diff --git a/internal/cli/cmd/cmd.go b/internal/cli/cmd/cmd.go
index 6b7e5bb73f..50edec2c9b 100644
--- a/internal/cli/cmd/cmd.go
+++ b/internal/cli/cmd/cmd.go
@@ -36,7 +36,7 @@ func NewDefaultCiliumCommand() *cobra.Command {
 				return nil
 			}
 			switch cmd.Name() {
-			case "completion", "help", "version":
+			case "completion", "help":
 				return nil
 			}
 
diff --git a/internal/cli/cmd/version.go b/internal/cli/cmd/version.go
index 643cdb946f..8b03c722d6 100644
--- a/internal/cli/cmd/version.go
+++ b/internal/cli/cmd/version.go
@@ -15,15 +15,20 @@
 package cmd
 
 import (
+	"context"
+	"errors"
 	"fmt"
 	"io"
 	"net/http"
 	"runtime"
 	"strings"
 
-	"github.com/cilium/cilium-cli/defaults"
-
 	"github.com/spf13/cobra"
+
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+
+	"github.com/cilium/cilium-cli/defaults"
+	"github.com/cilium/cilium-cli/internal/k8s"
 )
 
 // The following variables are set at compile time via LDFLAGS.
@@ -32,6 +37,38 @@ var (
 	Version string
 )
 
+type CiliumVersion struct {
+	client *k8s.Client
+}
+
+func NewCiliumVersion() *CiliumVersion {
+	return &CiliumVersion{client: k8sClient}
+}
+
+func (c *CiliumVersion) GetRunningCiliumVersionForCluster(ctx context.Context) (string, error) {
+	nss, err := c.client.ListNamespaces(ctx, metav1.ListOptions{})
+	if err != nil {
+		return "", fmt.Errorf("unable to list k8s namespace: %w", err)
+	}
+
+	// First look for ns kube-system
+	version, _ := c.client.GetRunningCiliumVersion(ctx, "kube-system")
+	if version != "" {
+		return version, nil
+	}
+
+	if len(nss.Items) > 0 {
+		for _, namespace := range nss.Items {
+			version, _ := c.client.GetRunningCiliumVersion(ctx, namespace.Name)
+			if version != "" {
+				return version, nil
+			}
+		}
+	}
+
+	return "", errors.New("unable to obtain cilium version: no cilium pods found")
+}
+
 func getLatestStableVersion() string {
 	resp, err := http.Get("https://raw.githubusercontent.com/cilium/cilium/master/stable.txt")
 	if err != nil {
@@ -48,16 +85,25 @@ func getLatestStableVersion() string {
 }
 
 func newCmdVersion() *cobra.Command {
-	return &cobra.Command{
+	cmd := &cobra.Command{
 		Use:   "version",
 		Short: "Display detailed version information",
 		Long:  `Displays information about the version of this software.`,
-		Run: func(cmd *cobra.Command, _ []string) {
-			// TODO: add support for reporting the Cilium version running in
-			// the cluster, if any. See https://github.com/cilium/cilium-cli/issues/131
+		RunE: func(cmd *cobra.Command, args []string) error {
 			fmt.Printf("cilium-cli: %s compiled with %v on %v/%v\n", Version, runtime.Version(), runtime.GOOS, runtime.GOARCH)
 			fmt.Printf("cilium image (default): %s\n", defaults.Version)
 			fmt.Printf("cilium image (stable): %s\n", getLatestStableVersion())
+			ciliumVersion := NewCiliumVersion()
+			version, err := ciliumVersion.GetRunningCiliumVersionForCluster(context.Background())
+			if err != nil {
+				fmt.Printf("cilium image (running): unknown. Error: %s \n", err.Error())
+			} else {
+				fmt.Printf("cilium image (running): %s\n", version)
+			}
+			return nil
 		},
 	}
+
+	cmd.Flags().StringVar(&contextName, "context", "", "Kubernetes configuration context")
+	return cmd
 }