diff --git a/.release-please-manifest.json b/.release-please-manifest.json
index c3f1463..41ea87d 100644
--- a/.release-please-manifest.json
+++ b/.release-please-manifest.json
@@ -1,3 +1,3 @@
 {
-  ".": "1.2.0"
+  ".": "1.2.1"
 }
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6e7b2b5..98494f8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,12 @@
 # Changelog
 
+## [1.2.1](https://github.com/Lucas-Bur/effect-memfs/compare/effect-memfs-v1.2.0...effect-memfs-v1.2.1) (2026-07-15)
+
+
+### Bug Fixes
+
+* resolve relative paths from virtual cwd ([d3b53fa](https://github.com/Lucas-Bur/effect-memfs/commit/d3b53fa95b12f193692a2a874a896f5f6d0a73b2))
+
 ## [1.2.0](https://github.com/Lucas-Bur/effect-memfs/compare/effect-memfs-v1.1.1...effect-memfs-v1.2.0) (2026-07-15)
 
 
diff --git a/package.json b/package.json
index 5aca8b7..3c2921b 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@lucas-bur/effect-memfs",
-  "version": "1.2.0",
+  "version": "1.2.1",
   "description": "In-memory file system for Effect v4. Great for mocking, tests, simulating files and keeping files in memory. Duh.",
   "keywords": [
     "effect",