diff --git a/CHANGELOG.md b/CHANGELOG.md
index eb8495b6a..8b9e72db6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -22,6 +22,12 @@ Code v99.99.999
 
 ## Unreleased
 
+Code v1.129.1
+
+### Changed
+
+- Update to Code 1.129.1
+
 ## [4.129.0](https://github.com/coder/code-server/releases/tag/v4.129.0) - 2026-07-17
 
 Code v1.129.0
diff --git a/lib/vscode b/lib/vscode
index 125df4672..8a7abeba6 160000
--- a/lib/vscode
+++ b/lib/vscode
@@ -1 +1 @@
-Subproject commit 125df4672b8a6a34975303c6b0baa124e560a4f7
+Subproject commit 8a7abeba6e03ea3af87bfbce9a1b7e48fed567b8