diff --git a/.env.example b/.env.example
index 8e7061cd..3e925f21 100644
--- a/.env.example
+++ b/.env.example
@@ -28,3 +28,6 @@ AUTH_GOOGLE_METHOD=
 
 # Retention
 RETENTION_CRON="* * * * *"
+
+# Updates
+NEXT_PUBLIC_UPDATE_CHANNEL=stable
diff --git a/CITATION.cff b/CITATION.cff
index 17655d75..e298ca3d 100644
--- a/CITATION.cff
+++ b/CITATION.cff
@@ -26,5 +26,5 @@ keywords:
   - web-ui
   - agent
 license: Apache-2.0
-version: 1.2.3
-date-released: "2026-01-24"
+version: 1.2.4-rc.6
+date-released: "2026-01-28"
diff --git a/package.json b/package.json
index 6ef1a702..f62087f4 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "portabase",
-  "version": "1.2.3",
+  "version": "1.2.4-rc.6",
   "private": true,
   "scripts": {
     "dev": "next dev --turbopack -p 8887",
diff --git a/src/components/wrappers/dashboard/common/sidebar/app-sidebar.tsx b/src/components/wrappers/dashboard/common/sidebar/app-sidebar.tsx
index 6c5a5d94..5394c2af 100644
--- a/src/components/wrappers/dashboard/common/sidebar/app-sidebar.tsx
+++ b/src/components/wrappers/dashboard/common/sidebar/app-sidebar.tsx
@@ -11,6 +11,7 @@ import {SideBarFooterCredit} from "@/components/wrappers/dashboard/common/sideba
 import {OrganizationCombobox} from "@/components/wrappers/dashboard/organization/organization-combobox";
 import {env} from "@/env.mjs";
 import {LoggedInButton} from "@/components/wrappers/dashboard/common/logged-in/logged-in-button.server";
+import {UpdateNotification} from "@/features/updates/components/update-notification";
 
 export function AppSidebar() {
     const projectName = env.PROJECT_NAME;
@@ -31,6 +32,8 @@ export function AppSidebar() {
                 <SidebarMenuCustomMain/>
             </SidebarContent>
 
+            <UpdateNotification />
+            
             <SidebarMenu className="mb-2">
                 <SidebarMenuItem className="p-2">
                     <LoggedInButton/>
diff --git a/src/env.mjs b/src/env.mjs
index 6565d048..29d76ae0 100644
--- a/src/env.mjs
+++ b/src/env.mjs
@@ -44,10 +44,11 @@ export const env = createEnv({
     },
     client: {
         NEXT_PUBLIC_PROJECT_VERSION: z.string().optional(),
-
+        NEXT_PUBLIC_UPDATE_CHANNEL: z.enum(["stable", "beta", "rc"]).default("stable"),
     },
     runtimeEnv: {
         NEXT_PUBLIC_PROJECT_VERSION: version || "Unknown Version",
+        NEXT_PUBLIC_UPDATE_CHANNEL: process.env.NEXT_PUBLIC_UPDATE_CHANNEL || "stable",
 
