diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service
index 5e917fc4f4..ac0e4df468 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service
+++ b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service
@@ -8,9 +8,8 @@ Before=docker.service
 
 [Service]
 Type=oneshot
-TimeoutStartSec=60
 
-Environment="FLANNEL_IMAGE_TAG=v0.7.0"
+Environment="FLANNEL_IMAGE_TAG=v0.7.1"
 Environment="RKT_RUN_ARGS=--uuid-file-save=/var/lib/coreos/flannel-wrapper2.uuid"
 Environment="FLANNEL_IMAGE_ARGS=--exec=/opt/bin/mk-docker-opts.sh"
 
diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flanneld.service b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flanneld.service
index e6f036ffb4..dfcd63b349 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flanneld.service
+++ b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flanneld.service
@@ -8,10 +8,11 @@ Requires=flannel-docker-opts.service
 Type=notify
 Restart=always
 RestartSec=10s
+TimeoutStartSec=300
 LimitNOFILE=40000
 LimitNPROC=1048576
 
-Environment="FLANNEL_IMAGE_TAG=v0.7.0"
+Environment="FLANNEL_IMAGE_TAG=v0.7.1"
 Environment="FLANNEL_OPTS=--ip-masq=true"
 Environment="RKT_RUN_ARGS=--uuid-file-save=/var/lib/coreos/flannel-wrapper.uuid"
 EnvironmentFile=-/run/flannel/options.env
diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.0-r2.ebuild b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.1.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.0-r2.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.1.ebuild