diff --git a/sdk/core/System.ClientModel/CHANGELOG.md b/sdk/core/System.ClientModel/CHANGELOG.md
index e7efe96eee86..600fc2bcf20c 100644
--- a/sdk/core/System.ClientModel/CHANGELOG.md
+++ b/sdk/core/System.ClientModel/CHANGELOG.md
@@ -1,5 +1,15 @@
 # Release History
 
+## 1.8.0-beta.1 (Unreleased)
+
+### Features Added
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 1.7.0 (2025-09-22)
 
 ### Features Added
diff --git a/sdk/core/System.ClientModel/src/System.ClientModel.csproj b/sdk/core/System.ClientModel/src/System.ClientModel.csproj
index cccb79dad5a0..995bd508ca65 100644
--- a/sdk/core/System.ClientModel/src/System.ClientModel.csproj
+++ b/sdk/core/System.ClientModel/src/System.ClientModel.csproj
@@ -2,9 +2,9 @@
 
   <PropertyGroup>
     <Description>Contains building blocks for clients that call cloud services.</Description>
-    <Version>1.7.0</Version>
+    <Version>1.8.0-beta.1</Version>
     <!--The ApiCompatVersion is managed automatically and should not generally be modified manually.-->
-    <ApiCompatVersion>1.6.1</ApiCompatVersion>
+    <ApiCompatVersion>1.7.0</ApiCompatVersion>
     <Nullable>enable</Nullable>
     <TargetFrameworks>netstandard2.0;net8.0;net9.0</TargetFrameworks>
     <PackageIcon>DotNetPackageIcon.png</PackageIcon>