diff --git a/components/cluster-as-a-service/development/add-hypershift-params.yaml b/components/cluster-as-a-service/development/add-hypershift-params.yaml
index cc638f513ce..4fd6b93b03f 100644
--- a/components/cluster-as-a-service/development/add-hypershift-params.yaml
+++ b/components/cluster-as-a-service/development/add-hypershift-params.yaml
@@ -9,7 +9,7 @@
   path: /spec/template/spec/source/helm/parameters/-
   value:
     name: hypershiftImage
-    value: registry.redhat.io/multicluster-engine/hypershift-rhel9-operator:v2.6
+    value: registry.redhat.io/multicluster-engine/hypershift-rhel9-operator:v2.7
 
 - op: add
   path: /spec/template/spec/source/helm/parameters/-
diff --git a/components/cluster-as-a-service/development/kustomization.yaml b/components/cluster-as-a-service/development/kustomization.yaml
index f80701e2a68..aa084720d00 100644
--- a/components/cluster-as-a-service/development/kustomization.yaml
+++ b/components/cluster-as-a-service/development/kustomization.yaml
@@ -14,3 +14,11 @@ patches:
     target:
       group: argoproj.io
       kind: ArgoCD
+  - patch: |
+      - op: replace
+        path: /spec/channel
+        value: stable-2.7
+    target:
+      group: operators.coreos.com
+      kind: Subscription
+      name: multicluster-engine
diff --git a/components/cluster-as-a-service/staging/add-hypershift-params.yaml b/components/cluster-as-a-service/staging/add-hypershift-params.yaml
index d57a1f43ba8..f695e3b611f 100644
--- a/components/cluster-as-a-service/staging/add-hypershift-params.yaml
+++ b/components/cluster-as-a-service/staging/add-hypershift-params.yaml
@@ -9,7 +9,7 @@
   path: /spec/template/spec/source/helm/parameters/-
   value:
     name: hypershiftImage
-    value: registry.redhat.io/multicluster-engine/hypershift-rhel9-operator:v2.6
+    value: registry.redhat.io/multicluster-engine/hypershift-rhel9-operator:v2.7
 
 - op: add
   path: /spec/template/spec/source/helm/parameters/-
diff --git a/components/cluster-as-a-service/staging/kustomization.yaml b/components/cluster-as-a-service/staging/kustomization.yaml
index c82b467d4f1..600aaec30cd 100644
--- a/components/cluster-as-a-service/staging/kustomization.yaml
+++ b/components/cluster-as-a-service/staging/kustomization.yaml
@@ -11,3 +11,11 @@ patches:
       group: argoproj.io
       kind: ApplicationSet
       name: hypershift-aws-cluster
+  - patch: |
+      - op: replace
+        path: /spec/channel
+        value: stable-2.7
+    target:
+      group: operators.coreos.com
+      kind: Subscription
+      name: multicluster-engine