diff --git a/tasks/create.yaml b/tasks/create.yaml
index d326e291c..b1e8416c3 100644
--- a/tasks/create.yaml
+++ b/tasks/create.yaml
@@ -11,7 +11,7 @@ variables:
 
   - name: REGISTRY1_PEPR_IMAGE
     # renovate: datasource=docker depName=registry1.dso.mil/ironbank/opensource/defenseunicorns/pepr/controller versioning=semver
-    default: registry1.dso.mil/ironbank/opensource/defenseunicorns/pepr/controller:v0.37.2
+    default: registry1.dso.mil/ironbank/opensource/defenseunicorns/pepr/controller:v0.38.0
 
   - name: LAYER