diff --git a/CHANGELOG.md b/CHANGELOG.md
index 64b0fbf57649..8d75ad4d5680 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -22,6 +22,8 @@ Code v99.99.999
 
 ## Unreleased
 
+## [4.127.0](https://github.com/coder/code-server/releases/tag/v4.127.0) - 2026-07-02
+
 Code v1.127.0
 
 ### Changed
diff --git a/ci/helm-chart/Chart.yaml b/ci/helm-chart/Chart.yaml
index 70a00e8e2272..46a363b985f5 100644
--- a/ci/helm-chart/Chart.yaml
+++ b/ci/helm-chart/Chart.yaml
@@ -15,9 +15,9 @@ type: application
 # This is the chart version. This version number should be incremented each time you make changes
 # to the chart and its templates, including the app version.
 # Versions are expected to follow Semantic Versioning (https://semver.org/)
-version: 3.41.0
+version: 3.42.0
 
 # This is the version number of the application being deployed. This version number should be
 # incremented each time you make changes to the application. Versions are not expected to
 # follow Semantic Versioning. They should reflect the version the application is using.
-appVersion: 4.126.0
+appVersion: 4.127.0
diff --git a/ci/helm-chart/values.yaml b/ci/helm-chart/values.yaml
index 1fa2e7fb1bb3..b96ed4486cb2 100644
--- a/ci/helm-chart/values.yaml
+++ b/ci/helm-chart/values.yaml
@@ -6,7 +6,7 @@ replicaCount: 1
 
 image:
   repository: codercom/code-server
-  tag: '4.126.0'
+  tag: '4.127.0'
   pullPolicy: Always
 
 # Specifies one or more secrets to be used when pulling images from a