diff --git a/Changelog.md b/Changelog.md
index cb121816..84ee911e 100644
--- a/Changelog.md
+++ b/Changelog.md
@@ -2,6 +2,9 @@
 
 This file only reflects the changes that are made in the the docker image. Please refer to the upstream GitLab [CHANGELOG](https://github.com/gitlabhq/gitlabhq/blob/master/CHANGELOG) for the list of changes in GitLab.
 
+**latest**
+- gitlab: upgrade to CE v.7.12.1
+
 **7.12.0**
 - added `SMTP_TLS` configuration parameter
 - gitlab: upgrade to CE v.7.12.0
diff --git a/Dockerfile b/Dockerfile
index 4e0c505f..19d72a8c 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,7 +1,7 @@
 FROM sameersbn/ubuntu:14.04.20150613
 MAINTAINER sameer@damagehead.com
 
-ENV GITLAB_VERSION=7.12.0 \
+ENV GITLAB_VERSION=7.12.1 \
     GITLAB_SHELL_VERSION=2.6.3 \
     GITLAB_USER="git" \
     GITLAB_HOME="/home/git" \
diff --git a/VERSION b/VERSION
index 5f84a81d..3869adc9 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-7.12.0
+7.12.1