diff --git a/commodore/cli/component.py b/commodore/cli/component.py
index 5ff10a98..6c816021 100644
--- a/commodore/cli/component.py
+++ b/commodore/cli/component.py
@@ -189,6 +189,14 @@ def decorator(cmd):
             multiple=True,
             help=_generate_automerge_depname_help(level="patch"),
         )(cmd)
+        click.option(
+            "--autorelease / --no-autorelease",
+            is_flag=True,
+            default=True if new_cmd else None,
+            help="Enable autorelease GitHub action. "
+            + "When autorelease is enabled, new releases will be generated "
+            + "for automerged dependency PRs.",
+        )(cmd)
         click.option(
             "--automerge-patch-v0 / --no-automerge-patch-v0",
             is_flag=True,
@@ -310,6 +318,7 @@ def component_new(
     additional_test_case: Iterable[str],
     automerge_patch: bool,
     automerge_patch_v0: bool,
+    autorelease: bool,
     add_automerge_patch_block_depname: Iterable[str],
     add_automerge_patch_block_pattern: Iterable[str],
     add_automerge_patch_v0_allow_depname: Iterable[str],
@@ -330,6 +339,7 @@ def component_new(
     t.test_cases = ["defaults"] + list(additional_test_case)
     t.automerge_patch = automerge_patch
     t.automerge_patch_v0 = automerge_patch_v0
+    t.autorelease = autorelease
     for name in add_automerge_patch_block_depname:
         t.add_automerge_patch_block_depname(name)
     for pattern in add_automerge_patch_block_pattern:
@@ -437,6 +447,7 @@ def component_update(
     commit: bool,
     automerge_patch: Optional[bool],
     automerge_patch_v0: Optional[bool],
+    autorelease: Optional[bool],
     add_automerge_patch_block_depname: Iterable[str],
     add_automerge_patch_block_pattern: Iterable[str],
     add_automerge_patch_v0_allow_depname: Iterable[str],
@@ -479,6 +490,8 @@ def component_update(
         t.automerge_patch = automerge_patch
     if automerge_patch_v0 is not None:
         t.automerge_patch_v0 = automerge_patch_v0
+    if autorelease is not None:
+        t.autorelease = autorelease
 
     test_cases = t.test_cases
     test_cases.extend(additional_test_case)
diff --git a/commodore/component/template.py b/commodore/component/template.py
index 70e401d1..0ed365f7 100644
--- a/commodore/component/template.py
+++ b/commodore/component/template.py
@@ -19,6 +19,7 @@ class ComponentTemplater(Templater):
     post_process: bool
     _automerge_patch: bool
     automerge_patch_v0: bool
+    autorelease: bool
     _matrix_tests: bool
     _automerge_patch_blocklist: set[str]
     _automerge_patch_v0_allowlist: set[str]
@@ -108,6 +109,7 @@ def _initialize_from_cookiecutter_args(self, cookiecutter_args: dict[str, str]):
         self.matrix_tests = cookiecutter_args["add_matrix"] == "y"
         self.automerge_patch = cookiecutter_args["automerge_patch"] == "y"
         self.automerge_patch_v0 = cookiecutter_args["automerge_patch_v0"] == "y"
+        self.autorelease = cookiecutter_args["auto_release"] == "y"
 
         self._initialize_automerge_pattern_lists_from_cookiecutter_args(
             cookiecutter_args
@@ -148,6 +150,7 @@ def cookiecutter_args(self) -> dict[str, str]:
         args["add_matrix"] = "y" if self.matrix_tests else "n"
         args["automerge_patch"] = "y" if self.automerge_patch else "n"
         args["automerge_patch_v0"] = "y" if self.automerge_patch_v0 else "n"
+        args["auto_release"] = "y" if self.autorelease else "n"
         args["automerge_patch_regexp_blocklist"] = ";".join(
             sorted(self._automerge_patch_blocklist)
         )
diff --git a/docs/modules/ROOT/pages/reference/cli.adoc b/docs/modules/ROOT/pages/reference/cli.adoc
index 913dc485..0af3ad2a 100644
--- a/docs/modules/ROOT/pages/reference/cli.adoc
+++ b/docs/modules/ROOT/pages/reference/cli.adoc
@@ -216,6 +216,11 @@ Defaults to `--no-force`.
 +
 NOTE: Enabling automerging of patch-level dependency PRs for v0.x dependencies implicitly enables automerging of all patch-level dependency PRs.
 
