diff --git a/arduino-ide-extension/src/browser/arduino-ide-frontend-module.ts b/arduino-ide-extension/src/browser/arduino-ide-frontend-module.ts
index 2b170dd7b..d6779c302 100644
--- a/arduino-ide-extension/src/browser/arduino-ide-frontend-module.ts
+++ b/arduino-ide-extension/src/browser/arduino-ide-frontend-module.ts
@@ -387,6 +387,10 @@ import {
 import { TreeViewDecoratorService } from '@theia/plugin-ext/lib/main/browser/view/tree-view-decorator-service';
 import { PLUGIN_VIEW_DATA_FACTORY_ID } from '@theia/plugin-ext/lib/main/browser/view/plugin-view-registry';
 import { TreeViewWidget } from './theia/plugin-ext/tree-view-widget';
+import {
+  VersionWelcomeDialog,
+  VersionWelcomeDialogProps,
+} from './dialogs/version-welcome-dialog';
 
 // Hack to fix copy/cut/paste issue after electron version update in Theia.
 // https://github.com/eclipse-theia/theia/issues/12487
@@ -1014,6 +1018,11 @@ export default new ContainerModule((bind, unbind, isBound, rebind) => {
     title: 'IDEUpdater',
   });
 
+  bind(VersionWelcomeDialog).toSelf().inSingletonScope();
+  bind(VersionWelcomeDialogProps).toConstantValue({
+    title: 'VersionWelcomeDialog',
+  });
+
   bind(UserFieldsDialog).toSelf().inSingletonScope();
   bind(UserFieldsDialogProps).toConstantValue({
     title: 'UserFields',
diff --git a/arduino-ide-extension/src/browser/contributions/check-for-ide-updates.ts b/arduino-ide-extension/src/browser/contributions/check-for-ide-updates.ts
index ab5f62ac2..d29106f04 100644
--- a/arduino-ide-extension/src/browser/contributions/check-for-ide-updates.ts
+++ b/arduino-ide-extension/src/browser/contributions/check-for-ide-updates.ts
@@ -3,10 +3,14 @@ import { LocalStorageService } from '@theia/core/lib/browser/storage-service';
 import { inject, injectable } from '@theia/core/shared/inversify';
 import {
   IDEUpdater,
+  LAST_USED_IDE_VERSION,
   SKIP_IDE_VERSION,
 } from '../../common/protocol/ide-updater';
 import { IDEUpdaterDialog } from '../dialogs/ide-updater/ide-updater-dialog';
 import { Contribution } from './contribution';
+import { VersionWelcomeDialog } from '../dialogs/version-welcome-dialog';
+import { AppService } from '../app-service';
+import { SemVer, valid as validSemVer } from 'semver';
 
 @injectable()
 export class CheckForIDEUpdates extends Contribution {
@@ -16,9 +20,15 @@ export class CheckForIDEUpdates extends Contribution {
   @inject(IDEUpdaterDialog)
   private readonly updaterDialog: IDEUpdaterDialog;
 
+  @inject(VersionWelcomeDialog)
+  private readonly versionWelcomeDialog: VersionWelcomeDialog;
+
   @inject(LocalStorageService)
   private readonly localStorage: LocalStorageService;
 
+  @inject(AppService)
+  private readonly appService: AppService;
+
   override onStart(): void {
     this.preferences.onPreferenceChanged(
       ({ preferenceName, newValue, oldValue }) => {
@@ -36,7 +46,9 @@ export class CheckForIDEUpdates extends Contribution {
     );
   }
 
