diff --git a/.changes/a30944f0-1853-4ce5-b276-233ece1515a1.json b/.changes/a30944f0-1853-4ce5-b276-233ece1515a1.json
new file mode 100644
index 00000000000..e1b5f6d10a2
--- /dev/null
+++ b/.changes/a30944f0-1853-4ce5-b276-233ece1515a1.json
@@ -0,0 +1,5 @@
+{
+    "id": "a30944f0-1853-4ce5-b276-233ece1515a1",
+    "type": "misc",
+    "description": "Upgrade smithy to 1.26.1."
+}
\ No newline at end of file
diff --git a/codegen/smithy-aws-kotlin-codegen/build.gradle.kts b/codegen/smithy-aws-kotlin-codegen/build.gradle.kts
index 2be1f7198e7..e414575832d 100644
--- a/codegen/smithy-aws-kotlin-codegen/build.gradle.kts
+++ b/codegen/smithy-aws-kotlin-codegen/build.gradle.kts
@@ -29,6 +29,7 @@ dependencies {
     api("software.amazon.smithy:smithy-aws-iam-traits:$smithyVersion")
     api("software.amazon.smithy:smithy-aws-cloudformation-traits:$smithyVersion")
     api("software.amazon.smithy:smithy-protocol-test-traits:$smithyVersion")
+    implementation("software.amazon.smithy:smithy-rules-engine:$smithyVersion")
 
     testImplementation("org.junit.jupiter:junit-jupiter:$junitVersion")
     testImplementation("org.junit.jupiter:junit-jupiter-params:$junitVersion")
diff --git a/gradle.properties b/gradle.properties
index f3fd4b2577e..30f168c326d 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -10,7 +10,7 @@ org.gradle.jvmargs=-Xmx6g -XX:MaxMetaspaceSize=2G
 sdkVersion=0.17.10-SNAPSHOT
 
 # codegen
-smithyVersion=1.25.2
+smithyVersion=1.26.1
 smithyGradleVersion=0.6.0
 # smithy-kotlin codegen and runtime are versioned together
 smithyKotlinVersion=0.12.10
@@ -39,4 +39,4 @@ mockkVersion=1.12.3
 slf4jVersion=1.7.36
 
 # dokka config (values specified at build-time as needed)
-smithyKotlinDocBaseUrl=https://sdk.amazonaws.com/kotlin/api/smithy-kotlin/api/$smithyKotlinVersion/
\ No newline at end of file
+smithyKotlinDocBaseUrl=https://sdk.amazonaws.com/kotlin/api/smithy-kotlin/api/$smithyKotlinVersion/