diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6a368e7dc..94ffb99e5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,51 @@
+# [3.2.0-beta.1](https://github.com/vuejs/vue-next/compare/v3.1.5...v3.2.0-beta.1) (2021-07-16)
+
+
+### Bug Fixes
+
+* **sfc/style-vars:** properly re-apply style vars on component root elements change ([49dc2dd](https://github.com/vuejs/vue-next/commit/49dc2dd1e4a56d0d2ad28003240c99e99ef469e4)), closes [#3894](https://github.com/vuejs/vue-next/issues/3894)
+* ensure customElements API ssr compatibility ([de32cfa](https://github.com/vuejs/vue-next/commit/de32cfa43e94276c60f93ac4c560cb7b84534cfe)), closes [#4129](https://github.com/vuejs/vue-next/issues/4129)
+* **runtime-core:** fix default shapeFlag for fragments ([2a310df](https://github.com/vuejs/vue-next/commit/2a310df7531a693be706a96d4191a5bfbf24692d))
+* ignore .prop/.attr modifiers in ssr ([29732c2](https://github.com/vuejs/vue-next/commit/29732c2c8681cc3e58251c19149ba3a0ce31cdaf))
+
+
+### Code Refactoring
+
+* remove deprecated scopeId codegen ([f596e00](https://github.com/vuejs/vue-next/commit/f596e008efd97fe8f9b28f536fbb0fd48b9b6333))
+
+
+### Features
+
+* **sfc:** (experimental) new ref sugar ([562bddb](https://github.com/vuejs/vue-next/commit/562bddb3ce76a0e98e499e199e96fa4271e5d1b4))
+* **sfc:** support namespaced component tags when using `<script setup>` ([e5a4412](https://github.com/vuejs/vue-next/commit/e5a4412764f6db255afe01b8a7e6e40ebf707412))
+* custom element reflection, casting and edge cases ([00f0b3c](https://github.com/vuejs/vue-next/commit/00f0b3c46552626cd7c5ec73ffd0a918c3e1a5fb))
+* remove experimental status of `<script setup>` ([27104ea](https://github.com/vuejs/vue-next/commit/27104eaaf0f929a4c08b53877b495c5813157232))
+* support v-bind .prop & .attr modifiers ([1c7d737](https://github.com/vuejs/vue-next/commit/1c7d737cc8ed0384b334d0b3e2dc8ede44906dc4))
+* **runtime-dom:** defineCustomElement ([8610e1c](https://github.com/vuejs/vue-next/commit/8610e1c9e23a4316f76fb35eebbab4ad48566fbf))
+* v-memo ([3b64508](https://github.com/vuejs/vue-next/commit/3b64508e3b2d648e346cbf34e1641f4022be61b6))
+* watchPostEffect ([42ace95](https://github.com/vuejs/vue-next/commit/42ace9577da49477ff189950a83d6eead73d0efe))
+* **reactivity:** new effectScope API ([#2195](https://github.com/vuejs/vue-next/issues/2195)) ([f5617fc](https://github.com/vuejs/vue-next/commit/f5617fc3bb8fd33927b2567622ac4f8b43f9b5d5))
+* **reactivity:** support onTrack/onTrigger debug options for computed ([5cea9a1](https://github.com/vuejs/vue-next/commit/5cea9a1d4e846f60515ef76ebab4800228645601))
+
+
+### Performance Improvements
+
+* also hoist all-static children array ([b7ea7c1](https://github.com/vuejs/vue-next/commit/b7ea7c148552874e8bce399eec9fbe565efa2f4d))
+* hoist dynamic props lists ([02339b6](https://github.com/vuejs/vue-next/commit/02339b67d8c6fab6ee701a7c4f2773139ed007f5))
+* **reactivity:** avoid triggering re-render if computed value did not change ([ebaac9a](https://github.com/vuejs/vue-next/commit/ebaac9a56d82d266e333d077b6457543d7cab9ae))
+* **reactivity:** improve reactive effect memory usage ([#4001](https://github.com/vuejs/vue-next/issues/4001)) ([87f69fd](https://github.com/vuejs/vue-next/commit/87f69fd0bb67508337fb95cb98135fd5d6ebca7d)), closes [#2345](https://github.com/vuejs/vue-next/issues/2345)
+* **reactivity:** ref-specific track/trigger and miscellaneous optimizations ([#3995](https://github.com/vuejs/vue-next/issues/3995)) ([6431040](https://github.com/vuejs/vue-next/commit/64310405acaccabc24985ade95fb1b5c9c06ef76))
+* **reactivity:** use bitwise dep markers to optimize re-tracking ([#4017](https://github.com/vuejs/vue-next/issues/4017)) ([6cf2377](https://github.com/vuejs/vue-next/commit/6cf2377cd49d24814bdff136bf78c77d50d5b41a))
+* improve VNode creation performance with compiler hints ([#3334](https://github.com/vuejs/vue-next/issues/3334)) ([ceff899](https://github.com/vuejs/vue-next/commit/ceff89905b05381d3d73c480e08c7aff9271b074))
+
+
+### BREAKING CHANGES
+
+* Output of SFC using `<style scoped>` generated by 3.2+
+will be incompatible w/ runtime <3.2.
