diff --git a/clients/intellij/package.json b/clients/intellij/package.json
index 62d579f8ec7c..e0980b1408c2 100644
--- a/clients/intellij/package.json
+++ b/clients/intellij/package.json
@@ -10,6 +10,6 @@
   "devDependencies": {
     "cpy-cli": "^4.2.0",
     "rimraf": "^5.0.1",
-    "tabby-agent": "1.2.0-dev"
+    "tabby-agent": "1.2.0"
   }
 }
diff --git a/clients/tabby-agent/package.json b/clients/tabby-agent/package.json
index 235eaf157c9d..c73f59948f5c 100644
--- a/clients/tabby-agent/package.json
+++ b/clients/tabby-agent/package.json
@@ -1,6 +1,6 @@
 {
   "name": "tabby-agent",
-  "version": "1.2.0-dev",
+  "version": "1.2.0",
   "description": "Generic client agent for Tabby AI coding assistant IDE extensions.",
   "repository": "https://github.com/TabbyML/tabby",
   "main": "./dist/index.js",
diff --git a/clients/vim/package.json b/clients/vim/package.json
index 827e70eae945..752885e5c00f 100644
--- a/clients/vim/package.json
+++ b/clients/vim/package.json
@@ -10,6 +10,6 @@
   "devDependencies": {
     "cpy-cli": "^4.2.0",
     "rimraf": "^5.0.1",
-    "tabby-agent": "1.2.0-dev"
+    "tabby-agent": "1.2.0"
   }
 }
diff --git a/clients/vscode/CHANGELOG.md b/clients/vscode/CHANGELOG.md
index d1c4aeddcb14..b24d047eecab 100644
--- a/clients/vscode/CHANGELOG.md
+++ b/clients/vscode/CHANGELOG.md
@@ -1,3 +1,20 @@
+## 1.2.0
+
+### Features:
+
+- Added support for setting Tabby server token in VSCode.
+  - You can still configure the token in the agent config file, but the token set in VSCode will take precedence.
+- A notification will now be displayed when the server requires a token.
+- Removed support for automatically opening the authentication page and fetching the token when using Tabby Cloud.
+  - For connecting to Tabby Cloud server, you need to manually set the token instead. The token already in use will still be usable.
+
+### Fixes:
+
+- Corrected invalid online documentation links.
+- Fixed a bug that the document context was not fully provided for completion when editing a jupyter notebook file.
+- Resolved a bug that resulted in empty log files being generated even when the logging level is set to `silent`.
+- Fixed bugs related to the experimental syntax-based post-processing.
+
 ## 1.1.3
 
 ### Fixes:
@@ -12,7 +29,7 @@
 
 ## 1.1.0
 
-## Features:
+### Features:
 
 - Added notification with error messages when the connection to the server fails.
 - Added a loading status indicator when fetching completions in automatic trigger mode.
diff --git a/clients/vscode/README.md b/clients/vscode/README.md
index 235726de5bd5..b98bbe5fdc04 100644
--- a/clients/vscode/README.md
+++ b/clients/vscode/README.md
@@ -24,7 +24,7 @@ Once you have installed the Tabby VSCode extension, you can easily get started b
 
 1. **Setup the Tabby server**: You can build your own self-hosted Tabby server following [this guide](https://tabby.tabbyml.com/docs/installation).
 2. **Connect the extension to your Tabby server**: Use the command `Tabby: Specify API Endpoint of Tabby` to connect the extension to your Tabby server.
-   - **Note**: If your Tabby server requires an authentication token, you can set it in the [config file](https://tabby.tabbyml.com/docs/extensions/configurations). (The web extension does not support setting the authentication token yet.)
+   - **Note**: If your Tabby server requires an authentication token, a notification will be displayed, and you can set the token by following the prompt. Alternatively, you can set it in the [config file](https://tabby.tabbyml.com/docs/extensions/configurations).
 
 Once the setup is complete, Tabby will automatically provide inline suggestions. You can accept the suggestions by simply pressing the `Tab` key.
 
diff --git a/clients/vscode/package.json b/clients/vscode/package.json
index 6c21fa2d4bee..fe734165eaa3 100644
--- a/clients/vscode/package.json
+++ b/clients/vscode/package.json
@@ -7,7 +7,7 @@
   "repository": "https://github.com/TabbyML/tabby",
   "bugs": "https://github.com/TabbyML/tabby/issues",
   "license": "Apache-2.0",
-  "version": "1.2.0-dev",
+  "version": "1.2.0",
   "keywords": [
     "ai",
     "autocomplete",
@@ -229,6 +229,6 @@
   },
   "dependencies": {
     "@xstate/fsm": "^2.0.1",
-    "tabby-agent": "1.2.0-dev"
+    "tabby-agent": "1.2.0"
   }
 }