diff --git a/.codegen.json b/.codegen.json
index 35ce31537..daf9925ae 100644
--- a/.codegen.json
+++ b/.codegen.json
@@ -1,5 +1,6 @@
 {
   "formatter": "go fmt ./... && go run golang.org/x/tools/cmd/goimports@latest -w $FILENAMES",
+  "changelog_config": ".codegen/changelog_config.yml",
   "packages": {
     ".codegen/api.go.tmpl": "service/{{.Name}}/api.go",
     ".codegen/impl.go.tmpl": "service/{{.Name}}/impl.go",
diff --git a/.codegen/changelog.md.tmpl b/.codegen/changelog.md.tmpl
index 1c49e6869..748eabef6 100644
--- a/.codegen/changelog.md.tmpl
+++ b/.codegen/changelog.md.tmpl
@@ -1,13 +1,17 @@
 # Version changelog
 
 ## {{.Version}}
+{{- range .GroupChanges}}
 
-{{range .Changes -}}
+### {{.Type.Message}}
+{{range .Changes}}
  * {{.}}.
-{{end}}{{- if .ApiChanges}}
-API Changes:
-{{range .ApiChanges}}
- * {{.Action}} {{template "what" .}}{{if .Extra}} {{.Extra}}{{with .Other}} {{template "what" .}}{{end}}{{end}}.
+{{- end}}
+{{end}}
+{{if .ApiChanges}}
+### API Changes:
+{{range .ApiChanges.GroupDiff}}
+ * {{.Action}} {{template "group-what" .}}{{if .Extra}} {{.Extra}}{{with .Other}} {{template "other-what" .}}{{end}}{{end}}.
 {{- end}}
 
 OpenAPI SHA: {{.Sha}}, Date: {{.Changed}}
@@ -20,7 +24,39 @@ Dependency updates:
 
 ## {{.PrevVersion}}
 
-{{- define "what" -}}
+
+{{- define "group-what" -}} 
+{{if gt (len .Changes) 1 -}} {{template "single-what" .Changes.First}}{{end -}}
+{{range .Changes.Middle -}}, {{template "single-what" .}}{{end -}}
+{{if gt (len .Changes) 1}} and {{end}}{{template "single-what" .Changes.Last}}{{template "suffix-what" .}}
+{{- end -}}
+
+
+{{- define "single-what" -}}
+    {{if eq .X "package" -}}
+        [{{.Package.Name}}](https://pkg.go.dev/github.com/databricks/databricks-sdk-go/service/{{.Package.Name}}) package
+    {{- else if eq .X "service" -}}
+        {{template "service" .Service}}
+    {{- else if eq .X "method" -}}
+        `{{.Method.PascalName}}`
+    {{- else if eq .X "entity" -}}
+        {{template "entity" .Entity}}
+    {{- else if eq .X "field" -}}
+        `{{.Field.PascalName}}`
+    {{- end}}
+{{- end -}}
+
+{{- define "suffix-what" -}}
+    {{if eq .Type "method"}} method{{template "plural-suffix" .Changes}} for {{template "service" .Parent.Service}}
+    {{- else if eq .Type "field"}} field{{template "plural-suffix" .Changes}} for {{template "entity" .Parent.Entity}}
+    {{- end}}
+{{- end -}}
+
+{{- define "plural-suffix" -}}
+{{if gt (len .) 1}}s{{end}}
+{{- end -}}
+
+{{- define "other-what" -}}
     {{if eq .X "package" -}}
         [{{.Package.Name}}](https://pkg.go.dev/github.com/databricks/databricks-sdk-go/service/{{.Package.Name}}) package
     {{- else if eq .X "service" -}}
diff --git a/.codegen/changelog_config.yml b/.codegen/changelog_config.yml
new file mode 100644
index 000000000..f4ea73945
--- /dev/null
+++ b/.codegen/changelog_config.yml
@@ -0,0 +1,11 @@
+change_types:
+  - message: New Features and Improvements
+    tag: "[Feature]"
+  - message: Bug Fixes
+    tag: "[Fix]"
+  - message: Documentation
+    tag: "[Docs]" 
+  - message: Internal Changes
+    tag: "[Internal]"
+  # Default for messages without a tag
+  - message: Other Changes
\ No newline at end of file