diff --git a/CHANGELOG.md b/CHANGELOG.md
index a1514725..9c50f28b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,29 @@
 # Release History
 
+# 1.3.5 (2026-07-01)
+
+### Features Added
+- Pass metrics observations to upstream SDKStats Manager
+  ([#191](https://github.com/microsoft/opentelemetry-distro-python/pull/191))
+- Enable sensitive data for LangChain programmatically
+  ([#201](https://github.com/microsoft/opentelemetry-distro-python/pull/201))
+
+### Bugs Fixed
+- Add actionable 403 error message
+  ([#213](https://github.com/microsoft/opentelemetry-distro-python/pull/213))
+- Remove internal model/tool spans
+  ([#212](https://github.com/microsoft/opentelemetry-distro-python/pull/212))
+
+### Other Changes
+- Update otel dependencies
+  ([#218](https://github.com/microsoft/opentelemetry-distro-python/pull/218))
+- Add pre-commit hook for auto-formatting
+  ([#220](https://github.com/microsoft/opentelemetry-distro-python/pull/220))
+- Remove specific co-code owners
+  ([#221](https://github.com/microsoft/opentelemetry-distro-python/pull/221))
+- Documentation improvements for published API reference
+  ([#214](https://github.com/microsoft/opentelemetry-distro-python/pull/214))
+
 # 1.3.4 (2026-06-17)
 
 ### Bugs Fixed
diff --git a/pyproject.toml b/pyproject.toml
index 201fc8b1..2d36f09e 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "setuptools.build_meta"
 
 [project]
 name = "microsoft-opentelemetry"
-version = "1.3.4"
+version = "1.3.5"
 description = "Minimal template for the Microsoft OpenTelemetry distro for Python"
 readme = "README.md"
 requires-python = ">=3.10"
diff --git a/src/microsoft/opentelemetry/_version.py b/src/microsoft/opentelemetry/_version.py
index 8699b96c..ccc2118a 100644
--- a/src/microsoft/opentelemetry/_version.py
+++ b/src/microsoft/opentelemetry/_version.py
@@ -4,4 +4,4 @@
 # license information.
 # --------------------------------------------------------------------------
 
-VERSION = "1.3.4"
+VERSION = "1.3.5"