diff --git a/dogfood/coder/main.tf b/dogfood/coder/main.tf
index 8caf81961ce3e..3d32551d77914 100644
--- a/dogfood/coder/main.tf
+++ b/dogfood/coder/main.tf
@@ -332,7 +332,7 @@ module "coder-login" {
 module "cursor" {
   count    = data.coder_workspace.me.start_count
   source   = "dev.registry.coder.com/coder/cursor/coder"
-  version  = "1.2.0"
+  version  = "1.2.1"
   agent_id = coder_agent.dev.id
   folder   = local.repo_dir
 }