diff --git a/example/example-etcd-cluster.yaml b/example/example-etcd-cluster.yaml
index fabe9a8c0..dcf142dc3 100644
--- a/example/example-etcd-cluster.yaml
+++ b/example/example-etcd-cluster.yaml
@@ -4,4 +4,4 @@ metadata:
   name: "example-etcd-cluster"
 spec:
   size: 3
-  version: "3.1.8"
+  version: "3.2.9"
diff --git a/pkg/apis/etcd/v1beta2/cluster.go b/pkg/apis/etcd/v1beta2/cluster.go
index 32879ce18..21bea6113 100644
--- a/pkg/apis/etcd/v1beta2/cluster.go
+++ b/pkg/apis/etcd/v1beta2/cluster.go
@@ -23,8 +23,8 @@ import (
 )
 
 const (
-	defaultBaseImage = "quay.io/coreos/etcd"
-	defaultVersion   = "3.1.8"
+	defaultBaseImage = "gcr.io/etcd-development/etcd"
+	defaultVersion   = "3.2.9"
 )
 
 var (
@@ -92,10 +92,10 @@ type ClusterSpec struct {
 	// The etcd-operator will eventually make the etcd cluster version
 	// equal to the expected version.
 	//
-	// The version must follow the [semver]( http://semver.org) format, for example "3.1.8".
+	// The version must follow the [semver]( http://semver.org) format, for example "3.2.9".
 	// Only etcd released versions are supported: https://github.com/coreos/etcd/releases
 	//
-	// If version is not set, default is "3.1.8".
+	// If version is not set, default is "3.2.9".
 	Version string `json:"version,omitempty"`
 
 	// Paused is to pause the control of the operator for the etcd cluster.
diff --git a/test/e2e/basic_test.go b/test/e2e/basic_test.go
index 3e80799ce..4d1937e5f 100644
--- a/test/e2e/basic_test.go
+++ b/test/e2e/basic_test.go
@@ -107,7 +107,7 @@ func TestEtcdUpgrade(t *testing.T) {
 	}
 	f := framework.Global
 	origEtcd := e2eutil.NewCluster("test-etcd-", 3)
-	origEtcd = e2eutil.ClusterWithVersion(origEtcd, "3.0.16")
+	origEtcd = e2eutil.ClusterWithVersion(origEtcd, "3.2.8")
 	testEtcd, err := e2eutil.CreateCluster(t, f.CRClient, f.Namespace, origEtcd)
 	if err != nil {
 		t.Fatal(err)
@@ -119,13 +119,13 @@ func TestEtcdUpgrade(t *testing.T) {
 		}
 	}()
 
-	err = e2eutil.WaitSizeAndVersionReached(t, f.KubeClient, "3.0.16", 3, 6, testEtcd)
+	err = e2eutil.WaitSizeAndVersionReached(t, f.KubeClient, "3.2.8", 3, 6, testEtcd)
 	if err != nil {
 		t.Fatalf("failed to create 3 members etcd cluster: %v", err)
 	}
 
 	updateFunc := func(cl *api.EtcdCluster) {
-		cl = e2eutil.ClusterWithVersion(cl, "3.1.8")
+		cl = e2eutil.ClusterWithVersion(cl, "3.2.9")
 	}
 	_, err = e2eutil.UpdateCluster(f.CRClient, testEtcd, 10, updateFunc)
 	if err != nil {
@@ -133,7 +133,7 @@ func TestEtcdUpgrade(t *testing.T) {
 	}
 
 	// We have seen in k8s 1.7.1 env it took 35s for the pod to restart with the new image.
-	err = e2eutil.WaitSizeAndVersionReached(t, f.KubeClient, "3.1.8", 3, 10, testEtcd)
+	err = e2eutil.WaitSizeAndVersionReached(t, f.KubeClient, "3.2.9", 3, 10, testEtcd)
 	if err != nil {
 		t.Fatalf("failed to wait new version etcd cluster: %v", err)
 	}