diff --git a/cli/azd/extensions/azure.ai.agents/CHANGELOG.md b/cli/azd/extensions/azure.ai.agents/CHANGELOG.md
index 0a1c26b6567..d3f82e0d74a 100644
--- a/cli/azd/extensions/azure.ai.agents/CHANGELOG.md
+++ b/cli/azd/extensions/azure.ai.agents/CHANGELOG.md
@@ -1,5 +1,20 @@
 # Release History
 
+## 0.1.32-preview (2026-05-18)
+
+- [[#8222]](https://github.com/Azure/azure-dev/pull/8222) Add post-init validation to check .NET runtime compatibility with project TargetFramework and show guidance when mismatched.
+- [[#7865]](https://github.com/Azure/azure-dev/pull/7865) Improve `azd ai agent invoke` trace ID handling for consistent responses, including deduping comma-folded request IDs.
+- [[#8184]](https://github.com/Azure/azure-dev/pull/8184) Default `azd ai agent show` output to table format.
+- [[#8182]](https://github.com/Azure/azure-dev/pull/8182) Add guidance for deploying with private ACR images.
+- [[#8181]](https://github.com/Azure/azure-dev/pull/8181) Increase timeout used by `azd ai agent invoke`.
+- [[#8175]](https://github.com/Azure/azure-dev/pull/8175) Wait for deployed agents to reach active state before command completion.
+- [[#8174]](https://github.com/Azure/azure-dev/pull/8174) Add `azd ai agent connection` commands and credential resolution for local run. (will be removed in a future release)
+- [[#8162]](https://github.com/Azure/azure-dev/pull/8162) Add `azd ai agent project` commands for managing Foundry project endpoints. (will be removed in a future release)
+- [[#8161]](https://github.com/Azure/azure-dev/pull/8161) Add .NET code deploy support (dotnet 8/9/10 runtimes).
+- [[#8146]](https://github.com/Azure/azure-dev/pull/8146) Support code deploy zip uploads.
+- [[#8104]](https://github.com/Azure/azure-dev/pull/8104) Add support for deploying from an existing ACR image.
+- [[#8075]](https://github.com/Azure/azure-dev/pull/8075) Show featured templates first during `azd ai agent init`.
+
 ## 0.1.31-preview (2026-05-07)
 
 - [[#8096]](https://github.com/Azure/azure-dev/pull/8096) Fix for bug introduced with #8034. Properly storing root agent endpoint since sessions are independent of protocol.
diff --git a/cli/azd/extensions/azure.ai.agents/extension.yaml b/cli/azd/extensions/azure.ai.agents/extension.yaml
index 857f27744b8..3cdcb7b2daf 100644
--- a/cli/azd/extensions/azure.ai.agents/extension.yaml
+++ b/cli/azd/extensions/azure.ai.agents/extension.yaml
@@ -5,7 +5,7 @@ displayName: Foundry agents (Preview)
 description: Ship agents with Microsoft Foundry from your terminal. (Preview)
 usage: azd ai agent <command> [options]
 # NOTE: Make sure version.txt is in sync with this version.
-version: 0.1.31-preview
+version: 0.1.32-preview
 requiredAzdVersion: ">1.23.13"
 language: go
 capabilities:
diff --git a/cli/azd/extensions/azure.ai.agents/version.txt b/cli/azd/extensions/azure.ai.agents/version.txt
index db5a7919b50..8deb1f167f3 100644
--- a/cli/azd/extensions/azure.ai.agents/version.txt
+++ b/cli/azd/extensions/azure.ai.agents/version.txt
@@ -1 +1 @@
-0.1.31-preview
+0.1.32-preview