diff --git a/.changeset/fresh-suns-hang.md b/.changeset/fresh-suns-hang.md
index ce82e36936..1b7c98b8e2 100644
--- a/.changeset/fresh-suns-hang.md
+++ b/.changeset/fresh-suns-hang.md
@@ -1,7 +1,8 @@
 ---
-'@toptal/picasso-rich-text-editor': minor
+'@toptal/picasso-rich-text-editor': major
 ---
 
 ### RichText
 
 - add support for images
+- update peer dependency of Picasso to `37.1.0` (BREAKING CHANGE)
diff --git a/packages/picasso-rich-text-editor/package.json b/packages/picasso-rich-text-editor/package.json
index 8ee439fbcf..ffdefb0ac1 100644
--- a/packages/picasso-rich-text-editor/package.json
+++ b/packages/picasso-rich-text-editor/package.json
@@ -23,7 +23,7 @@
     "url": "https://github.com/toptal/picasso/issues"
   },
   "peerDependencies": {
-    "@toptal/picasso": "^37.0.0",
+    "@toptal/picasso": "^37.1.0",
     "@toptal/picasso-shared": "^12.0.0",
     "@material-ui/core": "4.12.4",
     "@lexical/utils": "0.11.2",