diff --git a/package/containerd/containerd.hash b/package/containerd/containerd.hash
index 04a29949d7..16474089d1 100644
--- a/package/containerd/containerd.hash
+++ b/package/containerd/containerd.hash
@@ -1,3 +1,3 @@
 # Computed locally
-sha256  b86e5c42f58b8348422c972513ff49783c0d505ed84e498d0d0245c5992e4320  containerd-1.6.12.tar.gz
+sha256  e0a893cf67df9dfaecbcde2ba4e896efb3a86ffe48dcfe0d2b26f7cf19b5af3a  containerd-1.6.16.tar.gz
 sha256  4bbe3b885e8cd1907ab4cf9a41e862e74e24b5422297a4f2fe524e6a30ada2b4  LICENSE
diff --git a/package/containerd/containerd.mk b/package/containerd/containerd.mk
index 192175800c..4a0d6ec38b 100644
--- a/package/containerd/containerd.mk
+++ b/package/containerd/containerd.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-CONTAINERD_VERSION = 1.6.12
+CONTAINERD_VERSION = 1.6.16
 CONTAINERD_SITE = $(call github,containerd,containerd,v$(CONTAINERD_VERSION))
 CONTAINERD_LICENSE = Apache-2.0
 CONTAINERD_LICENSE_FILES = LICENSE
@@ -41,4 +41,10 @@ else
 CONTAINERD_TAGS += no_btrfs
 endif
 
+define CONTAINERD_INSTALL_INIT_SYSTEMD
+	$(INSTALL) -D -m 0644 $(@D)/containerd.service \
+		$(TARGET_DIR)/usr/lib/systemd/system/containerd.service
+	$(SED) 's,/usr/local/bin,/usr/bin,g' $(TARGET_DIR)/usr/lib/systemd/system/containerd.service
+endef
+
 $(eval $(golang-package))