diff --git a/release_drafter.py b/release_drafter.py
new file mode 100644
index 0000000..19d9a36
--- /dev/null
+++ b/release_drafter.py
@@ -0,0 +1,481 @@
+import os
+import re
+import argparse
+from dataclasses import dataclass, field
+from datetime import datetime
+from datetime import timezone
+from typing import Dict, List, Optional, Any
+
+import requests
+import semver
+from requests.adapters import HTTPAdapter
+from urllib3 import Retry
+
+
+
+@dataclass
+class LabelConfig:
+    priority: int
+    title: str
+    required: bool = False
+    description: str = ""
+    aliases: List[str] = field(default_factory=list)
+
+
+class ConfigurationError(Exception):
+    """Custom exception for configuration related errors."""
+
+    pass
+
+
+class ReleaseManager:
+    def __init__(self) -> None:
+        self.env_vars = self.validate_environment()
+        self.api_url: str = self.env_vars["FORGEJO_API_URL"]
+        self.repo: str = self.env_vars["REPO"]
+        self.token: str = self.env_vars["FORGEJO_TOKEN"]
+        self.headers: Dict[str, str] = {"Authorization": f"Bearer {self.token}"}
+        self.label_config = self.initialize_label_config()
+        self.session = requests.Session()
+        retries = Retry(
+            total=3, backoff_factor=1, status_forcelist=[500, 502, 503, 504]
+        )
+        self.session.mount("https://", HTTPAdapter(max_retries=retries))
+        self.session.headers.update(self.headers)
+
+    @staticmethod
+    def validate_environment() -> Dict[str, str]:
+        """Validate all required environment variables are present."""
+        parser = argparse.ArgumentParser()
+        parser.add_argument("--token", required=True)
+        parser.add_argument("--repo", required=True)
+        parser.add_argument("--endpoint", required=True)
+        args = parser.parse_args()
+
+        required_vars = {
+            "FORGEJO_API_URL": args.endpoint,
+            "REPO": args.repo,
+            "FORGEJO_TOKEN": args.token,
+        }
+
+        missing_vars = [var for var, value in required_vars.items() if not value]
+
+        if missing_vars:
+            raise ConfigurationError(
+                f"Missing required environment variables: {', '.join(missing_vars)}"
+            )
+
+        return required_vars
+
+    @staticmethod
+    def initialize_label_config() -> Dict[str, LabelConfig]:
+        """Initialize and validate label configuration."""
+        label_config = {
+            "breaking-change": LabelConfig(
+                priority=0,
+                title="⚠️ Breaking Changes",
+                description="Changes that break backward compatibility",
+            ),
+            "security": LabelConfig(
+                priority=1,
+                title="🔒 Security Updates",
+                description="Security related changes",
+            ),
+            "feature": LabelConfig(
+                priority=2,
+                title="✨ New Features",
+                description="New features and functionality",
+            ),
+            "enhancement": LabelConfig(
+                priority=3,
+                title="🚀 Enhancements",
+                description="Improvements to existing features",
+            ),
+            "bug": LabelConfig(
+                priority=4,
+                title="🐛 Bug Fixes",
+                description="Bug fixes",
+                aliases=["fix"],
+            ),
+            "performance": LabelConfig(
+                priority=5,
+                title="⚡ Performance Improvements",
+                description="Performance optimizations",
+            ),
+            "documentation": LabelConfig(
+                priority=6,
+                title="📚 Documentation",
+                description="Documentation updates",
+            ),
+            "maintenance": LabelConfig(
+                priority=7,
+                title="🛠️ Maintenance",
+                description="Code maintenance and refactoring",
+            ),
+            "dependency": LabelConfig(
+                priority=8, title="📦 Dependencies", description="Dependency updates"
+            ),
+            "test": LabelConfig(
+                priority=9, title="🧪 Testing", description="Test-related changes"
+            ),
+        }
+
+        # Validate label configuration
+        priorities = [config.priority for config in label_config.values()]
+        if len(priorities) != len(set(priorities)):
+            raise ConfigurationError(
+                "Duplicate priority values found in label configuration"
+            )
+
+        return label_config
+
+    def log_error(
+        self, message: str, response: Optional[requests.Response] = None
+    ) -> None:
+        """Log errors with optional response details."""
