diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2dbc410..0b503bf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,19 @@
 # Changelog
 
+## 1.2.0 (2025-09-09)
+
+- feat: Always show `Start` and `Stop` commands if LocalStack CLI is available
+- feat: Always display LocalStack instance status if LocalStack CLI is available
+- feat: Use modals to improve the clarity of installation and authentication setup steps
+- feat: Pre-fetch LocalStack docker image during setup wizard
+- fix: Reduce LocalStack health check calls to a necessary minimum
+- fix: Improve LocalStack endpoint detection in AWS profile config process
+- fix: Invalid status when stopping LocalStack externally
+- fix: Don't show start localstack if already started during setup
+- chore: Improve logging DNS resolution failure
+- chore: Update telemetry events
+- chore: Remove preview badge
+
 ## 1.1.0 (2025-09-04)
 
 - feat: Add LocalStack license activation step to the setup wizard
diff --git a/docs/images/localstack-toolkit-setup-wizard.gif b/docs/images/localstack-toolkit-setup-wizard.gif
index 520e74a..ba4a17d 100644
Binary files a/docs/images/localstack-toolkit-setup-wizard.gif and b/docs/images/localstack-toolkit-setup-wizard.gif differ
diff --git a/package-lock.json b/package-lock.json
index e1e9535..df17342 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
 	"name": "localstack",
-	"version": "1.1.0",
+	"version": "1.2.0",
 	"lockfileVersion": 3,
 	"requires": true,
 	"packages": {
 		"": {
 			"name": "localstack",
-			"version": "1.1.0",
+			"version": "1.2.0",
 			"license": "Apache-2.0",
 			"devDependencies": {
 				"@biomejs/biome": "^2.2.3",
diff --git a/package.json b/package.json
index 1328177..64d8eca 100644
--- a/package.json
+++ b/package.json
@@ -3,8 +3,7 @@
 	"publisher": "LocalStack",
 	"displayName": "LocalStack Toolkit",
 	"description": "LocalStack - Run locally, deploy globally!",
-	"version": "1.1.0",
-	"preview": true,
+	"version": "1.2.0",
 	"engines": {
 		"node": ">=20",
 		"vscode": "^1.83.0"