diff --git a/.env b/.env
index 6d3f9edca2..cbfabfcf57 100644
--- a/.env
+++ b/.env
@@ -1,7 +1,7 @@
 
 
 # Demo App version
-IMAGE_VERSION=1.11.1
+IMAGE_VERSION=1.12.0
 IMAGE_NAME=ghcr.io/open-telemetry/demo
 DEMO_VERSION=latest
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index a23b5cff72..80c642d26a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,8 @@ the release.
 
 ## Unreleased
 
+## 1.12.0
+
 * [accountingservice] allow running the container with non root user
   ([#1692](https://github.com/open-telemetry/opentelemetry-demo/pull/1692))
 * [chore] Add yamllint to `make all`