diff --git a/crossplane.yaml b/crossplane.yaml
index 99975c8..27e43d9 100644
--- a/crossplane.yaml
+++ b/crossplane.yaml
@@ -53,7 +53,7 @@ spec:
       version: "v0.4.0"
     - configuration: xpkg.upbound.io/upbound/configuration-observability-oss
       # renovate: datasource=github-releases depName=upbound/configuration-observability-oss
-      version: "v0.3.0"
+      version: "v0.4.0"
     - configuration: xpkg.upbound.io/upbound/configuration-gitops-flux
       # renovate: datasource=github-releases depName=upbound/configuration-gitops-flux
       version: "v0.4.0"