diff --git a/CHANGELOG.md b/CHANGELOG.md
index 27d3383..b9d7fae 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,10 @@
+## 1.16.1 - 2016-05-24
+
+Patch release, resolves one issue:
+
+* VM: Fixes a bug that caused intermittent hangs on Windows.
+(SDK issue [26400](https://github.com/dart-lang/sdk/issues/26400))
+
 ## 1.16.0 - 2016-04-26
 
 ### Core library changes
diff --git a/tools/VERSION b/tools/VERSION
index 5f18786..43b3e89 100644
--- a/tools/VERSION
+++ b/tools/VERSION
@@ -26,6 +26,6 @@
 CHANNEL stable
 MAJOR 1
 MINOR 16
-PATCH 0
+PATCH 1
 PRERELEASE 0
 PRERELEASE_PATCH 0