diff --git a/.github/bundles/uds-bundle.yaml b/.github/bundles/uds-bundle.yaml
index 2c7be16e2..a42f88aa6 100644
--- a/.github/bundles/uds-bundle.yaml
+++ b/.github/bundles/uds-bundle.yaml
@@ -9,7 +9,7 @@ metadata:
 packages:
   - name: init
     repository: ghcr.io/zarf-dev/packages/init
-    ref: v0.37.0
+    ref: v0.38.1
 
   - name: core
     path: ../../build/
diff --git a/bundles/k3d-slim-dev/uds-bundle.yaml b/bundles/k3d-slim-dev/uds-bundle.yaml
index 838a6435a..f80bb640f 100644
--- a/bundles/k3d-slim-dev/uds-bundle.yaml
+++ b/bundles/k3d-slim-dev/uds-bundle.yaml
@@ -29,7 +29,7 @@ packages:
 
   - name: init
     repository: ghcr.io/zarf-dev/packages/init
-    ref: v0.37.0
+    ref: v0.38.1
 
   - name: core-slim-dev
     path: ../../build/
diff --git a/bundles/k3d-standard/uds-bundle.yaml b/bundles/k3d-standard/uds-bundle.yaml
index 80fa1afe1..fca71435d 100644
--- a/bundles/k3d-standard/uds-bundle.yaml
+++ b/bundles/k3d-standard/uds-bundle.yaml
@@ -29,7 +29,7 @@ packages:
 
   - name: init
     repository: ghcr.io/zarf-dev/packages/init
-    ref: v0.37.0
+    ref: v0.38.1
 
   - name: core
     path: ../../build/
diff --git a/tasks/setup.yaml b/tasks/setup.yaml
index 56c6f77f5..b953b2587 100644
--- a/tasks/setup.yaml
+++ b/tasks/setup.yaml
@@ -11,4 +11,4 @@ tasks:
 
       - description: "Initialize the cluster with Zarf"
         # renovate: datasource=github-tags depName=zarf-dev/zarf versioning=semver
-        cmd: "uds zarf package deploy oci://ghcr.io/zarf-dev/packages/init:v0.37.0 --confirm --no-progress"
+        cmd: "uds zarf package deploy oci://ghcr.io/zarf-dev/packages/init:v0.38.1 --confirm --no-progress"