diff --git a/CHANGELOG.md b/CHANGELOG.md
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+## 0.1.2.0 — 2026-04-08
+
+- Bump `tower-hs` dependency to `>= 0.3.0.0 && < 0.4` — users now have access to `Category`, `Arrow`, and `ArrowChoice` instances for `Service`
+
 ## 0.1.1.0 — 2026-04-07
 
 - Adopt `(&)` from `Data.Function` as idiomatic style in tests and examples
diff --git a/servant-tower-hs.cabal b/servant-tower-hs.cabal
--- a/servant-tower-hs.cabal
+++ b/servant-tower-hs.cabal
@@ -5,7 +5,7 @@
 -- see: https://github.com/sol/hpack
 
 name:           servant-tower-hs
-version:        0.1.1.0
+version:        0.1.2.0
 synopsis:       Use tower-hs middleware with servant clients
 description:    servant-tower-hs provides an adapter to use tower-hs middleware
                 (retry, timeout, circuit breaker, etc.) with servant-client's
@@ -52,7 +52,7 @@
     , servant-client ==0.20.*
     , servant-client-core ==0.20.*
     , text >=2.0 && <2.2
-    , tower-hs >=0.2.0.0 && <0.3
+    , tower-hs >=0.3.0.0 && <0.4
     , uuid ==1.3.*
   default-language: Haskell2010