diff --git a/CHANGELOG.md b/CHANGELOG.md
index 64b98dbb9..f38e6d0cd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,21 @@
 # Changelog
 
+## 2026.3.1 (21 July 2026) Release
+
+Notable changes:
+
+-   Release version that includes changes through the [2026.2.109](https://github.com/microsoft/pylance-release/blob/main/CHANGELOG.md#20262109-14-july-2026-prerelease) prerelease build.
+-   Bug fix: [TSP] out of date example pyrefly version
+    [pylance-release#8133](https://github.com/microsoft/pylance-release/issues/8133)
+-   Bug fix: pylance pre-release 2026.2.109 incorrectly handles typing for pandas.Categorical
+    [pylance-release#8129](https://github.com/microsoft/pylance-release/issues/8129)
+
+## 2026.2.109 (14 July 2026) PreRelease
+
+Notable changes:
+
+-   Bug fix: [TSP] Failing to find node for file after opening [pylance-release#8123](https://github.com/microsoft/pylance-release/issues/8123)
+
 ## 2026.2.108 (8 July 2026) PreRelease
 
 Notable changes:
diff --git a/README.md b/README.md
index 306f757af..f214ebde1 100644
--- a/README.md
+++ b/README.md
@@ -545,10 +545,10 @@ Pylance provides users with the ability to customize their Python language suppo
         - path to a pyright-langserver.js file. For example, the Pyright installed by the PyPI Pyright module. In that case the path would be something like `~/.cache/pyright-python/1.1.397/node_modules/pyright/dist/pyright-langserver.js`
 
 - `python.analysis.pyreflyVersion`
-    - Specifies the version of Pyrefly to use for diagnostics. This setting is only used when `python.analysis.diagnosticsSource` is set to `Pylance + Pyrefly`. Minimum version allowed is 0.60.0.
+    - Specifies the version of Pyrefly to use for diagnostics. This setting is only used when `python.analysis.diagnosticsSource` is set to `Pylance + Pyrefly`. Minimum version allowed is 1.1.1.
     - Accepted values:
         - empty (default) — automatically find or download the latest version
-        - version string, e.g. `0.60.0` — download and use that specific version
+        - version string, e.g. `1.1.1` — download and use that specific version
         - path to a local pyrefly executable
 
 - `python.analysis.enableColorPicker`
diff --git a/releases/2026.3.1.json b/releases/2026.3.1.json
new file mode 100644
index 000000000..25a0dac8b
--- /dev/null
+++ b/releases/2026.3.1.json
@@ -0,0 +1 @@
+{"pylanceVersion":"2026.3.1","pyrightVersion":"1.1.411"}
diff --git a/releases/latest-release.json b/releases/latest-release.json
index fb42302d8..25a0dac8b 100644
--- a/releases/latest-release.json
+++ b/releases/latest-release.json
@@ -1 +1 @@
-{"pylanceVersion":"2026.2.108","pyrightVersion":"1.1.411"}
+{"pylanceVersion":"2026.3.1","pyrightVersion":"1.1.411"}