diff --git a/CHANGELOG.md b/CHANGELOG.md
index 142a423..3f39acf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,10 @@
 
 ## [Unreleased]
 
+## [1.12.1] - 2026-03-23
+
+- Increase required CLI version to 3.12.0
+
 ## [1.12.0] - 2026-03-11
 
 - Add support for Visual Studio 2026
diff --git a/src/extension/Cycode.VisualStudio.Extension.14.0-16.0/source.extension.vsixmanifest b/src/extension/Cycode.VisualStudio.Extension.14.0-16.0/source.extension.vsixmanifest
index 1cf86ca..6157639 100644
--- a/src/extension/Cycode.VisualStudio.Extension.14.0-16.0/source.extension.vsixmanifest
+++ b/src/extension/Cycode.VisualStudio.Extension.14.0-16.0/source.extension.vsixmanifest
@@ -1,7 +1,7 @@
 <?xml version="1.0" encoding="utf-8"?>
 <PackageManifest Version="2.0.0" xmlns="http://schemas.microsoft.com/developer/vsx-schema/2011" xmlns:d="http://schemas.microsoft.com/developer/vsx-schema-design/2011">
     <Metadata>
-        <Identity Id="Cycode.7e1a0714-9b3b-4e0e-9c0a-d23fb20ab86e" Version="1.12.0" Language="en-US" Publisher="cycodehq" />
+        <Identity Id="Cycode.7e1a0714-9b3b-4e0e-9c0a-d23fb20ab86e" Version="1.12.1" Language="en-US" Publisher="cycodehq" />
         <DisplayName>Cycode</DisplayName>
         <Description xml:space="preserve">Cycode for Visual Studio IDE</Description>
         <MoreInfo>https://github.com/cycodehq/visual-studio-extension</MoreInfo>
diff --git a/src/extension/Cycode.VisualStudio.Extension.17.0/source.extension.vsixmanifest b/src/extension/Cycode.VisualStudio.Extension.17.0/source.extension.vsixmanifest
index 6602242..bebc262 100644
--- a/src/extension/Cycode.VisualStudio.Extension.17.0/source.extension.vsixmanifest
+++ b/src/extension/Cycode.VisualStudio.Extension.17.0/source.extension.vsixmanifest
@@ -1,7 +1,7 @@
 <?xml version="1.0" encoding="utf-8"?>
 <PackageManifest Version="2.0.0" xmlns="http://schemas.microsoft.com/developer/vsx-schema/2011" xmlns:d="http://schemas.microsoft.com/developer/vsx-schema-design/2011">
     <Metadata>
-        <Identity Id="Cycode.f2c5020e-67a2-46f8-a888-609412fd59db" Version="1.12.0" Language="en-US" Publisher="cycodehq" />
+        <Identity Id="Cycode.f2c5020e-67a2-46f8-a888-609412fd59db" Version="1.12.1" Language="en-US" Publisher="cycodehq" />
         <DisplayName>Cycode</DisplayName>
         <Description xml:space="preserve">Cycode for Visual Studio IDE</Description>
         <MoreInfo>https://github.com/cycodehq/visual-studio-extension</MoreInfo>
diff --git a/src/extension/Cycode.VisualStudio.Extension.Shared/Constants.cs b/src/extension/Cycode.VisualStudio.Extension.Shared/Constants.cs
index f21ddc8..5ef5879 100644
--- a/src/extension/Cycode.VisualStudio.Extension.Shared/Constants.cs
+++ b/src/extension/Cycode.VisualStudio.Extension.Shared/Constants.cs
@@ -4,7 +4,7 @@ namespace Cycode.VisualStudio.Extension.Shared;
 
 public static class Constants {
     public const string AppName = "visual_studio_extension";
-    public const string RequiredCliVersion = "3.11.1";
+    public const string RequiredCliVersion = "3.12.0";
 
     public const string CycodeDomain = "cycode.com";