor}.${new_patch}"
+}
+
+validate_version_format() {
+    version=$1
+    if ! echo "$version" | grep -qE '^v[0-9]+\.[0-9]+\.[0-9]+(-rc\.[0-9]+)?$'; then
+        echo "Error: Version $version must be in the format v<major>.<minor>.<patch> or v<major>.<minor>.<patch>-rc.<number>"
+        exit 1
+    fi
+}
+
 if [ -z "$CHARTS_DIR" ] || [ -z "$PREV_WEBHOOK_VERSION" ] || [ -z "$NEW_WEBHOOK_VERSION" ]; then
     usage
     exit 1
 fi
 
+validate_version_format "$PREV_WEBHOOK_VERSION"
+validate_version_format "$NEW_WEBHOOK_VERSION"
+
+if echo "$PREV_WEBHOOK_VERSION" | grep -q '-rc'; then
+    is_prev_rc=true
+else
+    is_prev_rc=false
+fi
+
 if [ "$PREV_WEBHOOK_VERSION" = "$NEW_WEBHOOK_VERSION" ]; then
     echo "Previous and new webhook version are the same: $NEW_WEBHOOK_VERSION, but must be different"
     exit 1
@@ -35,7 +61,7 @@ NEW_WEBHOOK_VERSION_SHORT=$(echo "$NEW_WEBHOOK_VERSION" | sed 's|^v||')  # e.g.
 
 set -ue
 
-pushd "${CHARTS_DIR}" > /dev/null
+cd "${CHARTS_DIR}"
 
 # Validate the given webhook version (eg: 0.5.0-rc.13)
 if ! grep -q "${PREV_WEBHOOK_VERSION_SHORT}" ./packages/rancher-webhook/package.yaml; then
@@ -50,7 +76,12 @@ if ! PREV_CHART_VERSION=$(yq '.version' ./packages/rancher-webhook/package.yaml)
     cat ./packages/rancher-webhook/package.yaml
     exit 1
 fi
-NEW_CHART_VERSION=$PREV_CHART_VERSION
+
+if [ "$is_prev_rc" = "false" ]; then
+    NEW_CHART_VERSION=$(bump_patch "$PREV_CHART_VERSION")
+else
+    NEW_CHART_VERSION=$PREV_CHART_VERSION
+fi
 
 sed -i "s/${PREV_WEBHOOK_VERSION_SHORT}/${NEW_WEBHOOK_VERSION_SHORT}/g" ./packages/rancher-webhook/package.yaml
 
@@ -61,15 +92,18 @@ PACKAGE=rancher-webhook make charts
 git add ./assets/rancher-webhook ./charts/rancher-webhook
 git commit -m "make charts"
 
-CHART=rancher-webhook VERSION=${PREV_CHART_VERSION}+up${PREV_WEBHOOK_VERSION_SHORT} make remove
-git add ./assets/rancher-webhook ./charts/rancher-webhook ./index.yaml
-git commit -m "make remove"
+# When previous webhook version is an RC, then we want to remove that RC. We keep
+# non-RC version.
+if [ "$is_prev_rc" = "true" ]; then
+    CHART=rancher-webhook VERSION=${PREV_CHART_VERSION}+up${PREV_WEBHOOK_VERSION_SHORT} make remove
+    git add ./assets/rancher-webhook ./charts/rancher-webhook ./index.yaml
+    git commit -m "make remove"
+
+    yq --inplace "del(.rancher-webhook.[] | select(. == \"${PREV_CHART_VERSION}+up${PREV_WEBHOOK_VERSION_SHORT}\"))" release.yaml
+fi
 
-yq --inplace "del(.rancher-webhook.[] | select(. == \"${PREV_CHART_VERSION}+up${PREV_WEBHOOK_VERSION_SHORT}\"))" release.yaml
 # Prepends to list
 yq --inplace ".rancher-webhook = [\"${NEW_CHART_VERSION}+up${NEW_WEBHOOK_VERSION_SHORT}\"] + .rancher-webhook" release.yaml
 
 git add release.yaml
 git commit -m "Add rancher-webhook ${NEW_CHART_VERSION}+up${NEW_WEBHOOK_VERSION_SHORT} to release.yaml"
- 
-popd > /dev/null