diff --git a/CHANGELOG.md b/CHANGELOG.md
index e0be23f9..2dbdaa42 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,23 @@
 
 All notable changes to this project are documented in this file.
 
+## 0.35.1
+
+**Release date:** 2023-02-17
+
+This release addresses a hypothetical issue with the Artifact `Digest` field
+validation, where a patch of the Artifact could fail to be applied to an object
+due to the lack of an `omitempty` tag on the optional field. In reality, this
+issue is not possible to encounter, as the `Digest` field is always set when
+the Artifact is created.
+
+Note that `v0.35.0` contains breaking changes. Please refer to the [changelog
+entry](#0350) for more information.
+
+Fixes:
+- api: omit empty Digest in Artifact
+  [#1031](https://github.com/fluxcd/source-controller/pull/1031)
+
 ## 0.35.0
 
 **Release date:** 2023-02-16
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 1368c612..791bb76f 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -6,4 +6,4 @@ resources:
 images:
 - name: fluxcd/source-controller
   newName: fluxcd/source-controller
-  newTag: v0.35.0
+  newTag: v0.35.1
diff --git a/go.mod b/go.mod
index 8715232e..70e1d72c 100644
--- a/go.mod
+++ b/go.mod
@@ -38,7 +38,7 @@ require (
 	github.com/fluxcd/pkg/testserver v0.4.0
 	github.com/fluxcd/pkg/untar v0.2.0
 	github.com/fluxcd/pkg/version v0.2.1
-	github.com/fluxcd/source-controller/api v0.35.0
+	github.com/fluxcd/source-controller/api v0.35.1
 	github.com/go-git/go-billy/v5 v5.4.1
 	github.com/go-logr/logr v1.2.3
 	github.com/google/go-containerregistry v0.13.0