diff --git a/NEWS b/NEWS
index e44c91bd9..3a4b63aa5 100644
--- a/NEWS
+++ b/NEWS
@@ -1,3 +1,7 @@
+3.8.0.1
+=======
+* Background bug fixes [Ray; #696712]
+
 3.8.0
 =====
 * Remove blur and desaturation from lock screen [Jasper; #696322]
diff --git a/configure.ac b/configure.ac
index a4fe0fd39..7bd331d59 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,5 +1,5 @@
 AC_PREREQ(2.63)
-AC_INIT([gnome-shell],[3.8.0],[https://bugzilla.gnome.org/enter_bug.cgi?product=gnome-shell],[gnome-shell])
+AC_INIT([gnome-shell],[3.8.0.1],[https://bugzilla.gnome.org/enter_bug.cgi?product=gnome-shell],[gnome-shell])
 
 AC_CONFIG_HEADERS([config.h])
 AC_CONFIG_SRCDIR([src/shell-global.c])