+
+
+
 ## [3.1.5](https://github.com/vuejs/vue-next/compare/v3.1.4...v3.1.5) (2021-07-16)
 
 
diff --git a/package.json b/package.json
index 6ceff73f4..c8ca74c55 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "private": true,
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "workspaces": [
     "packages/*"
   ],
diff --git a/packages/compiler-core/package.json b/packages/compiler-core/package.json
index ebbe0b9d2..35832a24f 100644
--- a/packages/compiler-core/package.json
+++ b/packages/compiler-core/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/compiler-core",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/compiler-core",
   "main": "index.js",
   "module": "dist/compiler-core.esm-bundler.js",
@@ -32,7 +32,7 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/compiler-core#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5",
+    "@vue/shared": "3.2.0-beta.1",
     "@babel/parser": "^7.12.0",
     "@babel/types": "^7.12.0",
     "estree-walker": "^2.0.1",
diff --git a/packages/compiler-dom/package.json b/packages/compiler-dom/package.json
index e0e393347..d465cd7d1 100644
--- a/packages/compiler-dom/package.json
+++ b/packages/compiler-dom/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/compiler-dom",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/compiler-dom",
   "main": "index.js",
   "module": "dist/compiler-dom.esm-bundler.js",
@@ -37,7 +37,7 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/compiler-dom#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5",
-    "@vue/compiler-core": "3.1.5"
+    "@vue/shared": "3.2.0-beta.1",
+    "@vue/compiler-core": "3.2.0-beta.1"
   }
 }
diff --git a/packages/compiler-sfc/package.json b/packages/compiler-sfc/package.json
index b86b7fe53..6b86d27ce 100644
--- a/packages/compiler-sfc/package.json
+++ b/packages/compiler-sfc/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/compiler-sfc",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/compiler-sfc",
   "main": "dist/compiler-sfc.cjs.js",
   "types": "dist/compiler-sfc.d.ts",
@@ -31,16 +31,16 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/compiler-sfc#readme",
   "peerDependencies": {
-    "vue": "3.1.5"
+    "vue": "3.2.0-beta.1"
   },
   "dependencies": {
     "@babel/parser": "^7.13.9",
     "@babel/types": "^7.13.0",
     "@types/estree": "^0.0.48",
-    "@vue/compiler-core": "3.1.5",
-    "@vue/compiler-dom": "3.1.5",
-    "@vue/compiler-ssr": "3.1.5",
-    "@vue/shared": "3.1.5",
+    "@vue/compiler-core": "3.2.0-beta.1",
+    "@vue/compiler-dom": "3.2.0-beta.1",
+    "@vue/compiler-ssr": "3.2.0-beta.1",
+    "@vue/shared": "3.2.0-beta.1",
     "consolidate": "^0.16.0",
     "estree-walker": "^2.0.1",
     "hash-sum": "^2.0.0",
diff --git a/packages/compiler-ssr/package.json b/packages/compiler-ssr/package.json
index 667e837c7..b3a69c9d3 100644
--- a/packages/compiler-ssr/package.json
+++ b/packages/compiler-ssr/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/compiler-ssr",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/compiler-ssr",
   "main": "dist/compiler-ssr.cjs.js",
   "types": "dist/compiler-ssr.d.ts",
@@ -28,7 +28,7 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/compiler-ssr#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5",
-    "@vue/compiler-dom": "3.1.5"
+    "@vue/shared": "3.2.0-beta.1",
+    "@vue/compiler-dom": "3.2.0-beta.1"
   }
 }
diff --git a/packages/reactivity/package.json b/packages/reactivity/package.json
index c96c789c9..75d96a3b7 100644
--- a/packages/reactivity/package.json
+++ b/packages/reactivity/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/reactivity",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/reactivity",
   "main": "index.js",
   "module": "dist/reactivity.esm-bundler.js",
@@ -36,6 +36,6 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/reactivity#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5"
+    "@vue/shared": "3.2.0-beta.1"
   }
 }
diff --git a/packages/runtime-core/package.json b/packages/runtime-core/package.json
index f2da397c7..fe5dfb7f6 100644
--- a/packages/runtime-core/package.json
+++ b/packages/runtime-core/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/runtime-core",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/runtime-core",
   "main": "index.js",
   "module": "dist/runtime-core.esm-bundler.js",
@@ -32,7 +32,7 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/runtime-core#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5",
-    "@vue/reactivity": "3.1.5"
+    "@vue/shared": "3.2.0-beta.1",
+    "@vue/reactivity": "3.2.0-beta.1"
   }
 }
diff --git a/packages/runtime-dom/package.json b/packages/runtime-dom/package.json
index 3542b3f2e..d60b9eff7 100644
--- a/packages/runtime-dom/package.json
