diff --git a/nixos/modules/virtualisation/waagent.nix b/nixos/modules/virtualisation/waagent.nix
index d09bb99939b69..4929b8435170b 100644
--- a/nixos/modules/virtualisation/waagent.nix
+++ b/nixos/modules/virtualisation/waagent.nix
@@ -228,11 +228,11 @@ let
         };
       };
 
-      AutoUpdate.Enable = lib.mkOption {
+      AutoUpdate.UpdateToLatestVersion = lib.mkOption {
         type = types.bool;
         default = false;
         description = ''
-          Whether or not to enable autoupdate for goal state processing.
+          Whether or not to enable auto-update of the Extension Handler.
         '';
       };
     };
diff --git a/pkgs/by-name/wa/waagent/package.nix b/pkgs/by-name/wa/waagent/package.nix
index dab0a9cc2384d..67d87e8125c29 100644
--- a/pkgs/by-name/wa/waagent/package.nix
+++ b/pkgs/by-name/wa/waagent/package.nix
@@ -14,12 +14,12 @@ let
 in
 python.pkgs.buildPythonApplication rec {
   pname = "waagent";
-  version = "2.12.0.4";
+  version = "2.13.1.1";
   src = fetchFromGitHub {
     owner = "Azure";
     repo = "WALinuxAgent";
     tag = "v${version}";
-    hash = "sha256-L8W/ijBHkNukM2G9HBRVx2wFXzgkR8gbFBljNVPs6xA=";
+    hash = "sha256-W2NXxQOxRhJD/D/w58xknA9X8YYnQxwIhhjXzlCVVWA=";
   };
   patches = [
     # Suppress the following error when waagent tries to configure sshd: