diff --git a/.github/workflows/e2e.yml b/.github/workflows/e2e.yml
index 78ebc2694..22daf78bb 100644
--- a/.github/workflows/e2e.yml
+++ b/.github/workflows/e2e.yml
@@ -82,8 +82,8 @@ jobs:
           NUTANIX_INSECURE: false
           NUTANIX_PRISM_ELEMENT_CLUSTER_NAME: ${{ vars.NUTANIX_PRISM_ELEMENT_CLUSTER_NAME }}
           NUTANIX_SUBNET_NAME: ${{ vars.NUTANIX_SUBNET_NAME }}
-          NUTANIX_MACHINE_TEMPLATE_IMAGE_NAME: ${{ vars.NUTANIX_MACHINE_TEMPLATE_IMAGE_NAME }}
           NUTANIX_STORAGE_CONTAINER_NAME: ${{ vars.NUTANIX_STORAGE_CONTAINER_NAME }}
+          NUTANIX_MACHINE_TEMPLATE_IMAGE_NAME: nkp-rocky-9.4-release-1.29.6-20240716233458
 
       - if: success() || failure() # always run even if the previous step fails
         name: Publish e2e test report
diff --git a/README.md b/README.md
index 678c3914e..b411dc759 100644
--- a/README.md
+++ b/README.md
@@ -44,7 +44,7 @@ For example, the following command will create a Docker cluster with Cilium CNI
 ```shell
 export CLUSTER_NAME=docker-cluster-cilium-helm-addon
 export CLUSTER_FILE=examples/capi-quick-start/docker-cluster-cilium-helm-addon.yaml
-export KUBERNETES_VERSION=v1.29.5
+export KUBERNETES_VERSION=v1.29.6
 ```
 
 ```shell
diff --git a/make/go.mk b/make/go.mk
index d60b2ab59..e5f083504 100644
--- a/make/go.mk
+++ b/make/go.mk
@@ -80,7 +80,7 @@ E2E_PARALLEL_NODES ?= $(if $(filter $(E2E_DRYRUN),true),1,$(shell nproc --ignore
 E2E_FLAKE_ATTEMPTS ?= 1
 E2E_CONF_FILE ?= $(REPO_ROOT)/test/e2e/config/caren.yaml
 E2E_CONF_FILE_ENVSUBST ?= $(basename $(E2E_CONF_FILE))-envsubst.yaml
-export E2E_DEFAULT_KUBERNETES_VERSION ?= v1.29.5
+export E2E_DEFAULT_KUBERNETES_VERSION ?= v1.29.6
 ARTIFACTS ?= ${REPO_ROOT}/_artifacts
 
 .PHONY: e2e-test
diff --git a/test/e2e/config/caren.yaml b/test/e2e/config/caren.yaml
index 2b0dca0b4..2a1de868b 100644
--- a/test/e2e/config/caren.yaml
+++ b/test/e2e/config/caren.yaml
@@ -167,7 +167,7 @@ variables:
   KUBERNETES_VERSION: "${E2E_DEFAULT_KUBERNETES_VERSION}"
   # Override Kubernetes version for test workload clusters for specific providers by setting the env variables
   # `KUBERNETES_VERSION_<PROVIDER>`, where `<PROVIDER>` is the uppercase provider name, e.g.
-  # `KUBERNETES_VERSION_DOCKER: v1.29.5`.
+  # `KUBERNETES_VERSION_DOCKER: v1.29.6`.
   # KUBERNETES_VERSION_DOCKER: "${KINDEST_IMAGE_TAG}"
   SERVICE_CIDR: "10.128.0.0/12"
   POD_CIDR: "192.168.0.0/16"
@@ -200,7 +200,7 @@ variables:
   # # Name of the Prism Element cluster.
   # NUTANIX_PRISM_ELEMENT_CLUSTER_NAME: ""
   # # Name of the OS image pre-uploaded in PC.
-  # NUTANIX_MACHINE_TEMPLATE_IMAGE_NAME: ""
+  NUTANIX_MACHINE_TEMPLATE_IMAGE_NAME: nkp-rocky-9.4-1.29.6-20240704044125
   # # Name of the subnet to be assigned to the VMs.
   # NUTANIX_SUBNET_NAME: ""
   # # Name of the storage container to CSI driver
diff --git a/test/e2e/e2e_suite_test.go b/test/e2e/e2e_suite_test.go
index dd3305f10..6d49c4269 100644
--- a/test/e2e/e2e_suite_test.go
+++ b/test/e2e/e2e_suite_test.go
@@ -75,7 +75,7 @@ func init() {
 	flag.StringVar(
 		&bootstrapKubernetesVersion,
 		"e2e.bootstrap-kind-version",
-		"v1.29.5",
+		"v1.29.6",
 		"the version of the image used in bootstrap cluster",
 	)
 }