-  override onReady(): void {
+  override async onReady(): Promise<void> {
+    await this.setLastUsedIDEVersion();
+
     this.updater
       .init(
         this.preferences.get('arduino.ide.updateChannel'),
@@ -49,7 +61,14 @@ export class CheckForIDEUpdates extends Contribution {
         return this.updater.checkForUpdates(true);
       })
       .then(async (updateInfo) => {
-        if (!updateInfo) return;
+        if (!updateInfo) {
+          const isNewVersion = await this.isRunningNewIDEVersion();
+          if (isNewVersion) {
+            this.setLastUsedIDEVersion(true);
+            this.versionWelcomeDialog.open();
+          }
+          return;
+        }
         const versionToSkip = await this.localStorage.getData<string>(
           SKIP_IDE_VERSION
         );
@@ -66,4 +85,26 @@ export class CheckForIDEUpdates extends Contribution {
         );
       });
   }
+
+  private async setLastUsedIDEVersion(force = false): Promise<void> {
+    const { appVersion } = await this.appService.info();
+    const lastUsedIDEVersion = await this.localStorage.getData<string>(
+      LAST_USED_IDE_VERSION
+    );
+    if (validSemVer(appVersion) && (!lastUsedIDEVersion || force)) {
+      this.localStorage.setData(LAST_USED_IDE_VERSION, appVersion);
+    }
+  }
+
+  private async isRunningNewIDEVersion(): Promise<boolean> {
+    const { appVersion } = await this.appService.info();
+    const prevVersion = await this.localStorage.getData<string>(
+      LAST_USED_IDE_VERSION
+    );
+    try {
+      return !!prevVersion && new SemVer(appVersion).compare(prevVersion) === 1;
+    } catch (e) {
+      return false;
+    }
+  }
 }
diff --git a/arduino-ide-extension/src/browser/dialogs/version-welcome-dialog.tsx b/arduino-ide-extension/src/browser/dialogs/version-welcome-dialog.tsx
new file mode 100644
index 000000000..1e725ed6d
--- /dev/null
+++ b/arduino-ide-extension/src/browser/dialogs/version-welcome-dialog.tsx
@@ -0,0 +1,99 @@
+import React from '@theia/core/shared/react';
+import { inject, injectable } from '@theia/core/shared/inversify';
+import { Message } from '@theia/core/shared/@phosphor/messaging';
+import { ReactDialog } from '../theia/dialogs/dialogs';
+import { nls } from '@theia/core';
+import { DialogProps } from '@theia/core/lib/browser';
+import { WindowService } from '@theia/core/lib/browser/window/window-service';
+import { AppService } from '../app-service';
+
+@injectable()
+export class VersionWelcomeDialogProps extends DialogProps {}
+
+@injectable()
+export class VersionWelcomeDialog extends ReactDialog<void> {
+  @inject(AppService)
+  private readonly appService: AppService;
+
+  @inject(WindowService)
+  private readonly windowService: WindowService;
+
+  constructor(
+    @inject(VersionWelcomeDialogProps)
+    protected override readonly props: VersionWelcomeDialogProps
+  ) {
+    super({
+      title: nls.localize(
+        'arduino/versionWelcome/title',
+        'Welcome to a new version of the Arduino IDE!'
+      ),
+    });
+    this.node.id = 'version-welcome-dialog-container';
+    this.contentNode.classList.add('version-welcome-dialog');
+  }
+
+  protected render(): React.ReactNode {
+    return (
+      <div>
+        <p>
+          {nls.localize(
+            'arduino/versionWelcome/donateMessage',
+            'Arduino is committed to keeping software free and open-source for everyone. Your donation helps us develop new features, improve libraries, and support millions of users worldwide.'
+          )}
+        </p>
+        <p className="bold">
+          {nls.localize(
+            'arduino/versionWelcome/donateMessage2',
+            'Please consider supporting our work on the free open source Arduino IDE.'
+          )}
+        </p>
+      </div>
+    );
+  }
+
+  override get value(): void {
