diff --git a/README.md b/README.md
index 9b758fd..2109084 100644
--- a/README.md
+++ b/README.md
@@ -24,7 +24,7 @@
     verb: run
     args: node build.js
     cloud-token: ${{ secrets.DAGGER_CLOUD_TOKEN }}
-    version: "0.12.6"
+    version: "0.12.7"
 ```
 
 ### Staying in sync with the `latest` version
@@ -35,7 +35,7 @@ By setting the version to `latest`, this action will install the latest version
 
 | Key            | Description                                                 | Required | Default            |
 | -------------- | ----------------------------------------------------------- | -------- | ------------------ |
-| `version`      | Dagger Version                                              | false    | '0.12.6'           |
+| `version`      | Dagger Version                                              | false    | '0.12.7'           |
 | `dagger-flags` | Dagger CLI Flags                                            | false    | '--progress plain' |
 | `verb`         | CLI verb (call, run, download, up, functions, shell, query) | false    | 'call'             |
 | `workdir`      | The working directory in which to run the Dagger CLI        | false    | '.'                |
diff --git a/action.yml b/action.yml
index 584744f..5608d13 100644
--- a/action.yml
+++ b/action.yml
@@ -4,7 +4,7 @@ inputs:
   version:
     description: "Dagger Version"
     required: false
-    default: "0.12.6"
+    default: "0.12.7"
   dagger-flags:
     description: "Dagger CLI Flags"
     required: false