+*--autorelease / --no-autorelease*::
+  Enable autorelease GitHub action
++
+NOTE: If autorelease is enabled, new releases will be generated for automerged dependency PRs.
+
 *--add-automerge-patch-block-depname* NAME::
   Add dependency name that should be excluded from automerging of patch updates.
   Can be repeated.
diff --git a/tests/test_component_template.py b/tests/test_component_template.py
index d31b58f7..8aea1e70 100644
--- a/tests/test_component_template.py
+++ b/tests/test_component_template.py
@@ -34,6 +34,7 @@ def call_component_new(
     matrix="--no-matrix-tests",
     automerge_patch="--no-automerge-patch",
     automerge_patch_v0="--no-automerge-patch-v0",
+    autorelease="--no-autorelease",
     output_dir="",
     extra_args: list[str] = [],
 ):
@@ -41,7 +42,16 @@ def call_component_new(
     if output_dir:
         args.extend(["--output-dir", str(output_dir)])
     args.extend(
-        [component_name, lib, pp, golden, matrix, automerge_patch, automerge_patch_v0]
+        [
+            component_name,
+            lib,
+            pp,
+            golden,
+            matrix,
+            automerge_patch,
+            automerge_patch_v0,
+            autorelease,
+        ]
     )
     args.extend(extra_args)
     result = cli_runner(args)
@@ -171,6 +181,7 @@ def _validate_rendered_component(
     has_matrix: bool,
     has_automerge_patch: bool,
     has_automerge_patch_v0: bool,
+    has_autorelease: bool,
     test_cases: list[str] = ["defaults"],
 ):
     expected_files = [
@@ -206,6 +217,16 @@ def _validate_rendered_component(
                     f"{component_name}.yaml",
                 )
             )
+    autorelease_file = P(".github", "workflows", "auto-release.yaml")
+    if has_autorelease:
+        # we just check that the auto-release action only exists when the feature is
+        # enabled. The contents of the file are static, so we don't need to check them.
+        expected_files.append(autorelease_file)
+    else:
+        # if autorelease is not enabled, ensure the file doesn't exist
+        assert not (
+            tmp_path / "dependencies" / component_name / autorelease_file
+        ).exists()
     for file in expected_files:
         assert (tmp_path / "dependencies" / component_name / file).exists()
     # Check that we created a worktree
@@ -357,6 +378,7 @@ def test_run_component_new_command(
         has_matrix,
         False,
         False,
+        False,
     )
 
 
@@ -395,6 +417,7 @@ def test_run_component_new_with_additional_test_cases(
         True,
         False,
         False,
+        False,
         ["defaults"] + test_cases,
     )
 
@@ -423,6 +446,7 @@ def test_run_component_new_force_matrix_additional_test_cases(
         True,
         False,
         False,
+        False,
         ["defaults", "foo"],
     )
 
@@ -488,11 +512,19 @@ def test_run_component_new_command_with_name(tmp_path: P):
         "--no-automerge-patch-v0",
     ],
 )
+@pytest.mark.parametrize(
+    "autorelease",
+    [
+        "--autorelease",
+        "--no-autorelease",
+    ],
+)
 def test_run_component_new_automerge_patch_options(
     tmp_path: P,
     cli_runner: RunnerFunc,
-    automerge_patch,
-    automerge_patch_v0,
+    automerge_patch: str,
+    automerge_patch_v0: str,
+    autorelease: str,
 ):
     result = call_component_new(
         tmp_path,
@@ -501,12 +533,14 @@ def test_run_component_new_automerge_patch_options(
         matrix="--matrix-tests",
         automerge_patch=automerge_patch,
         automerge_patch_v0=automerge_patch_v0,
+        autorelease=autorelease,
     )
 
     has_automerge_patch_v0 = automerge_patch_v0 == "--automerge-patch-v0"
     has_automerge_patch = (
         automerge_patch == "--automerge-patch" or has_automerge_patch_v0
     )
+    has_autorelease = autorelease == "--autorelease"
     if automerge_patch == "--no-automerge-patch" and has_automerge_patch_v0:
         assert (
             " > Forcing automerging of patch dependencies to be enabled "
@@ -522,6 +556,7 @@ def test_run_component_new_automerge_patch_options(
         True,
         has_automerge_patch,
         has_automerge_patch_v0,
+        has_autorelease,
     )
 
