diff --git a/.github/workflows/auto-generate.yml b/.github/workflows/auto-generate.yml
new file mode 100644
index 0000000..d3ed2a1
--- /dev/null
+++ b/.github/workflows/auto-generate.yml
@@ -0,0 +1,63 @@
+name: Auto-generate Models
+
+on:
+  repository_dispatch:
+    types: [spec-release]
+  workflow_dispatch:
+    inputs:
+      version:
+        description: "Version to release (e.g. v2026-03-06)"
+        required: true
+
+jobs:
+  generate:
+    runs-on: ubuntu-latest
+    steps:
+      - name: Generate Token
+        uses: actions/create-github-app-token@v1
+        id: app-token
+        with:
+          app-id: ${{ secrets.APP_ID }}
+          private-key: ${{ secrets.APP_PRIVATE_KEY }}
+          owner: ${{ github.repository_owner }}
+          repositories: "ucp, python-sdk"
+
+      - name: Checkout SDK
+        uses: actions/checkout@v4
+
+      - name: Checkout Specification
+        uses: actions/checkout@v4
+        with:
+          repository: Universal-Commerce-Protocol/ucp
+          ref: ${{ github.event.client_payload.version || github.event.inputs.version }}
+          path: ucp-repo
+          token: ${{ steps.app-token.outputs.token }}
+
+      - name: Set up Python
+        uses: actions/setup-python@v5
+        with:
+          python-version: "3.11"
+
+      - name: Install uv
+        run: curl -LsSf https://astral.sh/uv/install.sh | sh
+
+      - name: Generate Models
+        run: |
+          export SCHEMA_DIR="ucp-repo/source/schemas"
+          ./generate_models.sh
+
+      - name: Update version in pyproject.toml
+        run: |
+          TAG_VERSION="${{ github.event.client_payload.version || github.event.inputs.version }}"
+          PY_VERSION=$(echo ${TAG_VERSION#v} | tr "-" ".")
+          sed -i 's/^version = ".*"/version = "'$PY_VERSION'"/' pyproject.toml
+
+      - name: Create Pull Request
+        uses: peter-evans/create-pull-request@v6
+        with:
+          token: ${{ steps.app-token.outputs.token }}
+          commit-message: "chore: update models to ${{ github.event.client_payload.version || github.event.inputs.version }}"
+          title: "Update models to ${{ github.event.client_payload.version || github.event.inputs.version }}"
+          body: "This PR updates the SDK models based on the latest specification release ${{ github.event.client_payload.version || github.event.inputs.version }}."
+          branch: "auto-update-models-${{ github.event.client_payload.version || github.event.inputs.version }}"
+          base: main
diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..db7a87d
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,4 @@
+.venv/
+.ruff_cache/
+__pycache__/
+*.py[cod]
diff --git a/generate_models.sh b/generate_models.sh
index 26afb35..60aa330 100755
--- a/generate_models.sh
+++ b/generate_models.sh
@@ -1,4 +1,5 @@
 #!/bin/bash
+# Copyright 2026 UCP Authors
 # Generate Pydantic models from UCP JSON Schemas
 
 # Ensure we are in the script's directory
@@ -8,7 +9,7 @@ cd "$(dirname "$0")" || exit
 OUTPUT_DIR="src/ucp_sdk/models"
 
 # Schema directory (relative to this script)
-SCHEMA_DIR="../../spec/"
+SCHEMA_DIR="${SCHEMA_DIR:-../../spec/}"
 
 echo "Generating Pydantic models from $SCHEMA_DIR..."