diff --git a/CHANGELOG.md b/CHANGELOG.md
index 877387b4a..c521d0fcf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -23,6 +23,9 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixed
 
+- Fixed an issue in Daily involving switching virtual devices, by bumping the
+  daily-python dependency to >= 0.16.1.
+
 - Fixed a `GoogleAssistantContextAggregator` issue where function calls
   placeholders where not being updated when then function call result was
   different from a string.
diff --git a/pyproject.toml b/pyproject.toml
index da9c18dd0..0f2e993ae 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -48,7 +48,7 @@ cartesia = [ "cartesia~=1.4.0", "websockets~=13.1" ]
 neuphonic = [ "pyneuphonic~=1.5.13", "websockets~=13.1" ]
 cerebras = []
 deepseek = []
-daily = [ "daily-python~=0.16.0" ]
+daily = [ "daily-python~=0.16.1" ]
 deepgram = [ "deepgram-sdk~=3.8.0" ]
 elevenlabs = [ "websockets~=13.1" ]
 fal = [ "fal-client~=0.5.9" ]