diff --git a/sdk/identity/azure-identity/CHANGELOG.md b/sdk/identity/azure-identity/CHANGELOG.md
index d7e5ffcd7284..29ee078db7e2 100644
--- a/sdk/identity/azure-identity/CHANGELOG.md
+++ b/sdk/identity/azure-identity/CHANGELOG.md
@@ -1,5 +1,15 @@
 # Release History
 
+## 1.23.1 (Unreleased)
+
+### Features Added
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 1.23.0 (2025-05-13)
 
 ### Features Added
diff --git a/sdk/identity/azure-identity/azure/identity/_version.py b/sdk/identity/azure-identity/azure/identity/_version.py
index ab116a1aed66..760523dec6db 100644
--- a/sdk/identity/azure-identity/azure/identity/_version.py
+++ b/sdk/identity/azure-identity/azure/identity/_version.py
@@ -2,4 +2,4 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
 # ------------------------------------
-VERSION = "1.23.0"
+VERSION = "1.23.1"