diff --git a/sdk/identity/azure-identity/CHANGELOG.md b/sdk/identity/azure-identity/CHANGELOG.md
index 9a078b801e..23b0834663 100644
--- a/sdk/identity/azure-identity/CHANGELOG.md
+++ b/sdk/identity/azure-identity/CHANGELOG.md
@@ -1,5 +1,15 @@
 # Release History
 
+## 1.7.0-beta.3 (Unreleased)
+
+### Features Added
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 1.7.0-beta.2 (2024-02-09)
 
 ### Features Added
diff --git a/sdk/identity/azure-identity/src/private/package_version.hpp b/sdk/identity/azure-identity/src/private/package_version.hpp
index 4ecd898b3c..167cc2c1cf 100644
--- a/sdk/identity/azure-identity/src/private/package_version.hpp
+++ b/sdk/identity/azure-identity/src/private/package_version.hpp
@@ -13,7 +13,7 @@
 #define AZURE_IDENTITY_VERSION_MAJOR 1
 #define AZURE_IDENTITY_VERSION_MINOR 7
 #define AZURE_IDENTITY_VERSION_PATCH 0
-#define AZURE_IDENTITY_VERSION_PRERELEASE "beta.2"
+#define AZURE_IDENTITY_VERSION_PRERELEASE "beta.3"
 
 #define AZURE_IDENTITY_VERSION_ITOA_HELPER(i) #i
 #define AZURE_IDENTITY_VERSION_ITOA(i) AZURE_IDENTITY_VERSION_ITOA_HELPER(i)