diff --git a/CHANGELOG.md b/CHANGELOG.md
index 161061bf..2f649108 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+## 0.12.4 2026-03-13
+
+- Only throw error on AutoRest stderr when exit code is non-zero; log warnings otherwise
+
 # 0.12.3 2025-10-13
 
 - Fix crash in logging when property named "$ref"
diff --git a/package-lock.json b/package-lock.json
index 6b50225d..df0d2764 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "@azure/oad",
-  "version": "0.12.3",
+  "version": "0.12.4",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "@azure/oad",
-      "version": "0.12.3",
+      "version": "0.12.4",
       "license": "MIT",
       "dependencies": {
         "@ts-common/fs": "0.2.0",
@@ -15,7 +15,7 @@
         "@ts-common/json-parser": "0.9.0",
         "@ts-common/source-map": "0.5.0",
         "@ts-common/string-map": "0.3.0",
-        "autorest": "^3.6.1",
+        "autorest": "^3.8.0",
         "js-yaml": "^4.1.0",
         "json-pointer": "0.6.2",
         "json-refs": "^3.0.15",
@@ -78,6 +78,7 @@
       "integrity": "sha512-CGOfOJqWjg2qW/Mb6zNsDm+u5vFQ8DxXfbM09z69p5Z6+mE1ikP2jUXw+j42Pf1XTYED2Rni5f95npYeuwMDQA==",
       "dev": true,
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "@babel/code-frame": "^7.29.0",
         "@babel/generator": "^7.29.0",
@@ -1724,6 +1725,7 @@
       "integrity": "sha512-klQbnPAAiGYFyI02+znpBRLyjL4/BrBd0nyWkdC0s/6xFLkXYQ8OoRrSkqacS1ddVxf/LDyODIKbQ5TgKAf/Fg==",
       "dev": true,
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "@typescript-eslint/scope-manager": "8.56.1",
         "@typescript-eslint/types": "8.56.1",
@@ -2204,6 +2206,7 @@
       "integrity": "sha512-UVJyE9MttOsBQIDKw1skb9nAwQuR5wuGD3+82K6JgJlm/Y+KI92oNsMNGZCYdDsVtRHSak0pcV5Dno5+4jh9sw==",
       "dev": true,
       "license": "MIT",
+      "peer": true,
       "bin": {
         "acorn": "bin/acorn"
       },
@@ -2321,9 +2324,9 @@
       "license": "MIT"
     },
     "node_modules/autorest": {
-      "version": "3.7.2",
-      "resolved": "https://registry.npmjs.org/autorest/-/autorest-3.7.2.tgz",
-      "integrity": "sha512-yEeF0tJjx2fROK9VWIVHKFiUSzD0cxwqnq7z+v7kIIRRZjyOM3rpBS9OPp6tQv5d3mmxPAUNh57G1ZumQNqQGg==",
+      "version": "3.8.0",
+      "resolved": "https://registry.npmjs.org/autorest/-/autorest-3.8.0.tgz",
+      "integrity": "sha512-FwpPuDGXuLLnBAR3SCGQcQHPCRoyYXPTMnJ80kN6HRsK+b1/pJ1DtOOzqL4XTCdtq37gth1AoFCerSOwSc3iGQ==",
       "hasInstallScript": true,
       "license": "MIT",
       "bin": {
@@ -2501,6 +2504,7 @@
         }
       ],
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "baseline-browser-mapping": "^2.9.0",
         "caniuse-lite": "^1.0.30001759",
@@ -3111,6 +3115,7 @@
       "integrity": "sha512-uYixubwmqJZH+KLVYIVKY1JQt7tysXhtj21WSvjcSmU5SVNzMus1bgLe+pAt816yQ8opKfheVVoPLqvVMGejYw==",
       "dev": true,
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "@eslint-community/eslint-utils": "^4.8.0",
         "@eslint-community/regexpp": "^4.12.2",
@@ -4045,6 +4050,7 @@
       "integrity": "sha512-F26gjC0yWN8uAA5m5Ss8ZQf5nDHWGlN/xWZIh8S5SRbsEKBovwZhxGd6LJlbZYxBgCYOtreSUyb8hpXyGC5O4A==",
       "dev": true,
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "@jest/core": "30.2.0",
         "@jest/types": "30.2.0",
@@ -6272,6 +6278,7 @@
       "integrity": "sha512-5gTmgEY/sqK6gFXLIsQNH19lWb4ebPDLA4SdLP7dsWkIXHWlG66oPuVvXSGFPppYZz8ZDZq0dYYrbHfBCVUb1Q==",
       "dev": true,
       "license": "MIT",
+      "peer": true,
       "engines": {
         "node": ">=12"
       },
@@ -6448,6 +6455,7 @@
       "integrity": "sha512-jl1vZzPDinLr9eUt3J/t7V6FgNEw9QjvBPdysz9KfQDD41fQrC2Y4vKQdiaUpFT4bXlb1RHhLpp8wtm6M5TgSw==",
       "dev": true,
       "license": "Apache-2.0",
+      "peer": true,
       "bin": {
         "tsc": "bin/tsc",
         "tsserver": "bin/tsserver"
diff --git a/package.json b/package.json
index 69bf356c..d58de38c 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@azure/oad",
-  "version": "0.12.3",
+  "version": "0.12.4",
   "author": {
     "name": "Microsoft Corporation",
     "email": "azsdkteam@microsoft.com",
@@ -15,7 +15,7 @@
     "@ts-common/json-parser": "0.9.0",
     "@ts-common/source-map": "0.5.0",
     "@ts-common/string-map": "0.3.0",
-    "autorest": "^3.6.1",
+    "autorest": "^3.8.0",
     "js-yaml": "^4.1.0",
     "json-pointer": "0.6.2",
     "json-refs": "^3.0.15",
diff --git a/src/lib/validators/openApiDiff.ts b/src/lib/validators/openApiDiff.ts
index d9b3f56a..00d1c4eb 100644
--- a/src/lib/validators/openApiDiff.ts
+++ b/src/lib/validators/openApiDiff.ts
@@ -244,13 +244,20 @@ export class OpenApiDiff {
 
     log.debug(`Executing: "${autoRestFile} ${args.join(" ")}"`)
 
-    const { stderr } = await execFile(autoRestFile, args, {
-      encoding: "utf8",
-      maxBuffer: 1024 * 1024 * 64,
-      env: { ...process.env, NODE_OPTIONS: "--max-old-space-size=8192" }
-    })
+    // autorest 3.8.0 emits deprecation message to stderr with exit code 0
+    let stderr: string
+    try {
+      const result = await execFile(autoRestFile, args, {
+        encoding: "utf8",
+        maxBuffer: 1024 * 1024 * 64,
+        env: { ...process.env, NODE_OPTIONS: "--max-old-space-size=8192" }
+      })
+      stderr = result.stderr
+    } catch (e) {
+      throw new Error(util.inspect(e))
+    }
     if (stderr) {
-      throw new Error(stderr)
+      log.error(`AutoRest completed with warnings on stderr: ${stderr}`)
     }
 
     const buffer = await asyncFs.readFile(outputMapFilePath)