diff --git a/.release-please-manifest.json b/.release-please-manifest.json
index 6110c0f..9dc6cef 100644
--- a/.release-please-manifest.json
+++ b/.release-please-manifest.json
@@ -1,3 +1,3 @@
 {
-  ".": "3.3.0"
+  ".": "3.4.0"
 }
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8dd0dde..ad4e0da 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,13 @@
 # Changelog
 
+## [3.4.0](https://github.com/open-feature/flagd-testbed/compare/v3.3.0...v3.4.0) (2026-03-30)
+
+
+### ✨ New Features
+
+* add fractional as condition flag ([#354](https://github.com/open-feature/flagd-testbed/issues/354)) ([fdfac67](https://github.com/open-feature/flagd-testbed/commit/fdfac677c55d2e4b7d4a9551902c43f4bc372393))
+* **fractional:** mirror nested fractional scenarios to evaluator gherkin suite ([#357](https://github.com/open-feature/flagd-testbed/issues/357)) ([eaec4d9](https://github.com/open-feature/flagd-testbed/commit/eaec4d928326f609ad233d492b0674c722baf743))
+
 ## [3.3.0](https://github.com/open-feature/flagd-testbed/compare/v3.2.0...v3.3.0) (2026-03-20)
 
 
diff --git a/docker-compose.yaml b/docker-compose.yaml
index 68f06c9..7e3149c 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -2,7 +2,7 @@ version: '3.8'
 
 services:
   flagd:
-    image: ${IMAGE:-ghcr.io/open-feature/flagd-testbed}:${VERSION:-v3.3.0} # x-release-please-version
+    image: ${IMAGE:-ghcr.io/open-feature/flagd-testbed}:${VERSION:-v3.4.0} # x-release-please-version
     ports:
       - 8013
       - 8014
diff --git a/version.txt b/version.txt
index 15a2799..1809198 100644
--- a/version.txt
+++ b/version.txt
@@ -1 +1 @@
-3.3.0
+3.4.0