         PROJECT_NAME: process.env.PROJECT_NAME,
         PROJECT_DESCRIPTION: process.env.PROJECT_DESCRIPTION,
diff --git a/src/features/updates/components/update-notification.tsx b/src/features/updates/components/update-notification.tsx
new file mode 100644
index 00000000..cdcd3538
--- /dev/null
+++ b/src/features/updates/components/update-notification.tsx
@@ -0,0 +1,59 @@
+"use client";
+
+import { useUpdateCheck } from "../hooks/use-update-check";
+import { useSidebar, SidebarGroup, SidebarGroupContent, SidebarMenu, SidebarMenuItem, SidebarMenuButton } from "@/components/ui/sidebar";
+import { X, ArrowUpCircle } from "lucide-react";
+import Link from "next/link";
+import { cn } from "@/lib/utils";
+
+export const UpdateNotification = () => {
+    const { isUpdateAvailable, latestRelease, dismissUpdate } = useUpdateCheck();
+    const { state } = useSidebar();
+
+    if (!isUpdateAvailable || !latestRelease || state !== "expanded") {
+        return null;
+    }
+
+    return (
+        <SidebarGroup className="py-0">
+            <SidebarGroupContent>
+                <SidebarMenu>
+                    <SidebarMenuItem className="px-2">
+                        <div className="relative flex flex-col gap-2 rounded-lg border bg-primary/5 p-3 text-sidebar-foreground border-primary/20">
+                            <button 
+                                onClick={dismissUpdate}
+                                className="absolute right-2 top-2 rounded-md p-0.5 text-muted-foreground/50 hover:bg-sidebar-accent hover:text-foreground transition-colors"
+                            >
+                                <X className="size-3" />
+                                <span className="sr-only">Dismiss</span>
+                            </button>
+                            
+                            <div className="flex items-center gap-2">
+                                <div className="flex size-6 items-center justify-center rounded-md bg-primary/10 text-primary">
+                                    <ArrowUpCircle className="size-4" />
+                                </div>
+                                <div className="flex flex-col gap-0.5">
+                                    <span className="text-[12px] font-semibold leading-none">Update available</span>
+                                    <span className="text-[10px] text-muted-foreground font-medium">
+                                        v{latestRelease.tag_name.replace(/^v/, "")}
+                                    </span>
+                                </div>
+                            </div>
+
+                            <SidebarMenuButton 
+                                asChild 
+                                variant="outline" 
+                                size="sm"
+                                className="h-7 w-full justify-center bg-background text-[10px] font-medium shadow-none hover:bg-primary/5 hover:text-primary hover:border-primary/30"
+                            >
+                                <Link href={latestRelease.html_url} target="_blank">
+                                    See what's new
+                                </Link>
+                            </SidebarMenuButton>
+                        </div>
+                    </SidebarMenuItem>
+                </SidebarMenu>
+            </SidebarGroupContent>
+        </SidebarGroup>
+    );
+};
\ No newline at end of file
diff --git a/src/features/updates/hooks/use-update-check.ts b/src/features/updates/hooks/use-update-check.ts
new file mode 100644
index 00000000..7e58c0fa
--- /dev/null
+++ b/src/features/updates/hooks/use-update-check.ts
@@ -0,0 +1,60 @@
+"use client";
+
+import { useQuery } from "@tanstack/react-query";
+import { getLatestRelease } from "../services/github";
+import { env } from "@/env.mjs";
+import { useEffect, useState } from "react";
+
+const DISMISS_KEY = "portabase-update-dismissed";
+const DISMISS_DURATION = 1000 * 60 * 60 * 24; 
+
+export const useUpdateCheck = () => {
+    const [isDismissed, setIsDismissed] = useState(true);
+
+    const { data: latestRelease, isLoading } = useQuery({
+        queryKey: ["latest-release", env.NEXT_PUBLIC_UPDATE_CHANNEL],
+        queryFn: () => getLatestRelease(env.NEXT_PUBLIC_UPDATE_CHANNEL as any),
+        staleTime: 1000 * 60 * 60,
+    });
+
+    const currentVersion = env.NEXT_PUBLIC_PROJECT_VERSION;
+
+    useEffect(() => {
+        if (!latestRelease) return;
+
+        const latestVersion = latestRelease.tag_name.replace(/^v/, "");
+        const cleanCurrentVersion = currentVersion?.replace(/^v/, "");
+
+        if (latestVersion && cleanCurrentVersion && latestVersion !== cleanCurrentVersion) {
+            const dismissedData = localStorage.getItem(DISMISS_KEY);
+            if (dismissedData) {
+                const { version, timestamp } = JSON.parse(dismissedData);
+                const now = Date.now();
+                if (version === latestRelease.tag_name && now - timestamp < DISMISS_DURATION) {
+                    setIsDismissed(true);
+                    return;
+                }
+            }
+            setIsDismissed(false);
+        } else {
+            setIsDismissed(true);
+        }
+    }, [latestRelease, currentVersion]);
+
+    const dismissUpdate = () => {
+        if (latestRelease) {
+            localStorage.setItem(DISMISS_KEY, JSON.stringify({
+                version: latestRelease.tag_name,
+                timestamp: Date.now()
+            }));
+            setIsDismissed(true);
+        }
+    };
+
+    return {
+        latestRelease,
+        isLoading,
+        isUpdateAvailable: !isDismissed && latestRelease,
+        dismissUpdate
+    };
+};
diff --git a/src/features/updates/services/github.ts b/src/features/updates/services/github.ts
new file mode 100644
index 00000000..d5befc30
--- /dev/null
+++ b/src/features/updates/services/github.ts
@@ -0,0 +1,34 @@
+export interface GitHubRelease {
+    tag_name: string;
+    html_url: string;
+    prerelease: boolean;
+    name: string;
+    body: string;
+}
+
+export const getLatestRelease = async (channel: "stable" | "beta" | "rc" = "stable"): Promise<GitHubRelease | null> => {
+    try {
+        const response = await fetch("https://api.github.com/repos/Portabase/portabase/releases");
+        if (!response.ok) {
+            return null;
+        }
+        const releases: GitHubRelease[] = await response.json();
+
+        if (channel === "stable") {
+            return releases.find(r => !r.prerelease) || null;
+        }
+
+        if (channel === "beta") {
+            return releases.find(r => r.tag_name.includes("beta") || !r.prerelease) || null;
+        }
+
+        if (channel === "rc") {
+            return releases.find(r => r.tag_name.includes("rc") || !r.prerelease) || null;
+        }
+
+        return releases[0] || null;
+    } catch (error) {
+        console.error("Failed to fetch latest release", error);
+        return null;
+    }
+};