diff --git a/CHANGELOG.md b/CHANGELOG.md
index df282d91d..573ab76ee 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,48 @@
 # Changelog
 
+## 1.2.0
+
+**Release date:** 2025-02-19
+
+This minor release comes with various bug fixes and improvements.
+
+In addition, the Kubernetes dependencies have been updated to v1.32.1, Helm has
+been updated to v3.17.1 and various other controller dependencies have been
+updated to their latest version.
+
+Fixes:
+- Replace _ with + when verifying the chart version matches the OCI artifact tag
+  [#1102](https://github.com/fluxcd/helm-controller/pull/1102)
+- fix: handle "leader changed" errors
+  [#1084](https://github.com/fluxcd/helm-controller/pull/1084)
+- Make `ValuesReference` an alias for backwards compat
+  [#1126](https://github.com/fluxcd/helm-controller/pull/1126)
+- Fix install and upgrade applying subchart CRDs when condition is false
+  [#1123](https://github.com/fluxcd/helm-controller/pull/1123)
+- fix: use HelmRelease max history for rollback remediation
+  [#1169](https://github.com/fluxcd/helm-controller/pull/1169)
+
+Improvements:
+- Refactor values composition to use pkg/chartutil
+  [#1122](https://github.com/fluxcd/helm-controller/pull/1122)
+- docs: Rendering the final Values locally
+  [#1127](https://github.com/fluxcd/helm-controller/pull/1127)
+- Add disableTakeOwnership to Helm install/upgrade actions
+  [#1140](https://github.com/fluxcd/helm-controller/pull/1140)
+- Various dependency updates
+  [#1103](https://github.com/fluxcd/helm-controller/pull/1103)
+  [#1121](https://github.com/fluxcd/helm-controller/pull/1121)
+  [#1129](https://github.com/fluxcd/helm-controller/pull/1129)
+  [#1142](https://github.com/fluxcd/helm-controller/pull/1142)
+  [#1160](https://github.com/fluxcd/helm-controller/pull/1160)
+  [#1158](https://github.com/fluxcd/helm-controller/pull/1158)
+  [#1165](https://github.com/fluxcd/helm-controller/pull/1165)
+  [#1168](https://github.com/fluxcd/helm-controller/pull/1168)
+  [#1171](https://github.com/fluxcd/helm-controller/pull/1171)
+  [#1167](https://github.com/fluxcd/helm-controller/pull/1167)
+  [#1173](https://github.com/fluxcd/helm-controller/pull/1173)
+  [#1170](https://github.com/fluxcd/helm-controller/pull/1170)
+
 ## 1.1.0
 
 **Release date:** 2024-09-26
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 1d49b1f33..9d0edec74 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
   - name: fluxcd/helm-controller
     newName: fluxcd/helm-controller
-    newTag: v1.1.0
+    newTag: v1.2.0
diff --git a/go.mod b/go.mod
index 4e1172bd2..48db6c73c 100644
--- a/go.mod
+++ b/go.mod
@@ -17,7 +17,7 @@ replace (
 require (
 	github.com/Masterminds/semver v1.5.0
 	github.com/fluxcd/cli-utils v0.36.0-flux.12
-	github.com/fluxcd/helm-controller/api v1.1.0
+	github.com/fluxcd/helm-controller/api v1.2.0
 	github.com/fluxcd/pkg/apis/acl v0.6.0
 	github.com/fluxcd/pkg/apis/event v0.16.0
 	github.com/fluxcd/pkg/apis/kustomize v1.9.0