+        print(f"ERROR: {message}")
+        if response:
+            print(f"Response: {response.status_code}, {response.text}")
+
+    def get_latest_release(self) -> str | None:
+        """Get the latest release information."""
+        response = self.session.get(f"{self.api_url}/repos/{self.repo}/releases")
+        if response.status_code == 200 and len(response.json()) > 0:
+            latest_release = None
+            latest_release_date = datetime.min.replace(tzinfo=timezone.utc)
+            releases = response.json()
+            non_draft_releases = [
+                release for release in releases if not release.get("draft", False)
+            ]
+            for release in non_draft_releases:
+                published_date = datetime.fromisoformat(release["published_at"])
+                if published_date > latest_release_date:
+                    latest_release_date = datetime.fromisoformat(
+                        release["published_at"]
+                    )
+                    latest_release = release
+            return latest_release.get("tag_name")
+        else:
+            self.log_error("Failed to fetch releases", response)
+        return None
+
+    def validate_pull_request_labels(self, pull_request: Dict[str, Any]) -> None:
+        """Validate that pull requests have required labels."""
+        pr_labels = {label["name"] for label in pull_request["labels"]}
+        required_labels = {
+            name for name, config in self.label_config.items() if config.required
+        }
+
+        missing_required = required_labels - pr_labels
+        if missing_required:
+            self.log_error(
+                f"Pull request #{pull_request['number']} missing required labels: "
+                f"{', '.join(missing_required)}"
+            )
+
+    def determine_release_type(self, pulls: List[Dict[str, Any]]) -> str:
+        """Determine if this should be a major, minor, or patch release based on PR labels."""
+        for pr in pulls:
+            self.validate_pull_request_labels(pr)
+
+        has_breaking = any(
+            "breaking-change" in [l["name"] for l in pr["labels"]] for pr in pulls
+        )
+        has_feature = any(
+            "feature" in [l["name"] for l in pr["labels"]] for pr in pulls
+        )
+
+        if has_breaking:
+            return "major"
+        elif has_feature:
+            return "minor"
+        return "patch"
+
+    def generate_next_tag(
+        self, latest_tag: Optional[str], pulls: List[Dict[str, Any]]
+    ) -> Optional[str]:
+        """Generate the next version tag based on semantic versioning."""
+        if not latest_tag:
+            return "v0.1.0"
+
+        try:
+            version = semver.VersionInfo.parse(latest_tag.replace("v", ""))
+            release_type = self.determine_release_type(pulls)
+
+            if release_type == "major":
+                next_version = version.bump_major()
+            elif release_type == "minor":
+                next_version = version.bump_minor()
+            else:
+                next_version = version.bump_patch()
+
+            return f"v{next_version}"
+        except ValueError:
+            self.log_error(f"Invalid semantic version: {latest_tag}")
+            return None
+
+    def get_closed_pull_requests_since_last_release(
+        self, latest_tag: str
+    ) -> List[Dict[str, Any]]:
+        """Fetch all closed pull requests since the last release."""
+        if not latest_tag:
+            print(
+                "No previous release or draft found. Fetching all closed pull requests."
+            )
+
+        # get commit sha from latest release tag
+        response = self.session.get(
+            f"{self.api_url}/repos/{self.repo}/commits/{latest_tag}/status"
+        )
+        if response.status_code != 200:
+            self.log_error("Failed to get latest tag commit sha", response)
+            return []
+        latest_tag_sha = response.json().get("sha")
+
+        # get commits between latest release tag and current main state
+        response = self.session.get(
+            f"{self.api_url}/repos/{self.repo}/compare/{latest_tag_sha}..main"
+        )
+        if response.status_code != 200:
+            self.log_error("Failed to get commits between latest tag and main", response)
+            return []
+        commits_since_last_release = response.json().get("commits")
+
+        # get pull request of each commit
+        pulls_since_last_release = []
+        for commit in commits_since_last_release:
+            response = self.session.get(
+                f"{self.api_url}/repos/{self.repo}/commits/{commit.get('sha')}/pull"
+            )
+            if response.status_code != 200:
+                print(
+                    "Failed to get pull request of commit", commit.get("sha"), response
+                )
+                continue
+            pulls_since_last_release.append(response.json())
+
+        return pulls_since_last_release
+
+    def generate_release_notes(self, pulls: List[Dict[str, Any]]) -> str:
+        """Generate formatted release notes from pull requests."""
