diff --git a/Makefile b/Makefile
index 64aaaf8..2d08a64 100644
--- a/Makefile
+++ b/Makefile
@@ -1,5 +1,5 @@
 PROJECT_NAME = chroma
-VERSION = 1.0.0
+VERSION = 1.0.1
 
 # Directories
 SRCDIR = src
@@ -69,7 +69,7 @@ $(INCDIR):
 	@mkdir -p $(INCDIR)
 
 # Build main executable
-$(TARGET): $(PROTOCOL_HEADERS) $(OBJECTS) | $(BINDIR)
+$(TARGET): version-header $(PROTOCOL_HEADERS) $(OBJECTS) | $(BINDIR)
 	@echo "  LINK  $@"
 	@$(CC) $(OBJECTS) -o $@ $(LDFLAGS)
 
@@ -110,6 +110,16 @@ uninstall:
 	rm -f $(DESTDIR)$(SYSTEMD_INSTALL)/$(PROJECT_NAME).service
 	@echo "Uninstall complete."
 
+# Create version header
+version-header:
+	@echo "Generating version header..."
+	@echo "#ifndef CHROMA_VERSION_H" > $(INCDIR)/chroma_version.h
+	@echo "#define CHROMA_VERSION_H" >> $(INCDIR)/chroma_version.h
+	@echo "" >> $(INCDIR)/chroma_version.h
+	@echo "#define CHROMA_VERSION \"$(VERSION)\"" >> $(INCDIR)/chroma_version.h
+	@echo "" >> $(INCDIR)/chroma_version.h
+	@echo "#endif // CHROMA_VERSION_H" >> $(INCDIR)/chroma_version.h
+
 # Create systemd service file
 systemd-service: $(SYSTEMD_DIR)/$(PROJECT_NAME).service
 
@@ -140,33 +150,68 @@ test: $(TARGET)
 	@echo "Running tests..."
 	@echo "Tests not implemented yet."
 
+# Version management targets
+bump-patch:
+	@echo "Bumping patch version..."
+	@$(eval NEW_VERSION := $(shell echo $(VERSION) | awk -F. '{print $$1"."$$2"."$$3+1}'))
+	@sed -i 's/^VERSION = .*/VERSION = $(NEW_VERSION)/' Makefile
+	@echo "Version bumped to $(NEW_VERSION)"
+
+bump-minor:
+	@echo "Bumping minor version..."
+	@$(eval NEW_VERSION := $(shell echo $(VERSION) | awk -F. '{print $$1"."$$2+1".0"}'))
+	@sed -i 's/^VERSION = .*/VERSION = $(NEW_VERSION)/' Makefile
+	@echo "Version bumped to $(NEW_VERSION)"
+
+bump-major:
+	@echo "Bumping major version..."
+	@$(eval NEW_VERSION := $(shell echo $(VERSION) | awk -F. '{print $$1+1".0.0"}'))
+	@sed -i 's/^VERSION = .*/VERSION = $(NEW_VERSION)/' Makefile
+	@echo "Version bumped to $(NEW_VERSION)"
+
+set-version:
+	@if [ -z "$(NEW_VER)" ]; then \
+		echo "Usage: make set-version NEW_VER=X.Y.Z"; \
+		exit 1; \
+	fi
+	@echo "Setting version to $(NEW_VER)..."
+	@sed -i 's/^VERSION = .*/VERSION = $(NEW_VER)/' Makefile
+	@echo "Version set to $(NEW_VER)"
+
 # Help target
 help:
 	@echo "Available targets:"
-	@echo "  all             - Build the main executable (default)"
+	@echo "  all             - Build main executable (default)"
 	@echo "  debug           - Build with debug symbols and sanitizers"
 	@echo "  static          - Build statically linked executable"
 	@echo "  check-deps      - Check if all dependencies are available"
-	@echo "  install         - Install the executable and systemd service"
+	@echo "  install         - Install executable and systemd service"
 	@echo "  uninstall       - Remove installed files"
 	@echo "  clean           - Remove build artifacts"
 	@echo "  distclean       - Remove all generated files"
 	@echo "  format          - Format source code (requires clang-format)"
 	@echo "  analyze         - Run static analysis (requires cppcheck)"
 	@echo "  test            - Run tests"
+	@echo "  version-header  - Generate version header from Makefile"
+	@echo "  bump-patch      - Increment patch version (X.Y.Z+1)"
+	@echo "  bump-minor      - Increment minor version (X.Y+1.0)"
+	@echo "  bump-major      - Increment major version (X+1.0.0)"
+	@echo "  set-version     - Set specific version (use NEW_VER=X.Y.Z)"
 	@echo "  help            - Show this help message"
 	@echo ""
 	@echo "Examples:"
-	@echo "  make                    # Build with default settings"
-	@echo "  make debug              # Build debug version"
-	@echo "  make PREFIX=/usr install # Install to /usr instead of /usr/local"
-	@echo "  make CC=clang           # Use clang instead of gcc"
+	@echo "  make                           # Build with default settings"
+	@echo "  make debug                     # Build debug version"
+	@echo "  make PREFIX=/usr install       # Install to /usr instead of /usr/local"
+	@echo "  make CC=clang                  # Use clang instead of gcc"
+	@echo "  make bump-patch                # Bump to 1.0.2"
+	@echo "  make set-version NEW_VER=2.0.0 # Set to 2.0.0"
 
 # Include dependency files
 -include $(DEPENDS)
 
 # Phony targets
-.PHONY: all debug static check-deps install uninstall systemd-service sample-config clean distclean format analyze test help
+.PHONY: all debug static check-deps install uninstall systemd-service version-header sample-config clean distclean format analyze test help bump-patch bump-minor bump-major set-version
 
 # Print variables
 print-%:
diff --git a/include/chroma.h b/include/chroma.h
index 397041f..b49b0b6 100644
--- a/include/chroma.h
+++ b/include/chroma.h
@@ -12,7 +12,8 @@
 #include <wayland-client.h>
 #include <wayland-egl.h>
 
-#define CHROMA_VERSION "1.0.0"
+#include "chroma_version.h"
+
 #define MAX_OUTPUTS 16
 #define MAX_PATH_LEN 4096
 #define CONFIG_FILE_NAME "chroma.conf"
diff --git a/include/chroma_version.h b/include/chroma_version.h
new file mode 100644
index 0000000..a160ad2
--- /dev/null
+++ b/include/chroma_version.h
@@ -0,0 +1,6 @@
+#ifndef CHROMA_VERSION_H
+#define CHROMA_VERSION_H
+
+#define CHROMA_VERSION "1.0.1"
+
+#endif // CHROMA_VERSION_H