diff --git a/crossplane.yaml b/crossplane.yaml
index fa33e63..8127f57 100644
--- a/crossplane.yaml
+++ b/crossplane.yaml
@@ -50,7 +50,7 @@ spec:
       version: "v0.7.0"
     - configuration: xpkg.upbound.io/upbound/configuration-app
       # renovate: datasource=github-releases depName=upbound/configuration-app
-      version: "v0.3.0"
+      version: "v0.4.0"
     - configuration: xpkg.upbound.io/upbound/configuration-observability-oss
       # renovate: datasource=github-releases depName=upbound/configuration-observability-oss
       version: "v0.3.0"