diff --git a/.github/workflows/version-bump.yml b/.github/workflows/version-bump.yml
new file mode 100644
index 0000000..6d275c3
--- /dev/null
+++ b/.github/workflows/version-bump.yml
@@ -0,0 +1,41 @@
+name: Auto Version Bump
+
+on:
+  pull_request:
+    types: [labeled]
+
+jobs:
+  bump-version:
+    if: >
+      github.event.label.name == 'patch' ||
+      github.event.label.name == 'minor' ||
+      github.event.label.name == 'major' ||
+      github.event.label.name == 'release'
+    runs-on: ubuntu-latest
+
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@v4
+        with:
+          fetch-depth: 0
+
+      - name: Set up Python
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.11"
+
+      - name: Run version bump script
+        run: |
+          python tools/bump_version.py ${{ github.event.label.name }}
+
+      - name: Create Pull Request
+        uses: peter-evans/create-pull-request@v5
+        with:
+          commit-message: "chore: bump version (${{ github.event.label.name }})"
+          title: "chore: bump version (${{ github.event.label.name }})"
+          body: |
+            This version bump was triggered by PR #${{ github.event.pull_request.number }}
+            Label applied: **${{ github.event.label.name }}**
+          labels: version-bump
+          base: main
+          branch: auto-version-bump/${{ github.event.pull_request.number }}
diff --git a/tools/bump_version.py b/tools/bump_version.py
new file mode 100644
index 0000000..3196950
--- /dev/null
+++ b/tools/bump_version.py
@@ -0,0 +1,81 @@
+import sys
+
+# The GitHub label passed as an argument: patch, minor, major, release
+LABEL = sys.argv[1]  
+
+# The file that stores the current version
+VERSION_FILE = "version.txt"
+
+def read_version():
+    """Read the current version from version.txt"""
+    with open(VERSION_FILE, "r") as f:
+        return f.read().strip()
+
+def write_version(version):
+    """Write the new version back to version.txt"""
+    with open(VERSION_FILE, "w") as f:
+        f.write(version + "\n")
+
+def parse_version(v):
+    """
+    Parse a version string like "0.5.0-draft" into parts:
+    major, minor, patch, and optional suffix (e.g., "-draft").
+    """
+    parts = v.split(".")  # Split into ['0', '5', '0-draft']
+    major = int(parts[0])
+    minor = int(parts[1])
+
+    # Handle patch number and suffix(if exist)
+    if "-" in parts[2]:
+        patch_str, suffix = parts[2].split("-", 1)  
+        patch = int(patch_str)
+        suffix = "-" + suffix  # Keep the dash in the suffix
+    else:
+        patch = int(parts[2])
+        suffix = ""
+
+    return major, minor, patch, suffix
+
+
+def bump_version(major, minor, patch):
+    """
+    Increment the version based on LABEL:
+    - patch: increment patch
+    - minor: increment minor, reset patch
+    - major: increment major, reset minor and patch
+    """
+    if LABEL == "patch":
+        patch = patch + 1
+    elif LABEL == "minor":
+        minor = minor + 1
+        patch = 0
+    elif LABEL == "major":
+        major = major + 1
+        minor = 0
+        patch = 0
+    return major, minor, patch
+
+def main():
+    # Read current version
+    old_version = read_version()
+    
+    # Parse current version
+    major, minor, patch, suffix = parse_version(old_version)
+
+    # If label is release, remove the "-draft" suffix
+    if LABEL == "release":
+        new_version = f"{major}.{minor}.{patch}" 
+    else:
+        # Otherwise, bump version according to label
+        new_major, new_minor, new_patch = bump_version(major, minor, patch)
+        new_version = f"{new_major}.{new_minor}.{new_patch}-draft"
+
+    # Prevent race conditions by only writing if version changed
+    if new_version != old_version:
+        write_version(new_version)
+        print(f"Version updated: {old_version} -> {new_version}")
+    else:
+        print(f"No version change needed. Current version: {old_version}")
+
+if __name__ == "__main__":
+    main()