diff --git a/cli/azd/.vscode/cspell.yaml b/cli/azd/.vscode/cspell.yaml
index 397c71bf785..d79ef9e2111 100644
--- a/cli/azd/.vscode/cspell.yaml
+++ b/cli/azd/.vscode/cspell.yaml
@@ -291,6 +291,7 @@ overrides:
       - Chdir
       - creds
       - Moby
+      - postflight
       - upsert
   - filename: docs/proxy-configuration.md
     words:
diff --git a/cli/azd/CHANGELOG.md b/cli/azd/CHANGELOG.md
index 9ac984f34ea..52c2dd78bdc 100644
--- a/cli/azd/CHANGELOG.md
+++ b/cli/azd/CHANGELOG.md
@@ -1,15 +1,25 @@
 # Release History
 
-## 1.35.0-beta.1 (Unreleased)
+## 1.34.2 (2026-09-23)
 
 ### Features Added
 
-### Breaking Changes
+- [[#9866]](https://github.com/Azure/azure-dev/pull/9866) Add dependency-aware `azd extension uninstall` that records why each extension was installed, blocks removing extensions other extensions depend on unless `--force` is used, and offers to remove dependencies that are no longer needed unless `--no-dependencies` is set.
+- [[#10049]](https://github.com/Azure/azure-dev/pull/10049) Add `Account.GetCurrentPrincipal` to the preview extension gRPC contract so extensions can read the current identity's object ID and principal type without decoding access tokens.
 
 ### Bugs Fixed
 
+- [[#10033]](https://github.com/Azure/azure-dev/pull/10033) Fix project-level `predeploy` and `postdeploy` hook output not being shown during `azd up`. Thanks @jongio for the contribution!
+- [[#10049]](https://github.com/Azure/azure-dev/pull/10049) Fix login details for system-assigned managed identities being reported as not logged in.
+
 ### Other Changes
 
+- [[#9866]](https://github.com/Azure/azure-dev/pull/9866) Update `azd extension show` to display compatibility, ownership, dependencies, and installed dependents. JSON output now uses camelCase keys and omits empty fields.
+- [[#10052]](https://github.com/Azure/azure-dev/pull/10052) Update the agentic `azd init` flow to report AI credits instead of premium requests.
+- [[#10061]](https://github.com/Azure/azure-dev/pull/10061) Update the `execution.environment` telemetry field to report `agency` when `azd` runs inside an Agency session.
+- [[#10095]](https://github.com/Azure/azure-dev/pull/10095) Update the published Homebrew casks to use Homebrew's declarative `postflight_steps`.
+- [[#10132]](https://github.com/Azure/azure-dev/pull/10132) Update the bundled GitHub CLI to v2.101.0.
+
 ## 1.34.1 (2026-09-16)
 
 ### Features Added
diff --git a/cli/azd/pkg/azdext/version.go b/cli/azd/pkg/azdext/version.go
index 389b7175ca1..ac64fbe9d0f 100644
--- a/cli/azd/pkg/azdext/version.go
+++ b/cli/azd/pkg/azdext/version.go
@@ -6,4 +6,4 @@ package azdext
 // Version is the semantic version of the azdext SDK package.
 // This value mirrors the CLI version in cli/version.txt and is
 // automatically updated by eng/scripts/Update-CliVersion.ps1.
-const Version = "1.35.0-beta.1"
+const Version = "1.34.2"
diff --git a/cli/version.txt b/cli/version.txt
index e4ce569d055..00e952d041c 100644
--- a/cli/version.txt
+++ b/cli/version.txt
@@ -1 +1 @@
-1.35.0-beta.1
+1.34.2