diff --git a/scripts/update_changelog.sh b/scripts/update_changelog.sh
new file mode 100755
index 0000000..5146015
--- /dev/null
+++ b/scripts/update_changelog.sh
@@ -0,0 +1,288 @@
+#!/bin/bash
+
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+CYAN='\033[0;36m'
+NOCOLOR='\033[0m'
+
+log() { echo -e "${CYAN}[update-changelog]${NOCOLOR} $1"; }
+error() { echo -e "${RED}[ERROR]${NOCOLOR} $1"; }
+success() { echo -e "${GREEN}[SUCCESS]${NOCOLOR} $1"; }
+warning() { echo -e "${YELLOW}[WARNING]${NOCOLOR} $1"; }
+
+# OpenRouter API key
+OPENROUTER_API_KEY="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"
+
+# File paths
+CHANGELOG_FILE="CHANGELOG.md"
+MAKEFILE="Makefile"
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+REPO_ROOT="$(cd "$SCRIPT_DIR/.." && pwd)"
+
+cd "$REPO_ROOT"
+
+# Check dependencies
+if ! command -v jq > /dev/null 2>&1; then
+    error "jq is required but not installed. Install it with: brew install jq (macOS) or apt-get install jq (Linux)"
+    exit 1
+fi
+
+if ! command -v curl > /dev/null 2>&1; then
+    error "curl is required but not installed"
+    exit 1
+fi
+
+# Check if we're in a git repo
+if ! git rev-parse --git-dir > /dev/null 2>&1; then
+    error "Not in a git repository"
+    exit 1
+fi
+
+# Get current branch
+CURRENT_BRANCH=$(git rev-parse --abbrev-ref HEAD)
+REMOTE_BRANCH="origin/$CURRENT_BRANCH"
+
+# Check if remote branch exists
+if ! git rev-parse --verify "$REMOTE_BRANCH" > /dev/null 2>&1; then
+    warning "Remote branch $REMOTE_BRANCH does not exist. Using main/master as baseline."
+    if git rev-parse --verify "origin/main" > /dev/null 2>&1; then
+        REMOTE_BRANCH="origin/main"
+    elif git rev-parse --verify "origin/master" > /dev/null 2>&1; then
+        REMOTE_BRANCH="origin/master"
+    else
+        warning "No remote branch found. Using HEAD as baseline."
+        REMOTE_BRANCH="HEAD"
+    fi
+fi
+
+# Gather all git diffs
+log "Collecting git diffs..."
+
+# Unstaged changes
+UNSTAGED_DIFF=$(git diff 2>/dev/null || echo "")
+
+# Staged changes
+STAGED_DIFF=$(git diff --cached 2>/dev/null || echo "")
+
+# Unpushed commits
+UNPUSHED_DIFF=$(git diff "$REMOTE_BRANCH"..HEAD 2>/dev/null || echo "")
+
+# Combine all diffs
+ALL_DIFFS="${UNSTAGED_DIFF}
+---
+STAGED CHANGES:
+---
+${STAGED_DIFF}
+---
+UNPUSHED COMMITS:
+---
+${UNPUSHED_DIFF}"
+
+# Check if there are any changes
+if [ -z "$(echo "$UNSTAGED_DIFF$STAGED_DIFF$UNPUSHED_DIFF" | tr -d '[:space:]')" ]; then
+    log "No changes detected (unstaged, staged, or unpushed). Skipping changelog update."
+    exit 0
+fi
+
+# Get current version from Makefile
+CURRENT_VERSION=$(grep "^VERSION :=" "$MAKEFILE" | sed 's/.*:= *//' | tr -d ' ')
+
+if [ -z "$CURRENT_VERSION" ]; then
+    error "Could not find VERSION in Makefile"
+    exit 1
+fi
+
+log "Current version: $CURRENT_VERSION"
+
+# Prepare prompt for OpenRouter
+PROMPT="You are analyzing git diffs to create a changelog entry. Based on the following git diffs, create a simple, easy-to-understand changelog entry.
+
+Current version: $CURRENT_VERSION
+
+Git diffs:
+\`\`\`
+$ALL_DIFFS
+\`\`\`
+
+Please respond with ONLY a valid JSON object in this exact format:
+{
+  \"version\": \"x.y.z\",
+  \"bump_type\": \"minor\" or \"patch\",
+  \"date\": \"YYYY-MM-DD\",
+  \"added\": [\"item1\", \"item2\"],
+  \"changed\": [\"item1\", \"item2\"],
+  \"fixed\": [\"item1\", \"item2\"]
+}
+
+Rules:
+- Bump version based on changes: use \"minor\" for new features, \"patch\" for bug fixes and small changes
+- Never bump major version (keep major version the same)
+- Keep descriptions simple and easy to understand (1-2 sentences max per item)
+- Only include items that actually changed
+- If a category is empty, use an empty array []
+- Date should be today's date in YYYY-MM-DD format"
+
+# Call OpenRouter API
+log "Calling OpenRouter API to generate changelog..."
+
+set +e  # Temporarily disable exit on error to check curl response
+RESPONSE=$(curl -s -X POST "https://openrouter.ai/api/v1/chat/completions" \
+  -H "Authorization: Bearer $OPENROUTER_API_KEY" \
+  -H "Content-Type: application/json" \
+  -d "{
+    \"model\": \"google/gemini-2.5-flash-preview-09-2025\",
+    \"messages\": [
+      {
+        \"role\": \"user\",
+        \"content\": $(echo "$PROMPT" | jq -Rs .)
+      }
+    ],
+    \"temperature\": 0.3
+  }")
+CURL_EXIT_CODE=$?
