diff --git a/.release-please-manifest.json b/.release-please-manifest.json
index 39773fd..2a266f8 100644
--- a/.release-please-manifest.json
+++ b/.release-please-manifest.json
@@ -1,3 +1,3 @@
 {
-  ".": "3.6.2"
+  ".": "3.7.0"
 }
diff --git a/CHANGELOG.md b/CHANGELOG.md
index d132cec..f8aad07 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,12 @@
 # Changelog
 
+## [3.7.0](https://github.com/open-feature/flagd-testbed/compare/v3.6.2...v3.7.0) (2026-04-30)
+
+
+### ✨ New Features
+
+* latest flagd ([#372](https://github.com/open-feature/flagd-testbed/issues/372)) ([4b325bb](https://github.com/open-feature/flagd-testbed/commit/4b325bb0e2fef9095c12fcef7863d0d7578637bb))
+
 ## [3.6.2](https://github.com/open-feature/flagd-testbed/compare/v3.6.1...v3.6.2) (2026-04-21)
 
 
diff --git a/docker-compose.yaml b/docker-compose.yaml
index 487a6cb..0eb476e 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -2,7 +2,7 @@ version: '3.8'
 
 services:
   flagd:
-    image: ${IMAGE:-ghcr.io/open-feature/flagd-testbed}:${VERSION:-v3.6.2} # x-release-please-version
+    image: ${IMAGE:-ghcr.io/open-feature/flagd-testbed}:${VERSION:-v3.7.0} # x-release-please-version
     ports:
       - 8013
       - 8014
diff --git a/version.txt b/version.txt
index b727628..7c69a55 100644
--- a/version.txt
+++ b/version.txt
@@ -1 +1 @@
-3.6.2
+3.7.0