diff --git a/Makefile b/Makefile
index 6b85dfd..c73afe7 100644
--- a/Makefile
+++ b/Makefile
@@ -74,7 +74,7 @@ VCSIM_VERSIONED := $(VCSIM)-$(GOVC_VERSION)
 ## Tool Versions
 KUSTOMIZE_VERSION ?= v5.7.1
 CONTROLLER_TOOLS_VERSION ?= v0.22.0
-ENVTEST_VERSION ?= v0.24.1
+ENVTEST_VERSION ?= v0.25.0
 
 # ENVTEST_K8S_VERSION refers to the version of kubebuilder assets to be downloaded by envtest binary.
 ENVTEST_K8S_VERSION = 1.34.1