diff --git a/parts/windows/kuberneteswindowssetup.ps1 b/parts/windows/kuberneteswindowssetup.ps1
index a0e12999a82..f98739abbbb 100644
--- a/parts/windows/kuberneteswindowssetup.ps1
+++ b/parts/windows/kuberneteswindowssetup.ps1
@@ -232,7 +232,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+CustomCloud/CustomData b/pkg/agent/testdata/AKSWindows2019+CustomCloud/CustomData
index 534f0cda771..870b184d524 100644
--- a/pkg/agent/testdata/AKSWindows2019+CustomCloud/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+CustomCloud/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+CustomVnet/CustomData b/pkg/agent/testdata/AKSWindows2019+CustomVnet/CustomData
index 177b63b5053..a582972a480 100644
--- a/pkg/agent/testdata/AKSWindows2019+CustomVnet/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+CustomVnet/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+EnablePrivateClusterHostsConfigAgent/CustomData b/pkg/agent/testdata/AKSWindows2019+EnablePrivateClusterHostsConfigAgent/CustomData
index d3623851b41..bbe698783e5 100644
--- a/pkg/agent/testdata/AKSWindows2019+EnablePrivateClusterHostsConfigAgent/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+EnablePrivateClusterHostsConfigAgent/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+K8S116/CustomData b/pkg/agent/testdata/AKSWindows2019+K8S116/CustomData
index 6dfb2f30898..27822cad74a 100644
--- a/pkg/agent/testdata/AKSWindows2019+K8S116/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+K8S116/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+K8S117/CustomData b/pkg/agent/testdata/AKSWindows2019+K8S117/CustomData
index 80c05c09842..a53adc50498 100644
--- a/pkg/agent/testdata/AKSWindows2019+K8S117/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+K8S117/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+K8S118/CustomData b/pkg/agent/testdata/AKSWindows2019+K8S118/CustomData
index e03fe13fd2c..d66fcf2ff1b 100644
--- a/pkg/agent/testdata/AKSWindows2019+K8S118/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+K8S118/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+K8S119+CSI/CustomData b/pkg/agent/testdata/AKSWindows2019+K8S119+CSI/CustomData
index 44bb7362f53..32bf338e939 100644
--- a/pkg/agent/testdata/AKSWindows2019+K8S119+CSI/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+K8S119+CSI/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+K8S119+FIPS/CustomData b/pkg/agent/testdata/AKSWindows2019+K8S119+FIPS/CustomData
index 14e395e27b1..d2a56b83aa0 100644
--- a/pkg/agent/testdata/AKSWindows2019+K8S119+FIPS/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+K8S119+FIPS/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+K8S119/CustomData b/pkg/agent/testdata/AKSWindows2019+K8S119/CustomData
index f0c24762193..14b1b09b5a0 100644
--- a/pkg/agent/testdata/AKSWindows2019+K8S119/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+K8S119/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+KubeletClientTLSBootstrapping/CustomData b/pkg/agent/testdata/AKSWindows2019+KubeletClientTLSBootstrapping/CustomData
index 41e77ef828a..f4c74971873 100644
--- a/pkg/agent/testdata/AKSWindows2019+KubeletClientTLSBootstrapping/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+KubeletClientTLSBootstrapping/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+ManagedIdentity/CustomData b/pkg/agent/testdata/AKSWindows2019+ManagedIdentity/CustomData
index 3acd1b77486..7b5ca5406a6 100644
--- a/pkg/agent/testdata/AKSWindows2019+ManagedIdentity/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+ManagedIdentity/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/agent/testdata/AKSWindows2019+SecurityProfile/CustomData b/pkg/agent/testdata/AKSWindows2019+SecurityProfile/CustomData
index b592e35b70a..3ef5b6f45be 100644
--- a/pkg/agent/testdata/AKSWindows2019+SecurityProfile/CustomData
+++ b/pkg/agent/testdata/AKSWindows2019+SecurityProfile/CustomData
@@ -228,7 +228,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/pkg/templates/templates_generated.go b/pkg/templates/templates_generated.go
index 963ad269404..27aef8bfbe2 100644
--- a/pkg/templates/templates_generated.go
+++ b/pkg/templates/templates_generated.go
@@ -8414,7 +8414,7 @@ try
     Write-Log "private egress proxy address is '$global:PrivateEgressProxyAddress'"
     # TODO update to use proxy
 
-    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.39.zip"
+    $WindowsCSEScriptsPackage = "aks-windows-cse-scripts-v0.0.40.zip"
     Write-Log "CSEScriptsPackageUrl is $global:CSEScriptsPackageUrl"
     Write-Log "WindowsCSEScriptsPackage is $WindowsCSEScriptsPackage"
     # Old AKS RP sets the full URL (https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.11.zip) in CSEScriptsPackageUrl
diff --git a/staging/cse/windows/README b/staging/cse/windows/README
index 6ea8cdcff83..988081b7eb8 100644
--- a/staging/cse/windows/README
+++ b/staging/cse/windows/README
@@ -13,8 +13,8 @@
 1. Run below commands to build a test package
 ```bash
 branchName="master"
-currentCseVersion="v0.0.39" # `WindowsCSEScriptsPackage` defined in `parts/windows/kuberneteswindowssetup.ps1`
-testCseVersion="v0.0.39.0" # Test package name. NOTE: Please do not use the official package format and earlier used version.
+currentCseVersion="v0.0.40" # `WindowsCSEScriptsPackage` defined in `parts/windows/kuberneteswindowssetup.ps1`
+testCseVersion="v0.0.40.0" # Test package name. NOTE: Please do not use the official package format and earlier used version.
 url="https://raw.githubusercontent.com/Azure/AgentBaker/$branchName/staging/cse/windows"
 
 mkdir -p temp-work-folder/aks-windows-cse
@@ -55,6 +55,9 @@ popd
 # AKS Windows CSE Scripts Package
 All files except *.test.ps1 and README will be published in AKS Windows CSE Scripts Package.
 
+## v0.0.40
+- feat: set --node-ip for Windows kubelet in k8s v1.29+ #4148
+
 ## v0.0.39
 - feat: support Windows container local dumps #3684
 
diff --git a/vhdbuilder/packer/generate-windows-vhd-configuration.ps1 b/vhdbuilder/packer/generate-windows-vhd-configuration.ps1
index c8a67b63e40..6dbe95005ce 100644
--- a/vhdbuilder/packer/generate-windows-vhd-configuration.ps1
+++ b/vhdbuilder/packer/generate-windows-vhd-configuration.ps1
@@ -120,7 +120,8 @@ $global:map = @{
     "c:\akse-cache\"              = @(
         "https://acs-mirror.azureedge.net/ccgakvplugin/v1.1.5/binaries/windows-gmsa-ccgakvplugin-v1.1.5.zip",
         "https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.37.zip",
-        "https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.39.zip"
+        "https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.39.zip",
+        "https://acs-mirror.azureedge.net/aks/windows/cse/aks-windows-cse-scripts-v0.0.40.zip"
     );
     # Different from other packages which are downloaded/cached and used later only during CSE, windows containerd is installed
     # during building the Windows VHD to cache container images.