diff --git a/scripts/version-increment.js b/scripts/version-increment.js
new file mode 100644
index 000000000..47c07d2f1
--- /dev/null
+++ b/scripts/version-increment.js
@@ -0,0 +1,83 @@
+/**
+ * Updates the version in the package.json files of the specified folders.
+ *
+ * @param {string} version - The new version to set.
+ * @param {string[]} excludeFolders - An array of folder names to exclude from the update.
+ */
+const fs = require('fs')
+const path = require('path')
+
+function updateVersion(version, excludeFolders) {
+  const rootDir = path.join(__dirname, '..')
+
+  // Folders to be updated
+  const foldersToCheck = ['source', 'tools']
+
+  // Iterate through the folders where the version needs to be updated
+  foldersToCheck.forEach((mainFolder) => {
+    const folderPath = path.join(rootDir, mainFolder)
+    const folders = fs
+      .readdirSync(folderPath, { withFileTypes: true })
+      .filter((dirent) => dirent.isDirectory())
+      .map((dirent) => dirent.name)
+
+    folders.forEach((folder) => {
+      console.log(`Updating ${mainFolder}/${folder} version to ${version}`)
+      // Skip excluded packages
+      if (!excludeFolders.includes(folder)) {
+        const packageJsonPath = path.join(folderPath, folder, 'package.json')
+
+        if (fs.existsSync(packageJsonPath)) {
+          const packageJson = JSON.parse(
+            fs.readFileSync(packageJsonPath, 'utf8')
+          )
+          packageJson.version = version
+
+          if (packageJson) {
+            // Update @airswap dependencies in both dependencies and devDependencies
+            ;['dependencies', 'devDependencies'].forEach((depType) => {
+              if (packageJson[depType]) {
+                Object.keys(packageJson[depType]).forEach((dep) => {
+                  // Update @airswap dependencies, excluding jsonrpc-client-websocket and any excluded packages
+                  if (
+                    dep.startsWith('@airswap/') &&
+                    dep !== '@airswap/jsonrpc-client-websocket'
+                  ) {
+                    const packageName = dep.split('/')[1]
+                    if (!excludeFolders.includes(packageName)) {
+                      packageJson[depType][dep] = version
+                      console.log(
+                        `Updated ${dep} to ${version} in ${mainFolder}/${folder}/package.json (${depType})`
+                      )
+                    }
+                  }
+                })
+              }
+            })
+          }
+
+          fs.writeFileSync(
+            packageJsonPath,
+            JSON.stringify(packageJson, null, 2)
+          )
+          console.log(
+            `Updated version in ${mainFolder}/${folder}/package.json to ${version}`
+          )
+        } else {
+          console.log(`No package.json found in ${mainFolder}/${folder}`)
+        }
+      } else {
+        console.log(`Skipping ${mainFolder}/${folder}`)
+      }
+    })
+  })
+}
+
+const [, , version, ...excludeFolders] = process.argv
+
+if (!version) {
+  console.error('Please provide a version number as the first argument')
+  process.exit(1)
+}
+
+updateVersion(version, excludeFolders)