+set -e  # Re-enable exit on error
+
+# Check if API call succeeded
+if [ $CURL_EXIT_CODE -ne 0 ] || [ -z "$RESPONSE" ]; then
+    error "Failed to call OpenRouter API"
+    exit 1
+fi
+
+# Check for API errors in response
+if echo "$RESPONSE" | jq -e '.error' > /dev/null 2>&1; then
+    error "OpenRouter API error:"
+    echo "$RESPONSE" | jq -r '.error.message // .error'
+    exit 1
+fi
+
+# Extract JSON from response
+JSON_CONTENT=$(echo "$RESPONSE" | jq -r '.choices[0].message.content' 2>/dev/null)
+
+# Check if content was extracted
+if [ -z "$JSON_CONTENT" ] || [ "$JSON_CONTENT" = "null" ]; then
+    error "Failed to extract content from API response"
+    echo "Response: $RESPONSE"
+    exit 1
+fi
+
+# Try to extract JSON if it's wrapped in markdown code blocks
+if echo "$JSON_CONTENT" | grep -q '```json'; then
+    JSON_CONTENT=$(echo "$JSON_CONTENT" | sed -n '/```json/,/```/p' | sed '1d;$d')
+elif echo "$JSON_CONTENT" | grep -q '```'; then
+    JSON_CONTENT=$(echo "$JSON_CONTENT" | sed -n '/```/,/```/p' | sed '1d;$d')
+fi
+
+# Validate JSON
+if ! echo "$JSON_CONTENT" | jq . > /dev/null 2>&1; then
+    error "Invalid JSON response from API:"
+    echo "$JSON_CONTENT"
+    exit 1
+fi
+
+# Parse JSON
+NEW_VERSION=$(echo "$JSON_CONTENT" | jq -r '.version')
+BUMP_TYPE=$(echo "$JSON_CONTENT" | jq -r '.bump_type')
+DATE=$(echo "$JSON_CONTENT" | jq -r '.date')
+ADDED=$(echo "$JSON_CONTENT" | jq -r '.added[]?' | sed 's/^/- /')
+CHANGED=$(echo "$JSON_CONTENT" | jq -r '.changed[]?' | sed 's/^/- /')
+FIXED=$(echo "$JSON_CONTENT" | jq -r '.fixed[]?' | sed 's/^/- /')
+
+log "Generated version: $NEW_VERSION ($BUMP_TYPE bump)"
+log "Date: $DATE"
+
+# Validate version format
+if ! echo "$NEW_VERSION" | grep -qE '^[0-9]+\.[0-9]+\.[0-9]+$'; then
+    error "Invalid version format: $NEW_VERSION"
+    exit 1
+fi
+
+# Validate date format
+if ! echo "$DATE" | grep -qE '^[0-9]{4}-[0-9]{2}-[0-9]{2}$'; then
+    error "Invalid date format: $DATE (expected YYYY-MM-DD)"
+    exit 1
+fi
+
+# Validate bump type
+if [ "$BUMP_TYPE" != "minor" ] && [ "$BUMP_TYPE" != "patch" ]; then
+    error "Invalid bump type: $BUMP_TYPE (must be 'minor' or 'patch')"
+    exit 1
+fi
+
+# Update Makefile
+log "Updating Makefile..."
+if [[ "$OSTYPE" == "darwin"* ]]; then
+    # macOS sed requires backup extension
+    sed -i '' "s/^VERSION := .*/VERSION := $NEW_VERSION/" "$MAKEFILE"
+else
+    # Linux sed
+    sed -i "s/^VERSION := .*/VERSION := $NEW_VERSION/" "$MAKEFILE"
+fi
+success "Makefile updated to version $NEW_VERSION"
+
+# Update CHANGELOG.md
+log "Updating CHANGELOG.md..."
+
+# Create changelog entry
+CHANGELOG_ENTRY="## [$NEW_VERSION] - $DATE
+
+### Added
+"
+if [ -n "$ADDED" ]; then
+    CHANGELOG_ENTRY+="$ADDED"$'\n'
+else
+    CHANGELOG_ENTRY+="\n"
+fi
+
+CHANGELOG_ENTRY+="
+### Changed
+"
+if [ -n "$CHANGED" ]; then
+    CHANGELOG_ENTRY+="$CHANGED"$'\n'
+else
+    CHANGELOG_ENTRY+="\n"
+fi
+
+CHANGELOG_ENTRY+="
+### Deprecated
+
+### Removed
+
+### Fixed
+"
+if [ -n "$FIXED" ]; then
+    CHANGELOG_ENTRY+="$FIXED"$'\n'
+else
+    CHANGELOG_ENTRY+="\n"
+fi
+
+CHANGELOG_ENTRY+="
+"
+
+# Insert after [Unreleased] section using awk (more portable)
+# Find the line number after [Unreleased] section (after the "### Fixed" line)
+INSERT_LINE=$(awk '/^## \[Unreleased\]/{found=1} found && /^### Fixed$/{print NR+1; exit}' "$CHANGELOG_FILE")
+
+if [ -z "$INSERT_LINE" ]; then
+    # Fallback: insert after line 16 (after [Unreleased] section)
+    INSERT_LINE=16
+fi
+
+# Use a temp file approach to insert multiline content
+TMP_FILE=$(mktemp)
+{
+    head -n $((INSERT_LINE - 1)) "$CHANGELOG_FILE"
+    printf '%s' "$CHANGELOG_ENTRY"
+    tail -n +$INSERT_LINE "$CHANGELOG_FILE"
+} > "$TMP_FILE"
+mv "$TMP_FILE" "$CHANGELOG_FILE"
+
+success "CHANGELOG.md updated with version $NEW_VERSION"
+
+log "Changelog update complete!"
+log "New version: $NEW_VERSION"
+log "Bump type: $BUMP_TYPE"
+