diff --git a/GITLAB_SHELL_VERSION b/GITLAB_SHELL_VERSION
index 2bd6f7e39277d958d71e245c10304ca8c111c683..0719d810258fae82369ae6a0ee85c322bb8cbd93 100644
--- a/GITLAB_SHELL_VERSION
+++ b/GITLAB_SHELL_VERSION
@@ -1 +1 @@
-10.2.0
+10.3.0
diff --git a/changelogs/unreleased/37371-update-gitlab-shell.yml b/changelogs/unreleased/37371-update-gitlab-shell.yml
new file mode 100644
index 0000000000000000000000000000000000000000..04d48ccbc4ad8d91fa4f6c7e96c8f37fc0d03b81
--- /dev/null
+++ b/changelogs/unreleased/37371-update-gitlab-shell.yml
@@ -0,0 +1,5 @@
+---
+title: Update GitLab Shell to v10.3.0
+merge_request: 21151
+author:
+type: other