diff --git a/CHANGELOG.md b/CHANGELOG.md
index 26617add..73491ae9 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,7 +10,12 @@ The format is based on [Keep a Changelog], and this project adheres to
 
 ## [Unreleased]
 
-[Unreleased]: https://github.com/envato/stack_master/compare/v2.0.0...HEAD
+### Changed
+
+- Restrict `sparkle_formation` to version 3 ([#307]).
+
+[Unreleased]: https://github.com/envato/stack_master/compare/v2.0.1...HEAD
+[#307]: https://github.com/envato/stack_master/pull/307
 
 ## [2.0.1] - 2020-01-22
 
@@ -18,6 +23,8 @@ The format is based on [Keep a Changelog], and this project adheres to
 
 - Pin cfndsl to below 1.0
 
+[2.0.1]: https://github.com/envato/stack_master/compare/v2.0.0...v2.0.1
+
 ## [2.0.0] - 2020-01-15
 
 ### Added
diff --git a/stack_master.gemspec b/stack_master.gemspec
index f6976c9c..5eb430cf 100644
--- a/stack_master.gemspec
+++ b/stack_master.gemspec
@@ -57,7 +57,7 @@ Gem::Specification.new do |spec|
   spec.add_dependency "erubis"
   spec.add_dependency "colorize"
   spec.add_dependency "activesupport", '>= 4'
-  spec.add_dependency "sparkle_formation"
+  spec.add_dependency "sparkle_formation", "~> 3"
   spec.add_dependency "table_print"
   spec.add_dependency "deep_merge"
   spec.add_dependency "cfndsl", "< 1.0"