diff --git a/.github/workflows/release-nightly.yaml b/.github/workflows/release-nightly.yaml
index 636d214d..98078ff2 100644
--- a/.github/workflows/release-nightly.yaml
+++ b/.github/workflows/release-nightly.yaml
@@ -3,24 +3,27 @@ name: Release Nightly
 on:
   schedule:
     - cron: '0 0 * * *'
+  workflow_call: {}
+  # Can be triggered manually if needed
+  workflow_dispatch: {}
 
 jobs:
-  release:
+  release-nightly:
+
     runs-on: ubuntu-latest
 
+    permissions:
+      contents: write
+
     steps:
       - uses: actions/checkout@v4
 
-      # TODO if we want to publish this, just a different version is not enough
-      # We'd probably want to use a different id for the extension, too - e.g. atlascode-nightly
       - name: Evaluate version
         run: |
-          RELEASE_VERSION=$(./nightlyver.sh ${GITHUB_SHA}) && \
-          echo "RELEASE_VERSION=${RELEASE_VERSION}" >> $GITHUB_ENV && \
-          echo "Using version '${RELEASE_VERSION}'"
-
-      - name: Set version
-        run: npm -no-git-tag-version --allow-same-version -f version $RELEASE_VERSION
+          PACKAGE_VERSION=$(./scripts/version/get-next-nightly.sh)
+          echo "PACKAGE_VERSION=${PACKAGE_VERSION}" >> $GITHUB_ENV
+          echo "RELEASE_TAG=v${PACKAGE_VERSION}" >> $GITHUB_ENV
+          echo "Using version '${PACKAGE_VERSION}'"
 
       - name: Set up Node.js
         uses: actions/setup-node@v4
@@ -28,6 +31,10 @@ jobs:
           node-version: 20
           cache: 'npm'
 
+      - name: Set version
+        run: |
+          npm -no-git-tag-version --allow-same-version -f version $RELEASE_VERSION
+
       - name: Install dependencies
         run: npm install
 
@@ -40,4 +47,33 @@ jobs:
       - name: Build the extension
         run: npm run extension:package
 
-      # No publish actions here for the time being - let's get the builds going first
+      # No VSCE/OVSX publish actions here for the time being - let's get the builds going first
+
+      - name: Create Tag
+        run: |
+          git config --global user.email "atlascode-nightly@atlassian.com"
+          git config --global user.name "Nightly Release Bot"
+          git tag -a $RELEASE_TAG -m "Nightly build for $(date +'%Y-%m-%d %H:%M')"
+          git push origin $RELEASE_TAG
+
+      - name: Create Release
+        id: create_release
+        uses: actions/create-release@v1
+        env:
+          GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+        with:
+          tag_name: ${{ env.RELEASE_TAG }}
+          release_name: Release ${{ env.RELEASE_TAG }}
+          draft: false
+          prerelease: true
+
+      - name: Upload Release Assets
+        id: upload-release-asset
+        uses: actions/upload-release-asset@v1
+        env:
+          GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+        with:
+          upload_url: ${{ steps.create_release.outputs.upload_url }}
+          asset_path: ./atlascode-${{ env.PACKAGE_VERSION }}.vsix
+          asset_name: atlascode-${{ env.PACKAGE_VERSION }}.vsix
+          asset_content_type: application/zip
diff --git a/.github/workflows/release.yaml b/.github/workflows/release.yaml
index 9efffb08..68f0e7a6 100644
--- a/.github/workflows/release.yaml
+++ b/.github/workflows/release.yaml
@@ -3,27 +3,42 @@ name: Release
 on:
   push:
     tags:
+      - 'v*'
+      - '!*nightly*'
+    branches:
       - '**'
 
 jobs:
+  release-nightly:
+    uses: ./.github/workflows/release-nightly.yaml
+
   release:
     runs-on: ubuntu-latest
+
+    # Release the next `nightly` before a stable version
+    # to prvent folks on pre-releases from being downgraded
+    needs: release-nightly
+
+    permissions:
+      contents: write
+
     steps:
 
       - uses: actions/checkout@v4
 
+      - name: Evaluate version
+        run: |
+          PACKAGE_VERSION=${GITHUB_REF##*/v}
+          echo "PACKAGE_VERSION=${PACKAGE_VERSION}" >> $GITHUB_ENV
+          echo "RELEASE_TAG=v${PACKAGE_VERSION}" >> $GITHUB_ENV
+          echo "Using version '${PACKAGE_VERSION}'"
+
       - name: Set up Node.js
         uses: actions/setup-node@v4
         with:
           node-version: 20
           cache: 'npm'
 
-      - name: Evaluate version
-        run: |
-          RELEASE_VERSION=${GITHUB_REF##*/v} && \
-          echo "RELEASE_VERSION=${RELEASE_VERSION}" >> $GITHUB_ENV && \
-          echo "Using version '${RELEASE_VERSION}'"
-
       - name: Set version
         run: npm -no-git-tag-version --allow-same-version -f version $RELEASE_VERSION
 
