diff --git a/src/LightQueryProfiler.WinFormsApp/LightQueryProfiler.WinFormsApp.csproj b/src/LightQueryProfiler.WinFormsApp/LightQueryProfiler.WinFormsApp.csproj
index fe80668..e4d2fcd 100644
--- a/src/LightQueryProfiler.WinFormsApp/LightQueryProfiler.WinFormsApp.csproj
+++ b/src/LightQueryProfiler.WinFormsApp/LightQueryProfiler.WinFormsApp.csproj
@@ -8,7 +8,7 @@
     <ImplicitUsings>enable</ImplicitUsings>
     <EnableWindowsTargeting>true</EnableWindowsTargeting>
     <AssemblyName>LightQueryProfiler</AssemblyName>
-    <Version>1.2.0-dev.5</Version>
+    <Version>1.2.0</Version>
     <FileVersion>1.2.0</FileVersion>
     <AssemblyVersion>1.2.0</AssemblyVersion>
     <ApplicationIcon>Icons\light-query-profiler.ico</ApplicationIcon>
diff --git a/vscode-extension/CHANGELOG.md b/vscode-extension/CHANGELOG.md
index 83133bf..06c4da9 100644
--- a/vscode-extension/CHANGELOG.md
+++ b/vscode-extension/CHANGELOG.md
@@ -5,6 +5,15 @@ All notable changes to the Light Query Profiler extension will be documented in
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [1.0.1] - 2026-03-24
+
+### Changed
+- Welcome message now only appears on first activation after installation
+- Improved user experience by preventing repetitive notification on every VS Code startup
+
+### Technical
+- Implemented `globalState` persistence for welcome message display tracking
+
 ## [1.0.0] - 2026-03-21
 
 ### Added
diff --git a/vscode-extension/package.json b/vscode-extension/package.json
index 78a520a..1159371 100644
--- a/vscode-extension/package.json
+++ b/vscode-extension/package.json
@@ -2,7 +2,7 @@
   "name": "light-query-profiler",
   "displayName": "Light Query Profiler",
   "description": "SQL Server and Azure SQL Database query profiler for VS Code",
-  "version": "1.0.0",
+  "version": "1.0.1",
   "publisher": "brandochn",
   "author": {
     "name": "Hildebrando Chávez",
diff --git a/vscode-extension/src/extension.ts b/vscode-extension/src/extension.ts
index dc7835d..33d52b0 100644
--- a/vscode-extension/src/extension.ts
+++ b/vscode-extension/src/extension.ts
@@ -149,10 +149,16 @@ export async function activate(
     activationReady = true;
     log.info('Light Query Profiler extension activated successfully');
 
-    // Show welcome message (fire-and-forget — do not await so activate() returns immediately)
-    void vscode.window.showInformationMessage(
-      "Light Query Profiler is ready! Run 'Show SQL Profiler' command to open the profiler.",
-    );
+    // Show welcome message only on first activation
+    const hasShownWelcomeMessage = context.globalState.get<boolean>('hasShownWelcomeMessage', false);
+    if (!hasShownWelcomeMessage) {
+      void vscode.window.showInformationMessage(
+        "Light Query Profiler is ready! Run 'Show SQL Profiler' command to open the profiler.",
+      ).then(() => {
+        // Mark as shown after user dismisses or acknowledges the message
+        void context.globalState.update('hasShownWelcomeMessage', true);
+      });
+    }
   } catch (error) {
     activationReady = true; // Stop the deferred-panel polling
     const errorMessage = error instanceof Error ? error.message : String(error);