+++ b/packages/runtime-dom/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/runtime-dom",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/runtime-dom",
   "main": "index.js",
   "module": "dist/runtime-dom.esm-bundler.js",
@@ -35,8 +35,8 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/runtime-dom#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5",
-    "@vue/runtime-core": "3.1.5",
+    "@vue/shared": "3.2.0-beta.1",
+    "@vue/runtime-core": "3.2.0-beta.1",
     "csstype": "^2.6.8"
   }
 }
diff --git a/packages/runtime-test/package.json b/packages/runtime-test/package.json
index 0f7171cdf..e7610bdda 100644
--- a/packages/runtime-test/package.json
+++ b/packages/runtime-test/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/runtime-test",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/runtime-test",
   "private": true,
   "main": "index.js",
@@ -25,7 +25,7 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/runtime-test#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5",
-    "@vue/runtime-core": "3.1.5"
+    "@vue/shared": "3.2.0-beta.1",
+    "@vue/runtime-core": "3.2.0-beta.1"
   }
 }
diff --git a/packages/server-renderer/package.json b/packages/server-renderer/package.json
index b5bc68238..c1f43fbc7 100644
--- a/packages/server-renderer/package.json
+++ b/packages/server-renderer/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/server-renderer",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "@vue/server-renderer",
   "main": "index.js",
   "types": "dist/server-renderer.d.ts",
@@ -28,10 +28,10 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/server-renderer#readme",
   "peerDependencies": {
-    "vue": "3.1.5"
+    "vue": "3.2.0-beta.1"
   },
   "dependencies": {
-    "@vue/shared": "3.1.5",
-    "@vue/compiler-ssr": "3.1.5"
+    "@vue/shared": "3.2.0-beta.1",
+    "@vue/compiler-ssr": "3.2.0-beta.1"
   }
 }
diff --git a/packages/sfc-playground/package.json b/packages/sfc-playground/package.json
index fb587ae22..ab2bdd65b 100644
--- a/packages/sfc-playground/package.json
+++ b/packages/sfc-playground/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/sfc-playground",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "private": true,
   "scripts": {
     "dev": "vite",
diff --git a/packages/shared/package.json b/packages/shared/package.json
index 038cb8d1d..7f694429d 100644
--- a/packages/shared/package.json
+++ b/packages/shared/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/shared",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "internal utils shared across @vue packages",
   "main": "index.js",
   "module": "dist/shared.esm-bundler.js",
diff --git a/packages/size-check/package.json b/packages/size-check/package.json
index 277b4b9f9..c678c76e5 100644
--- a/packages/size-check/package.json
+++ b/packages/size-check/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/size-check",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "private": true,
   "buildOptions": {
     "name": "Vue",
diff --git a/packages/template-explorer/package.json b/packages/template-explorer/package.json
index b35d139d2..3b25012ea 100644
--- a/packages/template-explorer/package.json
+++ b/packages/template-explorer/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/template-explorer",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "private": true,
   "buildOptions": {
     "formats": [
diff --git a/packages/vue-compat/package.json b/packages/vue-compat/package.json
index 79d53299f..b0badc1f4 100644
--- a/packages/vue-compat/package.json
+++ b/packages/vue-compat/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@vue/compat",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "Vue 3 compatibility build for Vue 2",
   "main": "index.js",
   "module": "dist/vue.runtime.esm-bundler.js",
@@ -38,6 +38,6 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/vue-compat#readme",
   "peerDependencies": {
-    "vue": "3.1.5"
+    "vue": "3.2.0-beta.1"
   }
 }
diff --git a/packages/vue/package.json b/packages/vue/package.json
index 3d38ed20b..1fdb54461 100644
--- a/packages/vue/package.json
+++ b/packages/vue/package.json
@@ -1,6 +1,6 @@
 {
   "name": "vue",
-  "version": "3.1.5",
+  "version": "3.2.0-beta.1",
   "description": "The progressive JavaScript framework for buiding modern web UI.",
   "main": "index.js",
   "module": "dist/vue.runtime.esm-bundler.js",
@@ -37,9 +37,9 @@
   },
   "homepage": "https://github.com/vuejs/vue-next/tree/master/packages/vue#readme",
   "dependencies": {
-    "@vue/shared": "3.1.5",
-    "@vue/compiler-dom": "3.1.5",
-    "@vue/runtime-dom": "3.1.5"
+    "@vue/shared": "3.2.0-beta.1",
+    "@vue/compiler-dom": "3.2.0-beta.1",
+    "@vue/runtime-dom": "3.2.0-beta.1"
   },
   "devDependencies": {
     "lodash": "^4.17.15",