diff --git a/build/dependencies.yaml b/build/dependencies.yaml
index 48739c27b4e..ff1226ac381 100644
--- a/build/dependencies.yaml
+++ b/build/dependencies.yaml
@@ -63,7 +63,7 @@ dependencies:
 
 
   - name: "coredns-kube-up"
-    version: 1.3.1
+    version: 1.5.0
     refPaths:
     - path: cluster/addons/dns/coredns/coredns.yaml.base
       match: k8s.gcr.io/coredns
diff --git a/cluster/addons/dns/coredns/coredns.yaml.base b/cluster/addons/dns/coredns/coredns.yaml.base
index f89f56a740f..4bb74125103 100644
--- a/cluster/addons/dns/coredns/coredns.yaml.base
+++ b/cluster/addons/dns/coredns/coredns.yaml.base
@@ -64,9 +64,9 @@ data:
     .:53 {
         errors
         health
+        ready
         kubernetes __PILLAR__DNS__DOMAIN__ in-addr.arpa ip6.arpa {
             pods insecure
-            upstream
             fallthrough in-addr.arpa ip6.arpa
             ttl 30
         }
@@ -116,7 +116,7 @@ spec:
         beta.kubernetes.io/os: linux
       containers:
       - name: coredns
-        image: k8s.gcr.io/coredns:1.3.1
+        image: k8s.gcr.io/coredns:1.5.0
         imagePullPolicy: IfNotPresent
         resources:
           limits:
@@ -150,8 +150,8 @@ spec:
           failureThreshold: 5
         readinessProbe:
           httpGet:
-            path: /health
-            port: 8080
+            path: /ready
+            port: 8181
             scheme: HTTP
         securityContext:
           allowPrivilegeEscalation: false
diff --git a/cluster/addons/dns/coredns/coredns.yaml.in b/cluster/addons/dns/coredns/coredns.yaml.in
index c70c8bff674..11efa9d886a 100644
--- a/cluster/addons/dns/coredns/coredns.yaml.in
+++ b/cluster/addons/dns/coredns/coredns.yaml.in
@@ -64,9 +64,9 @@ data:
     .:53 {
         errors
         health
+        ready
         kubernetes {{ pillar['dns_domain'] }} in-addr.arpa ip6.arpa {
             pods insecure
-            upstream
             fallthrough in-addr.arpa ip6.arpa
             ttl 30
         }
@@ -116,7 +116,7 @@ spec:
         beta.kubernetes.io/os: linux
       containers:
       - name: coredns
-        image: k8s.gcr.io/coredns:1.3.1
+        image: k8s.gcr.io/coredns:1.5.0
         imagePullPolicy: IfNotPresent
         resources:
           limits:
@@ -150,8 +150,8 @@ spec:
           failureThreshold: 5
         readinessProbe:
           httpGet:
-            path: /health
-            port: 8080
+            path: /ready
+            port: 8181
             scheme: HTTP
         securityContext:
           allowPrivilegeEscalation: false
diff --git a/cluster/addons/dns/coredns/coredns.yaml.sed b/cluster/addons/dns/coredns/coredns.yaml.sed
index 556afa76042..b02caa1655a 100644
--- a/cluster/addons/dns/coredns/coredns.yaml.sed
+++ b/cluster/addons/dns/coredns/coredns.yaml.sed
@@ -64,9 +64,9 @@ data:
     .:53 {
         errors
         health
+        ready
         kubernetes $DNS_DOMAIN in-addr.arpa ip6.arpa {
             pods insecure
-            upstream
             fallthrough in-addr.arpa ip6.arpa
             ttl 30
         }
@@ -116,7 +116,7 @@ spec:
         beta.kubernetes.io/os: linux
       containers:
       - name: coredns
-        image: k8s.gcr.io/coredns:1.3.1
+        image: k8s.gcr.io/coredns:1.5.0
         imagePullPolicy: IfNotPresent
         resources:
           limits:
@@ -150,8 +150,8 @@ spec:
           failureThreshold: 5
         readinessProbe:
           httpGet:
-            path: /health
-            port: 8080
+            path: /ready
+            port: 8181
             scheme: HTTP
         securityContext:
           allowPrivilegeEscalation: false