diff --git a/hack/jenkins/scripts/conformance.sh b/hack/jenkins/scripts/conformance.sh
index 63e5acc47..d304ea078 100755
--- a/hack/jenkins/scripts/conformance.sh
+++ b/hack/jenkins/scripts/conformance.sh
@@ -2,7 +2,7 @@
 set -euo pipefail
 
 export KUBECONFIG="${KUBECONFIG:-"${DIR}/../../quickstart/cluster/auth/kubeconfig"}"
-export KUBERNETES_VERSION="v1.11.2"
+export KUBERNETES_VERSION="v1.12.1"
 
 # Set up kubectl
 curl -L -O -v https://storage.googleapis.com/kubernetes-release/release/$KUBERNETES_VERSION/bin/linux/amd64/kubectl
diff --git a/hack/multi-node/user-data.sample b/hack/multi-node/user-data.sample
index 4fc500f42..d367eed78 100644
--- a/hack/multi-node/user-data.sample
+++ b/hack/multi-node/user-data.sample
@@ -9,7 +9,7 @@ coreos:
         [Service]
         EnvironmentFile=/etc/environment
         Environment=KUBELET_IMAGE_URL=docker://k8s.gcr.io/hyperkube
-        Environment=KUBELET_IMAGE_TAG=v1.11.2
+        Environment=KUBELET_IMAGE_TAG=v1.12.1
         Environment="RKT_RUN_ARGS=--uuid-file-save=/var/cache/kubelet-pod.uuid \
           --volume var-lib-cni,kind=host,source=/var/lib/cni \
           --volume var-lib-kubelet,kind=host,source=/var/lib/kubelet \
diff --git a/hack/quickstart/kubelet.service b/hack/quickstart/kubelet.service
index b0014469b..419b17de5 100644
--- a/hack/quickstart/kubelet.service
+++ b/hack/quickstart/kubelet.service
@@ -1,7 +1,7 @@
 [Service]
 EnvironmentFile=-/etc/kubernetes/kubelet.env
 Environment=KUBELET_IMAGE_URL=docker://k8s.gcr.io/hyperkube
-Environment=KUBELET_IMAGE_TAG=v1.11.2
+Environment=KUBELET_IMAGE_TAG=v1.12.1
 Environment=KUBELET_MINIMUM_CONTAINER_TTL_DURATION=3m0s
 Environment=KUBELET_MAXIMUM_DEAD_CONTAINERS=-1
 Environment=KUBELET_MAXIMUM_DEAD_CONTAINERS_PER_CONTAINER=1
diff --git a/hack/single-node/user-data.sample b/hack/single-node/user-data.sample
index b46956c91..d9e3f8f55 100644
--- a/hack/single-node/user-data.sample
+++ b/hack/single-node/user-data.sample
@@ -9,7 +9,7 @@ coreos:
         [Service]
         EnvironmentFile=/etc/environment
         Environment=KUBELET_IMAGE_URL=docker://k8s.gcr.io/hyperkube
-        Environment=KUBELET_IMAGE_TAG=v1.11.2
+        Environment=KUBELET_IMAGE_TAG=v1.12.1
         Environment="RKT_RUN_ARGS=--uuid-file-save=/var/cache/kubelet-pod.uuid \
           --volume var-lib-cni,kind=host,source=/var/lib/cni \
           --volume var-lib-kubelet,kind=host,source=/var/lib/kubelet \
diff --git a/hack/tests/conformance-test.sh b/hack/tests/conformance-test.sh
index d46d42148..d297b5621 100755
--- a/hack/tests/conformance-test.sh
+++ b/hack/tests/conformance-test.sh
@@ -2,7 +2,7 @@
 set -euo pipefail
 
 CONFORMANCE_REPO=${CONFORMANCE_REPO:-github.com/kubernetes/kubernetes}
-CONFORMANCE_VERSION=${CONFORMANCE_VERSION:-v1.11.2}
+CONFORMANCE_VERSION=${CONFORMANCE_VERSION:-v1.12.1}
 
 usage() {
     echo "USAGE:"
diff --git a/pkg/asset/images.go b/pkg/asset/images.go
index 95ebb25e5..35a9b0347 100644
--- a/pkg/asset/images.go
+++ b/pkg/asset/images.go
@@ -8,6 +8,6 @@ var DefaultImages = ImageVersions{
 	Calico:          "quay.io/calico/node:v3.0.3",
 	CalicoCNI:       "quay.io/calico/cni:v2.0.0",
 	CoreDNS:         "k8s.gcr.io/coredns:1.1.3",
-	Hyperkube:       "k8s.gcr.io/hyperkube:v1.11.2",
+	Hyperkube:       "k8s.gcr.io/hyperkube:v1.12.1",
 	PodCheckpointer: "quay.io/coreos/pod-checkpointer:018007e77ccd61e8e59b7e15d7fc5e318a5a2682",
 }
diff --git a/pkg/asset/internal/templates.go b/pkg/asset/internal/templates.go
index c681df3f6..814c62141 100644
--- a/pkg/asset/internal/templates.go
+++ b/pkg/asset/internal/templates.go
@@ -433,6 +433,8 @@ spec:
           initialDelaySeconds: 15
           timeoutSeconds: 15
         volumeMounts:
+        - name: var-run-kubernetes
+          mountPath: /var/run/kubernetes
         - name: secrets
           mountPath: /etc/kubernetes/secrets
           readOnly: true
@@ -450,6 +452,8 @@ spec:
         operator: Exists
         effect: NoSchedule
       volumes:
+      - name: var-run-kubernetes
+        emptyDir: {}
       - name: secrets
         secret:
           secretName: kube-controller-manager