diff --git a/go.mod b/go.mod
index b73f68ee91c0..cb734026ead7 100644
--- a/go.mod
+++ b/go.mod
@@ -44,7 +44,7 @@ require (
 	k8s.io/klog/v2 v2.130.1
 	k8s.io/utils v0.0.0-20241104100929-3ea5e8cea738
 	sigs.k8s.io/controller-runtime v0.20.2
-	sigs.k8s.io/karpenter v1.2.1-0.20250221214626-1c6342c8405e
+	sigs.k8s.io/karpenter v1.2.1-0.20250226155434-a8631046b542
 	sigs.k8s.io/yaml v1.4.0
 )
 
@@ -119,5 +119,3 @@ require (
 	sigs.k8s.io/json v0.0.0-20241010143419-9aa6b5e7a4b3 // indirect
 	sigs.k8s.io/structured-merge-diff/v4 v4.4.2 // indirect
 )
-
-replace sigs.k8s.io/karpenter => github.com/jmdeal/karpenter v0.0.0-20250225003856-d34d71584c1a
diff --git a/go.sum b/go.sum
index 6f9a7509d44f..6934d3ce56c0 100644
--- a/go.sum
+++ b/go.sum
@@ -116,8 +116,6 @@ github.com/imdario/mergo v0.3.16 h1:wwQJbIsHYGMUyLSPrEq1CT16AhnhNJQ51+4fdHUnCl4=
 github.com/imdario/mergo v0.3.16/go.mod h1:WBLT9ZmE3lPoWsEzCh9LPo3TiwVN+ZKEjmz+hD27ysY=
 github.com/inconshreveable/mousetrap v1.1.0 h1:wN+x4NVGpMsO7ErUn/mUI3vEoE6Jt13X2s0bqwp9tc8=
 github.com/inconshreveable/mousetrap v1.1.0/go.mod h1:vpF70FUmC8bwa3OWnCshd2FqLfsEA9PFc4w1p2J65bw=
-github.com/jmdeal/karpenter v0.0.0-20250225003856-d34d71584c1a h1:r7gPnoafSMfTjVmirGrkQu/3Suo6wiVDSElWyWIscXk=
-github.com/jmdeal/karpenter v0.0.0-20250225003856-d34d71584c1a/go.mod h1:/FgjYrt+hwAMcvY46hku76st/aeP4KjOib6RLEj312g=
 github.com/jonathan-innis/aws-sdk-go-prometheus v0.1.1 h1:gmpuckrozJ3lfKqSIia9YMGh0caoQmEY7mQP5MsnbTM=
 github.com/jonathan-innis/aws-sdk-go-prometheus v0.1.1/go.mod h1:168XvZFghCqo32ISSWnTXwdlMKzEq+x9TqdfswCjkrQ=
 github.com/josharian/intern v1.0.0 h1:vlS4z54oSdjm0bgjRigI+G1HpF+tI+9rE5LLzOg8HmY=
@@ -344,6 +342,8 @@ sigs.k8s.io/controller-runtime v0.20.2 h1:/439OZVxoEc02psi1h4QO3bHzTgu49bb347Xp4
 sigs.k8s.io/controller-runtime v0.20.2/go.mod h1:xg2XB0K5ShQzAgsoujxuKN4LNXR2LfwwHsPj7Iaw+XY=
 sigs.k8s.io/json v0.0.0-20241010143419-9aa6b5e7a4b3 h1:/Rv+M11QRah1itp8VhT6HoVx1Ray9eB4DBr+K+/sCJ8=
 sigs.k8s.io/json v0.0.0-20241010143419-9aa6b5e7a4b3/go.mod h1:18nIHnGi6636UCz6m8i4DhaJ65T6EruyzmoQqI2BVDo=
+sigs.k8s.io/karpenter v1.2.1-0.20250226155434-a8631046b542 h1:PMOKjiZhLRPrCxYnupvibbozgJwEh+tZP/cudbc9ycc=
+sigs.k8s.io/karpenter v1.2.1-0.20250226155434-a8631046b542/go.mod h1:1yjrpcMgklF1tauKrDINTR614QDflMN5FQ87kdEzcpk=
 sigs.k8s.io/structured-merge-diff/v4 v4.4.2 h1:MdmvkGuXi/8io6ixD5wud3vOLwc1rj0aNqRlpuvjmwA=
 sigs.k8s.io/structured-merge-diff/v4 v4.4.2/go.mod h1:N8f93tFZh9U6vpxwRArLiikrE5/2tiu1w1AGfACIGE4=
 sigs.k8s.io/yaml v1.4.0 h1:Mk1wCc2gy/F0THH0TAp1QYyJNzRm2KCLy3o5ASXVI5E=
diff --git a/website/content/en/preview/getting-started/getting-started-with-karpenter/cloudformation.yaml b/website/content/en/preview/getting-started/getting-started-with-karpenter/cloudformation.yaml
index 896dbe0d2a9a..d8d50dc4a1e5 100644
--- a/website/content/en/preview/getting-started/getting-started-with-karpenter/cloudformation.yaml
+++ b/website/content/en/preview/getting-started/getting-started-with-karpenter/cloudformation.yaml
@@ -41,7 +41,8 @@ Resources:
                 "arn:${AWS::Partition}:ec2:${AWS::Region}::image/*",
                 "arn:${AWS::Partition}:ec2:${AWS::Region}::snapshot/*",
                 "arn:${AWS::Partition}:ec2:${AWS::Region}:*:security-group/*",
-                "arn:${AWS::Partition}:ec2:${AWS::Region}:*:subnet/*"
+                "arn:${AWS::Partition}:ec2:${AWS::Region}:*:subnet/*",
+                "arn:${AWS::Partition}:ec2:${AWS::Region}:*:capacity-reservation/*"
               ],
               "Action": [
                 "ec2:RunInstances",