diff --git a/Makefile b/Makefile
index c1f418041..31ce98cd6 100644
--- a/Makefile
+++ b/Makefile
@@ -21,7 +21,7 @@ KUEUE_VERSION ?= v0.11.6
 
 USE_RHOAI ?= true
 # KUBERAY_VERSION defines the default version of the KubeRay operator (used for testing)
-KUBERAY_VERSION ?= v1.2.2
+KUBERAY_VERSION ?= v1.3.2
 
 # RAY_VERSION defines the default version of Ray (used for testing)
 RAY_VERSION ?= 2.5.0
diff --git a/go.mod b/go.mod
index acb6d78ea..3e12e7959 100644
--- a/go.mod
+++ b/go.mod
@@ -12,7 +12,7 @@ require (
 	github.com/openshift/client-go v0.0.0-20240904130219-3795e907a202
 	github.com/project-codeflare/appwrapper v1.1.2
 	github.com/project-codeflare/codeflare-common v0.0.0-20250321141415-67bb8bd932df
-	github.com/ray-project/kuberay/ray-operator v1.2.2
+	github.com/ray-project/kuberay/ray-operator v1.3.2
 	go.uber.org/zap v1.27.0
 	golang.org/x/exp v0.0.0-20250305212735-054e65f0b394
 	k8s.io/api v0.32.3
@@ -43,8 +43,8 @@ replace go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp => go.open
 
 replace github.com/jackc/pgx/v4 => github.com/jackc/pgx/v5 v5.5.4
 
-// Workaround deprecation of cluster.Status.State in ray-operator v1.2.2
-replace github.com/ray-project/kuberay/ray-operator v1.2.2 => github.com/ray-project/kuberay/ray-operator v1.2.1
+// Workaround deprecation of cluster.Status.State in ray-operator v1.3.2
+replace github.com/ray-project/kuberay/ray-operator v1.3.2 => github.com/ray-project/kuberay/ray-operator v1.2.1
 
 require (
 	github.com/aymerick/douceur v0.2.0 // indirect