diff --git a/sdk/communication/Azure.Communication.Chat/CHANGELOG.md b/sdk/communication/Azure.Communication.Chat/CHANGELOG.md
index 1808f9d9e49c0..3d5cb2ab70a12 100644
--- a/sdk/communication/Azure.Communication.Chat/CHANGELOG.md
+++ b/sdk/communication/Azure.Communication.Chat/CHANGELOG.md
@@ -1,5 +1,15 @@
 # Release History
 
+## 1.3.0-beta.1 (Unreleased)
+
+### Features Added
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 1.2.0 (2023-12-04)
 
 ### Features Added
diff --git a/sdk/communication/Azure.Communication.Chat/src/Azure.Communication.Chat.csproj b/sdk/communication/Azure.Communication.Chat/src/Azure.Communication.Chat.csproj
index e6f9f2b0bb383..58d69c1d8801d 100644
--- a/sdk/communication/Azure.Communication.Chat/src/Azure.Communication.Chat.csproj
+++ b/sdk/communication/Azure.Communication.Chat/src/Azure.Communication.Chat.csproj
@@ -7,9 +7,9 @@
       Microsoft Azure Communication Chat quickstart - https://docs.microsoft.com/azure/communication-services/quickstarts/chat/get-started?pivots=programming-language-csharp
     </Description>
     <AssemblyTitle>Azure Communication Chat Service</AssemblyTitle>
-    <Version>1.2.0</Version>
+    <Version>1.3.0-beta.1</Version>
     <!--The ApiCompatVersion is managed automatically and should not generally be modified manually.-->
-    <ApiCompatVersion>1.1.2</ApiCompatVersion>
+    <ApiCompatVersion>1.2.0</ApiCompatVersion>
     <PackageTags>Microsoft Azure Communication Chat Service;Microsoft;Azure;Azure Communication Service;Azure Communication Chat Service;Chat;Communication;$(PackageCommonTags)</PackageTags>
     <TargetFrameworks>$(RequiredTargetFrameworks)</TargetFrameworks>
     <IncludeOperationsSharedSource>true</IncludeOperationsSharedSource>