diff --git a/packages/cli/package.json b/packages/cli/package.json
index 3ecfec37f..b59fffe89 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -37,6 +37,7 @@
   "devDependencies": {
     "@types/js-yaml": "^4.0.9",
     "@types/node": "^20.12.7",
+    "@types/semver": "^7.7.0",
     "@types/shelljs": "^0.8.16",
     "ts-node": "^10.9.2"
   },
@@ -54,6 +55,7 @@
     "minimist": "^1.2.8",
     "pg-cache": "^1.1.1",
     "pg-env": "^1.1.0",
+    "semver": "^7.7.2",
     "shelljs": "^0.9.2"
   },
   "resolutions": {
diff --git a/packages/cli/src/commands.ts b/packages/cli/src/commands.ts
index 835cb485b..e66064e78 100644
--- a/packages/cli/src/commands.ts
+++ b/packages/cli/src/commands.ts
@@ -20,6 +20,7 @@ import revert from './commands/revert';
 import server from './commands/server';
 import tag from './commands/tag';
 import verify from './commands/verify';
+import version from './commands/version';
 import analyze from './commands/analyze';
 import renameCmd from './commands/rename';
 import { readAndParsePackageJson } from './package';
@@ -50,6 +51,7 @@ const createCommandMap = (skipPgTeardown: boolean = false): Record<string, Funct
     export: pgt(_export),
     package: pgt(_package),
     tag: pgt(tag),
+    version: pgt(version),
     kill: pgt(kill),
     install: pgt(install),
     migrate: pgt(migrate),
diff --git a/packages/cli/src/commands/version.ts b/packages/cli/src/commands/version.ts
new file mode 100644
index 000000000..5a764239a
--- /dev/null
+++ b/packages/cli/src/commands/version.ts
@@ -0,0 +1,146 @@
+import { LaunchQLPackage } from '@launchql/core';
+import { Logger } from '@launchql/logger';
+import { errors } from '@launchql/types';
+import { CLIOptions, Inquirerer, Question } from 'inquirerer';
+import { extractFirst } from '../utils/argv';
+import { selectPackage } from '../utils/module-utils';
+import * as path from 'path';
+import * as fs from 'fs';
+const semver = require('semver');
+
+const log = new Logger('version');
+
+const versionUsageText = `
+LaunchQL Version Command:
+
+  lql version [OPTIONS]
+
+  Bump package version and create corresponding tag.
+
+Options:
+  --help, -h              Show this help message
+  --package <name>        Target specific package
+  --cwd <directory>       Working directory (default: current directory)
+
+Examples:
+  lql version                                       Prompt for version bump type
+  lql version --package mypackage                   Version specific package
+`;
+
+export default async (
+  argv: Partial<Record<string, any>>,
+  prompter: Inquirerer,
+  _options: CLIOptions
+) => {
+  if (argv.help || argv.h) {
+    console.log(versionUsageText);
+    process.exit(0);
+  }
+
+  const { newArgv } = extractFirst(argv);
+  
+  const cwdResult = await prompter.prompt(newArgv, [
+    {
+      type: 'text',
+      name: 'cwd',
+      message: 'Working directory',
+      required: false,
+      default: process.cwd(),
+      useDefault: true
+    }
+  ]);
+  const cwd = (cwdResult as any).cwd || process.cwd();
+
+  const pkg = new LaunchQLPackage(cwd);
+
+  let packageName: string | undefined;
+  
+  if (argv.package) {
+    packageName = argv.package as string;
+    log.info(`Using specified package: ${packageName}`);
+  }
+  else if (pkg.isInModule()) {
+    packageName = pkg.getModuleName();
+    log.info(`Using current module: ${packageName}`);
+  }
+  else if (pkg.isInWorkspace()) {
+    packageName = await selectPackage(newArgv, prompter, cwd, 'version', log);
+    if (!packageName) {
+      throw new Error('No package selected. Cannot version without specifying a target package.');
+    }
+  } else {
+    throw new Error('This command must be run inside a LaunchQL workspace or module.');
+  }
+
+  const versionAnswer = await prompter.prompt(newArgv, [
+    {
+      type: 'autocomplete',
+      name: 'bumpType',
+      message: 'Select version bump type',
+      options: ['patch', 'minor', 'major'],
+      required: true
+    }
+  ]) as any;
+
+  const bumpType = versionAnswer.bumpType;
+
+  try {
+    if (argv.package || !pkg.isInModule()) {
+      const moduleMap = pkg.getModuleMap();
+      const module = moduleMap[packageName];
+      if (!module) {
+        throw errors.MODULE_NOT_FOUND({ name: packageName });
+      }
+      
+      const workspacePath = pkg.getWorkspacePath()!;
+      const absoluteModulePath = path.resolve(workspacePath, module.path);
+      
+      const originalCwd = process.cwd();
+      process.chdir(absoluteModulePath);
+      
+      try {
+        const modulePkg = new LaunchQLPackage(absoluteModulePath);
+        const newVersion = await updatePackageVersion(absoluteModulePath, bumpType);
+        modulePkg.addTag(`v${newVersion}`, undefined, `Version bump: ${bumpType}`);
+        log.info(`Successfully bumped ${packageName} to version ${newVersion} and added tag v${newVersion}`);
+      } finally {
+        process.chdir(originalCwd);
+      }
+    } else {
+      const newVersion = await updatePackageVersion(pkg.getModulePath()!, bumpType);
+      pkg.addTag(`v${newVersion}`, undefined, `Version bump: ${bumpType}`);
+      log.info(`Successfully bumped to version ${newVersion} and added tag v${newVersion}`);
+    }
+  } catch (error) {
+    log.error(`Failed to version package: ${error instanceof Error ? error.message : String(error)}`);
+    throw error;
+  }
+  
+  return newArgv;
+};
+
+async function updatePackageVersion(modulePath: string, bumpType: 'major' | 'minor' | 'patch'): Promise<string> {
+  const pkgJsonPath = path.join(modulePath, 'package.json');
+  
+  if (!fs.existsSync(pkgJsonPath)) {
+    throw new Error(`No package.json found at module path: ${modulePath}`);
+  }
+  
+  const pkgData = JSON.parse(fs.readFileSync(pkgJsonPath, 'utf-8'));
+  const currentVersion = pkgData.version;
+  
+  if (!currentVersion) {
+    throw new Error('No version field found in package.json');
+  }
+  
+  const newVersion = semver.inc(currentVersion, bumpType);
+  
+  if (!newVersion) {
+    throw new Error(`Failed to calculate new ${bumpType} version from ${currentVersion}`);
+  }
+  
+  pkgData.version = newVersion;
+  fs.writeFileSync(pkgJsonPath, JSON.stringify(pkgData, null, 2) + '\n');
+  
+  return newVersion;
+}