diff --git a/MODULE.bazel.lock b/MODULE.bazel.lock
index 57e3e70..be05cd8 100644
--- a/MODULE.bazel.lock
+++ b/MODULE.bazel.lock
@@ -663,7 +663,7 @@
   "moduleExtensions": {
     "//kustomize:extensions.bzl%helm": {
       "general": {
-        "bzlTransitiveDigest": "m3/elwuzcEH6Ez8TN+Af6MIJTMX67yTsunzXZake8n0=",
+        "bzlTransitiveDigest": "sP+ZQpDge1Tc/AowlrmTJHnnIxIdZnTxlrF24DaV4tc=",
         "accumulatedFileDigests": {},
         "envVariables": {},
         "generatedRepoSpecs": {
@@ -690,7 +690,7 @@
     },
     "//kustomize:extensions.bzl%kustomize": {
       "general": {
-        "bzlTransitiveDigest": "m3/elwuzcEH6Ez8TN+Af6MIJTMX67yTsunzXZake8n0=",
+        "bzlTransitiveDigest": "sP+ZQpDge1Tc/AowlrmTJHnnIxIdZnTxlrF24DaV4tc=",
         "accumulatedFileDigests": {},
         "envVariables": {},
         "generatedRepoSpecs": {
@@ -699,7 +699,7 @@
             "ruleClassName": "_download_tool",
             "attributes": {
               "name": "_main~kustomize~kustomize_tool",
-              "version": "v5.3.0"
+              "version": "v5.4.0"
             }
           },
           "kustomize_tool_toolchains": {
@@ -708,7 +708,7 @@
             "attributes": {
               "name": "_main~kustomize~kustomize_tool_toolchains",
               "tool_repo": "kustomize_tool",
-              "version": "v5.3.0"
+              "version": "v5.4.0"
             }
           }
         },
diff --git a/README.rst b/README.rst
index 69449ad..d122f4d 100644
--- a/README.rst
+++ b/README.rst
@@ -122,16 +122,16 @@ In order to use these rules in your Bazel project, you must instruct Bazel to do
 
 .. code:: bazel
 
-    bazel_dep(name = "rules_kustomize", version = "0.3.8")
+    bazel_dep(name = "rules_kustomize", version = "0.3.9")
 
 This declaration registers a particular version of the :tool:`helm` and :tool:`kustomize` tools, respectively. By default, it registers `the latest version known to the rules <Tool Versions_>`_. You can specify a preferred version for each tool by supplying the known version slug (e.g. "v4.5.7") as an argument to the respective module extension's :field:`download` tag.
 
 .. code:: bazel
 
-    bazel_dep(name = "rules_kustomize", version = "0.3.8")
+    bazel_dep(name = "rules_kustomize", version = "0.3.9")
 
     kustomize = use_extension("@rules_kustomize//kustomize:extensions.bzl", "kustomize")
-    kustomize.download(version = "v5.2.1")
+    kustomize.download(version = "v5.3.0")
     helm = use_extension("@rules_kustomize//kustomize:extensions.bzl", "helm")
     helm.download(version = "v3.12.1")
 
@@ -146,12 +146,12 @@ At present, these rules can load the following versions of these tools:
 
 * :tool:`kustomize`
 
-  * `v5.3.0 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.3.0>`__ (default)
+  * `v5.4.0 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.4.0>`__ (default)
+  * `v5.3.0 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.3.0>`__
   * `v5.2.1 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.2.1>`__
   * `v5.1.0 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.1.0>`__
   * `v5.0.3 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.0.3>`__
   * `v5.0.1 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.0.1>`__
-  * `v5.0.0 <https://github.com/kubernetes-sigs/kustomize/releases/tag/kustomize%2Fv5.0.0>`__
 
 * :tool:`helm`
 
diff --git a/kustomize/private/tools/kustomize/toolchain.bzl b/kustomize/private/tools/kustomize/toolchain.bzl
index 6590165..d6df12f 100644
--- a/kustomize/private/tools/kustomize/toolchain.bzl
+++ b/kustomize/private/tools/kustomize/toolchain.bzl
@@ -3,6 +3,14 @@
 visibility("public")
 
