diff --git a/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.6.yaml.template b/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.6.yaml.template
index 742e8e0e48..c3a7fea17e 100644
--- a/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.6.yaml.template
+++ b/upup/models/cloudup/resources/addons/coredns.addons.k8s.io/k8s-1.6.yaml.template
@@ -64,7 +64,9 @@ data:
         }
         prometheus :9153
         proxy . /etc/resolv.conf
+        loop
         cache 30
+        loadbalance
         reload
     }
 ---
@@ -99,7 +101,7 @@ spec:
           operator: "Exists"
       containers:
       - name: coredns
-        image: k8s.gcr.io/coredns:1.1.3
+        image: k8s.gcr.io/coredns:1.2.2
         imagePullPolicy: IfNotPresent
         resources:
           limits:
diff --git a/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go b/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go
index a8826c5dd8..dafd129e11 100644
--- a/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go
+++ b/upup/pkg/fi/cloudup/bootstrapchannelbuilder.go
@@ -211,7 +211,7 @@ func (b *BootstrapChannelBuilder) buildManifest() (*channelsapi.Addons, map[stri
 	if kubeDNS.Provider == "CoreDNS" {
 		{
 			key := "coredns.addons.k8s.io"
-			version := "1.1.3-kops.1"
+			version := "1.2.2-kops.1"
 
 			{
 				location := key + "/k8s-1.6.yaml"