diff --git a/CHANGELOG.md b/CHANGELOG.md
index ce6a382afd..45be452eb3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,10 @@ All notable changes to the "claude-dev" extension will be documented in this fil
 
 <!-- Check [Keep a Changelog](http://keepachangelog.com/) for recommendations on how to structure this file. -->
 
+## [1.0.8]
+
+- Shows diff view of new or edited files right in the editor
+
 ## [1.0.7]
 
 - Replace `list_files` and `analyze_project` with more explicit `list_files_top_level`, `list_files_recursive`, and `view_source_code_definitions_top_level` to get source code definitions only for files relevant to the task
diff --git a/package-lock.json b/package-lock.json
index e633c51968..10ccaba199 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "claude-dev",
-  "version": "1.0.73",
+  "version": "1.0.8",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "claude-dev",
-      "version": "1.0.73",
+      "version": "1.0.8",
       "license": "MIT",
       "dependencies": {
         "@anthropic-ai/sdk": "^0.24.3",
diff --git a/package.json b/package.json
index bb73b4a6b4..3e11ac1d76 100644
--- a/package.json
+++ b/package.json
@@ -2,7 +2,7 @@
   "name": "claude-dev",
   "displayName": "Claude Dev",
   "description": "Autonomous software engineer right in your IDE, capable of creating/editing files, executing commands, and more with your permission every step of the way.",
-  "version": "1.0.73",
+  "version": "1.0.8",
   "icon": "icon.png",
   "engines": {
     "vscode": "^1.84.0"
diff --git a/webview-ui/src/components/Announcement.tsx b/webview-ui/src/components/Announcement.tsx
index 6fbf2eaaa4..45a55b15f1 100644
--- a/webview-ui/src/components/Announcement.tsx
+++ b/webview-ui/src/components/Announcement.tsx
@@ -47,6 +47,7 @@ const Announcement = ({ hideAnnouncement }: AnnouncementProps) => {
 					servers
 				</li>
 				<li>Provide feedback to tool use like editing files or running commands</li>
+				<li>Shows diff view of new or edited files right in the editor</li>
 				<li>Added ability to retry failed API requests (helpful for rate limits)</li>
 				<li>Export task to a markdown file (useful as context for future tasks)</li>
 			</ul>