diff --git a/eng/jacoco-test-coverage/pom.xml b/eng/jacoco-test-coverage/pom.xml
index 0942b7c1c78b7..e40bde9b96b84 100644
--- a/eng/jacoco-test-coverage/pom.xml
+++ b/eng/jacoco-test-coverage/pom.xml
@@ -660,7 +660,7 @@
 	  <dependency>
       <groupId>com.azure</groupId>
       <artifactId>azure-digitaltwins-core</artifactId>
-      <version>1.3.5</version> <!-- {x-version-update;com.azure:azure-digitaltwins-core;current} -->
+      <version>1.4.0-beta.1</version> <!-- {x-version-update;com.azure:azure-digitaltwins-core;current} -->
     </dependency>
     <dependency>
       <groupId>com.azure</groupId>
diff --git a/eng/versioning/version_client.txt b/eng/versioning/version_client.txt
index 9ddfcf7a30b0c..21879b183952f 100644
--- a/eng/versioning/version_client.txt
+++ b/eng/versioning/version_client.txt
@@ -102,7 +102,7 @@ com.azure:azure-data-schemaregistry;1.3.1;1.4.0-beta.1
 com.azure:azure-data-schemaregistry-apacheavro;1.1.1;1.2.0-beta.1
 com.azure:azure-data-tables;12.3.6;12.4.0-beta.1
 com.azure:azure-data-tables-perf;1.0.0-beta.1;1.0.0-beta.1
-com.azure:azure-digitaltwins-core;1.3.4;1.3.5
+com.azure:azure-digitaltwins-core;1.3.5;1.4.0-beta.1
 com.azure:azure-developer-devcenter;1.0.0-beta.1;1.0.0-beta.2
 com.azure:azure-e2e;1.0.0-beta.1;1.0.0-beta.1
 com.azure:azure-identity;1.7.3;1.8.0-beta.1
diff --git a/sdk/digitaltwins/azure-digitaltwins-core/CHANGELOG.md b/sdk/digitaltwins/azure-digitaltwins-core/CHANGELOG.md
index a88c96402eb7b..a6cda666c2cc1 100644
--- a/sdk/digitaltwins/azure-digitaltwins-core/CHANGELOG.md
+++ b/sdk/digitaltwins/azure-digitaltwins-core/CHANGELOG.md
@@ -1,5 +1,15 @@
 # Release History
 
+## 1.4.0-beta.1 (Unreleased)
+
+### Features Added
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 1.3.5 (2023-01-10)
 
 ### Other Changes
diff --git a/sdk/digitaltwins/azure-digitaltwins-core/pom.xml b/sdk/digitaltwins/azure-digitaltwins-core/pom.xml
index 1db78c6baf991..c48ba84917b4f 100644
--- a/sdk/digitaltwins/azure-digitaltwins-core/pom.xml
+++ b/sdk/digitaltwins/azure-digitaltwins-core/pom.xml
@@ -13,7 +13,7 @@
 
   <groupId>com.azure</groupId>
   <artifactId>azure-digitaltwins-core</artifactId>
-  <version>1.3.5</version> <!-- {x-version-update;com.azure:azure-digitaltwins-core;current} -->
+  <version>1.4.0-beta.1</version> <!-- {x-version-update;com.azure:azure-digitaltwins-core;current} -->
 
   <name>Microsoft Azure client library for Digital Twins</name>
   <description>This package contains the Microsoft Azure DigitalTwins client library.</description>