diff --git a/pkg/inject/config.go b/pkg/inject/config.go
index c3e8c670..162f21b5 100644
--- a/pkg/inject/config.go
+++ b/pkg/inject/config.go
@@ -96,7 +96,7 @@ func (cfg *Config) BindFlags(fs *pflag.FlagSet) {
 		`If enabled, a fsGroup: 1337 will be injected in the absence of it within pod securityContext`)
 	fs.BoolVar(&cfg.EnableECRSecret, flagEnableECRSecret, false,
 		"If enabled, 'appmesh-ecr-secret' secret will be injected in the absence of it within pod imagePullSecrets")
-	fs.StringVar(&cfg.SidecarImage, flagSidecarImage, "840364872350.dkr.ecr.us-west-2.amazonaws.com/aws-appmesh-envoy:v1.15.1.0-prod",
+	fs.StringVar(&cfg.SidecarImage, flagSidecarImage, "840364872350.dkr.ecr.us-west-2.amazonaws.com/aws-appmesh-envoy:v1.16.1.0-prod",
 		"Envoy sidecar container image.")
 	fs.StringVar(&cfg.SidecarCpuRequests, flagSidecarCpuRequests, "10m",
 		"Sidecar CPU resources requests.")
diff --git a/pkg/inject/inject_test.go b/pkg/inject/inject_test.go
index 03376b87..e65efbef 100644
--- a/pkg/inject/inject_test.go
+++ b/pkg/inject/inject_test.go
@@ -22,7 +22,7 @@ func getConfig(fp func(Config) Config) Config {
 		IgnoredIPs:                  "169.254.169.254",
 		LogLevel:                    "debug",
 		Preview:                     false,
-		SidecarImage:                "840364872350.dkr.ecr.us-west-2.amazonaws.com/aws-appmesh-envoy:v1.15.1.0-prod",
+		SidecarImage:                "840364872350.dkr.ecr.us-west-2.amazonaws.com/aws-appmesh-envoy:v1.16.1.0-prod",
 		InitImage:                   "840364872350.dkr.ecr.us-west-2.amazonaws.com/aws-appmesh-proxy-route-manager:v3-prod",
 		SidecarMemoryRequests:       "32Mi",
 		SidecarCpuRequests:          "10m",