diff --git a/.gitignore b/.gitignore
index e71c1d7..3485cfe 100644
--- a/.gitignore
+++ b/.gitignore
@@ -150,3 +150,4 @@
 /packitos-1.16.0.tar.gz
 /packitos-1.16.1.tar.gz
 /packitos-1.16.2.tar.gz
+/packitos-1.16.3.tar.gz
diff --git a/README.packit b/README.packit
index 173195e..72ae4cd 100644
--- a/README.packit
+++ b/README.packit
@@ -1,3 +1,3 @@
 This repository is maintained by packit.
 https://packit.dev/
-The file was generated using packit 1.16.1.post1.dev2+gf84fe2d5b.
+The file was generated using packit 1.16.2.post1.dev18+g099fa292c.
diff --git a/packit.spec b/packit.spec
index ffa40fb..f130f29 100644
--- a/packit.spec
+++ b/packit.spec
@@ -6,7 +6,7 @@
 %endif
 
 Name:           packit
-Version:        1.16.2
+Version:        1.16.3
 Release:        1%{?dist}
 Summary:        A tool for integrating upstream projects with Fedora operating system
 
@@ -78,6 +78,11 @@ cp files/bash-completion/packit %{buildroot}%{bash_completions_dir}/packit
 %doc README.md
 
 %changelog
+* Fri Sep 04 2026 Packit <hello@packit.dev> - 1.16.3-1
+- Packit now retries when it encounters connection errors during authentication when attempting to create a Bodhi update. (#2749)
+- Fixed an issue where a relative `--dist-git-path` (e.g. `.`) could cause packit to incorrectly identify a dist-git directory as an upstream repository. (#2736)
+- Resolves: rhbz#2528471
+
 * Mon Jul 20 2026 Packit <hello@packit.dev> - 1.16.2-1
 - Add HTTP timeouts and make `get_monitoring_metadata()` unauthenticated which should improve the UX of `packit validate`. (#2730)
 - Resolves: rhbz#2502899
diff --git a/plans/full.fmf b/plans/full.fmf
index 888283c..fd42d60 100644
--- a/plans/full.fmf
+++ b/plans/full.fmf
@@ -3,6 +3,13 @@ summary: Unit, integration & functional tests.
 discover+:
   filter: tag:full
 
+# marshmallow-jsonschema has no Fedora/EPEL package, install it from PyPI
+prepare:
+  - how: install
+    package: python3-pip
+  - how: shell
+    script: pip3 install marshmallow-jsonschema
+
 adjust:
   - when: "initiator == packit"
     because: "have the latest builds of ogr and specfile available for upstream test jobs"
diff --git a/plans/main.fmf b/plans/main.fmf
index 379819d..ee8dd03 100644
--- a/plans/main.fmf
+++ b/plans/main.fmf
@@ -1,6 +1,6 @@
 discover:
     how: fmf
     url: https://github.com/packit/packit.git
-    ref: 33bc381e684e4a9c649f26d557620fd361f21532
+    ref: 868f8f6b5f04b0dfc5f4e42aa466721ffc0e4b15
 execute:
     how: tmt
diff --git a/sources b/sources
index fef546b..fa66d96 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-SHA512 (packitos-1.16.2.tar.gz) = 7d52f5ad3409a5772bab0d96f8baa834a7d95cf069153c2018bebe52076523cf42a7a6b79234f7c220af009a5de1ae8feac2442d2fbf6b78cddebe02faaf1138
+SHA512 (packitos-1.16.3.tar.gz) = 0bf3d8a574f09d78261044e6b66447363e6c1d14f77c610b73773565aeac696aac952a2fc777aafc769023c211436ac18a84dce935f0da006fec02f981313758