diff --git a/.github/workflows/on_release.yml b/.github/workflows/on_release.yml
index fb4ad0d17..40221a2ee 100644
--- a/.github/workflows/on_release.yml
+++ b/.github/workflows/on_release.yml
@@ -101,7 +101,8 @@ jobs:
       # pushes the *same* docker images that were previously tested as part of e2e sanity test.
       # each image is pushed with the versioned tag first, if it succeeds the image is pushed with the latest tag as well.
       - name: Build & Push client
-        id: build_push_client
+        if: ${{ github.event.release.prerelease == false }}
+        id: build_push_client_regular
         uses: docker/build-push-action@v4
         with:
           file: docker/Dockerfile
@@ -114,8 +115,24 @@ jobs:
             permitio/opal-client:latest
             permitio/opal-client:${{ github.event.release.tag_name }}
 
+      - name: Build & Push client (prerelease)
+        if: ${{ github.event.release.prerelease == true }}
+        id: build_push_client_prerelease
+        uses: docker/build-push-action@v4
+        with:
+          file: docker/Dockerfile
+          platforms: linux/amd64,linux/arm64
+          push: true
+          target: client
+          cache-from: type=registry,ref=permitio/opal-client:latest
+          cache-to: type=inline
+          tags: |
+            permitio/opal-client:${{ github.event.release.tag_name }}
+
+
       - name: Build client-standalone
-        id: build_push_client_standalone
+        if: ${{ github.event.release.prerelease == false }}
+        id: build_push_client_standalone_regular
         uses: docker/build-push-action@v4
         with:
           file: docker/Dockerfile
@@ -128,8 +145,23 @@ jobs:
             permitio/opal-client-standalone:latest
             permitio/opal-client-standalone:${{ github.event.release.tag_name }}
 
+      - name: Build client-standalone (prerelease)
+        if: ${{ github.event.release.prerelease == true }}
+        id: build_push_client_standalone_prerelease
+        uses: docker/build-push-action@v4
+        with:
+          file: docker/Dockerfile
+          platforms: linux/amd64,linux/arm64
+          push: true
+          target: client-standalone
+          cache-from: type=registry,ref=permitio/opal-client-standalone:latest
+          cache-to: type=inline
+          tags: |
+            permitio/opal-client-standalone:${{ github.event.release.tag_name }}
+
       - name: Build server
-        id: build_push_server
+        if: ${{ github.event.release.prerelease == false }}
+        id: build_push_server_regular
         uses: docker/build-push-action@v4
         with:
           file: docker/Dockerfile
@@ -142,6 +174,50 @@ jobs:
             permitio/opal-server:latest
             permitio/opal-server:${{ github.event.release.tag_name }}
 
+      - name: Build server (prerelease)
+        if: ${{ github.event.release.prerelease == true }}
+        id: build_push_server_prerelease
+        uses: docker/build-push-action@v4
+        with:
+          file: docker/Dockerfile
+          platforms: linux/amd64,linux/arm64
+          push: true
+          target: server
+          cache-from: type=registry,ref=permitio/opal-server:latest
+          cache-to: type=inline
+          tags: |
+            permitio/opal-server:${{ github.event.release.tag_name }}
+
+      - name: Build & Push client cedar
+        if: ${{ github.event.release.prerelease == false }}
+        id: build_push_client_cedar_regular
+        uses: docker/build-push-action@v4
+        with:
+          file: docker/Dockerfile
+          platforms: linux/amd64,linux/arm64
+          push: true
+          target: client-cedar
+          cache-from: type=registry,ref=permitio/opal-client-cedar:latest
+          cache-to: type=inline
+          tags: |
+            permitio/opal-client-cedar:latest
+            permitio/opal-client-cedar:${{ github.event.release.tag_name }}
+
+      - name: Build & Push client cedar (prerelease)
+        if: ${{ github.event.release.prerelease == true }}
+        id: build_push_client_cedar_prerelease
+        uses: docker/build-push-action@v4
+        with:
+          file: docker/Dockerfile
+          platforms: linux/amd64,linux/arm64
+          push: true
+          target: client-cedar
+          cache-from: type=registry,ref=permitio/opal-client-cedar:latest
+          cache-to: type=inline
+          tags: |
+            permitio/opal-client-cedar:${{ github.event.release.tag_name }}
+
+
       - name: Build & Push client cedar
         id: build_push_client_cedar
         uses: docker/build-push-action@v4
@@ -164,10 +240,22 @@ jobs:
       # This is the root file representing the package for all the sub-packages.
       - name: Bump version - packaging__.py
         run: |
+          # Install required packages
+          pip install semver packaging
+
+          # Get version tag and remove 'v' prefix
           version_tag=${{ github.event.release.tag_name }}
-          version_tag=${version_tag#v} # Remove the leading 'v'
-          version_tuple=$(echo $version_tag | sed 's/\./, /g')
-          sed -i "s/VERSION = (.*/VERSION = (${version_tuple})/" packages/__packaging__.py
+          version_tag=${version_tag#v}
+
+          # Convert semver to PyPI version using the script
+          pypi_version=$(python smver2pypi.py $version_tag)
+
+          # Update only the __version__ in __packaging__.py
+          sed -i "s/__version__ = VERSION_STRING/__version__ = \"$pypi_version\"/" packages/__packaging__.py
+
+          # Print the result for verification
+          echo "Original version tag: $version_tag"
+          echo "PyPI version: $pypi_version"
           cat packages/__packaging__.py
 
       - name: Cleanup setup.py and Build every sub-packages
diff --git a/smver2pypi.py b/smver2pypi.py
new file mode 100755
index 000000000..0ceda7ed9
--- /dev/null
+++ b/smver2pypi.py
@@ -0,0 +1,26 @@
+"""Converts a semver version into a version for PyPI package
+https://peps.python.org/pep-0440/
+
+A semver prerelease will be converted into prerelease of PyPI.
+A semver build will be converted into a development part of PyPI
+
+Usage:
+    python smver2pypi.py 0.1.0-rc1
+    0.1.0rc1
+    python smver2pypi.py 0.1.0-dev1
+    0.1.0.dev1
+    python smver2pypi.py 0.1.0
+    0.1.0
+"""
+
+import sys
+
+from packaging.version import Version as PyPIVersion
+from semver import Version as SemVerVersion
+
+semver_version = SemVerVersion.parse(sys.argv[1])
+finalized_version = semver_version.finalize_version()
+prerelease = semver_version.prerelease or ""
+build = semver_version.build or ""
+pypi_version = PyPIVersion(f"{finalized_version}{prerelease}{build}")
+print(pypi_version)