diff --git a/lib/modules/manager/argocd/__fixtures__/validApplicationSet.yml b/lib/modules/manager/argocd/__fixtures__/validApplicationSet.yml
new file mode 100644
index 00000000000000..e17a7e7bdc7fc7
--- /dev/null
+++ b/lib/modules/manager/argocd/__fixtures__/validApplicationSet.yml
@@ -0,0 +1,75 @@
+---
+apiVersion: argoproj.io/v1alpha1
+kind: ApplicationSet
+spec:
+  template:
+    spec:
+      source:
+        chart: kube-state-metrics
+        repoURL: https://prometheus-community.github.io/helm-charts
+        targetRevision: 2.4.1
+---
+# applicationset with helm values
+apiVersion: argoproj.io/v1alpha1
+kind: ApplicationSet
+spec:
+  template:
+    spec:
+      source:
+        chart: {{ .Values.chart }}
+        repoURL: {{ .Values.repoUrl}}
+        targetRevision: {{ .Values.targetRevision }}
+---
+apiVersion: argoproj.io/v1alpha1
+kind: ApplicationSet
+spec:
+  template:
+    spec:
+      source:
+        chart: traefik
+        helm:
+          values: |
+            traefik:
+              service:
+                spec:
+                  loadBalancerIP: 1.2.3.4
+        repoURL: https://helm.traefik.io/traefik
+        targetRevision: 10.14.2
+---
+apiVersion: argoproj.io/v1alpha1
+kind: ApplicationSet
+spec:
+  template:
+    spec:
+      source:
+        repoURL: https://git.example.com/foo/bar.git
+        targetRevision: v1.2.0
+---
+# malformed applicationset as the source section is missing
+apiVersion: argoproj.io/v1alpha1
+kind: ApplicationSet
+spec:
+  template:
+    spec:
+      target:
+        namespace: testing
+---
+apiVersion: argoproj.io/v1alpha1
+kind: ApplicationSet
+metadata:
+  name: podinfo
+spec:
+  generators:
+  - clusters: {}
+  template:
+    metadata:
+      name: '{{name}}-podinfo'
+    spec:
+      project: default
+      source:
+        repoURL: https://stefanprodan.github.io/podinfo
+        targetRevision: 6.0.0
+        chart: podinfo
+      destination:
+        name: '{{server}}'
+        namespace: podinfo
diff --git a/lib/modules/manager/argocd/extract.spec.ts b/lib/modules/manager/argocd/extract.spec.ts
index d1841263c97d3a..6e11eb5f044ef1 100644
--- a/lib/modules/manager/argocd/extract.spec.ts
+++ b/lib/modules/manager/argocd/extract.spec.ts
@@ -4,6 +4,7 @@ import { extractPackageFile } from './extract';
 const validApplication = Fixtures.get('validApplication.yml');
 const malformedApplication = Fixtures.get('malformedApplications.yml');
 const randomManifest = Fixtures.get('randomManifest.yml');
+const validApplicationSet = Fixtures.get('validApplicationSet.yml');
 
 describe('modules/manager/argocd/extract', () => {
   describe('extractPackageFile()', () => {
@@ -30,5 +31,41 @@ describe('modules/manager/argocd/extract', () => {
       expect(result.deps).toBeArrayOfSize(3);
       expect(result.deps).toMatchSnapshot();
     });
+
+    it('supports applicationsets', () => {
+      const result = extractPackageFile(
+        validApplicationSet,
+        'applicationsets.yml'
+      );
+      expect(result).toEqual({
+        deps: [
+          {
+            currentValue: '2.4.1',
+            datasource: 'helm',
+            depName: 'kube-state-metrics',
+            registryUrls: [
+              'https://prometheus-community.github.io/helm-charts',
+            ],
+          },
+          {
+            currentValue: '10.14.2',
+            datasource: 'helm',
+            depName: 'traefik',
+            registryUrls: ['https://helm.traefik.io/traefik'],
+          },
+          {
+            currentValue: 'v1.2.0',
+            datasource: 'git-tags',
+            depName: 'https://git.example.com/foo/bar.git',
+          },
+          {
+            currentValue: '6.0.0',
+            datasource: 'helm',
+            depName: 'podinfo',
+            registryUrls: ['https://stefanprodan.github.io/podinfo'],
+          },
+        ],
+      });
+    });
   });
 });
diff --git a/lib/modules/manager/argocd/extract.ts b/lib/modules/manager/argocd/extract.ts
index b4b0839fc2260f..06d8fb796a4a6b 100644
--- a/lib/modules/manager/argocd/extract.ts
+++ b/lib/modules/manager/argocd/extract.ts
@@ -3,13 +3,21 @@ import { loadAll } from 'js-yaml';
 import { GitTagsDatasource } from '../../datasource/git-tags';
 import { HelmDatasource } from '../../datasource/helm';
 import type { ExtractConfig, PackageDependency, PackageFile } from '../types';
-import type { ApplicationDefinition } from './types';
+import type { ApplicationDefinition, ApplicationSource } from './types';
 import { fileTestRegex } from './util';
 
 function createDependency(
   definition: ApplicationDefinition
 ): PackageDependency {
-  const source = definition?.spec?.source;
+  let source: ApplicationSource;
+  switch (definition.kind) {
+    case 'Application':
+      source = definition?.spec?.source;
+      break;
+    case 'ApplicationSet':
+      source = definition?.spec?.template?.spec?.source;
+      break;
+  }
 
   if (
     !source ||
diff --git a/lib/modules/manager/argocd/types.ts b/lib/modules/manager/argocd/types.ts
index 8a84291575d077..95420e8c0fd59f 100644
--- a/lib/modules/manager/argocd/types.ts
+++ b/lib/modules/manager/argocd/types.ts
@@ -1,9 +1,29 @@
-export interface ApplicationDefinition {
+export interface KubernetesResource {
+  apiVersion: string;
+}
+
+export interface ApplicationSource {
+  chart?: string;
+  repoURL: string;
+  targetRevision: string;
+}
+
+export interface Application extends KubernetesResource {
+  kind: 'Application';
+  spec: {
+    source: ApplicationSource;
+  };
+}
+
+export interface ApplicationSet extends KubernetesResource {
+  kind: 'ApplicationSet';
   spec: {
-    source: {
-      chart?: string;
-      repoURL: string;
-      targetRevision: string;
+    template: {
+      spec: {
+        source: ApplicationSource;
+      };
     };
   };
 }
+
+export type ApplicationDefinition = Application | ApplicationSet;