diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2ab5ace..c11e3b2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,12 @@
 
 <!--next-version-placeholder-->
 
+## v3.8.0 (2024-03-10)
+
+### Feature
+
+* Allow one failed decryption before reauth ([#114](https://github.com/Bluetooth-Devices/bthome-ble/issues/114)) ([`7c499cc`](https://github.com/Bluetooth-Devices/bthome-ble/commit/7c499cce6c15ab6f21b25779bae773e3c00f7841))
+
 ## v3.7.0 (2024-03-08)
 
 ### Feature
diff --git a/pyproject.toml b/pyproject.toml
index 97716d1..b087c10 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [tool.poetry]
 name = "bthome-ble"
-version = "3.7.0"
+version = "3.8.0"
 description = "BThome BLE support"
 authors = ["Ernst Klamer <e.klamer@gmail.com>"]
 license = "MIT"
diff --git a/src/bthome_ble/__init__.py b/src/bthome_ble/__init__.py
index 60948e9..1ff90a2 100644
--- a/src/bthome_ble/__init__.py
+++ b/src/bthome_ble/__init__.py
@@ -15,7 +15,7 @@
 
 from .parser import BTHomeBluetoothDeviceData
 
-__version__ = "3.7.0"
+__version__ = "3.8.0"
 
 __all__ = [
     "BinarySensorDeviceClass",