diff --git a/README.md b/README.md
index c93029719..fc9a0a04f 100644
--- a/README.md
+++ b/README.md
@@ -1,5 +1,5 @@
 # Digi Embedded Yocto (DEY) 2.6
-## Release 2.6-r2
+## Release 2.6-r3
 
 This document provides information about Digi Embedded Yocto,
 Digi International's professional embedded Yocto development environment.
diff --git a/meta-digi-dey/conf/distro/dey.conf b/meta-digi-dey/conf/distro/dey.conf
index 2b1380cb3..bd700e6d7 100644
--- a/meta-digi-dey/conf/distro/dey.conf
+++ b/meta-digi-dey/conf/distro/dey.conf
@@ -1,6 +1,6 @@
 DISTRO = "dey"
 DISTRO_NAME = "Digi Embedded Yocto"
-DISTRO_VERSION = "2.6-r2"
+DISTRO_VERSION = "2.6-r3"
 DISTRO_CODENAME = "thud"
 SDK_VENDOR = "-deysdk"
 SDK_VERSION := "${@'${DISTRO_VERSION}'}"