diff --git a/test/e2e/Makefile b/test/e2e/Makefile
index 88e0dd5a2..d2954ef59 100644
--- a/test/e2e/Makefile
+++ b/test/e2e/Makefile
@@ -41,7 +41,7 @@ E2E_CHART ?= ${REPO_ROOT}/charts/vsphere-cpi
 E2E_DATA_DIR := ${REPO_ROOT}/test/e2e/data
 
 # E2E_DATA_CAPV_VER defines the providers from which version of CAPV to use
-E2E_DATA_CAPV_VER ?= release-1.10
+E2E_DATA_CAPV_VER ?= release-1.11
 
 # VERSION_DEV is the version of the image used for development
 VERSION_DEV ?= $(VERSION)
diff --git a/test/e2e/config/vsphere-ci.yaml b/test/e2e/config/vsphere-ci.yaml
index be8196099..38b0c12f7 100644
--- a/test/e2e/config/vsphere-ci.yaml
+++ b/test/e2e/config/vsphere-ci.yaml
@@ -10,13 +10,13 @@ providers:
 - name: cluster-api
   type: CoreProvider
   versions:
-  - name: v1.7.2
+  - name: v1.8.1
     # Use manifest from source files
-    value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.2/core-components.yaml"
+    value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.8.1/core-components.yaml"
     type: "url"
     contract: v1beta1
     files:
-    - sourcePath: "../data/shared/capi/v1.7/metadata.yaml"
+    - sourcePath: "../data/shared/capi/v1.8/metadata.yaml"
     replacements:
     - old: "imagePullPolicy: Always"
       new: "imagePullPolicy: IfNotPresent"
@@ -24,13 +24,13 @@ providers:
 - name: kubeadm
   type: BootstrapProvider
   versions:
-  - name: v1.7.2
+  - name: v1.8.1
     # Use manifest from source files
-    value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.2/bootstrap-components.yaml"
+    value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.8.1/bootstrap-components.yaml"
     type: "url"
     contract: v1beta1
     files:
-    - sourcePath: "../data/shared/capi/v1.7/metadata.yaml"
+    - sourcePath: "../data/shared/capi/v1.8/metadata.yaml"
     replacements:
     - old: "imagePullPolicy: Always"
       new: "imagePullPolicy: IfNotPresent"
@@ -38,13 +38,13 @@ providers:
 - name: kubeadm
   type: ControlPlaneProvider
   versions:
-  - name: v1.7.2
+  - name: v1.8.1
     # Use manifest from source files
-    value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.2/control-plane-components.yaml"
+    value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.8.1/control-plane-components.yaml"
     type: "url"
     contract: v1beta1
     files:
-    - sourcePath: "../data/shared/capi/v1.7/metadata.yaml"
+    - sourcePath: "../data/shared/capi/v1.8/metadata.yaml"
     replacements:
     - old: "imagePullPolicy: Always"
       new: "imagePullPolicy: IfNotPresent"
@@ -52,28 +52,28 @@ providers:
 - name: vsphere
   type: InfrastructureProvider
   versions:
-  - name: v1.10.0
+  - name: v1.11.0
     # Use manifest from source files
-    value: "https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/releases/download/v1.10.0/infrastructure-components.yaml"
+    value: "https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/releases/download/v1.11.0/infrastructure-components.yaml"
     type: "url"
     contract: v1beta1
     files:
     # Add a cluster template
     - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-govmomi/main/cluster-template.yaml"
-    - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-govmomi/main/cluster-template-install-on-bootstrap.yaml"
+    - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-govmomi/main/cluster-template-fast-rollout.yaml"
     - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-govmomi/main/clusterclass-quick-start.yaml"
     - sourcePath: "../data/shared/capv/main/metadata.yaml"
 
 variables:
-  KUBERNETES_VERSION: "v1.30.0"
+  KUBERNETES_VERSION: "v1.31.0"
   #! KUBERNETES_VERSION_LATEST_CI can have the following formats:
   #! * v1.28.0 => will return the same version for convenience
   #! * stable-1.28 => will return the latest patch release for v1.28, e.g. v1.28.5
   #! * ci/latest-1.28 => will return the latest built version from the release branch, e.g. v1.28.5-26+72feddd3acde14
-  KUBERNETES_VERSION_LATEST_CI: "ci/latest-1.31"
-  KUBERNETES_VERSION_UPGRADE_FROM: "v1.29.0"
-  KUBERNETES_VERSION_UPGRADE_TO: "v1.30.0"
-  CPI_IMAGE_K8S_VERSION: "v1.30.0"
+  KUBERNETES_VERSION_LATEST_CI: "ci/latest-1.32"
+  KUBERNETES_VERSION_UPGRADE_FROM: "v1.30.0"
+  KUBERNETES_VERSION_UPGRADE_TO: "v1.31.0"
+  CPI_IMAGE_K8S_VERSION: "v1.31.0"
   CNI: "./data/cni/calico/calico.yaml"
   EXP_CLUSTER_RESOURCE_SET: "true"
   EXP_KUBEADM_BOOTSTRAP_FORMAT_IGNITION: "true"
@@ -89,8 +89,8 @@ variables:
   VSPHERE_DATASTORE: "WorkloadDatastore"
   VSPHERE_STORAGE_POLICY: "Cluster API vSphere Storage Policy"
   VSPHERE_NETWORK: "sddc-cgw-network-10"
-  VSPHERE_TEMPLATE: "ubuntu-2204-kube-v1.30.0"
-  FLATCAR_VSPHERE_TEMPLATE: "flatcar-stable-3815.2.2-kube-v1.30.0"
+  VSPHERE_TEMPLATE: "ubuntu-2204-kube-v1.31.0"
+  FLATCAR_VSPHERE_TEMPLATE: "flatcar-stable-3975.2.0-kube-v1.31.0"
   VSPHERE_INSECURE_CSI: "true"
   KUBETEST_CONFIGURATION: "./data/kubetest/conformance.yaml"
   NODE_DRAIN_TIMEOUT: "60s"
diff --git a/test/e2e/e2e_suite_test.go b/test/e2e/e2e_suite_test.go
index ad5ffb5aa..01137f8d7 100644
--- a/test/e2e/e2e_suite_test.go
+++ b/test/e2e/e2e_suite_test.go
@@ -211,9 +211,9 @@ var _ = SynchronizedBeforeSuite(func() []byte {
 		}
 		workloadResult = &clusterctl.ApplyClusterTemplateAndWaitResult{}
 		resolveK8sVersion()
-		// if use dev k8s version, install-on-bootstrap is needed to install Kubernetes on bootstrap
+		// if use dev k8s version, fast-rollout is needed to install Kubernetes on bootstrap
 		if useLatestK8sVersion {
-			workloadInput.ConfigCluster.Flavor = "install-on-bootstrap"
+			workloadInput.ConfigCluster.Flavor = "fast-rollout"
 		} else {
 			workloadInput.ConfigCluster.KubernetesVersion = e2eConfig.GetVariable("KUBERNETES_VERSION")
 		}