diff --git a/CHANGELOG/v1.16.2.md b/CHANGELOG/v1.16.2.md
new file mode 100644
index 00000000000..a32e4b477a1
--- /dev/null
+++ b/CHANGELOG/v1.16.2.md
@@ -0,0 +1,25 @@
+## Changes by Kind
+
+### Other (Cleanup or Flake)
+
+- Bump CAPI to v1.7.6 ([#5129](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5129), [@mboersma](https://github.com/mboersma))
+
+### Bug or Regression
+
+- Add "cluster" type to subnet role validation ([#5134](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5134), [@mboersma](https://github.com/mboersma))
+- Fix documentation links hard-coded to capz.k8s.io ([#5125](https://github.com/kubernetes-sigs/cluster-api-provider-azure/pull/5125), [@willie-yao](https://github.com/willie-yao))
+
+## Dependencies
+
+### Added
+_Nothing has changed._
+
+### Changed
+_Nothing has changed._
+
+### Removed
+_Nothing has changed._
+
+## Details
+<!-- markdown-link-check-disable-next-line -->
+https://github.com/kubernetes-sigs/cluster-api-provider-azure/compare/v1.16.1...v1.16.2