diff --git a/functions/aws-provider/000-state-init.yaml.gotmpl b/functions/aws-provider/000-state-init.yaml.gotmpl
index 8a8fea9..34562da 100644
--- a/functions/aws-provider/000-state-init.yaml.gotmpl
+++ b/functions/aws-provider/000-state-init.yaml.gotmpl
@@ -39,7 +39,7 @@
     {{- $pkg := $spec.package | default dict }}
     {{- $packageName := $pkg.name | default "xpkg.crossplane.io/crossplane-contrib/provider-family-aws" }}
     # renovate: datasource=docker depName=crossplane-contrib/provider-family-aws registryUrl=https://xpkg.crossplane.io
-    {{- $packageVersion := $pkg.version | default "v2.7.0" }}
+    {{- $packageVersion := $pkg.version | default "v2.8.0" }}
     {{- $skipDependencyResolution := true }}
     {{- if hasKey $pkg "skipDependencyResolution" }}
       {{- $skipDependencyResolution = $pkg.skipDependencyResolution }}
diff --git a/tests/test-aws-provider-stack/main.k b/tests/test-aws-provider-stack/main.k
index 68fd8a2..7c05b2f 100644
--- a/tests/test-aws-provider-stack/main.k
+++ b/tests/test-aws-provider-stack/main.k
@@ -53,7 +53,7 @@ _items = [
                     kind = "Object"
                     metadata.name = "provider-family-aws"
                     spec.forProvider.manifest.spec = {
-                        package = "xpkg.crossplane.io/crossplane-contrib/provider-family-aws:v2.7.0"
+                        package = "xpkg.crossplane.io/crossplane-contrib/provider-family-aws:v2.8.0"
                         skipDependencyResolution = True
                         runtimeConfigRef.name = "my-cluster-aws"
                     }
@@ -62,13 +62,13 @@ _items = [
                     apiVersion = "kubernetes.m.crossplane.io/v1alpha1"
                     kind = "Object"
                     metadata.name = "provider-aws-iam"
-                    spec.forProvider.manifest.spec.package = "xpkg.crossplane.io/crossplane-contrib/provider-aws-iam:v2.7.0"
+                    spec.forProvider.manifest.spec.package = "xpkg.crossplane.io/crossplane-contrib/provider-aws-iam:v2.8.0"
                 }
                 {
                     apiVersion = "kubernetes.m.crossplane.io/v1alpha1"
                     kind = "Object"
                     metadata.name = "provider-aws-s3"
-                    spec.forProvider.manifest.spec.package = "xpkg.crossplane.io/crossplane-contrib/provider-aws-s3:v2.7.0"
+                    spec.forProvider.manifest.spec.package = "xpkg.crossplane.io/crossplane-contrib/provider-aws-s3:v2.8.0"
                 }
             ]
         }