diff --git a/apps/partner-sas/env/client.ts b/apps/partner-sas/env/client.ts
index 21e43e577..836832584 100644
--- a/apps/partner-sas/env/client.ts
+++ b/apps/partner-sas/env/client.ts
@@ -1,11 +1,16 @@
 import { createEnv } from "@t3-oss/env-nextjs"
 import { z } from "zod"
 
+import { getSemver } from "@scandic-hotels/common/utils/getSemver"
+
 export const env = createEnv({
   client: {
     NEXT_PUBLIC_SENTRY_ENVIRONMENT: z.string().default("development"),
     NEXT_PUBLIC_SENTRY_CLIENT_SAMPLERATE: z.coerce.number().default(0.001),
-    NEXT_PUBLIC_RELEASE_TAG: z.string().optional(),
+    NEXT_PUBLIC_RELEASE_TAG: z
+      .string()
+      .optional()
+      .transform((s) => getSemver(s, process.env.BRANCH || "development")),
   },
   emptyStringAsUndefined: true,
   runtimeEnv: {
diff --git a/apps/partner-sas/env/server.ts b/apps/partner-sas/env/server.ts
index ffb776bdf..4949ead5a 100644
--- a/apps/partner-sas/env/server.ts
+++ b/apps/partner-sas/env/server.ts
@@ -1,6 +1,8 @@
 import { createEnv } from "@t3-oss/env-nextjs"
 import { z } from "zod"
 
+import { getSemver } from "@scandic-hotels/common/utils/getSemver"
+
 export const env = createEnv({
   /**
    * Due to t3-env only checking typeof window === "undefined"
@@ -36,7 +38,10 @@ export const env = createEnv({
       .refine((s) => s === "true" || s === "false")
       .transform((s) => s === "true")
       .default("false"),
-    RELEASE_TAG: z.string().optional(),
+    RELEASE_TAG: z
+      .string()
+      .optional()
+      .transform((s) => getSemver(s, process.env.BRANCH || "development")),
   },
   emptyStringAsUndefined: true,
   runtimeEnv: {
diff --git a/apps/scandic-web/components/EnvironmentWatermark/index.tsx b/apps/scandic-web/components/EnvironmentWatermark/index.tsx
index 933ab0455..b773a007b 100644
--- a/apps/scandic-web/components/EnvironmentWatermark/index.tsx
+++ b/apps/scandic-web/components/EnvironmentWatermark/index.tsx
@@ -27,12 +27,12 @@ export function EnvironmentWatermark() {
   }
 
   const { environment, name } = getEnvironmentName()
-  const displayValues = [name]
-  if (name !== environment) {
-    displayValues.push(`(${environment})`)
-  }
+  const displayValues: string[] = [environment]
+
   if (env.NEXT_PUBLIC_RELEASE_TAG) {
     displayValues.push(`[${env.NEXT_PUBLIC_RELEASE_TAG}]`)
+  } else if (name !== environment) {
+    displayValues.push(`(${name})`)
   }
 
   return (
diff --git a/apps/scandic-web/env/client.ts b/apps/scandic-web/env/client.ts
index 58f1e2603..174492700 100644
--- a/apps/scandic-web/env/client.ts
+++ b/apps/scandic-web/env/client.ts
@@ -1,6 +1,8 @@
 import { createEnv } from "@t3-oss/env-nextjs"
 import { z } from "zod"
 
+import { getSemver } from "@scandic-hotels/common/utils/getSemver"
+
 export const env = createEnv({
   client: {
     NEXT_PUBLIC_NODE_ENV: z.enum(["development", "test", "production"]),
@@ -8,7 +10,10 @@ export const env = createEnv({
     NEXT_PUBLIC_SENTRY_ENVIRONMENT: z.string().default("development"),
     NEXT_PUBLIC_SENTRY_CLIENT_SAMPLERATE: z.coerce.number().default(0.001),
     NEXT_PUBLIC_PUBLIC_URL: z.string().optional(),
-    NEXT_PUBLIC_RELEASE_TAG: z.string().optional(),
+    NEXT_PUBLIC_RELEASE_TAG: z
+      .string()
+      .optional()
+      .transform((s) => getSemver(s, process.env.BRANCH || "development")),
   },
   emptyStringAsUndefined: true,
   runtimeEnv: {
diff --git a/apps/scandic-web/env/server.ts b/apps/scandic-web/env/server.ts
index 3edabcb44..3e3a5d19e 100644
--- a/apps/scandic-web/env/server.ts
+++ b/apps/scandic-web/env/server.ts
@@ -1,6 +1,8 @@
 import { createEnv } from "@t3-oss/env-nextjs"
 import { z } from "zod"
 
