diff --git a/charts/ingress-nginx/README.md b/charts/ingress-nginx/README.md
index 6288da3e3..c9ce4e3bc 100644
--- a/charts/ingress-nginx/README.md
+++ b/charts/ingress-nginx/README.md
@@ -377,7 +377,7 @@ As of version `1.26.0` of this chart, by simply not providing any clusterIP valu
 | controller.nodeSelector | object | `{"kubernetes.io/os":"linux"}` | Node labels for controller pod assignment # Ref: https://kubernetes.io/docs/concepts/scheduling-eviction/assign-pod-node/ # |
 | controller.opentelemetry.containerSecurityContext.allowPrivilegeEscalation | bool | `false` |  |
 | controller.opentelemetry.enabled | bool | `false` |  |
-| controller.opentelemetry.image | string | `"registry.k8s.io/ingress-nginx/opentelemetry:v20230527@sha256:fd7ec835f31b7b37187238eb4fdad4438806e69f413a203796263131f4f02ed0"` |  |
+| controller.opentelemetry.image | string | `"registry.k8s.io/ingress-nginx/opentelemetry:v20230721-3e2062ee5@sha256:13bee3f5223883d3ca62fee7309ad02d22ec00ff0d7033e3e9aca7a9f60fd472"` |  |
 | controller.podAnnotations | object | `{}` | Annotations to be added to controller pods # |
 | controller.podLabels | object | `{}` | Labels to add to the pod container metadata |
 | controller.podSecurityContext | object | `{}` | Security Context policies for controller pods |
diff --git a/charts/ingress-nginx/templates/controller-deployment.yaml b/charts/ingress-nginx/templates/controller-deployment.yaml
index 537c3feef..69cb734a0 100644
--- a/charts/ingress-nginx/templates/controller-deployment.yaml
+++ b/charts/ingress-nginx/templates/controller-deployment.yaml
@@ -193,7 +193,7 @@ spec:
       {{- end }}
       {{- if .Values.controller.opentelemetry.enabled}}
           {{ $otelContainerSecurityContext := $.Values.controller.opentelemetry.containerSecurityContext | default $.Values.controller.containerSecurityContext }}
-          {{- include "extraModules" (dict "name" "opentelemetry" "image" .Values.controller.opentelemetry.image "containerSecurityContext" $otelContainerSecurityContext "distroless" false) | nindent 8}}
+          {{- include "extraModules" (dict "name" "opentelemetry" "image" .Values.controller.opentelemetry.image "containerSecurityContext" $otelContainerSecurityContext "distroless" true) | nindent 8}}
       {{- end}}
     {{- end }}
     {{- if .Values.controller.hostNetwork }}
diff --git a/charts/ingress-nginx/values.yaml b/charts/ingress-nginx/values.yaml
index 8205b3506..3b156a6bf 100644
--- a/charts/ingress-nginx/values.yaml
+++ b/charts/ingress-nginx/values.yaml
@@ -556,7 +556,7 @@ controller:
 
   opentelemetry:
     enabled: false
-    image: registry.k8s.io/ingress-nginx/opentelemetry:v20230527@sha256:fd7ec835f31b7b37187238eb4fdad4438806e69f413a203796263131f4f02ed0
+    image: registry.k8s.io/ingress-nginx/opentelemetry:v20230721-3e2062ee5@sha256:13bee3f5223883d3ca62fee7309ad02d22ec00ff0d7033e3e9aca7a9f60fd472
     containerSecurityContext:
       allowPrivilegeEscalation: false
   admissionWebhooks: