diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7f5ee164..aed2ebef 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,17 @@
 
 All notable changes to this project are documented in this file.
 
+## 1.7.2
+
+**Release date:** 2025-10-28
+
+This patch release allows running kustomize-controller
+on the same loopback interface as source-watcher.
+
+Improvements:
+- Allow fetching artifacts from a local source-watcher
+  [#1539](https://github.com/fluxcd/kustomize-controller/pull/1539)
+
 ## 1.7.1
 
 **Release date:** 2025-10-08
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 4711e313..43e676bf 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
   - name: fluxcd/kustomize-controller
     newName: fluxcd/kustomize-controller
-    newTag: v1.7.1
+    newTag: v1.7.2
diff --git a/go.mod b/go.mod
index 902282aa..88493585 100644
--- a/go.mod
+++ b/go.mod
@@ -19,7 +19,7 @@ require (
 	github.com/cyphar/filepath-securejoin v0.4.1
 	github.com/dimchansky/utfbom v1.1.1
 	github.com/fluxcd/cli-utils v0.36.0-flux.15
-	github.com/fluxcd/kustomize-controller/api v1.7.1
+	github.com/fluxcd/kustomize-controller/api v1.7.2
 	github.com/fluxcd/pkg/apis/acl v0.9.0
 	github.com/fluxcd/pkg/apis/event v0.20.0
 	github.com/fluxcd/pkg/apis/kustomize v1.13.0