diff --git a/CHANGELOG.md b/CHANGELOG.md
index 996c2126fd..715fb95883 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,19 @@
 
 ---
 
+## [3.1.2] — 2026-03-26
+
+### 🐛 Bug Fixes
+
+- **Critical: Tool Calling Regression** — Fixed `proxy_Bash` errors by disabling the `proxy_` tool name prefix in the Claude passthrough path. Tools like `Bash`, `Read`, `Write` were being renamed to `proxy_Bash`, `proxy_Read`, etc., causing Claude to reject them (#618)
+- **Kiro Account Ban Documentation** — Documented as upstream AWS anti-fraud false positive, not an OmniRoute issue (#649)
+
+### 🧪 Tests
+
+- **936 tests, 0 failures**
+
+---
+
 ## [3.1.1] — 2026-03-26
 
 ### ✨ New Features
diff --git a/docs/openapi.yaml b/docs/openapi.yaml
index 9f6aae29c4..888f603495 100644
--- a/docs/openapi.yaml
+++ b/docs/openapi.yaml
@@ -1,7 +1,7 @@
 openapi: 3.1.0
 info:
   title: OmniRoute API
-  version: 3.1.1
+  version: 3.1.2
   description: |
     OmniRoute is a local-first AI API proxy router. It provides an OpenAI-compatible
     endpoint that routes requests to multiple AI providers with load balancing,
diff --git a/package-lock.json b/package-lock.json
index 23536523d8..8365e27f75 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "omniroute",
-  "version": "3.1.1",
+  "version": "3.1.2",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "omniroute",
-      "version": "3.1.1",
+      "version": "3.1.2",
       "hasInstallScript": true,
       "license": "MIT",
       "workspaces": [
diff --git a/package.json b/package.json
index fdba66dd8a..23266f877e 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "omniroute",
-  "version": "3.1.1",
+  "version": "3.1.2",
   "description": "Smart AI Router with auto fallback — route to FREE & cheap models, zero downtime. Works with Cursor, Cline, Claude Desktop, Codex, and any OpenAI-compatible tool.",
   "type": "module",
   "bin": {