diff --git a/kubernetes/apps/kyverno/kyverno/policies/kustomization.yaml b/kubernetes/apps/kyverno/kyverno/policies/kustomization.yaml
index 5e3e3fac..aa9c709e 100644
--- a/kubernetes/apps/kyverno/kyverno/policies/kustomization.yaml
+++ b/kubernetes/apps/kyverno/kyverno/policies/kustomization.yaml
@@ -4,3 +4,4 @@ apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization
 resources:
   - ./remove-cpu-limits.yaml
+  - ./schematic-to-pod.yaml
diff --git a/kubernetes/apps/kyverno/kyverno/policies/schematic-to-pod.yaml b/kubernetes/apps/kyverno/kyverno/policies/schematic-to-pod.yaml
new file mode 100644
index 00000000..d9e84a0d
--- /dev/null
+++ b/kubernetes/apps/kyverno/kyverno/policies/schematic-to-pod.yaml
@@ -0,0 +1,39 @@
+---
+# yaml-language-server: $schema=https://ks.hsn.dev/kyverno.io/clusterpolicy_v1.json
+apiVersion: kyverno.io/v2beta1
+kind: ClusterPolicy
+metadata:
+  name: mutate-pod-binding
+  annotations:
+    pod-policies.kyverno.io/autogen-controllers: none
+    policies.kyverno.io/title: Mutate Pod Add Schematic
+    policies.kyverno.io/category: Other
+    policies.kyverno.io/subject: Pod
+    kyverno.io/kyverno-version: 1.10.0
+    policies.kyverno.io/minversion: 1.10.0
+    kyverno.io/kubernetes-version: "1.30"
+spec:
+  background: false
+  rules:
+    - name: project-foo
+      match:
+        any:
+          - resources:
+              kinds:
+                - Pod/binding
+              names:
+                - apply-talos*
+      context:
+        - name: node
+          variable:
+            jmesPath: request.object.target.name
+            default: ""
+        - name: schematic
+          apiCall:
+            urlPath: "/api/v1/nodes/{{node}}"
+            jmesPath: 'metadata.annotations."extensions.talos.dev/schematic" || ''empty'''
+      mutate:
+        patchStrategicMerge:
+          metadata:
+            annotations:
+              extensions.talos.dev/schematic: "{{ schematic }}"
diff --git a/kubernetes/apps/system-upgrade/kustomization.yaml b/kubernetes/apps/system-upgrade/kustomization.yaml
new file mode 100644
index 00000000..affe0466
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/kustomization.yaml
@@ -0,0 +1,9 @@
+---
+# yaml-language-server: $schema=https://json.schemastore.org/kustomization
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+resources:
+  # Pre Flux-Kustomizations
+  - ./namespace.yaml
+  # Flux-Kustomizations
+  - ./system-upgrade-controller/ks.yaml
diff --git a/kubernetes/apps/system-upgrade/namespace.yaml b/kubernetes/apps/system-upgrade/namespace.yaml
new file mode 100644
index 00000000..0aaea98b
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/namespace.yaml
@@ -0,0 +1,38 @@
+---
+apiVersion: v1
+kind: Namespace
+metadata:
+  name: system-upgrade
+  annotations:
+    kustomize.toolkit.fluxcd.io/prune: disabled
+    volsync.backube/privileged-movers: "true"
+---
+# yaml-language-server: $schema=https://kubernetes-schemas.pages.dev/notification.toolkit.fluxcd.io/provider_v1beta3.json
+apiVersion: notification.toolkit.fluxcd.io/v1beta3
+kind: Provider
+metadata:
+  name: alert-manager
+  namespace: system-upgrade
+spec:
+  type: alertmanager
+  address: http://alertmanager.observability.svc.cluster.local:9093/api/v2/alerts/
+---
+# yaml-language-server: $schema=https://kubernetes-schemas.pages.dev/notification.toolkit.fluxcd.io/alert_v1beta3.json
+apiVersion: notification.toolkit.fluxcd.io/v1beta3
+kind: Alert
+metadata:
+  name: alert-manager
+  namespace: system-upgrade
+spec:
+  providerRef:
+    name: alert-manager
+  eventSeverity: error
+  eventSources:
+    - kind: HelmRelease
+      name: "*"
+  exclusionList:
