diff --git a/.github/scripts/update_version_in_docs.py b/.github/scripts/update_version_in_docs.py
new file mode 100755
index 0000000..51841e1
--- /dev/null
+++ b/.github/scripts/update_version_in_docs.py
@@ -0,0 +1,153 @@
+#!/usr/bin/env python3
+
+import os
+import re
+import shutil
+import subprocess
+import sys
+
+
+def get_release_version():
+    """
+    Get the release version from RELEASE_VERSION environment variable or Maven.
+    Returns the version string without -SNAPSHOT suffix.
+    """
+    release_version = os.environ.get("RELEASE_VERSION")
+
+    if release_version:
+        return release_version
+
+    # Check if Maven is available
+    if not shutil.which("mvn"):
+        print("Error: Maven executable not found in PATH.", file=sys.stderr)
+        sys.exit(1)
+
+    try:
+        # Get Maven version
+        result = subprocess.run(
+            [
+                "mvn",
+                "-q",
+                "--non-recursive",
+                "help:evaluate",
+                "-Dexpression=project.version",
+                "-DforceStdout",
+            ],
+            capture_output=True,
+            text=True,
+            check=True,
+        )
+
+        mvn_version = result.stdout.strip().split("\n")[-1]
+        release_version = mvn_version.replace("-SNAPSHOT", "")
+
+        if not release_version:
+            print("Error: derived release version is empty.", file=sys.stderr)
+            sys.exit(1)
+
+        return release_version
+
+    except subprocess.CalledProcessError:
+        print("Error: unable to determine project version from Maven.", file=sys.stderr)
+        sys.exit(1)
+
+
+def update_readme_versions(readme_path, release_version):
+    """
+    Update version references in README.md file.
+    Returns True if the file was modified, False otherwise.
+    """
+    try:
+        with open(readme_path, "r", encoding="utf-8") as f:
+            content = f.read()
+    except FileNotFoundError:
+        print(f'Error: README file not found at "{readme_path}".', file=sys.stderr)
+        sys.exit(1)
+
+    original_content = content
+
+    # Pattern 1: Maven dependency version
+    # Matches: <version>X.Y.Z</version>
+    maven_pattern = r"(<artifactId>infobip-openapi-mcp-spring-boot-starter</artifactId>\s*<version>)[^<]+(</version>)"
+    content = re.sub(maven_pattern, rf"\g<1>{release_version}\g<2>", content)
+
+    # Pattern 2: Gradle dependency version
+    # Matches: implementation("com.infobip.openapi.mcp:infobip-openapi-mcp-spring-boot-starter:X.Y.Z")
+    gradle_pattern = r'(implementation\("com\.infobip\.openapi\.mcp:infobip-openapi-mcp-spring-boot-starter:)[^"]+("\))'
+    content = re.sub(gradle_pattern, rf"\g<1>{release_version}\g<2>", content)
+
+    # Check if any changes were made
+    if content == original_content:
+        print(f'No version references found or updated in "{readme_path}".')
+        return False
+
+    # Write the updated content back to the file
+    with open(readme_path, "w", encoding="utf-8") as f:
+        f.write(content)
+
+    print(f'Successfully updated version references to "{release_version}" in README.md')
+    return True
+
+
+def commit_files_if_changed(file_paths, release_version):
+    """
+    Commit the files if they have changes.
+    """
+    try:
+        # Check if there are any changes in the provided files
+        result = subprocess.run(
+            ["git", "diff", "--quiet", "--"] + file_paths, capture_output=True
+        )
+
+        if result.returncode == 0:
+            # No changes
+            print(f'No changes detected in any files to commit.')
+        else:
+            # Changes detected, commit them
+            subprocess.run(["git", "add"] + file_paths, check=True)
+            subprocess.run(
+                [
+                    "git",
+                    "commit",
+                    "-m",
+                    f"Update version references to {release_version}",
+                ],
+                check=True,
+            )
+            print(f'Committed version updates for {release_version}')
+    except subprocess.CalledProcessError as e:
+        print(f"Error: failed to commit changes: {e}", file=sys.stderr)
+        sys.exit(1)
+
+
+def main():
+    # Get paths
+    readme_path = sys.argv[1] if len(sys.argv) > 1 else "./README.md"
+
+    # Check if README exists
+    if not os.path.isfile(readme_path):
+        print(f'Error: README file not found at "{readme_path}".', file=sys.stderr)
+        sys.exit(1)
+
+    # Get release version
+    release_version = get_release_version()
+    print(f'Updating version references to {release_version}')
+
+    # Track all files that need to be committed
+    files_to_commit = []
+
+    # Update the README
+    print(f'\nUpdating README.md...')
+    if update_readme_versions(readme_path, release_version):
+        files_to_commit.append(readme_path)
+
+    # Commit all changes together if there are any
+    if files_to_commit:
+        print(f'\nCommitting {len(files_to_commit)} file(s)...')
+        commit_files_if_changed(files_to_commit, release_version)
+    else:
+        print('\nNo files were modified.')
+
+
+if __name__ == "__main__":
+    main()
\ No newline at end of file
diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index e4b8ee3..f344c32 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -35,6 +35,10 @@ jobs:
         env:
           GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
           RELEASE_VERSION: ${{ github.event.inputs.release_version }}
+      - name: Update version in docs
+        run: ./.github/scripts/update_version_in_docs.py
+        env:
+          RELEASE_VERSION: ${{ github.event.inputs.release_version }}
       - name: Prepare maven release
         run: ./.github/scripts/prepare_maven_release.sh
         env:
diff --git a/CHANGELOG.md b/CHANGELOG.md
index ad71060..6b7f75d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Added
 
+- A new step in the release workflow that automatically updates references to framework version in `README.md`
 - `./examples/infobip-sms-mock-mcp` project that demonstrates the recently introduced mock tool mode.
 
 ### Changed