diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3b0fc264d5..36c9e51d18 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,7 @@ Note that the only difference between `v2` and `v3` of the CodeQL Action is the
 ## [UNRELEASED]
 
 - Fix an issue where an existing, but empty, `/sys/fs/cgroup/cpuset.cpus` file always resulted in a single-threaded run. [#2151](https://github.com/github/codeql-action/pull/2151)
+- Update default CodeQL bundle version to 2.16.3. [#2156](https://github.com/github/codeql-action/pull/2156)
 
 ## 3.24.3 - 15 Feb 2024
 
diff --git a/lib/defaults.json b/lib/defaults.json
index 6fecfa3bdb..9ad219e11c 100644
--- a/lib/defaults.json
+++ b/lib/defaults.json
@@ -1,6 +1,6 @@
 {
-    "bundleVersion": "codeql-bundle-v2.16.2",
-    "cliVersion": "2.16.2",
-    "priorBundleVersion": "codeql-bundle-v2.16.1",
-    "priorCliVersion": "2.16.1"
+    "bundleVersion": "codeql-bundle-v2.16.3",
+    "cliVersion": "2.16.3",
+    "priorBundleVersion": "codeql-bundle-v2.16.2",
+    "priorCliVersion": "2.16.2"
 }
diff --git a/src/defaults.json b/src/defaults.json
index 31028a6f69..f70e175c73 100644
--- a/src/defaults.json
+++ b/src/defaults.json
@@ -1,6 +1,6 @@
 {
-  "bundleVersion": "codeql-bundle-v2.16.2",
-  "cliVersion": "2.16.2",
-  "priorBundleVersion": "codeql-bundle-v2.16.1",
-  "priorCliVersion": "2.16.1"
+  "bundleVersion": "codeql-bundle-v2.16.3",
+  "cliVersion": "2.16.3",
+  "priorBundleVersion": "codeql-bundle-v2.16.2",
+  "priorCliVersion": "2.16.2"
 }