diff --git a/.changelog/unreleased/improvements/1876-updating-contributing.md b/.changelog/unreleased/improvements/1876-updating-contributing.md
new file mode 100644
index 0000000000..871c666e41
--- /dev/null
+++ b/.changelog/unreleased/improvements/1876-updating-contributing.md
@@ -0,0 +1,2 @@
+- Added a section in CONTRIBUTING.md to outline how to document SDK
+  changes ([#1876](https://github.com/anoma/namada/pull/1876))
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 5798b2c71c..233a933350 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -24,6 +24,7 @@ The section should either be one of the following choices:
 - `features`
 - `improvements`
 - `testing`
+- `SDK`
 
 To add a change log entry using `unclog`, you can fill in the following command (prefer to use the issue number, for which the `--pull-request` argument may be omitted):
 
@@ -47,6 +48,13 @@ If none of the sections fit, new sections may be added. To find the existing sec
 for i in $(ls -d .changelog/*/*/); do basename "$i"; done | sort | uniq
 ```
 
+#### SDK Changelog
+
+The Namada SDK is exposed to any developer building upon Namada. Thus, any change made to a public facing function is a breaking change, and therefore should be documented in the Changelog under the `SDK` section.
+
+The message should outline the exact API change, along with a small section describing *how* and *why* the componenet was change. This should give motivation and context to any developer building upon Namada on how they can update their code to the next version.
+
 ## Development priorities
 
+
 If you’d like to follow the development or contribute with new or unimplemented features, we recommend to check [the issues](https://github.com/anoma/namada/issues) that are in current focus of the ledger team.