diff --git a/docs/Changelog-1.2.0.md b/docs/Changelog-1.2.0.md
new file mode 100644
index 00000000..95d32c19
--- /dev/null
+++ b/docs/Changelog-1.2.0.md
@@ -0,0 +1,40 @@
+Version v1.2.0 (2024-06-26)
+===========================
+
+Bug fixes
+---------
+
+- Fixed handling of `--in-pod` argument. Previously it was hard to provide false value to it.
+- podman-compose no longer creates pods when registering systemd unit.
+- Fixed warning `RuntimeWarning: coroutine 'create_pods' was never awaited`
+- Fixed error when setting up IPAM network with default driver.
+- Fixed support for having list and dictionary `depends_on` sections in related compose files.
+- Fixed logging of failed build message.
+- Fixed support for multiple entries in `include` section.
+- Fixed environment variable precedence order.
+
+Changes
+-------
+
+- `x-podman` dictionary in container root has been migrated to `x-podman.*` fields in container root.
+
+New features
+------------
+
+- Added support for `--publish` in `podman-compose run`.
+- Added support for Podman external root filesystem management (`--rootfs` option).
+- Added support for `podman-compose images` command.
+- Added support for `env_file` being configured via dictionaries.
+- Added support for enabling GPU access.
+- Added support for selinux in verbose mount specification.
+- Added support for `additional_contexts` section.
+- Added support for multi-line environment files.
+- Added support for passing contents of `podman-compose.yml` via stdin.
+- Added support for specifying the value for `--in-pod` setting in `podman-compose.yml` file.
+- Added support for environmental secrets.
+
+Documentation
+-------------
+
+- Added instructions on how to install podman-compose on Homebrew.
+- Added explanation that netavark is an alternative to dnsname plugin