diff --git a/CHANGELOG.md b/CHANGELOG.md
index 424d08e3..284be1ae 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,88 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 
 ## [Unreleased]
 
+## [1.2.0] - 2026-03-29
+
+### Added
+
+- Discover workflows in nested subdirectories
+- Add WorkflowBrowserModal and wire up Header open-project button
+- Wire browse view into WelcomeModal
+- Add WorkflowBrowserView component for browsing saved workflows
+- Add /api/list-workflows route to enumerate workflow directories
+- Add localStorage helpers for workflows directory
+- Use directory picker for load workflow in WelcomeModal
+- Open workflow via native OS directory picker for media hydration
+- Extend media externalization to support videos and audio
+- Add missing ref fields for media externalization
+- Add skipped node visual treatment during execution
+- Add Optional/Required toggle button to input node headers
+- Add visual indicators for optional input nodes
+- Add skip propagation to workflow execution engine
+- Add isOptional flag to input node types and skipped status
+- Prefill project directory from last-used path in new project flow
+- Add "NBP Input" toggle to group context menu
+- Redesign group menu as vertical context menu
+- Move group controls into three-dot menu next to title
+
+### Fixed
+
+- Remove cleanup script, show lock icon on locked groups
+- Code review fixes for groups, a11y, regex, and dialog semantics
+- Cleanup-workflow filter, workflow load validation, media hydration guard
+- Update GroupsOverlay tests for dropdown menu UI
+- Restore skippedNodeIds to store for canvas visual feedback
+- Update WelcomeModal and QuickstartInitialView tests for new flow
+- Update Header tests for WorkflowBrowserModal-based open flow
+- Embed directoryPath in workflow JSON for portable hydration
+- Save video/audio to generations/ and strip imageHistory bloat
+- Video/audio save-load roundtrip (3 compounding bugs)
+- Correct API parameter names for media save/load
+- Handle null return values from media save functions
+- Handle outputGallery nodes in image externalization
+- Correct GitHub repo URLs to shrimbly/node-banana
+- Clear error state when navigating generation carousel
+- Refine NBP input group border to 3px dashed white at 25% opacity
+- Center color fan origin on top-left corner of context menu
+- Increase color dot hover scale from 110% to 125%
+- Use left/top for color dot positioning so hover scale doesn't shift
+- Widen color fan arc spread from 150° to 180°
+- Shift color fan center to -130° for tighter corner wrap
+- Rotate color fan 20° anti-clockwise to wrap around menu corner
+- Hide three-dot icon when expanded menu is open
+- Add left margin before controls and tighten icon gaps
+- Reduce three-dot menu dots to match other icon sizes
+- Increase group menu icon sizes for better visibility
+
+### Changed
+
+- Remove dual-tracked skippedNodeIds local variable
+- Remove skippedNodeIds from store, extract resetSkippedNodes helper
+
+### Performance
+
+- Speed up workflow listing by reading only file headers
+
+### Documentation
+
+- Simplify contributing section
+- List all 23 node types and update tagline
+- Update README to enhance feature descriptions and clarify API key configuration
+- Add dynamic prompting as top feature, add video/3D/audio generation
+- Clarify Gemini key is required for prompt-to-workflow
+- Add all provider API keys to env example
+- Redesign README with hero layout and updated screenshot
+
+### Tests
+
+- Add tests for WorkflowBrowserModal and list-workflows API route
+- Add skip propagation tests and fix WorkflowCanvas mock
+
+### Other
+
+- Remove dead code, move script, add hydration batching
+- Improve workflow browser visual hierarchy and listing design
+
 ## [1.1.3] - 2026-03-22
 
 ### Fixed
diff --git a/package.json b/package.json
index a78eb875..db535358 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "node-banana",
-  "version": "1.1.3",
+  "version": "1.2.0",
   "private": true,
   "scripts": {
     "dev": "node server.js",