+import { getSemver } from "@scandic-hotels/common/utils/getSemver"
+
 export const env = createEnv({
   /**
    * Due to t3-env only checking typeof window === "undefined"
@@ -112,7 +114,10 @@ export const env = createEnv({
       .refine((s) => s === "true" || s === "false")
       .transform((s) => s === "true")
       .default("false"),
-    RELEASE_TAG: z.string().optional(),
+    RELEASE_TAG: z
+      .string()
+      .optional()
+      .transform((s) => getSemver(s, process.env.BRANCH || "development")),
   },
   emptyStringAsUndefined: true,
   runtimeEnv: {
diff --git a/packages/common/package.json b/packages/common/package.json
index c51eaa4e5..4b30128c1 100644
--- a/packages/common/package.json
+++ b/packages/common/package.json
@@ -40,6 +40,7 @@
     "./stores/*": "./stores/*.ts",
     "./telemetry": "./telemetry/index.ts",
     "./tokenManager": "./tokenManager/index.ts",
+    "./utils/getSemver": "./utils/getSemver.ts",
     "./utils/stringEquals": "./utils/stringEquals.ts",
     "./utils/chunk": "./utils/chunk.ts",
     "./utils/dateFormatting": "./utils/dateFormatting.ts",
diff --git a/packages/common/utils/getSemver.test.ts b/packages/common/utils/getSemver.test.ts
new file mode 100644
index 000000000..bcd40a5a5
--- /dev/null
+++ b/packages/common/utils/getSemver.test.ts
@@ -0,0 +1,50 @@
+import { describe, expect, it } from "vitest"
+
+import { getSemver } from "./getSemver"
+
+describe("getSemver", () => {
+  it("should return undefined if version is undefined", () => {
+    expect(getSemver(undefined, "master")).toBeUndefined()
+  })
+
+  it("should return undefined if version is not a string", () => {
+    // @ts-expect-error Testing invalid input
+    expect(getSemver(123, "master")).toBeUndefined()
+  })
+
+  it("should strip 'v' prefix from version", () => {
+    expect(getSemver("v1.0.0", "master")).toBe("1.0.0")
+  })
+
+  it("should return undefined if version format is invalid", () => {
+    expect(getSemver("invalid-version", "master")).toBeUndefined()
+  })
+
+  it("should return the version as-is for named branches", () => {
+    expect(getSemver("1.0.0", "release")).toBe("1.0.0")
+    expect(getSemver("1.0.0", "master")).toBe("1.0.0")
+    expect(getSemver("1.0.0", "test")).toBe("1.0.0")
+    expect(getSemver("1.0.0", "stage")).toBe("1.0.0")
+    expect(getSemver("1.0.0", "prod")).toBe("1.0.0")
+  })
+
+  it("should append cleaned branch name for non-named branches", () => {
+    expect(getSemver("1.0.0", "feature/my-feature")).toBe(
+      "1.0.0-feature-my-feature"
+    )
+  })
+
+  it("should handle special characters in non-named branches", () => {
+    expect(getSemver("1.0.0", "fix/bug#123")).toBe("1.0.0-fix-bug-123")
+  })
+
+  it("should lowercase and trim non-named branches", () => {
+    expect(getSemver("1.0.0", " MY-BRANCH ")).toBe("1.0.0-my-branch")
+  })
+
+  it("should truncate long branch names", () => {
+    expect(
+      getSemver("1.0.0", "feature/very-long-branch-name-that-exceeds-limit")
+    ).toBe("1.0.0-feature-very-long-br")
+  })
+})
diff --git a/packages/common/utils/getSemver.ts b/packages/common/utils/getSemver.ts
new file mode 100644
index 000000000..bc2af0c7d
--- /dev/null
+++ b/packages/common/utils/getSemver.ts
@@ -0,0 +1,32 @@
+const namedBranches = ["release", "master", "test", "stage", "prod"] as const
+
+type NamedBranch = (typeof namedBranches)[number] | (string & {})
+
+export function getSemver(
+  version: string | undefined,
+  branch: NamedBranch
+): string | undefined {
+  if (!version || typeof version !== "string") {
+    return undefined
+  }
+
+  if (version.startsWith("v")) {
+    version = version.substring(1)
+  }
+
+  if (!/^\d+\.\d+\.\d+/.test(version)) {
+    return undefined
+  }
+
+  if (!namedBranches.includes(branch as any)) {
+    let cleanedBranch = branch
+      .substring(0, 20)
+      .trim()
+      .replace(/[^a-zA-Z0-9]/g, "-")
+      .toLowerCase()
+
+    return `${version}-${cleanedBranch}`
+  }
+
+  return version
+}