diff --git a/Makefile b/Makefile
index 6a689b83c..5a3afe621 100644
--- a/Makefile
+++ b/Makefile
@@ -1,5 +1,5 @@
 # Current Operator version
-VERSION ?= 0.1.6-rc2
+VERSION ?= 0.1.6-rc3
 # Default image tag
 DOCKER_REPO := $(if $(DOCKER_REPO),$(DOCKER_REPO),streamnative)
 OPERATOR_IMG ?= ${DOCKER_REPO}/function-mesh:v$(VERSION)
diff --git a/README.md b/README.md
index e38760a45..dc09e58a1 100644
--- a/README.md
+++ b/README.md
@@ -4,7 +4,7 @@ A Kubernetes-Native way to run pulsar functions, connectors and composed functio
 ## Install
 
 ```bash
-curl -sSL https://github.com/streamnative/function-mesh/releases/download/v0.1.6-rc2/install.sh | bash
+curl -sSL https://github.com/streamnative/function-mesh/releases/download/v0.1.6-rc3/install.sh | bash
 ```
 
 The above command installs all the CRDs, required service account configuration, and all function-mesh operator components. Before you start running a function-mesh example, verify if Function Mesh is installed correctly.
diff --git a/charts/function-mesh-operator/Chart.yaml b/charts/function-mesh-operator/Chart.yaml
index f475a4eb6..edc6d3e88 100644
--- a/charts/function-mesh-operator/Chart.yaml
+++ b/charts/function-mesh-operator/Chart.yaml
@@ -18,7 +18,7 @@ type: application
 # This is the chart version. This version number should be incremented each time you make changes
 # to the chart and its templates, including the app version.
 # Versions are expected to follow Semantic Versioning (https://semver.org/)
-version: 0.1.6-rc2
+version: 0.1.6-rc3
 
 # This is the version number of the application being deployed. This version number should be
 # incremented each time you make changes to the application. Versions are not expected to
diff --git a/charts/function-mesh-operator/values.yaml b/charts/function-mesh-operator/values.yaml
index 8b44e250c..163a0e9ba 100644
--- a/charts/function-mesh-operator/values.yaml
+++ b/charts/function-mesh-operator/values.yaml
@@ -7,7 +7,7 @@ rbac:
   create: true
 
 # operatorImage is Function Mesh Operator image
-operatorImage: streamnative/function-mesh:v0.1.6-rc2
+operatorImage: streamnative/function-mesh:v0.1.6-rc3
 imagePullPolicy: IfNotPresent
 imagePullSecrets: []
 
diff --git a/install.sh b/install.sh
index b91a4e1a5..c6bf68dbd 100755
--- a/install.sh
+++ b/install.sh
@@ -56,7 +56,7 @@ EOF
 
 main() {
   local local_kube="kind"
-  local fm_version="v0.1.6-rc2"
+  local fm_version="v0.1.6-rc3"
   local kind_name="kind"
   local kind_version="v0.7.0"
   local node_num=2
diff --git a/mesh-worker-service/pom.xml b/mesh-worker-service/pom.xml
index 2442d7616..30970f1f2 100644
--- a/mesh-worker-service/pom.xml
+++ b/mesh-worker-service/pom.xml
@@ -26,7 +26,7 @@
 
     <groupId>io.functionmesh.proxy</groupId>
     <artifactId>mesh-worker-service</artifactId>
-    <version>v0.1.6-rc2</version>
+    <version>v0.1.6-rc3</version>
 
     <properties>
         <pulsar.version>2.8.0-rc-202106151929</pulsar.version>