diff --git a/CHANGELOG.md b/CHANGELOG.md
index 149bd735..185bb991 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,19 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [0.12.3] - 2025-12-16
+
+This release improves the robustness of the multistream-select negotiation over WebRTC transport and fixes inbound bandwidth metering on substreams. It also enhances the dialing success rate by improving the transport dialing logic. Additionally, it re-exports CID's multihash to facilitate the construction of CID V1.
+
+### Changed
+
+- transports: Improves the robustness and success rate of connection dialing  ([#495](https://github.com/paritytech/litep2p/pull/495))
+- types: Re-export cid's multihash to construct CID V1  ([#491](https://github.com/paritytech/litep2p/pull/491))
+
+### Fixed
+
+- fix: multistream-select negotiation on outbound substream over webrtc  ([#465](https://github.com/paritytech/litep2p/pull/465))
+- substream: Fix inbound bandwidth metering  ([#499](https://github.com/paritytech/litep2p/pull/499))
 
 ## [0.12.2] - 2025-11-28
 
diff --git a/Cargo.lock b/Cargo.lock
index 7d22258f..deab9d3a 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1837,7 +1837,7 @@ checksum = "6373607a59f0be73a39b6fe456b8192fcc3585f602af20751600e974dd455e77"
 
 [[package]]
 name = "litep2p"
-version = "0.12.2"
+version = "0.12.3"
 dependencies = [
  "async-trait",
  "bs58 0.5.1",
diff --git a/Cargo.toml b/Cargo.toml
index 02587ca3..61c026e7 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -3,7 +3,7 @@ name = "litep2p"
 description = "Peer-to-peer networking library"
 repository = "https://github.com/paritytech/litep2p"
 license = "MIT"
-version = "0.12.2"
+version = "0.12.3"
 edition = "2021"
 
 # cargo-machete does not detect serde_millis usage, so we ignore the warning