 
@@ -563,6 +598,7 @@ def test_run_component_new_automerge_patch_blocklist(
         True,
         True,
         False,
+        False,
     )
     _validate_renovatejson_packagerules(
         tmp_path / "dependencies" / "test-component",
@@ -627,6 +663,7 @@ def test_run_component_new_automerge_patch_v0_allowlist(
         True,
         True,
         has_automerge_patch_v0,
+        False,
     )
     _validate_renovatejson_packagerules(
         tmp_path / "dependencies" / "test-component",
@@ -669,6 +706,7 @@ def test_run_component_new_automerge_patch_v0_selective_only(
         # setting this to True since we end up having a package rule which otherwise confuses the
         # inexact validation.
         True,
+        False,
     )
     _validate_renovatejson_packagerules(
         tmp_path / "dependencies" / "test-component",
@@ -725,6 +763,7 @@ def test_run_component_new_automerge_minor_allowlist(
         True,
         True,
         False,
+        False,
     )
     _validate_renovatejson_packagerules(
         tmp_path / "dependencies" / "test-component",
@@ -763,6 +802,7 @@ def test_run_component_new_automerge_all_options(
         True,
         True,
         False,
+        False,
     )
     _validate_renovatejson_packagerules(
         tmp_path / "dependencies" / "test-component",
@@ -886,11 +926,13 @@ def test_check_golden_diff(tmp_path: P):
         ([], ["--automerge-patch"]),
         ([], ["--automerge-patch-v0"]),
         ([], ["--automerge-patch", "--automerge-patch-v0"]),
+        ([], ["--autorelease"]),
         (["--automerge-patch"], ["--no-automerge-patch"]),
         (["--automerge-patch-v0"], ["--no-automerge-patch-v0"]),
         (["--no-automerge-patch"], ["--automerge-patch-v0"]),
         (["--automerge-patch-v0"], ["--no-automerge-patch"]),
         (["--automerge-patch-v0"], ["--no-automerge-patch-v0"]),
+        (["--autorelease"], ["--no-autorelease"]),
     ],
 )
 def test_component_update_bool_flags(
@@ -908,6 +950,7 @@ def test_component_update_bool_flags(
         "--no-matrix-tests",
         "--no-automerge-patch",
         "--no-automerge-patch-v0",
+        "--no-autorelease",
         component_name,
     ]
 
@@ -919,6 +962,7 @@ def test_component_update_bool_flags(
         "--automerge-patch" in new_args or "--automerge-patch-v0" in new_args
     )
     has_automerge_patch_v0 = "--automerge-patch-v0" in new_args
+    has_autorelease = "--autorelease" in new_args
 
     result = cli_runner(new_cmd + new_args)
     assert result.exit_code == 0
@@ -932,6 +976,7 @@ def test_component_update_bool_flags(
         has_matrix,
         has_automerge_patch,
         has_automerge_patch_v0,
+        has_autorelease,
     )
 
     update_cmd = [
@@ -958,6 +1003,7 @@ def test_component_update_bool_flags(
         or (has_automerge_patch and "--no-automerge-patch" not in update_args)
         or has_automerge_patch_v0_update
     )
+    has_autorelease = "--autorelease" in update_args
 
     result = cli_runner(update_cmd + update_args)
     assert result.exit_code == 0
@@ -971,6 +1017,7 @@ def test_component_update_bool_flags(
         has_matrix,
         has_automerge_patch_update,
         has_automerge_patch_v0_update,
+        has_autorelease,
     )
 
 
@@ -1099,7 +1146,16 @@ def test_component_update_test_cases(
     orig_cases = ["defaults"] + initial_cases
 
     _validate_rendered_component(
-        tmp_path, component_name, False, False, True, True, False, False, orig_cases
+        tmp_path,
+        component_name,
+        False,
+        False,
+        True,
+        True,
+        False,
+        False,
+        False,
+        orig_cases,
     )
 
     update_args = _format_test_case_args("--additional-test-case", additional_cases)
@@ -1123,7 +1179,16 @@ def test_component_update_test_cases(
         final_cases = updated_cases
 
     _validate_rendered_component(
-        tmp_path, component_name, False, False, True, True, False, False, final_cases
+        tmp_path,
+        component_name,
+        False,
+        False,
+        True,
+        True,
+        False,
+        False,
+        False,
+        final_cases,
     )
 
 
@@ -1562,6 +1627,7 @@ def test_cookiecutter_args_no_cruft_json(tmp_path: P, config: Config):
     t.github_owner = "projectsyn"
     t.automerge_patch = True
     t.automerge_patch_v0 = False
+    t.autorelease = False
 
     templater_cookiecutter_args = t.cookiecutter_args