 _TOOLS_BY_RELEASE = {
+    "v5.4.0": {
+        struct(os = "darwin", arch = "amd64"): "463214ec342f3a85d36c8b92f5453d46be6765b7f051b743567556f968f04c35",
+        struct(os = "darwin", arch = "arm64"): "a4c4b0804609ad05309490dabff79ff06382e0c93a5aea8851bd4e8f2623e655",
+        struct(os = "linux", arch = "amd64"): "ffa69471356a6a7c1a90dc743b58a46b7d535cd41865b1ff8290703e7269898f",
+        struct(os = "linux", arch = "arm64"): "b0fd1be2b655e04044fd292707628a2d63702d1dbc12c479e8dccf2ac268fa2e",
+        struct(os = "windows", arch = "amd64"): "0bb6e562c51f9aa2ea0c7ffb9d07976fbc0d6641ef712a1d0a25b1ed9958efb4",
+        struct(os = "windows", arch = "arm64"): "257c7dc1dad91a8c7614b64afd72e719c852d8265a88b1f983ecaf6a2e3cff9e",
+    },
     "v5.3.0": {
         struct(os = "darwin", arch = "amd64"): "bbd60a9c3a524669361c67cbe2a6c14d0f26cd0423f904b4f5c204260d16fc6e",
         struct(os = "darwin", arch = "arm64"): "a6e2b0b7e81ae3606026375648ae645bdd8f160e42c695af1a3066623b3bc54c",
@@ -43,17 +51,9 @@ _TOOLS_BY_RELEASE = {
         struct(os = "windows", arch = "amd64"): "d9053411276df9fff3abc082fdb6dae4b2901d5b6c6c65d0e27f241dddbb9cb4",
         struct(os = "windows", arch = "arm64"): "3447de7560295843f698358823336d08738509dcafd47ad52385e0549894d51b",
     },
-    "v5.0.0": {
-        struct(os = "darwin", arch = "amd64"): "75bd0e776a1e1c44639aa017bba9b6a305ce7332b89b9e8089e99fee2b83d04a",
-        struct(os = "darwin", arch = "arm64"): "74c576a9d6de9d6abb3e886141635b81e8cf3c2331b011535d4e8b5119f291db",
-        struct(os = "linux", arch = "amd64"): "2e8c28a80ce213528251f489db8d2dcbea7c63b986c8f7595a39fc76ff871cd7",
-        struct(os = "linux", arch = "arm64"): "e97b12a83e7b9b0407cac97cac4c25bc135c42383bd3764d5544e32c96542eca",
-        struct(os = "windows", arch = "amd64"): "19d5e98dbe9a66fc0a75897b6557243c6f9d69c113c1fa4b34c1d3fa892cf74c",
-        struct(os = "windows", arch = "arm64"): "55fe8b00b07b5701a6b537287b54bf0b70db05ffa9b0d7aa8f298256c8da57af",
-    },
 }
 
-_DEFAULT_TOOL_VERSION = "v5.3.0"
+_DEFAULT_TOOL_VERSION = "v5.4.0"
 
 def known_release_versions():
     return _TOOLS_BY_RELEASE.keys()
diff --git a/test/testdata/overlay/golden.yaml b/test/testdata/overlay/golden.yaml
index 084bd79..d75514e 100644
--- a/test/testdata/overlay/golden.yaml
+++ b/test/testdata/overlay/golden.yaml
@@ -8,7 +8,7 @@ data:
 kind: ConfigMap
 metadata:
   labels:
-    app.kubernetes.io/managed-by: kustomize-v5.3.0
+    app.kubernetes.io/managed-by: kustomize-unknown
   name: translations-t8gcg5kbfg
   namespace: test
 ---
@@ -16,7 +16,7 @@ apiVersion: v1
 kind: Pod
 metadata:
   labels:
-    app.kubernetes.io/managed-by: kustomize-v5.3.0
+    app.kubernetes.io/managed-by: kustomize-unknown
   name: show-config
   namespace: test
 spec: