diff --git a/vertical-pod-autoscaler/README.md b/vertical-pod-autoscaler/README.md
index e4be054bcfd4..119d7ed698e5 100644
--- a/vertical-pod-autoscaler/README.md
+++ b/vertical-pod-autoscaler/README.md
@@ -51,12 +51,13 @@ procedure described below.
 
 # Installation
 
-The current default version is Vertical Pod Autoscaler 1.2.0
+The current default version is Vertical Pod Autoscaler 1.2.1
 
 ### Compatibility
 
 | VPA version     | Kubernetes version |
 |-----------------|--------------------|
+| 1.2.1           | 1.27+              |
 | 1.2.0           | 1.27+              |
 | 1.1.2           | 1.25+              |
 | 1.1.1           | 1.25+              |
diff --git a/vertical-pod-autoscaler/deploy/admission-controller-deployment.yaml b/vertical-pod-autoscaler/deploy/admission-controller-deployment.yaml
index 99a6f257ed77..d6af50f331da 100644
--- a/vertical-pod-autoscaler/deploy/admission-controller-deployment.yaml
+++ b/vertical-pod-autoscaler/deploy/admission-controller-deployment.yaml
@@ -20,7 +20,7 @@ spec:
         runAsUser: 65534 # nobody
       containers:
         - name: admission-controller
-          image: registry.k8s.io/autoscaling/vpa-admission-controller:1.2.0
+          image: registry.k8s.io/autoscaling/vpa-admission-controller:1.2.1
           imagePullPolicy: Always
           env:
             - name: NAMESPACE
diff --git a/vertical-pod-autoscaler/deploy/recommender-deployment-high.yaml b/vertical-pod-autoscaler/deploy/recommender-deployment-high.yaml
index 17be91fa18c7..50412c643d5b 100644
--- a/vertical-pod-autoscaler/deploy/recommender-deployment-high.yaml
+++ b/vertical-pod-autoscaler/deploy/recommender-deployment-high.yaml
@@ -26,7 +26,7 @@ spec:
         runAsUser: 65534 # nobody
       containers:
       - name: recommender
-        image: registry.k8s.io/autoscaling/vpa-recommender:1.2.0
+        image: registry.k8s.io/autoscaling/vpa-recommender:1.2.1
         imagePullPolicy: Always
         args:
           - --recommender-name=performance
diff --git a/vertical-pod-autoscaler/deploy/recommender-deployment-low.yaml b/vertical-pod-autoscaler/deploy/recommender-deployment-low.yaml
index d13451f7b32d..e28b114bf638 100644
--- a/vertical-pod-autoscaler/deploy/recommender-deployment-low.yaml
+++ b/vertical-pod-autoscaler/deploy/recommender-deployment-low.yaml
@@ -26,7 +26,7 @@ spec:
         runAsUser: 65534 # nobody
       containers:
       - name: recommender
-        image: registry.k8s.io/autoscaling/vpa-recommender:1.2.0
+        image: registry.k8s.io/autoscaling/vpa-recommender:1.2.1
         imagePullPolicy: Always
         args:
           - --recommender-name=frugal
diff --git a/vertical-pod-autoscaler/deploy/recommender-deployment.yaml b/vertical-pod-autoscaler/deploy/recommender-deployment.yaml
index b62138460e0d..d195b41674a2 100644
--- a/vertical-pod-autoscaler/deploy/recommender-deployment.yaml
+++ b/vertical-pod-autoscaler/deploy/recommender-deployment.yaml
@@ -20,7 +20,7 @@ spec:
         runAsUser: 65534 # nobody
       containers:
       - name: recommender
-        image: registry.k8s.io/autoscaling/vpa-recommender:1.2.0
+        image: registry.k8s.io/autoscaling/vpa-recommender:1.2.1
         imagePullPolicy: Always
         resources:
           limits:
diff --git a/vertical-pod-autoscaler/deploy/updater-deployment.yaml b/vertical-pod-autoscaler/deploy/updater-deployment.yaml
index 1b8a5051c8c1..a3f284e67f50 100644
--- a/vertical-pod-autoscaler/deploy/updater-deployment.yaml
+++ b/vertical-pod-autoscaler/deploy/updater-deployment.yaml
@@ -20,7 +20,7 @@ spec:
         runAsUser: 65534 # nobody
       containers:
         - name: updater
-          image: registry.k8s.io/autoscaling/vpa-updater:1.2.0
+          image: registry.k8s.io/autoscaling/vpa-updater:1.2.1
           imagePullPolicy: Always
           env:
             - name: NAMESPACE
diff --git a/vertical-pod-autoscaler/hack/vpa-process-yaml.sh b/vertical-pod-autoscaler/hack/vpa-process-yaml.sh
index cfa6c874c0d3..457db9d79d0a 100755
--- a/vertical-pod-autoscaler/hack/vpa-process-yaml.sh
+++ b/vertical-pod-autoscaler/hack/vpa-process-yaml.sh
@@ -32,7 +32,7 @@ if [ $# -eq 0 ]; then
 fi
 
 DEFAULT_REGISTRY="registry.k8s.io/autoscaling"
-DEFAULT_TAG="1.2.0"
+DEFAULT_TAG="1.2.1"
 
 REGISTRY_TO_APPLY=${REGISTRY-$DEFAULT_REGISTRY}
 TAG_TO_APPLY=${TAG-$DEFAULT_TAG}
diff --git a/vertical-pod-autoscaler/hack/vpa-up.sh b/vertical-pod-autoscaler/hack/vpa-up.sh
index 4fa00d846864..761d83049e76 100755
--- a/vertical-pod-autoscaler/hack/vpa-up.sh
+++ b/vertical-pod-autoscaler/hack/vpa-up.sh
@@ -19,7 +19,7 @@ set -o nounset
 set -o pipefail
 
 SCRIPT_ROOT=$(dirname ${BASH_SOURCE})/..
-DEFAULT_TAG="1.2.0"
+DEFAULT_TAG="1.2.1"
 TAG_TO_APPLY=${TAG-$DEFAULT_TAG}
 
 if [ "${TAG_TO_APPLY}" == "${DEFAULT_TAG}" ]; then