@@ -52,12 +67,33 @@ jobs:
           # echo npx vsce publish \
           #   -p ${{ secrets.VSCE_MARKETPLACE_TOKEN }} \
           #   --baseContentUrl https://bitbucket.org/atlassianlabs/atlascode/src/main/ \
-          #   --packagePath atlascode-${GITHUB_REF##*/v}.vsix
+          #   --packagePath atlascode-${PACKAGE_VERSION}.vsix
 
       - name: Publish to OpenVSX
         run: |
           npx ovsx verify-pat -p ${{ secrets.OPENVSX_KEY }}
           # echo npx ovsx publish \
           #    -p ${{ secrets.OPENVSX_KEY }} \
-          #   "atlascode-${GITHUB_REF##*/v}.vsix"
+          #   "atlascode-${PACKAGE_VERSION}.vsix"
 
+      - name: Create Release
+        id: create_release
+        uses: actions/create-release@v1
+        env:
+          GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+        with:
+          tag_name: ${{ env.RELEASE_TAG }}
+          release_name: Release ${{ env.RELEASE_TAG }}
+          draft: false
+          prerelease: false
+
+      - name: Upload Release Assets
+        id: upload-release-asset
+        uses: actions/upload-release-asset@v1
+        env:
+          GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+        with:
+          upload_url: ${{ steps.create_release.outputs.upload_url }}
+          asset_path: ./atlascode-${{ env.PACKAGE_VERSION }}.vsix
+          asset_name: atlascode-${{ env.PACKAGE_VERSION }}.vsix
+          asset_content_type: application/zip
diff --git a/scripts/version/get-latest-nightly.sh b/scripts/version/get-latest-nightly.sh
new file mode 100755
index 00000000..00a2eb11
--- /dev/null
+++ b/scripts/version/get-latest-nightly.sh
@@ -0,0 +1,13 @@
+#!/usr/bin/env bash
+
+n_release=${1:-1}
+
+# Get latest nightly tag from the repository
+# Pre-releases are defined by the version number having an ODD minor number
+# https://code.visualstudio.com/api/working-with-extensions/publishing-extension#prerelease-extensions
+git tag --list | \
+    sort --version-sort -r | \
+    grep -E '^v[0-9]+\.[0-9]*[13579]\.[0-9]+.*' | \
+    head -n $n_release | \
+    tail -n 1 | \
+    cut -c 2-
diff --git a/scripts/version/get-latest-stable.sh b/scripts/version/get-latest-stable.sh
new file mode 100755
index 00000000..7b895d7a
--- /dev/null
+++ b/scripts/version/get-latest-stable.sh
@@ -0,0 +1,13 @@
+#!/usr/bin/env bash
+
+n_release=${1:-1}
+
+# Get latest release tag from the repository
+# Stable releases are defined by the version number having an EVEN minor number
+# https://code.visualstudio.com/api/working-with-extensions/publishing-extension#prerelease-extensions
+git tag --list | \
+    sort --version-sort -r | \
+    grep -E '^v[0-9]+\.[0-9]*[02468]\.[0-9]+$' | \
+    head -n $n_release | \
+    tail -n 1 | \
+    cut -c 2-
diff --git a/scripts/version/get-next-nightly.sh b/scripts/version/get-next-nightly.sh
new file mode 100755
index 00000000..75a123c3
--- /dev/null
+++ b/scripts/version/get-next-nightly.sh
@@ -0,0 +1,29 @@
+#!/usr/bin/env bash
+
+# Nightly version is defined by the latest stable release tag,
+# except the minor version is incremented by one
+# https://code.visualstudio.com/api/working-with-extensions/publishing-extension#prerelease-extensions
+
+git fetch --tags -q
+latest_stable_version=$(./scripts/version/get-latest-stable.sh)
+latest_nightly_version=$(./scripts/version/get-latest-nightly.sh)
+
+# Major version is the same as the latest stable version
+stable_major=$(echo $latest_stable_version | cut -d '.' -f 1)
+nightly_major=$(echo $latest_nightly_version | cut -d '.' -f 1)
+
+# Minor version is always "latest stable + 1"
+stable_minor=$(echo $latest_stable_version | cut -d '.' -f 2)
+nightly_minor=$(echo $latest_nightly_version | cut -d '.' -f 2)
+next_minor=$((stable_minor + 1))
+
+# Patch is incrementing, unless we're on a new minor
+if [[ $nightly_major -eq $stable_major && $next_minor -eq $nightly_minor ]]; then
+    nightly_patch=$(echo $latest_nightly_version | cut -d '.' -f 3 | cut -d '-' -f 1)
+    nightly_patch=${nightly_patch:--1} # In case of new nightly minor
+    next_patch=$((nightly_patch + 1))
+else
+    next_patch=0
+fi
+
+echo "$stable_major.$next_minor.$next_patch-nightly"