diff --git a/GITLAB_SHELL_VERSION b/GITLAB_SHELL_VERSION
index 4044f90867dfbda056433ba862589c96b1df579d..77903b35f3a0f30f7aef87afc7c80addc01643a9 100644
--- a/GITLAB_SHELL_VERSION
+++ b/GITLAB_SHELL_VERSION
@@ -1 +1 @@
-12.0.0
+12.1.0
diff --git a/changelogs/unreleased/update-gitlab-shell.yml b/changelogs/unreleased/update-gitlab-shell.yml
new file mode 100644
index 0000000000000000000000000000000000000000..bdde0951d017f8325eb979a19fcb9c7f3eae0c45
--- /dev/null
+++ b/changelogs/unreleased/update-gitlab-shell.yml
@@ -0,0 +1,5 @@
+---
+title: Update GitLab Shell to v12.1.0
+merge_request: 29167
+author:
+type: other