diff --git a/CHANGES b/CHANGES
index ac01996e1..ca4dad9a0 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,3 +1,20 @@
+Version 3.40.1-1:
+Date + Time 2024-09-11
+=============================================================
+Added:
+        - RM #4033654 Rotten test folder cleanup
+        - RM #4034865 XLIO parameters and specs cleanup
+        - RM #4034844: Manage SPDK/OCI parameters with nvme_bf3 XLIO_SPEC
+
+Fixed:
+        - RM #4014486 Missing ack for partial TSO segments after retransmission
+        - RM #4014504 RTO after fast retransmission puts TCP segments in wrong order in unsent list
+        - RM #3382805 XLIO shows warning: "could not figure out source ip for rtv"
+        - RM #3594311 Segmentation fault in nginx scenario - unlock_tcp_con
+        - RM #4043152 Sockperf with multiple IPv6 sockets fails with XLIO warning and an error
+        - RM #4039462 XLIO crashes on stats with thread_local dummy
+        - RM #3502635 Instability with Nginx performance results on BF3
+
 Version 3.40.0-1:
 Date + Time 2024-08-08
 =============================================================
diff --git a/configure.ac b/configure.ac
index 75d0d3e0c..5450b4288 100644
--- a/configure.ac
+++ b/configure.ac
@@ -14,7 +14,7 @@ dnl===-----------------------------------------------------------------------===
 #
 define([prj_ver_major], 3)
 define([prj_ver_minor], 40)
-define([prj_ver_revision], 0)
+define([prj_ver_revision], 1)
 define([prj_ver_release], esyscmd([echo ${PRJ_RELEASE:=0}]))
 
 
diff --git a/contrib/scripts/libxlio.spec.in b/contrib/scripts/libxlio.spec.in
index 74ee008a1..5456567b3 100644
--- a/contrib/scripts/libxlio.spec.in
+++ b/contrib/scripts/libxlio.spec.in
@@ -189,7 +189,7 @@ fi
 %{_mandir}/man8/xlio_stats.*
 
 %changelog
-* Thu Aug  8 2024 NVIDIA CORPORATION <networking-support@nvidia.com> 3.40.0-1
-- Bump version to 3.40.0
+* Wed Sep 11 2024 NVIDIA CORPORATION <networking-support@nvidia.com> 3.40.1-1
+- Bump version to 3.40.1
 - Please refer to CHANGES for full changelog.