diff --git a/sdk/identity/azure-identity/CHANGELOG.md b/sdk/identity/azure-identity/CHANGELOG.md
index 1a2693389074..2a3c86e13144 100644
--- a/sdk/identity/azure-identity/CHANGELOG.md
+++ b/sdk/identity/azure-identity/CHANGELOG.md
@@ -1,5 +1,15 @@
 # Release History
 
+## 1.18.1 (Unreleased)
+
+### Features Added
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 1.18.0 (2024-09-19)
 
 ### Features Added
diff --git a/sdk/identity/azure-identity/azure/identity/_version.py b/sdk/identity/azure-identity/azure/identity/_version.py
index 1b0665559f2b..59d371307744 100644
--- a/sdk/identity/azure-identity/azure/identity/_version.py
+++ b/sdk/identity/azure-identity/azure/identity/_version.py
@@ -2,4 +2,4 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
 # ------------------------------------
-VERSION = "1.18.0"
+VERSION = "1.18.1"