diff --git a/.bumpversion.cfg b/.bumpversion.cfg
index ee95def4..018491fc 100644
--- a/.bumpversion.cfg
+++ b/.bumpversion.cfg
@@ -1,5 +1,5 @@
 [bumpversion]
-current_version = 3.4.0
+current_version = 3.5.0
 parse = (?P<major>\d+)\.(?P<minor>\d+)\.(?P<patch>\d+)((?P<release>a|b|rc)(?P<build>\d+))?
 serialize = 
 	{major}.{minor}.{patch}{release}{build}
diff --git a/docs/source/release_notes/index.md b/docs/source/release_notes/index.md
index 1e7ad6ce..bfa871fb 100644
--- a/docs/source/release_notes/index.md
+++ b/docs/source/release_notes/index.md
@@ -10,6 +10,7 @@
 ```{toctree}
 :maxdepth: 1
 
+v3.5.0
 v3.4.0
 v3.3.0
 v3.2.0
diff --git a/docs/source/release_notes/v3.5.0.md b/docs/source/release_notes/v3.5.0.md
new file mode 100644
index 00000000..65d31319
--- /dev/null
+++ b/docs/source/release_notes/v3.5.0.md
@@ -0,0 +1,18 @@
+# Version 3.5.0 ( January 2026)
+
+## What's new in 3.5.0
+
+- Tested with the latest MONAI v1.5.1 and Holoscan v3.10 CUDA 12 version, [holoscan-cu12](https://pypi.org/project/holoscan-cu12).
+- Updated the compressed DICOM image decoder plugin for PyDicom, which is based on nvImageCodec for GPU-accelerated image frame decoding. This decoder is dynamically registered at runtime with PyDicom as the first choice for the supported transfer syntaxes.
+  - Updated the function to get decode parameters for nvImgCodec to handle YBR to RGB conversion such that the decompressed pixel data matches that from PyDicom's existing plug-ins.
+  - Udpated the tests and decoding performance measurements and comparison. 
+
+
+Please also see the <a href="https://github.com/Project-MONAI/monai-deploy-app-sdk/issues?q=is%3Aissue+is%3Aclosed">closed issues on Github</a> and the <a href="https://github.com/Project-MONAI/monai-deploy-app-sdk/pulls?q=is%3Apr+is%3Aclosed">closed pull requests on Github</a>.
+
+## Additional information
+Please visit [GETTING STARTED](/getting_started/index) guide and follow the tutorials.
+
+You can learn more about SDK usage through [DEVELOPING WITH SDK](/developing_with_sdk/index).
+
+Please let us know how you like it and what could be improved by [submitting an issue](https://github.com/Project-MONAI/monai-deploy-app-sdk/issues/new/choose) or [asking questions](https://github.com/Project-MONAI/monai-deploy-app-sdk/discussions).
\ No newline at end of file