diff --git a/cli/azd/extensions/microsoft.foundry/CHANGELOG.md b/cli/azd/extensions/microsoft.foundry/CHANGELOG.md
index 8c4fe543015..8b2a6e0a687 100644
--- a/cli/azd/extensions/microsoft.foundry/CHANGELOG.md
+++ b/cli/azd/extensions/microsoft.foundry/CHANGELOG.md
@@ -1,5 +1,11 @@
 # Release History
 
+## 1.0.0-beta.2 (2026-07-23)
+
+### Features Added
+
+- [[#9277]](https://github.com/Azure/azure-dev/pull/9277) Bump bundled `azure.ai.agents` to `~1.0.0-beta.7` and `azure.ai.projects` to `~1.0.0-beta.3` to complete the `microsoft.foundry` provisioning-provider handoff from agents to projects, and raise `requiredAzdVersion` to `>=1.27.1`.
+
 ## 1.0.0-beta.1 (2026-06-30)
 
 ### Features Added
diff --git a/cli/azd/extensions/microsoft.foundry/extension.yaml b/cli/azd/extensions/microsoft.foundry/extension.yaml
index ae8597bfe99..336bc749643 100644
--- a/cli/azd/extensions/microsoft.foundry/extension.yaml
+++ b/cli/azd/extensions/microsoft.foundry/extension.yaml
@@ -5,17 +5,17 @@ id: microsoft.foundry
 tags:
     - ai
     - foundry
-version: 1.0.0-beta.1
-requiredAzdVersion: ">=1.27.0"
+version: 1.0.0-beta.2
+requiredAzdVersion: ">=1.27.1"
 dependencies:
   - id: azure.ai.agents
-    version: "~1.0.0-beta.1"
+    version: "~1.0.0-beta.7"
   - id: azure.ai.connections
     version: "~1.0.0-beta.1"
   - id: azure.ai.inspector
     version: "~1.0.0-beta.1"
   - id: azure.ai.projects
-    version: "~1.0.0-beta.1"
+    version: "~1.0.0-beta.3"
   - id: azure.ai.routines
     version: "~1.0.0-beta.1"
   - id: azure.ai.skills
diff --git a/cli/azd/extensions/microsoft.foundry/version.txt b/cli/azd/extensions/microsoft.foundry/version.txt
index ffbc9939864..7e0b23109f3 100644
--- a/cli/azd/extensions/microsoft.foundry/version.txt
+++ b/cli/azd/extensions/microsoft.foundry/version.txt
@@ -1 +1 @@
-1.0.0-beta.1
+1.0.0-beta.2