diff --git a/CHANGELOG.md b/CHANGELOG.md
index 00fef20..6a92d09 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,18 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+## [0.5.0] - 2025-01-13
+
+### Added
+- First-run welcome message using SessionStart hook
+- FIRST_RUN marker file to detect fresh installations
+- Markdown-formatted welcome prompt with setup instructions
+- Automatic detection and guidance for new users
+
+### Changed
+- init-bootstrap now removes FIRST_RUN marker after setup completion
+- Hook configuration uses inline commands (no external scripts needed)
+
 ## [0.4.0] - 2025-01-13
 
 ### Added
@@ -110,7 +122,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - API keys stored in environment variables
 - .mcp.json gitignored for security
 
-[Unreleased]: https://github.com/heyitsnoah/claudesidian/compare/v0.4.0...HEAD
+[Unreleased]: https://github.com/heyitsnoah/claudesidian/compare/v0.5.0...HEAD
+[0.5.0]: https://github.com/heyitsnoah/claudesidian/compare/v0.4.0...v0.5.0
 [0.4.0]: https://github.com/heyitsnoah/claudesidian/compare/v0.3.1...v0.4.0
 [0.3.1]: https://github.com/heyitsnoah/claudesidian/compare/v0.3.0...v0.3.1
 [0.3.0]: https://github.com/heyitsnoah/claudesidian/compare/v0.2.3...v0.3.0
diff --git a/package.json b/package.json
index 99cb3ee..a18bb70 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "claudesidian",
-  "version": "0.4.0",
+  "version": "0.5.0",
   "description": "Claude Code + Obsidian Starter Kit - AI-powered second brain",
   "type": "module",
   "scripts": {