diff --git a/Development.md b/Development.md
index 6e248fb22c..8a1c5846f7 100644
--- a/Development.md
+++ b/Development.md
@@ -161,7 +161,7 @@ poetry run pytest ./tests/unit/test_*.py
 To reduce build time (e.g., if no changes were made to the client-runtime component), you can use an existing Docker
 container image by setting the SANDBOX_RUNTIME_CONTAINER_IMAGE environment variable to the desired Docker image.
 
-Example: `export SANDBOX_RUNTIME_CONTAINER_IMAGE=ghcr.io/openhands/runtime:1.1-nikolaik`
+Example: `export SANDBOX_RUNTIME_CONTAINER_IMAGE=ghcr.io/openhands/runtime:1.2-nikolaik`
 
 ## Develop inside Docker container
 
diff --git a/containers/dev/compose.yml b/containers/dev/compose.yml
index 78549feb68..a3809a65f1 100644
--- a/containers/dev/compose.yml
+++ b/containers/dev/compose.yml
@@ -12,7 +12,7 @@ services:
       - SANDBOX_API_HOSTNAME=host.docker.internal
       - DOCKER_HOST_ADDR=host.docker.internal
       #
-      - SANDBOX_RUNTIME_CONTAINER_IMAGE=${SANDBOX_RUNTIME_CONTAINER_IMAGE:-ghcr.io/openhands/runtime:1.1-nikolaik}
+      - SANDBOX_RUNTIME_CONTAINER_IMAGE=${SANDBOX_RUNTIME_CONTAINER_IMAGE:-ghcr.io/openhands/runtime:1.2-nikolaik}
       - SANDBOX_USER_ID=${SANDBOX_USER_ID:-1234}
       - WORKSPACE_MOUNT_PATH=${WORKSPACE_BASE:-$PWD/workspace}
     ports:
diff --git a/docker-compose.yml b/docker-compose.yml
index 7e879f09b3..742ccc87f0 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -7,7 +7,7 @@ services:
     image: openhands:latest
     container_name: openhands-app-${DATE:-}
     environment:
-      - SANDBOX_RUNTIME_CONTAINER_IMAGE=${SANDBOX_RUNTIME_CONTAINER_IMAGE:-docker.openhands.dev/openhands/runtime:1.1-nikolaik}
+      - SANDBOX_RUNTIME_CONTAINER_IMAGE=${SANDBOX_RUNTIME_CONTAINER_IMAGE:-docker.openhands.dev/openhands/runtime:1.2-nikolaik}
       #- SANDBOX_USER_ID=${SANDBOX_USER_ID:-1234} # enable this only if you want a specific non-root sandbox user but you will have to manually adjust permissions of ~/.openhands for this user
       - WORKSPACE_MOUNT_PATH=${WORKSPACE_BASE:-$PWD/workspace}
     ports:
diff --git a/frontend/package-lock.json b/frontend/package-lock.json
index 99887b5e20..27b2b5a883 100644
--- a/frontend/package-lock.json
+++ b/frontend/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "openhands-frontend",
-  "version": "1.1.0",
+  "version": "1.2.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "openhands-frontend",
-      "version": "1.1.0",
+      "version": "1.2.0",
       "dependencies": {
         "@heroui/react": "2.8.7",
         "@microlink/react-json-view": "^1.27.1",
diff --git a/frontend/package.json b/frontend/package.json
index 30a60413c2..86b1b1fdf7 100644
--- a/frontend/package.json
+++ b/frontend/package.json
@@ -1,6 +1,6 @@
 {
   "name": "openhands-frontend",
-  "version": "1.1.0",
+  "version": "1.2.0",
   "private": true,
   "type": "module",
   "engines": {
diff --git a/openhands/runtime/impl/kubernetes/README.md b/openhands/runtime/impl/kubernetes/README.md
index c9f5ccfdf2..012fb25ae0 100644
--- a/openhands/runtime/impl/kubernetes/README.md
+++ b/openhands/runtime/impl/kubernetes/README.md
@@ -40,7 +40,7 @@ Two configuration options are required to use the Kubernetes runtime:
 2. **Runtime Container Image**: Specify the container image to use for the runtime environment
    ```toml
    [sandbox]
-   runtime_container_image = "docker.openhands.dev/openhands/runtime:1.1-nikolaik"
+   runtime_container_image = "docker.openhands.dev/openhands/runtime:1.2-nikolaik"
    ```
 
 #### Additional Kubernetes Options
diff --git a/pyproject.toml b/pyproject.toml
index 436fd96783..714960daeb 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -176,7 +176,7 @@ testgeneval = [
 
 [tool.poetry]
 name = "openhands-ai"
-version = "1.1.0"
+version = "1.2.0"
 description = "OpenHands: Code Less, Make More"
 authors = [ "OpenHands" ]
 license = "MIT"