diff --git a/setup.py b/setup.py
index 7b6ecb4af6f..50c31bac981 100644
--- a/setup.py
+++ b/setup.py
@@ -90,7 +90,7 @@ def get_git_head_sha(base_dir):
 
 
 def get_build_version(xla_git_sha):
-  version = os.getenv('TORCH_XLA_VERSION', '2.4.0')
+  version = os.getenv('TORCH_XLA_VERSION', '2.5.0')
   if build_util.check_env_flag('GIT_VERSIONED_XLA_BUILD', default='TRUE'):
     try:
       version += '+git' + xla_git_sha[:7]