diff --git a/.github/workflows/runner.yml b/.github/workflows/runner.yml
index faffce78..42e9fc73 100644
--- a/.github/workflows/runner.yml
+++ b/.github/workflows/runner.yml
@@ -21,7 +21,7 @@ jobs:
       - name: Test Action
         uses: ./
         with:
-          minikube version: v1.33.0
+          minikube version: v1.34.0
           kubernetes version: ${{ matrix.kubernetes }}
           github token: ${{ secrets.GITHUB_TOKEN }}
       - name: Validate Minikube
@@ -41,7 +41,7 @@ jobs:
       - name: Test Action
         uses: ./
         with:
-          minikube version: v1.33.0
+          minikube version: v1.34.0
           kubernetes version: v1.30.0
           github token: ${{ secrets.GITHUB_TOKEN }}
           driver: docker
@@ -64,7 +64,7 @@ jobs:
       - name: Test Action
         uses: ./
         with:
-          minikube version: v1.33.0
+          minikube version: v1.34.0
           kubernetes version: v1.29.0
           github token: ${{ secrets.GITHUB_TOKEN }}
           start args: '--addons=registry --addons=metrics-server'
@@ -85,7 +85,7 @@ jobs:
       - name: Test Action
         uses: ./
         with:
-          minikube version: v1.33.0
+          minikube version: v1.34.0
           kubernetes version: v1.30.0
           github token: ${{ secrets.GITHUB_TOKEN }}
           start args: '--addons=ingress'
@@ -110,7 +110,7 @@ jobs:
       - name: Test Action
         uses: ./
         with:
-          minikube version: v1.33.0
+          minikube version: v1.34.0
           kubernetes version: ${{ matrix.kubernetes }}
           github token: ${{ secrets.GITHUB_TOKEN }}
           container runtime: ${{ matrix.container_runtime }}
@@ -135,7 +135,7 @@ jobs:
       - name: Test Action
         uses: ./
         with:
-          minikube version: v1.33.0
+          minikube version: v1.34.0
           kubernetes version: ${{ matrix.kubernetes }}
           github token: ${{ secrets.GITHUB_TOKEN }}
       - name: Validate Minikube
diff --git a/README.md b/README.md
index 6a5ed35c..f9a9a17c 100644
--- a/README.md
+++ b/README.md
@@ -31,7 +31,7 @@ jobs:
       - name: Setup Minikube
         uses: manusa/actions-setup-minikube@v2.11.0
         with:
-          minikube version: 'v1.33.0'
+          minikube version: 'v1.34.0'
           kubernetes version: 'v1.30.0'
           github token: ${{ secrets.GITHUB_TOKEN }}
       - name: Interact with the cluster
diff --git a/src/__tests__/install.test.js b/src/__tests__/install.test.js
index cf458a36..7933c123 100644
--- a/src/__tests__/install.test.js
+++ b/src/__tests__/install.test.js
@@ -8,6 +8,7 @@ describe('install module test suite', () => {
     jest.resetModules();
     jest.mock('@actions/core');
     jest.mock('@actions/io', () => ({
+      mkdirP: jest.fn(() => {}),
       mv: jest.fn(() => {})
     }));
     jest.mock('path');
diff --git a/src/install.js b/src/install.js
index 3246eff2..549a187f 100644
--- a/src/install.js
+++ b/src/install.js
@@ -18,6 +18,11 @@ const install = async (minikube, inputs) => {
   core.info('Installing Minikube');
   logExecSync(`chmod +x ${minikube}`);
   const minikubeDirectory = path.dirname(minikube);
+  // See https://github.com/kubernetes/minikube/pull/18648
+  // https://github.com/kubernetes/minikube/issues/15835
+  // Since v1.34.0 minikube doesn't automatically append .minikube to the MINIKUBE_HOME variable unless the directory exists
+  // By creating it manually we ensure compatibility with current and legacy versions.
+  await io.mkdirP(path.join(minikubeDirectory, '.minikube'));
   await io.mv(minikube, path.join(minikubeDirectory, 'minikube'));
   core.exportVariable('MINIKUBE_HOME', minikubeDirectory);
   core.addPath(minikubeDirectory);