diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9ef8b1e7d..b26c336f3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,10 @@ and this project's packages adheres to [Semantic Versioning](http://semver.org/s
 
 ## [Unreleased]
 
+### Changed
+
+- Update `PolicyExceptions` to `v2` and failover to `v2beta1`.
+
 ## [6.11.0] - 2024-04-23
 
 ### Added
diff --git a/helm/app-operator/templates/policyexception.yaml b/helm/app-operator/templates/policyexception.yaml
index 9c3019de9..bbaad69a6 100644
--- a/helm/app-operator/templates/policyexception.yaml
+++ b/helm/app-operator/templates/policyexception.yaml
@@ -1,7 +1,11 @@
 {{- if .Values.kyvernoPolicyExceptions.enabled }}
 {{- if .Values.bootstrapMode.enabled }}
-{{- if .Capabilities.APIVersions.Has "kyverno.io/v2alpha1/PolicyException" -}}
-apiVersion: kyverno.io/v2alpha1
+{{- if .Capabilities.APIVersions.Has "kyverno.io/v2beta1/PolicyException" }}
+  {{- if .Capabilities.APIVersions.Has "kyverno.io/v2/PolicyException" }}
+apiVersion: kyverno.io/v2
+  {{- else }}
+apiVersion: kyverno.io/v2beta1
+  {{- end }}
 kind: PolicyException
 metadata:
   name: {{ include "resource.default.name" . }}-bootstrap-mode