From 9554a96cbdf29b3be5999db23f2a26b09762dad3 Mon Sep 17 00:00:00 2001
From: esrakartalOpt <esra.kartal@optimizely.com>
Date: Wed, 8 Jul 2026 14:59:43 -0500
Subject: [PATCH] [FSSDK-12870] preparing release for v5.4.0

---
 CHANGELOG.md              | 19 +++++++++++++++++++
 lib/optimizely/version.rb |  2 +-
 2 files changed, 20 insertions(+), 1 deletion(-)

diff --git a/CHANGELOG.md b/CHANGELOG.md
index b0e79409..c4c12dda 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,24 @@
 # Optimizely Ruby SDK Changelog
 
+## 5.4.0
+July 8, 2026
+
+### New Features
+
+**Local Holdouts**: Added support for Local Holdouts, enabling holdout experiments
+to be scoped to specific feature flags rather than applied globally.
+Local Holdouts let you measure the true incremental impact of individual features
+by holding out a subset of users from specific rollouts while still serving them other experiences.
+See [Holdouts docs](https://support.optimizely.com/hc/en-us/articles/38941939408269-Global-holdouts) for more information.
+
+- Add local holdouts support with includedRules field ([#398](https://github.com/optimizely/ruby-sdk/pull/398))
+- Add localHoldouts datafile section for backward compatibility ([#400](https://github.com/optimizely/ruby-sdk/pull/400))
+
+### Bug Fixes
+- Use attribute id instead of key for CMAB prediction requests ([#402](https://github.com/optimizely/ruby-sdk/pull/402))
+- Normalize decision event campaign_id, variation_id, and entity_id ([#401](https://github.com/optimizely/ruby-sdk/pull/401))
+- Block ODP identify event for single identifier ([#399](https://github.com/optimizely/ruby-sdk/pull/399))
+
 ## 5.3.0
 May 4, 2026
 
diff --git a/lib/optimizely/version.rb b/lib/optimizely/version.rb
index 9afc21e2..918b0c5b 100644
--- a/lib/optimizely/version.rb
+++ b/lib/optimizely/version.rb
@@ -17,5 +17,5 @@
 #
 module Optimizely
   CLIENT_ENGINE = 'ruby-sdk'
-  VERSION = '5.3.0'
+  VERSION = '5.4.0'
 end