diff --git a/Makefile b/Makefile
index 2fcbbfc011..11ff59e760 100644
--- a/Makefile
+++ b/Makefile
@@ -186,7 +186,7 @@ IMPORT_BOSS_VER := v0.28.1
 IMPORT_BOSS := $(abspath $(TOOLS_BIN_DIR)/$(IMPORT_BOSS_BIN))
 IMPORT_BOSS_PKG := k8s.io/code-generator/cmd/import-boss
 
-CAPI_HACK_TOOLS_VER := ce58362fefb10c2c9e462a9a6c850733f4d87161 # Note: this is the commit ID of CAPI v1.7.0
+CAPI_HACK_TOOLS_VER := ef04465b2ba76214eea570e27e8146c96412e32a # Note: this is the commit ID of CAPI v1.7.1
 
 CONVERSION_VERIFIER_VER := $(CAPI_HACK_TOOLS_VER)
 CONVERSION_VERIFIER_BIN := conversion-verifier
diff --git a/go.mod b/go.mod
index 947832aaa6..68ac8338e7 100644
--- a/go.mod
+++ b/go.mod
@@ -2,7 +2,7 @@ module sigs.k8s.io/cluster-api-provider-vsphere
 
 go 1.21
 
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.7.0
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.7.1
 
 replace github.com/vmware-tanzu/vm-operator/pkg/constants/testlabels => github.com/vmware-tanzu/vm-operator/pkg/constants/testlabels v0.0.0-20240404200847-de75746a9505
 
diff --git a/go.sum b/go.sum
index 20d4b9147a..b77d94b5db 100644
--- a/go.sum
+++ b/go.sum
@@ -1013,8 +1013,8 @@ rsc.io/sampler v1.3.0/go.mod h1:T1hPZKmBbMNahiBKFy5HrXp6adAjACjK9JXDnKaTXpA=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.0.15/go.mod h1:LEScyzhFmoF5pso/YSeBstl57mOzx9xlU9n85RGrDQg=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.28.0 h1:TgtAeesdhpm2SGwkQasmbeqDo8th5wOBA5h/AjTKA4I=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.28.0/go.mod h1:VHVDI/KrK4fjnV61bE2g3sA7tiETLn8sooImelsCx3Y=
-sigs.k8s.io/cluster-api v1.7.0 h1:sWK6xs2MkCqPZhumsrti0OdKyGcu/c5aBz9XAWFIq5E=
-sigs.k8s.io/cluster-api v1.7.0/go.mod h1:V9ZhKLvQtsDODwjXOKgbitjyCmC71yMBwDcMyNNIov0=
+sigs.k8s.io/cluster-api v1.7.1 h1:JkMAbAMzBM+WBHxXLTJXTiCisv1PAaHRzld/3qrmLYY=
+sigs.k8s.io/cluster-api v1.7.1/go.mod h1:V9ZhKLvQtsDODwjXOKgbitjyCmC71yMBwDcMyNNIov0=
 sigs.k8s.io/controller-runtime v0.9.0/go.mod h1:TgkfvrhhEw3PlI0BRL/5xM+89y3/yc0ZDfdbTl84si8=
 sigs.k8s.io/controller-runtime v0.17.3 h1:65QmN7r3FWgTxDMz9fvGnO1kbf2nu+acg9p2R9oYYYk=
 sigs.k8s.io/controller-runtime v0.17.3/go.mod h1:N0jpP5Lo7lMTF9aL56Z/B2oWBJjey6StQM0jRbKQXtY=
diff --git a/test/e2e/config/vsphere.yaml b/test/e2e/config/vsphere.yaml
index 8871995dbe..c7082abee6 100644
--- a/test/e2e/config/vsphere.yaml
+++ b/test/e2e/config/vsphere.yaml
@@ -8,11 +8,11 @@
 # For creating local images, run ./hack/e2e.sh
 