+    return;
+  }
+
+  private appendButtons(): void {
+    const cancelButton = this.createButton(
+      nls.localize('arduino/versionWelcome/cancelButton', 'Maybe later')
+    );
+    cancelButton.classList.add('secondary');
+    cancelButton.classList.add('cancel-button');
+    this.addAction(cancelButton, this.close.bind(this), 'click');
+    this.controlPanel.appendChild(cancelButton);
+
+    const donateButton = this.createButton(
+      nls.localize('arduino/versionWelcome/donateButton', 'Donate now')
+    );
+    this.addAction(donateButton, this.openDonationPage.bind(this), 'click');
+    this.controlPanel.appendChild(donateButton);
+    donateButton.focus();
+  }
+
+  private readonly openDonationPage = () => {
+    const url = 'https://www.arduino.cc/en/donate';
+    this.windowService.openNewWindow(url, { external: true });
+  };
+
+  private async updateTitleVersion(): Promise<void> {
+    const appInfo = await this.appService.info();
+    const { appVersion } = appInfo;
+
+    if (appVersion) {
+      this.titleNode.innerHTML = nls.localize(
+        'arduino/versionWelcome/titleWithVersion',
+        'Welcome to the new Arduino IDE {0}!',
+        appVersion
+      );
+    }
+  }
+
+  protected override onAfterAttach(msg: Message): void {
+    this.update();
+    this.appendButtons();
+    this.updateTitleVersion();
+    super.onAfterAttach(msg);
+  }
+}
diff --git a/arduino-ide-extension/src/browser/style/index.css b/arduino-ide-extension/src/browser/style/index.css
index fd7887ae1..593cf1eaf 100644
--- a/arduino-ide-extension/src/browser/style/index.css
+++ b/arduino-ide-extension/src/browser/style/index.css
@@ -10,6 +10,7 @@
 @import "./settings-dialog.css";
 @import "./firmware-uploader-dialog.css";
 @import "./ide-updater-dialog.css";
+@import "./version-welcome-dialog.css";
 @import "./certificate-uploader-dialog.css";
 @import "./user-fields-dialog.css";
 @import "./debug.css";
diff --git a/arduino-ide-extension/src/browser/style/version-welcome-dialog.css b/arduino-ide-extension/src/browser/style/version-welcome-dialog.css
new file mode 100644
index 000000000..80d6f71e4
--- /dev/null
+++ b/arduino-ide-extension/src/browser/style/version-welcome-dialog.css
@@ -0,0 +1,7 @@
+#version-welcome-dialog-container > .dialogBlock {
+    width: 546px;
+
+    .bold {
+        font-weight: bold;
+    }
+}
diff --git a/arduino-ide-extension/src/common/protocol/ide-updater.ts b/arduino-ide-extension/src/common/protocol/ide-updater.ts
index 5608e63be..ebc8bfef2 100644
--- a/arduino-ide-extension/src/common/protocol/ide-updater.ts
+++ b/arduino-ide-extension/src/common/protocol/ide-updater.ts
@@ -71,3 +71,4 @@ export interface IDEUpdaterClient {
 }
 
 export const SKIP_IDE_VERSION = 'skipIDEVersion';
+export const LAST_USED_IDE_VERSION = 'lastUsedIDEVersion';
diff --git a/i18n/en.json b/i18n/en.json
index d93719b9f..f114e1867 100644
--- a/i18n/en.json
+++ b/i18n/en.json
@@ -528,6 +528,14 @@
       "renameSketchFolderMessage": "The sketch '{0}' cannot be used. {1} To get rid of this message, rename the sketch. Do you want to rename the sketch now?",
       "renameSketchFolderTitle": "Invalid sketch name"
     },
+    "versionWelcome": {
+      "cancelButton": "Maybe later",
+      "donateButton": "Donate now",
+      "donateMessage": "Arduino is committed to keeping software free and open-source for everyone. Your donation helps us develop new features, improve libraries, and support millions of users worldwide.",
+      "donateMessage2": "Please consider supporting our work on the free open source Arduino IDE.",
+      "title": "Welcome to a new version of the Arduino IDE!",
+      "titleWithVersion": "Welcome to the new Arduino IDE {0}!"
+    },
     "workspace": {
       "alreadyExists": "'{0}' already exists."
     }