diff --git a/CHANGELOG.md b/CHANGELOG.md
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,8 +1,13 @@
 # Change Log
 All notable changes to this project will be documented in this file.
 
-## [0.1.10.0] - 2020-03-26
-### 
+## [0.1.10.1] - 2020-06-17
+### Fixed
+- The package contains correct `libsass/VERSION` file
+- Always generate `libsass/VERSION` file
+
+## [0.1.10.0] - 2020-06-10
+### Changed
 - Update to LibSass 3.6.4
 - Simplify build on Windows
 
@@ -96,6 +101,7 @@
 - Bindings to Libsass C API
 - Basic tests
 
+[0.1.10.1]: https://github.com/jakubfijalkowski/hlibsass/compare/v0.1.10.0...v0.1.10.1
 [0.1.10.0]: https://github.com/jakubfijalkowski/hlibsass/compare/v0.1.9.0...v0.1.10.0
 [0.1.9.0]: https://github.com/jakubfijalkowski/hlibsass/compare/v0.1.8.1...v0.1.9.0
 [0.1.8.1]: https://github.com/jakubfijalkowski/hlibsass/compare/v0.1.8.0...v0.1.8.1
diff --git a/Setup.hs b/Setup.hs
--- a/Setup.hs
+++ b/Setup.hs
@@ -18,7 +18,8 @@
                                                      rawSystemStdout)
 import           Distribution.System
 import qualified Distribution.Verbosity             as Verbosity
-import           System.Directory                   (doesFileExist,
+import           System.Directory                   (doesDirectoryExist,
+                                                     doesFileExist,
                                                      getCurrentDirectory)
 
 #if MIN_VERSION_Cabal(2, 0, 0)
@@ -68,12 +69,15 @@
 updateLibsassVersion :: ConfigFlags -> IO ()
 updateLibsassVersion flags = do
     let verbosity = fromFlag $ configVerbosity flags
-    exists <- doesFileExist "libsass/VERSION"
-    unless exists $ do
+    gitDirExists <- doesDirectoryExist "libsass/.git"
+    gitFileExists <- doesFileExist "libsass/.git"
+    verExists <- doesFileExist "libsass/VERSION"
+    -- Force-update VERSION so that we always use valid one as `stack clean` does not run cabal
+    -- clean and we sometimes pack the wrong `VERSION` file
+    when (gitDirExists || gitFileExists || not verExists) $ do
         ver <- rawSystemStdout verbosity "git" ["-C", "libsass", "describe",
             "--abbrev=4", "--dirty", "--always", "--tags"]
         writeFile "libsass/VERSION" ver
-
 
 makeLibsass :: Args -> ConfigFlags -> IO HookedBuildInfo
 makeLibsass _ f = do
diff --git a/hlibsass.cabal b/hlibsass.cabal
--- a/hlibsass.cabal
+++ b/hlibsass.cabal
@@ -1,5 +1,5 @@
 name:                hlibsass
-version:             0.1.10.0
+version:             0.1.10.1
 license:             MIT
 license-file:        LICENSE
 author:              Jakub Fijałkowski <kuba@codinginfinity.me>
diff --git a/libsass/VERSION b/libsass/VERSION
--- a/libsass/VERSION
+++ b/libsass/VERSION
@@ -1,1 +1,1 @@
-3.5.5
+3.6.4