diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1562e65e..fc347b4c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,19 @@
 # Changelog
 
+## 1.2.2
+
+**Release date:** 2026-07-07
+
+This patch release disables Flux variable substitution on the image-reflector
+CRDs. The CRDs are now annotated with
+`kustomize.toolkit.fluxcd.io/substitute: disabled` so that Kustomizations with
+post-build substitution enabled no longer corrupt the CRD schemas when they
+contain `${...}` sequences.
+
+Fixes:
+- Disable variable substitution in CRDs
+  [#913](https://github.com/fluxcd/image-reflector-controller/pull/913)
+
 ## 1.2.1
 
 **Release date:** 2026-06-30
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 496be48c..bea75eb4 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
   - name: fluxcd/image-reflector-controller
     newName: fluxcd/image-reflector-controller
-    newTag: v1.2.1
+    newTag: v1.2.2
diff --git a/go.mod b/go.mod
index 7398569b..bfbf09b8 100644
--- a/go.mod
+++ b/go.mod
@@ -9,7 +9,7 @@ require (
 	github.com/Masterminds/semver/v3 v3.5.0
 	github.com/dgraph-io/badger/v4 v4.9.1
 	github.com/elazarl/goproxy v1.8.4
-	github.com/fluxcd/image-reflector-controller/api v1.2.1
+	github.com/fluxcd/image-reflector-controller/api v1.2.2
 	github.com/fluxcd/pkg/apis/acl v0.10.0
 	github.com/fluxcd/pkg/apis/event v0.27.1
 	github.com/fluxcd/pkg/apis/meta v1.30.1