diff --git a/.github/workflows/release_tag.yml b/.github/workflows/release_tag.yml
new file mode 100644
index 000000000..40405b7fc
--- /dev/null
+++ b/.github/workflows/release_tag.yml
@@ -0,0 +1,20 @@
+# This workflow adds git tag to the main branch when version changes.
+
+name: Release Tag
+
+on:
+  push:
+    branches:
+      - main
+    paths:
+      - VERSION
+
+jobs:
+  tag_main_branch:
+    runs-on: ubuntu-latest
+    steps: 
+      - name: Add git tag 
+        uses: pxpm/github-tag-action@1.0.1
+        with:
+          repo-token: ${{ secrets.GITHUB_TOKEN }}
+          tag: v0.5.0
diff --git a/tools/bump_version.sh b/tools/bump_version.sh
index aad736a1f..0aed7a6cd 100755
--- a/tools/bump_version.sh
+++ b/tools/bump_version.sh
@@ -85,6 +85,11 @@ validate_bump_type() {
         exit 1
         ;;
     esac
+
+# Update tag version (`v{version}`) in file $1
+update_tag_version() {
+    echo "Updating file $1"
+    sed -i "s/v[[:digit:]]\+\.[[:digit:]]\+\.[[:digit:]]\+/v${new_version}/g" $1
 }
 
 SCRIPT_DIR=$( cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd )
@@ -124,6 +129,10 @@ for workflow in $WORKFLOWS; do
     update_image_versions $workflow
 done
 
+# Update tag version in release_tag workflow
+RELEASE_TAG_WORKFLOW=${ASTER_SRC_DIR}/.github/workflows/release_tag.yml
+update_tag_version $RELEASE_TAG_WORKFLOW
+
 # Update Docker image versions in the documentation
 GET_STARTED_PATH=${ASTER_SRC_DIR}/docs/src/kernel/README.md
 update_image_versions $GET_STARTED_PATH