diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 042243b95..b78a291de 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -98,6 +98,7 @@ This project has adopted the [Microsoft Open Source Code of Conduct](https://ope
 ## Additional Resources
 
 - [Development Process](https://github.com/Microsoft/vscode-python/blob/main/CONTRIBUTING.md#development-process)
+- [Release Process](./docs/releasing.md)
 - [API Documentation](./src/api.ts)
 - [Project Documentation](./docs/projects-api-reference.md)
 
diff --git a/docs/releasing.md b/docs/releasing.md
new file mode 100644
index 000000000..81e1a1b02
--- /dev/null
+++ b/docs/releasing.md
@@ -0,0 +1,64 @@
+# Release process
+
+Python Environments uses even minor versions for stable releases and odd minor
+versions for pre-release development. For example, `1.38.0` is a stable release
+and `1.39.0` starts the next pre-release cycle.
+
+## Prepare the release branch
+
+Complete these steps before release day:
+
+1. Change the version in `package.json` to the next even minor version, for
+   example `1.38.0`.
+2. Run `npm i` to update `package-lock.json`.
+3. Create and merge a pull request against `main`.
+4. Create the release branch from the updated `main` branch. Name it
+   `release/1.<even minor>.0`, for example `release/1.38.0`, and push it to the
+   upstream repository.
+5. Change the version in `package.json` to the next odd minor version, for
+   example `1.39.0`.
+6. Run `npm i` to update `package-lock.json`.
+7. Create and merge a second pull request against `main`. Do not merge this
+   change into the release branch.
+
+The release branch must therefore retain the even version while `main` moves
+back to an odd pre-release version.
+
+## Publish on release day
+
+1. Run the stable Azure Pipelines build defined by
+   `build/azure-pipeline.stable.yml`.
+2. Select the prepared release branch, for example `release/1.38.0`.
+3. Set the **Publish Extension** parameter to `true`.
+4. Monitor the build until publishing completes.
+5. Verify that the extension is available in the Marketplace and that the
+   corresponding GitHub tag and release were created. The stable pipeline
+   automatically generates and publishes the GitHub release notes.
+
+## Publish a point release
+
+Use the existing release branch for a patch to a stable release. For example,
+release `1.38.1` from `release/1.38.0`; do not create a
+`release/1.38.1` branch.
+
+1. Change the version in `package.json` to the new patch version, for example
+   `1.38.1`.
+2. Run `npm i` to update `package-lock.json`.
+3. Create and merge a pull request against the existing release branch, for
+   example `release/1.38.0`.
+4. On release day, run the stable Azure Pipelines build from that release
+   branch with **Publish Extension** set to `true`.
+5. Verify the Marketplace publication and the automatically generated GitHub
+   tag and release notes for the point release.
+
+Do not change the version on `main` as part of the point release. It should
+remain on the odd minor version for the current pre-release development cycle.
+
+## Python environment tools dependency
+
+The branch named in the stable pipeline's `DownloadPipelineArtifact` step, such
+as `refs/heads/release/2026.12`, belongs to the external Python environment
+tools build. It is separate from this repository's `release/1.<even minor>.0`
+branch. Before a stable release, verify that the configured tools branch is the
+one intended for that release; update it in a separate pull request when the
+tools release changes.