diff --git a/CHANGELOG.md b/CHANGELOG.md
index f6aa12e08d..c187f4708c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,13 @@
 
 <!-- insert new changelog below this comment -->
 
+## [0.12.5] - 2026-07-03
+
+### Changed
+
+- fix(integrations): cursor-agent honors executable/extra-args env overrides (#3265)
+- chore: sync fork with upstream main through 0.12.5 release baseline
+
 ## [0.12.4] - 2026-07-02
 
 ### Changed
diff --git a/pyproject.toml b/pyproject.toml
index 13286a093f..1a0ac986b4 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "specify-cli"
-version = "0.12.5.dev0"
+version = "0.12.6.dev0"
 description = "Specify CLI, part of GitHub Spec Kit. A tool to bootstrap your projects for Spec-Driven Development (SDD)."
 readme = "README.md"
 requires-python = ">=3.11"