diff --git a/CHANGELOG.md b/CHANGELOG.md
index 82c87659..6da1026d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,13 @@
 # Changelog
 
+## 0.1.7
+
+### Features
+
+- **Structured outputs support**: Agents can now return validated JSON matching your schema. See https://docs.claude.com/en/docs/agent-sdk/structured-outputs. (#340)
+- **Fallback model handling**: Added automatic fallback model handling for improved reliability and parity with the TypeScript SDK. When the primary model is unavailable, the SDK will automatically use a fallback model (#317)
+- **Local Claude CLI support**: Added support for using a locally installed Claude CLI from `~/.claude/local/claude`, enabling development and testing with custom Claude CLI builds (#302)
+
 ## 0.1.6
 
 ### Features
diff --git a/pyproject.toml b/pyproject.toml
index cc9b99d9..653fce8b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -4,7 +4,7 @@ build-backend = "hatchling.build"
 
 [project]
 name = "claude-agent-sdk"
-version = "0.1.6"
+version = "0.1.7"
 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 89470e19..9bc06089 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__ = "0.1.6"
+__version__ = "0.1.7"