+        if not pulls:
+            return "No pull requests found for this release."
+
+        label_groups = {label: [] for label in self.label_config}
+
+        # Track latest dependency updates
+        dependency_updates = {}
+
+        def extract_dependency_name(title: str) -> Optional[str]:
+            """Extract dependency name from conventional commit title."""
+            if not title.startswith(("chore(deps)", "fix(deps)")):
+                return None
+
+            # Match package names like "@scope/package" or "package"
+            match = re.search(
+                r"update (?:dependency )?(@?[a-zA-Z0-9-]+(?:/[a-zA-Z0-9-]+)?)",
+                title.lower(),
+            )
+            return match.group(1) if match else None
+
+        def is_dependency_update(title: str) -> bool:
+            """Check if PR is a dependency update."""
+            return title.startswith(("chore(deps)", "fix(deps)"))
+
+        # First pass to collect latest dependency updates
+        for pr in pulls:
+            title = pr["title"]
+            if not is_dependency_update(title):
+                continue
+            dep_name = extract_dependency_name(title)
+            if not dep_name:
+                continue
+            if dep_name not in dependency_updates:
+                dependency_updates[dep_name] = pr
+            # Only keep the most recent update for each dependency
+            time_stamp_format = "%Y-%m-%dT%H:%M:%S%z"
+            pr_merged_at = datetime.strptime(pr["merged_at"], time_stamp_format)
+            dep_merged_at = datetime.strptime(
+                dependency_updates[dep_name]["merged_at"], time_stamp_format
+            )
+            if pr_merged_at > dep_merged_at:
+                dependency_updates[dep_name] = pr
+
+        # Reset and process all PRs
+        label_groups["other"] = []
+
+        for pr in pulls:
+            title = pr["title"]
+            author = pr["user"]["login"]
+            number = pr["number"]
+            pr_labels = {label["name"] for label in pr["labels"]}
+
+            # Skip dependency updates that aren't the latest for their package
+            if is_dependency_update(title):
+                dep_name = extract_dependency_name(title)
+                if dep_name and dependency_updates[dep_name]["number"] != pr["number"]:
+                    continue
+
+            # Find the highest priority label
+            assigned_label = "other"
+            key_prio_tuples = [
+                ([key] + config.aliases, config.priority)
+                for key, config in self.label_config.items()
+            ]
+            key_prio_tuples.sort(key=lambda x: x[1])
+            for keys, prio in key_prio_tuples:
+                if set(keys) & pr_labels:
+                    assigned_label = keys[0]
+                    break
+
+            # Extract scope from PR title if it follows conventional commits
+            scope = ""
+            if "(" in title and "):" in title:
+                scope = title[title.index("(") + 1 : title.index(")")]
+                title = title[title.index("):") + 2 :].strip()
+
+            # Add reference to linked issues if any
+            linked_issues: List[str] = []
+            if "body" in pr and pr["body"]:
+                for keyword in ["Closes", "Fixes", "Resolves"]:
+                    if f"{keyword} #" in pr["body"]:
+                        issues = re.findall(f"{keyword} #(\\d+)", pr["body"])
+                        linked_issues.extend(issues)
+
+            # Format the PR entry
+            entry = f"- {title}"
+            if scope:
+                entry = f"- **{scope}:** {title}"
+            entry += f" (#{number})"
+            if linked_issues:
+                entry += f" (Fixes: #{', #'.join(linked_issues)})"
+            entry += f" by @{author}"
+
+            label_groups[assigned_label].append(entry)
+
+        # Build release notes with friendly titles and emojis
+        release_notes = ["# Release Notes\n"]
+
+        # Add summary section
+        total_prs = sum(len(prs) for prs in label_groups.values())
+        total_contributors = len(
+            {pr.split("by @")[1] for group in label_groups.values() for pr in group}
+        )
+        release_notes.extend(
+            [
+                f"📊 **Release Statistics**",
+                f"- Total Pull Requests: {total_prs}",
+                f"- Contributors: {total_contributors}",
+                "",
+            ]
+        )
+
+        # Add each section in priority order
+        for label, config in sorted(
+            self.label_config.items(), key=lambda x: x[1].priority
+        ):
+            if label_groups[label]:
+                release_notes.append(f"## {config.title}")
+                release_notes.extend(sorted(label_groups[label]))
+                release_notes.append("")
+
+        # Add other changes last
+        if label_groups["other"]:
+            release_notes.append("## 📋 Other Changes")
+            release_notes.extend(sorted(label_groups["other"]))
+            release_notes.append("")
+
+        return "\n".join(release_notes).strip()
+
+    def add_version_comparison(
+        self, release_notes: str, previous_tag: str, new_tag: str
+    ) -> str:
+        url_base = self.api_url.replace("/api/v1", "")
+        """Add version comparison section to release notes."""