+    - "error.*lookup github\\.com"
+    - "error.*lookup raw\\.githubusercontent\\.com"
+    - "dial.*tcp.*timeout"
+    - "waiting.*socket"
+  suspend: false
diff --git a/kubernetes/apps/system-upgrade/system-upgrade-controller/app/helmrelease.yaml b/kubernetes/apps/system-upgrade/system-upgrade-controller/app/helmrelease.yaml
new file mode 100644
index 00000000..d873de8c
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/system-upgrade-controller/app/helmrelease.yaml
@@ -0,0 +1,101 @@
+---
+# yaml-language-server: $schema=https://raw.githubusercontent.com/bjw-s/helm-charts/main/charts/other/app-template/schemas/helmrelease-helm-v2.schema.json
+apiVersion: helm.toolkit.fluxcd.io/v2
+kind: HelmRelease
+metadata:
+  name: &app system-upgrade-controller
+spec:
+  interval: 30m
+  chart:
+    spec:
+      chart: app-template
+      version: 3.5.1
+      sourceRef:
+        kind: HelmRepository
+        name: bjw-s
+        namespace: flux-system
+  install:
+    remediation:
+      retries: 3
+  upgrade:
+    cleanupOnFail: true
+    remediation:
+      strategy: rollback
+      retries: 3
+  values:
+    controllers:
+      system-upgrade-controller:
+        strategy: RollingUpdate
+        containers:
+          app:
+            image:
+              repository: docker.io/rancher/system-upgrade-controller
+              tag: v0.14.1@sha256:7e13a9b2b984f0c0fd6328439b575348723cc6954b91db3453057fcb784e2d29
+            env:
+              SYSTEM_UPGRADE_CONTROLLER_DEBUG: false
+              SYSTEM_UPGRADE_CONTROLLER_THREADS: 2
+              SYSTEM_UPGRADE_JOB_ACTIVE_DEADLINE_SECONDS: 900
+              SYSTEM_UPGRADE_JOB_BACKOFF_LIMIT: 99
+              SYSTEM_UPGRADE_JOB_IMAGE_PULL_POLICY: IfNotPresent
+              SYSTEM_UPGRADE_JOB_KUBECTL_IMAGE: registry.k8s.io/kubectl:v1.31.1
+              SYSTEM_UPGRADE_JOB_POD_REPLACEMENT_POLICY: Failed
+              SYSTEM_UPGRADE_JOB_PRIVILEGED: true
+              SYSTEM_UPGRADE_JOB_TTL_SECONDS_AFTER_FINISH: 900
+              SYSTEM_UPGRADE_PLAN_POLLING_INTERVAL: 15m
+              SYSTEM_UPGRADE_CONTROLLER_NAME: *app
+              SYSTEM_UPGRADE_CONTROLLER_NAMESPACE:
+                valueFrom:
+                  fieldRef:
+                    fieldPath: metadata.namespace
+            securityContext:
+              allowPrivilegeEscalation: false
+              readOnlyRootFilesystem: true
+              capabilities: { drop: ["ALL"] }
+              seccompProfile:
+                type: RuntimeDefault
+    defaultPodOptions:
+      securityContext:
+        runAsNonRoot: true
+        runAsUser: 65534
+        runAsGroup: 65534
+        seccompProfile: { type: RuntimeDefault }
+      affinity:
+        nodeAffinity:
+          requiredDuringSchedulingIgnoredDuringExecution:
+            nodeSelectorTerms:
+              - matchExpressions:
+                  - key: node-role.kubernetes.io/control-plane
+                    operator: Exists
+      tolerations:
+        - key: CriticalAddonsOnly
+          operator: Exists
+        - key: node-role.kubernetes.io/control-plane
+          operator: Exists
+          effect: NoSchedule
+        - key: node-role.kubernetes.io/master
+          operator: Exists
+          effect: NoSchedule
+    serviceAccount:
+      create: true
+      name: system-upgrade
+    persistence:
+      tmp:
+        type: emptyDir
+      etc-ssl:
+        type: hostPath
+        hostPath: /etc/ssl
+        hostPathType: DirectoryOrCreate
+        globalMounts:
+          - readOnly: true
+      etc-pki:
+        type: hostPath
+        hostPath: /etc/pki
+        hostPathType: DirectoryOrCreate
+        globalMounts:
