diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9224e9a..b720967 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,7 +5,7 @@ All notable changes to the ClipShot extension are documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.1.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
-## [Unreleased]
+## [0.4.0] - 2026-08-29
 
 ### Changed
 
@@ -252,7 +252,8 @@ Initial release.
   (PNG/JPEG/WebP) and quality.
 - Path validation and sanitization to keep saved files inside the workspace.
 
-[Unreleased]: https://github.com/kkdev92/clipshot/compare/v0.3.2...HEAD
+[Unreleased]: https://github.com/kkdev92/clipshot/compare/v0.4.0...HEAD
+[0.4.0]: https://github.com/kkdev92/clipshot/compare/v0.3.2...v0.4.0
 [0.3.2]: https://github.com/kkdev92/clipshot/compare/v0.3.1...v0.3.2
 [0.3.1]: https://github.com/kkdev92/clipshot/compare/v0.3.0...v0.3.1
 [0.3.0]: https://github.com/kkdev92/clipshot/compare/v0.2.0...v0.3.0
diff --git a/package-lock.json b/package-lock.json
index aaebf41..a746f64 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "clipshot",
-  "version": "0.3.2",
+  "version": "0.4.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "clipshot",
-      "version": "0.3.2",
+      "version": "0.4.0",
       "bundleDependencies": [
         "sharp"
       ],
diff --git a/package.json b/package.json
index 84b31d5..2395431 100644
--- a/package.json
+++ b/package.json
@@ -2,7 +2,7 @@
   "name": "clipshot",
   "displayName": "ClipShot",
   "description": "Paste clipboard images with automatic file saving - perfect for AI chat and documentation",
-  "version": "0.3.2",
+  "version": "0.4.0",
   "publisher": "kkdev92",
   "author": {
     "name": "kkdev92",