 images:
-  - name: registry.k8s.io/cluster-api/cluster-api-controller:v1.7.0
+  - name: registry.k8s.io/cluster-api/cluster-api-controller:v1.7.1
     loadBehavior: tryLoad
-  - name: registry.k8s.io/cluster-api/kubeadm-bootstrap-controller:v1.7.0
+  - name: registry.k8s.io/cluster-api/kubeadm-bootstrap-controller:v1.7.1
     loadBehavior: tryLoad
-  - name: registry.k8s.io/cluster-api/kubeadm-control-plane-controller:v1.7.0
+  - name: registry.k8s.io/cluster-api/kubeadm-control-plane-controller:v1.7.1
     loadBehavior: tryLoad
   - name: registry.k8s.io/capi-ipam-ic/cluster-api-ipam-in-cluster-controller:v0.1.0
     loadBehavior: tryLoad
@@ -36,9 +36,9 @@ providers:
   - name: cluster-api
     type: CoreProvider
     versions:
-      - name: v1.7.0
+      - name: v1.7.1
         # Use manifest from source files
-        value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.0/core-components.yaml"
+        value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.1/core-components.yaml"
         type: "url"
         contract: v1beta1
         files:
@@ -70,9 +70,9 @@ providers:
   - name: kubeadm
     type: BootstrapProvider
     versions:
-      - name: v1.7.0
+      - name: v1.7.1
         # Use manifest from source files
-        value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.0/bootstrap-components.yaml"
+        value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.1/bootstrap-components.yaml"
         type: "url"
         contract: v1beta1
         files:
@@ -104,9 +104,9 @@ providers:
   - name: kubeadm
     type: ControlPlaneProvider
     versions:
-      - name: v1.7.0
+      - name: v1.7.1
         # Use manifest from source files
-        value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.0/control-plane-components.yaml"
+        value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.1/control-plane-components.yaml"
         type: "url"
         contract: v1beta1
         files:
diff --git a/test/go.mod b/test/go.mod
index c8e78eda5b..7c596b0fff 100644
--- a/test/go.mod
+++ b/test/go.mod
@@ -2,9 +2,9 @@ module sigs.k8s.io/cluster-api-provider-vsphere/test
 
 go 1.21
 
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.7.0
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.7.1
 
-replace sigs.k8s.io/cluster-api/test => sigs.k8s.io/cluster-api/test v1.7.0
+replace sigs.k8s.io/cluster-api/test => sigs.k8s.io/cluster-api/test v1.7.1
 
 replace sigs.k8s.io/cluster-api-provider-vsphere => ../
 
diff --git a/test/go.sum b/test/go.sum
index 9c7e711105..81a7d0c8c7 100644
--- a/test/go.sum
+++ b/test/go.sum
@@ -1111,10 +1111,10 @@ rsc.io/sampler v1.3.0/go.mod h1:T1hPZKmBbMNahiBKFy5HrXp6adAjACjK9JXDnKaTXpA=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.0.15/go.mod h1:LEScyzhFmoF5pso/YSeBstl57mOzx9xlU9n85RGrDQg=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.28.0 h1:TgtAeesdhpm2SGwkQasmbeqDo8th5wOBA5h/AjTKA4I=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.28.0/go.mod h1:VHVDI/KrK4fjnV61bE2g3sA7tiETLn8sooImelsCx3Y=
-sigs.k8s.io/cluster-api v1.7.0 h1:sWK6xs2MkCqPZhumsrti0OdKyGcu/c5aBz9XAWFIq5E=
-sigs.k8s.io/cluster-api v1.7.0/go.mod h1:V9ZhKLvQtsDODwjXOKgbitjyCmC71yMBwDcMyNNIov0=
-sigs.k8s.io/cluster-api/test v1.7.0 h1:SH0Rww/LTx1LSUwlfihZoVNKkT9oJRyeqWRaD81rFms=
-sigs.k8s.io/cluster-api/test v1.7.0/go.mod h1:yG0g5Mdq73fMn9JP4akgRQPSne973L+Qx6iVH+LjtSM=
+sigs.k8s.io/cluster-api v1.7.1 h1:JkMAbAMzBM+WBHxXLTJXTiCisv1PAaHRzld/3qrmLYY=
+sigs.k8s.io/cluster-api v1.7.1/go.mod h1:V9ZhKLvQtsDODwjXOKgbitjyCmC71yMBwDcMyNNIov0=
+sigs.k8s.io/cluster-api/test v1.7.1 h1:QDru2586ZjIFBTW1Z7VVXVtauzR/yANm4tglUNLm9iE=
+sigs.k8s.io/cluster-api/test v1.7.1/go.mod h1:yG0g5Mdq73fMn9JP4akgRQPSne973L+Qx6iVH+LjtSM=
 sigs.k8s.io/controller-runtime v0.9.0/go.mod h1:TgkfvrhhEw3PlI0BRL/5xM+89y3/yc0ZDfdbTl84si8=
 sigs.k8s.io/controller-runtime v0.17.3 h1:65QmN7r3FWgTxDMz9fvGnO1kbf2nu+acg9p2R9oYYYk=
 sigs.k8s.io/controller-runtime v0.17.3/go.mod h1:N0jpP5Lo7lMTF9aL56Z/B2oWBJjey6StQM0jRbKQXtY=