+        comparison_section = f"""\n
+## 📝 Version Compare
+Compare with previous version: [{previous_tag}...{new_tag}]({url_base}/{self.repo}/compare/{previous_tag}...{new_tag})
+"""
+        return release_notes + comparison_section
+
+    def get_existing_draft_release(self) -> Optional[Dict[str, Any]]:
+        """Check if a draft release already exists."""
+        response = self.session.get(f"{self.api_url}/repos/{self.repo}/releases")
+        if response.status_code != 200:
+            self.log_error("Failed to fetch releases", response)
+            return None
+        draft_releases = [
+            release for release in response.json() if release.get("draft", False)
+        ]
+        if draft_releases:
+            release = draft_releases[0]
+            print(f"Draft release found: {release['tag_name']}")
+            return release
+
+    def create_or_update_release(
+        self, new_tag: str, release_notes: str, existing_draft: Optional[Dict[str, Any]]
+    ) -> None:
+        """Create a new draft release or update existing one."""
+        tag = existing_draft.get("tag_name") if existing_draft else new_tag
+        release_data = {
+            "body": release_notes,
+            "hide_archive_links": True,
+            "draft": True,
+            "tag_name": tag,
+            "name": f"Release {tag}",
+        }
+        release_id = f"/{existing_draft['id']}" if existing_draft else ""
+        method = "PATCH" if existing_draft else "POST"
+        url = f"{self.api_url}/repos/{self.repo}/releases{release_id}"
+        response = self.session.request(method, url, json=release_data)
+        if response.status_code == 201 or response.status_code == 200:
+            print(
+                f"Draft release {tag} created/updated successfully, using '{method}' method!"
+            )
+            return response.json()['html_url']
+        else:
+            self.log_error(f"Failed to create/update draft release {tag}", response)
+
+    def main(self) -> None:
+        """Main execution flow for release management."""
+        try:
+            # Get the latest release information
+            latest_tag = self.get_latest_release()
+
+            # Get closed PRs since last release
+            pulls = self.get_closed_pull_requests_since_last_release(latest_tag)
+
+            if not pulls:
+                print("No new pull requests found. Skipping release creation.")
+                return
+
+            # Generate next version tag
+            new_tag = self.generate_next_tag(latest_tag, pulls)
+            if not new_tag:
+                print("Failed to generate next version tag.")
+                return
+
+            # Generate release notes
+            release_notes = self.generate_release_notes(pulls)
+
+            # Add version comparison if there's a previous release
+            existing_draft = self.get_existing_draft_release()
+            comparison_tag = new_tag
+            if existing_draft:
+                comparison_tag = existing_draft["tag_name"]
+
+            if latest_tag:
+                release_notes = self.add_version_comparison(
+                    release_notes, latest_tag, comparison_tag
+                )
+            url = self.create_or_update_release(comparison_tag, release_notes, existing_draft)
+            print(f"::set-output name=release-url::{url}")
+
+        except Exception as e:
+            print(f"An error occurred: {str(e)}")
+            raise
+
+
+if __name__ == "__main__":
+    manager = ReleaseManager()
+    manager.main()