diff --git a/packages/vscode-extension/CHANGELOG.md b/packages/vscode-extension/CHANGELOG.md
index 1d9b642dcd..c8fb29d8a5 100644
--- a/packages/vscode-extension/CHANGELOG.md
+++ b/packages/vscode-extension/CHANGELOG.md
@@ -8,6 +8,7 @@ Hotfix version.
 
 - Fixed an issue ([#12143](https://github.com/OfficeDev/teams-toolkit/issues/12143)) where users may encounter an error (`SPFx.LatestPackageInstallFailed`) when creating a Tab with SPFx project.
 - Resolved an issue ([#12384](https://github.com/OfficeDev/teams-toolkit/issues/12384)) where users may encounter an error (`AppStudioPlugin.TeamsAppCreateConflict`) during local debugging.
+- Updated TypeScript from `4.4.4` to `5.5.4` to avoid build failures for `Custom Engine Agent` templates in [#12462](https://github.com/OfficeDev/teams-toolkit/pull/12462).
 
 ## 5.8.1 - May 27, 2024