+          - readOnly: true
+      etc-ca-certificates:
+        type: hostPath
+        hostPath: /etc/ca-certificates
+        hostPathType: DirectoryOrCreate
+        globalMounts:
+          - readOnly: true
diff --git a/kubernetes/apps/system-upgrade/system-upgrade-controller/app/kustomization.yaml b/kubernetes/apps/system-upgrade/system-upgrade-controller/app/kustomization.yaml
new file mode 100644
index 00000000..10a8a828
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/system-upgrade-controller/app/kustomization.yaml
@@ -0,0 +1,7 @@
+---
+# yaml-language-server: $schema=https://json.schemastore.org/kustomization
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+resources:
+  - helmrelease.yaml
+  - rbac.yaml
diff --git a/kubernetes/apps/system-upgrade/system-upgrade-controller/app/rbac.yaml b/kubernetes/apps/system-upgrade/system-upgrade-controller/app/rbac.yaml
new file mode 100644
index 00000000..e9f4d789
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/system-upgrade-controller/app/rbac.yaml
@@ -0,0 +1,21 @@
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRoleBinding
+metadata:
+  name: system-upgrade
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: cluster-admin
+subjects:
+  - kind: ServiceAccount
+    name: system-upgrade
+    namespace: system-upgrade
+---
+apiVersion: talos.dev/v1alpha1
+kind: ServiceAccount
+metadata:
+  name: talos
+spec:
+  roles:
+    - os:admin
diff --git a/kubernetes/apps/system-upgrade/system-upgrade-controller/ks.yaml b/kubernetes/apps/system-upgrade/system-upgrade-controller/ks.yaml
new file mode 100644
index 00000000..cce5054b
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/system-upgrade-controller/ks.yaml
@@ -0,0 +1,50 @@
+---
+# yaml-language-server: $schema=https://kubernetes-schemas.pages.dev/kustomize.toolkit.fluxcd.io/kustomization_v1.json
+apiVersion: kustomize.toolkit.fluxcd.io/v1
+kind: Kustomization
+metadata:
+  name: &app system-upgrade-controller
+  namespace: flux-system
+spec:
+  targetNamespace: system-upgrade
+  commonMetadata:
+    labels:
+      app.kubernetes.io/name: *app
+  dependsOn:
+    - name: node-feature-discovery-rules
+  path: ./kubernetes/apps/system-upgrade/system-upgrade-controller/app
+  prune: true
+  sourceRef:
+    kind: GitRepository
+    name: theshire
+  wait: true
+  interval: 30m
+  timeout: 5m
+---
+# yaml-language-server: $schema=https://kubernetes-schemas.pages.dev/kustomize.toolkit.fluxcd.io/kustomization_v1.json
+apiVersion: kustomize.toolkit.fluxcd.io/v1
+kind: Kustomization
+metadata:
+  name: &app system-upgrade-controller-plans
+  namespace: flux-system
+spec:
+  targetNamespace: system-upgrade
+  commonMetadata:
+    labels:
+      app.kubernetes.io/name: *app
+  dependsOn:
+    - name: system-upgrade-controller
+  path: ./kubernetes/apps/system-upgrade/system-upgrade-controller/plans
+  prune: true
+  sourceRef:
+    kind: GitRepository
+    name: theshire
+  wait: false
+  interval: 30m
+  timeout: 5m
+  postBuild:
+    substitute:
+      # renovate: datasource=docker depName=ghcr.io/siderolabs/installer
+      TALOS_VERSION: v1.7.6
+      # renovate: datasource=docker depName=ghcr.io/siderolabs/kubelet
+      KUBERNETES_VERSION: v1.30.2
diff --git a/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kubernetes.yaml b/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kubernetes.yaml
new file mode 100644
index 00000000..c398579d
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kubernetes.yaml
@@ -0,0 +1,45 @@
+---
+# yaml-language-server: $schema=https://kubernetes-schemas.pages.dev/upgrade.cattle.io/plan_v1.json
+apiVersion: upgrade.cattle.io/v1
+kind: Plan
+metadata:
