diff --git a/.azdo/ci-pr.yaml b/.azdo/ci-pr.yaml
index cf6e2ff8..ad3b3112 100644
--- a/.azdo/ci-pr.yaml
+++ b/.azdo/ci-pr.yaml
@@ -52,6 +52,11 @@ steps:
 
 - script: |
     mkdir -p dist
+    for dir in libraries/*; do
+      if [ -f "$dir/pyproject.toml" ]; then
+        echo $(PackageVersion) > "$dir/VERSION.txt"
+      fi
+    done
     for dir in libraries/*; do
       if [ -f "$dir/pyproject.toml" ]; then
         (cd "$dir" && python -m build --outdir ../../dist)
diff --git a/libraries/microsoft-agents-activity/setup.py b/libraries/microsoft-agents-activity/setup.py
index 9b6de9af..c46ba05d 100644
--- a/libraries/microsoft-agents-activity/setup.py
+++ b/libraries/microsoft-agents-activity/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-authentication-msal/setup.py b/libraries/microsoft-agents-authentication-msal/setup.py
index 67315bcf..6b4e9860 100644
--- a/libraries/microsoft-agents-authentication-msal/setup.py
+++ b/libraries/microsoft-agents-authentication-msal/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-copilotstudio-client/setup.py b/libraries/microsoft-agents-copilotstudio-client/setup.py
index 41a7da0d..53449889 100644
--- a/libraries/microsoft-agents-copilotstudio-client/setup.py
+++ b/libraries/microsoft-agents-copilotstudio-client/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-hosting-aiohttp/setup.py b/libraries/microsoft-agents-hosting-aiohttp/setup.py
index 426735ba..f7a4e1bb 100644
--- a/libraries/microsoft-agents-hosting-aiohttp/setup.py
+++ b/libraries/microsoft-agents-hosting-aiohttp/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-hosting-core/setup.py b/libraries/microsoft-agents-hosting-core/setup.py
index e7604116..b1da90cf 100644
--- a/libraries/microsoft-agents-hosting-core/setup.py
+++ b/libraries/microsoft-agents-hosting-core/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-hosting-fastapi/setup.py b/libraries/microsoft-agents-hosting-fastapi/setup.py
index cfcb460b..a8e569b4 100644
--- a/libraries/microsoft-agents-hosting-fastapi/setup.py
+++ b/libraries/microsoft-agents-hosting-fastapi/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-hosting-teams/setup.py b/libraries/microsoft-agents-hosting-teams/setup.py
index 426735ba..f7a4e1bb 100644
--- a/libraries/microsoft-agents-hosting-teams/setup.py
+++ b/libraries/microsoft-agents-hosting-teams/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-storage-blob/setup.py b/libraries/microsoft-agents-storage-blob/setup.py
index d38c25bb..8fba7f42 100644
--- a/libraries/microsoft-agents-storage-blob/setup.py
+++ b/libraries/microsoft-agents-storage-blob/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,
diff --git a/libraries/microsoft-agents-storage-cosmos/setup.py b/libraries/microsoft-agents-storage-cosmos/setup.py
index 8f09a0d2..f51a394f 100644
--- a/libraries/microsoft-agents-storage-cosmos/setup.py
+++ b/libraries/microsoft-agents-storage-cosmos/setup.py
@@ -1,7 +1,13 @@
-from os import environ
+from os import environ, path
 from setuptools import setup
 
-package_version = environ.get("PackageVersion", "0.0.0")
+# Try to read from VERSION.txt file first, fall back to environment variable
+version_file = path.join(path.dirname(__file__), "VERSION.txt")
+if path.exists(version_file):
+    with open(version_file, "r", encoding="utf-8") as f:
+        package_version = f.read().strip()
+else:
+    package_version = environ.get("PackageVersion", "0.0.0")
 
 setup(
     version=package_version,