diff --git a/Makefile b/Makefile
index 927abec60..8c2b4ba65 100644
--- a/Makefile
+++ b/Makefile
@@ -240,7 +240,7 @@ GH_CLI ?= $(LOCALBIN)/gh
 SED ?= /usr/bin/sed
 
 ## Tool Versions
-KUSTOMIZE_VERSION ?= v4.5.4
+KUSTOMIZE_VERSION ?= v5.4.3
 CODEGEN_VERSION ?= v0.27.2
 CONTROLLER_TOOLS_VERSION ?= v0.9.2
 YQ_VERSION ?= v4.35.2 ## latest version that works with go1.20
diff --git a/config/default/kustomization.yaml b/config/default/kustomization.yaml
index e4f0687af..74cfe3139 100644
--- a/config/default/kustomization.yaml
+++ b/config/default/kustomization.yaml
@@ -9,20 +9,19 @@ namespace: openshift-operators
 namePrefix: codeflare-operator-
 
 # Labels to add to all resources and selectors.
-commonLabels:
-  app.kubernetes.io/name: codeflare-operator
-  app.kubernetes.io/part-of: codeflare
-
-bases:
+labels:
+  - pairs:
+      app.kubernetes.io/name: codeflare-operator
+      app.kubernetes.io/part-of: codeflare
+    includeSelectors: true
+resources:
   - ../crd
   - ../rbac
   - ../manager
   - ../webhook
+  - metrics_service.yaml
 # [PROMETHEUS] To enable prometheus monitor, uncomment all sections with 'PROMETHEUS'.
 # - ../prometheus
 
-resources:
-  - metrics_service.yaml
-
 patches:
   - path: manager_webhook_patch.yaml
diff --git a/config/e2e/kustomization.yaml b/config/e2e/kustomization.yaml
index 772370da6..6e8cdf4b7 100644
--- a/config/e2e/kustomization.yaml
+++ b/config/e2e/kustomization.yaml
@@ -1,6 +1,6 @@
 namespace: openshift-operators
 
-bases:
+resources:
 - config.yaml
 - ../default
 
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 847eca176..b67faae70 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -11,11 +11,15 @@ configMapGenerator:
 configurations:
   - params.yaml
 
-vars:
-- name: codeflare_operator_controller_image
-  objref:
+replacements:
+- source:
     kind: ConfigMap
     name: stack-config
-    apiVersion: v1
-  fieldref:
-    fieldpath: data.codeflare-operator-controller-image
+    version: v1
+    fieldPath: data.codeflare-operator-controller-image
+  targets:
+  - select:
+      kind: Deployment
+      name: manager
+    fieldPaths:
+    - spec.template.spec.containers.0.image
diff --git a/config/scorecard/kustomization.yaml b/config/scorecard/kustomization.yaml
index 50cd2d084..a9a84a85a 100644
--- a/config/scorecard/kustomization.yaml
+++ b/config/scorecard/kustomization.yaml
@@ -1,6 +1,6 @@
 resources:
 - bases/config.yaml
-patchesJson6902:
+patches:
 - path: patches/basic.config.yaml
   target:
     group: scorecard.operatorframework.io
@@ -13,4 +13,4 @@ patchesJson6902:
     version: v1alpha3
     kind: Configuration
     name: config
-#+kubebuilder:scaffold:patchesJson6902
+#+kubebuilder:scaffold:patches