diff --git a/.env b/.env
index bfadb0638f2..0520456e398 100644
--- a/.env
+++ b/.env
@@ -2,7 +2,7 @@
 # This is in order to avoid conflict with upstream code when updating to a newer version
 
 # Automatically increased once a new release is out
-SHELLHUB_VERSION=v0.16.0-rc.1
+SHELLHUB_VERSION=v0.16.0-rc.2
 
 # This specification details the network interface to which the gateway container will be bound.
 SHELLHUB_BIND_ADDRESS=0.0.0.0