diff --git a/CMakeLists.txt b/CMakeLists.txt
index afe3ce4b7..f5422a167 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -20,7 +20,7 @@ set(CMAKE_MODULE_PATH ${CMAKE_SOURCE_DIR}/cmake/)
 message(STATUS "Configuring OpenMW...")
 
 set(OPENMW_VERSION_MAJOR 0)
-set(OPENMW_VERSION_MINOR 37)
+set(OPENMW_VERSION_MINOR 38)
 set(OPENMW_VERSION_RELEASE 0)
 
 set(OPENMW_VERSION_COMMITHASH "")
diff --git a/README.md b/README.md
index f353cd76e..9cfb0440d 100644
--- a/README.md
+++ b/README.md
@@ -7,7 +7,7 @@ OpenMW is a recreation of the engine for the popular role-playing game Morrowind
 
 OpenMW also comes with OpenMW-CS, a replacement for Morrowind's TES Construction Set.
 
-* Version: 0.37.0
+* Version: 0.38.0
 * License: GPL (see docs/license/GPL3.txt for more information)
 * Website: http://www.openmw.org
 * IRC: #openmw on irc.freenode.net