diff --git a/deploy/iso/minikube-iso/package/podman/containers.conf b/deploy/iso/minikube-iso/package/podman/containers.conf
new file mode 100644
index 000000000000..53745589359d
--- /dev/null
+++ b/deploy/iso/minikube-iso/package/podman/containers.conf
@@ -0,0 +1,29 @@
+# The containers configuration file specifies all of the available configuration
+# command-line options/flags for container engine tools like Podman & Buildah,
+# but in a TOML format that can be easily modified and versioned.
+
+# Please refer to containers.conf(5) for details of all configuration options.
+# Not all container engines implement all of the options.
+# All of the options have hard coded defaults and these options will override
+# the built in defaults. Users can then override these options via the command
+# line. Container engines will read containers.conf files in up to three
+# locations in the following order:
+#  1. /usr/share/containers/containers.conf
+#  2. /etc/containers/containers.conf
+#  3. $HOME/.config/containers/containers.conf (Rootless containers ONLY)
+#  Items specified in the latter containers.conf, if they exist, override the
+# previous containers.conf settings, or the default settings.
+
+[network]
+
+# Path to directory where CNI plugin binaries are located.
+#
+# cni_plugin_dirs = ["/usr/libexec/cni"]
+
+# The network name of the default CNI network to attach pods to.
+# default_network = "podman"
+
+# Path to the directory where CNI configuration files are located.
+#
+# network_config_dir = "/etc/cni/net.d/"
+network_config_dir = "/etc/containers/net.d/"
diff --git a/deploy/iso/minikube-iso/package/podman/podman.hash b/deploy/iso/minikube-iso/package/podman/podman.hash
index 4f5158b977e2..2d82781bac9e 100644
--- a/deploy/iso/minikube-iso/package/podman/podman.hash
+++ b/deploy/iso/minikube-iso/package/podman/podman.hash
@@ -2,3 +2,4 @@ sha256 a16846fe076aaf2c9ea2e854c3baba9fb838d916be7fb4b5be332e6c92d907d4 v1.9.3.t
 sha256 5ebaa6e0dbd7fd1863f70d2bc71dc8a94e195c3339c17e3cac4560c9ec5747f8 v2.1.1.tar.gz
 sha256 ec5473e51fa28f29af323473fc484f742dc7df23d06d8ba9f217f13382893a71 v2.2.0.tar.gz
 sha256 3212bad60d945c1169b27da03959f36d92d1d8964645c701a5a82a89118e96d1 v2.2.1.tar.gz
+sha256 5a0d42e03d15e32c5c54a147da5ef1b8928ec00982ac9e3f1edc82c5e614b6d2 v3.1.2.tar.gz
diff --git a/deploy/iso/minikube-iso/package/podman/podman.mk b/deploy/iso/minikube-iso/package/podman/podman.mk
index a2170ba39534..bef3e814fb64 100644
--- a/deploy/iso/minikube-iso/package/podman/podman.mk
+++ b/deploy/iso/minikube-iso/package/podman/podman.mk
@@ -1,5 +1,5 @@
-PODMAN_VERSION = v2.2.1
-PODMAN_COMMIT = a0d478edea7f775b7ce32f8eb1a01e75374486cb
+PODMAN_VERSION = v3.1.2
+PODMAN_COMMIT = 51b8ddbc22cf5b10dd76dd9243924aa66ad7db39
 PODMAN_SITE = https://github.com/containers/podman/archive
 PODMAN_SOURCE = $(PODMAN_VERSION).tar.gz
 PODMAN_LICENSE = Apache-2.0
@@ -47,8 +47,11 @@ endef
 
 define PODMAN_INSTALL_TARGET_CMDS
 	$(INSTALL) -Dm755 $(@D)/bin/podman $(TARGET_DIR)/usr/bin/podman
-	$(INSTALL) -d -m 755 $(TARGET_DIR)/etc/cni/net.d/
-	$(INSTALL) -m 644 $(@D)/cni/87-podman-bridge.conflist $(TARGET_DIR)/etc/cni/net.d/87-podman-bridge.conflist
+	# Don't use kubernetes /etc/cni, but use podman /etc/containers
+	$(INSTALL) -d -m 755 $(TARGET_DIR)/etc/containers/
+	$(INSTALL) -m 644 $(PODMAN_PKGDIR)/containers.conf $(TARGET_DIR)/etc/containers/containers.conf
+	$(INSTALL) -d -m 755 $(TARGET_DIR)/etc/containers/net.d/
+	$(INSTALL) -m 644 $(@D)/cni/87-podman-bridge.conflist $(TARGET_DIR)/etc/containers/net.d/87-podman-bridge.conflist
 endef
 
 define PODMAN_INSTALL_INIT_SYSTEMD