diff --git a/CHANGELOG.md b/CHANGELOG.md
index d763c431..82c87659 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,16 @@
 # Changelog
 
+## 0.1.6
+
+### Features
+
+- **Max budget control**: Added `max_budget_usd` option to set a maximum spending limit in USD for SDK sessions. When the budget is exceeded, the session will automatically terminate, helping prevent unexpected costs (#293)
+- **Extended thinking configuration**: Added `max_thinking_tokens` option to control the maximum number of tokens allocated for Claude's internal reasoning process. This allows fine-tuning of the balance between response quality and token usage (#298)
+
+### Bug Fixes
+
+- **System prompt defaults**: Fixed issue where a default system prompt was being used when none was specified. The SDK now correctly uses an empty system prompt by default, giving users full control over agent behavior (#290)
+
 ## 0.1.5
 
 ### Features
diff --git a/pyproject.toml b/pyproject.toml
index c28566a4..cc9b99d9 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "hatchling.build"
 
 [project]
 name = "claude-agent-sdk"
-version = "0.1.5"
+version = "0.1.6"
 description = "Python SDK for Claude Code"
 readme = "README.md"
 requires-python = ">=3.10"
diff --git a/src/claude_agent_sdk/_version.py b/src/claude_agent_sdk/_version.py
index f2417365..89470e19 100644
--- a/src/claude_agent_sdk/_version.py
+++ b/src/claude_agent_sdk/_version.py
@@ -1,3 +1,3 @@
 """Version information for claude-agent-sdk."""
 
-__version__ = "0.1.5"
+__version__ = "0.1.6"