+  name: kubernetes
+spec:
+  version: ${KUBERNETES_VERSION}
+  serviceAccountName: system-upgrade
+  secrets:
+    - name: talos
+      path: /var/run/secrets/talos.dev
+      ignoreUpdates: true
+  concurrency: 1
+  exclusive: true
+  nodeSelector:
+    matchExpressions:
+      - key: feature.node.kubernetes.io/system-os_release.ID
+        operator: In
+        values: ["talos"]
+      - key: node-role.kubernetes.io/control-plane
+        operator: Exists
+  tolerations:
+    - key: CriticalAddonsOnly
+      operator: Exists
+    - key: node-role.kubernetes.io/control-plane
+      operator: Exists
+      effect: NoSchedule
+  prepare: &prepare
+    image: ghcr.io/siderolabs/talosctl:${TALOS_VERSION}
+    envs:
+      - name: NODE_IP
+        valueFrom:
+          fieldRef:
+            fieldPath: status.hostIP
+    args:
+      - --nodes=$(NODE_IP)
+      - health
+      - --server=false
+  upgrade:
+    <<: *prepare
+    args:
+      - --nodes=$(NODE_IP)
+      - upgrade-k8s
+      - --to=$(SYSTEM_UPGRADE_PLAN_LATEST_VERSION)
diff --git a/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kustomization.yaml b/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kustomization.yaml
new file mode 100644
index 00000000..061d8ad0
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kustomization.yaml
@@ -0,0 +1,7 @@
+---
+# yaml-language-server: $schema=https://json.schemastore.org/kustomization
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+resources:
+  - ./kubernetes.yaml
+  - ./talos.yaml
diff --git a/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/talos.yaml b/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/talos.yaml
new file mode 100644
index 00000000..9d663daa
--- /dev/null
+++ b/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/talos.yaml
@@ -0,0 +1,60 @@
+---
+# yaml-language-server: $schema=https://kubernetes-schemas.pages.dev/upgrade.cattle.io/plan_v1.json
+apiVersion: upgrade.cattle.io/v1
+kind: Plan
+metadata:
+  name: talos
+spec:
+  version: ${TALOS_VERSION}
+  serviceAccountName: system-upgrade
+  secrets:
+    - name: talos
+      path: /var/run/secrets/talos.dev
+      ignoreUpdates: true
+  concurrency: 1
+  exclusive: true
+  nodeSelector:
+    matchExpressions:
+      - key: feature.node.kubernetes.io/system-os_release.ID
+        operator: In
+        values: ["talos"]
+      - key: feature.node.kubernetes.io/system-os_release.VERSION_ID
+        operator: NotIn
+        values: ["${TALOS_VERSION}"]
+      - key: kubernetes.io/hostname
+        operator: NotIn
+        values: ["gandalf-01", "shadowfax-01"]
+      # - key: factory.talos.dev/schematic-id.part-0
+      #   operator: In
+      #   values: ["${TALOS_SCHEMATIC_ID:0:32}"]
+      # - key: factory.talos.dev/schematic-id.part-1
+      #   operator: In
+      #   values: ["${TALOS_SCHEMATIC_ID:32}"]
+  tolerations:
+    - key: CriticalAddonsOnly
+      operator: Exists
+    - key: node-role.kubernetes.io/control-plane
+      operator: Exists
+      effect: NoSchedule
+  prepare: &prepare
+    image: ghcr.io/siderolabs/talosctl:${TALOS_VERSION}
+    envs:
+      - name: NODE_IP
+        valueFrom:
+          fieldRef:
+            fieldPath: status.hostIP
+      - name: TALOS_SCHEMATIC_ID
+        valueFrom:
+          fieldRef:
+            fieldPath: metadata.annotations['extensions.talos.dev/schematic']
+    args:
+      - --nodes=$(NODE_IP)
+      - health
+      - --server=false
+  upgrade:
+    <<: *prepare
+    args:
+      - --nodes=$(NODE_IP)
+      - upgrade
+      - --image=factory.talos.dev/installer/${TALOS_SCHEMATIC_ID}:$(SYSTEM_UPGRADE_PLAN_LATEST_VERSION)
+      - --wait=false