diff --git a/release-automation/src/stackbrew_generator/git_operations.py b/release-automation/src/stackbrew_generator/git_operations.py
index 14dab035c..493c7e4a4 100644
--- a/release-automation/src/stackbrew_generator/git_operations.py
+++ b/release-automation/src/stackbrew_generator/git_operations.py
@@ -67,7 +67,7 @@ def list_remote_tags(self, major_version: int) -> List[Tuple[str, str]]:
         console.print(f"[dim]Listing remote tags for v{major_version}.*[/dim]")
 
         cmd = [
-            "git", "ls-remote", "--refs", "--tags",
+            "git", "ls-remote", "--tags",
             self.remote, f"refs/tags/v{major_version}.*"
         ]
 
@@ -76,11 +76,28 @@ def list_remote_tags(self, major_version: int) -> List[Tuple[str, str]]:
         if not result.stdout.strip():
             raise GitOperationError(f"No tags found for major version {major_version}")
 
-        tags = []
+        tag_commits = {}
+
+        # always use peeled commits for annotated tags
+        # for annotated tags git ls-remote prints tag object hash, then actual commit hash with ^{} suffix
+        # https://stackoverflow.com/a/25996877
         for line in result.stdout.strip().split('\n'):
             if line:
                 commit, ref = line.split('\t', 1)
-                tags.append((commit, ref))
+                if ref.endswith('^{}'):
+                    # This is a peeled ref - extract the tag name
+                    # always rewrite tag commits with peeled ref commits
+                    tag_name = ref[:-3]  # Remove '^{}'
+                    tag_commits[tag_name] = commit
+                else:
+                    # This is a regular tag
+                    # rewrite only if not yet exists
+                    if ref not in tag_commits:
+                        tag_commits[ref] = commit
+
+        tags = []
+        for tag_ref, commit in tag_commits.items():
+                tags.append((commit, tag_ref))
 
         console.print(f"[dim]Found {len(tags)} tags[/dim]")
         return tags
diff --git a/release-automation/tests/test_git_operations.py b/release-automation/tests/test_git_operations.py
new file mode 100644
index 000000000..fddf2f4cb
--- /dev/null
+++ b/release-automation/tests/test_git_operations.py
@@ -0,0 +1,41 @@
+"""Tests for git operations."""
+
+from unittest.mock import Mock, patch
+
+from stackbrew_generator.git_operations import GitClient
+
+
+class TestGitClient:
+    """Tests for GitClient class."""
+
+    @patch('stackbrew_generator.git_operations.console')
+    @patch.object(GitClient, '_run_command')
+    def test_list_remote_tags(self, mock_run_command, mock_console):
+        """
+        Test that list_remote_tags returns the expected format for peeled refs.
+
+        For tags with ^{} suffix, use the commit hash from that line.
+        For tags without ^{} suffix, use the commit hash from the tag line.
+        """
+        mock_result = Mock()
+        mock_result.stdout = """101262a8cf05b98137d88bc17e77db90c24cc783\trefs/tags/v8.0.3
+2277e5ead99f0caacbd90e0d04693adb27ebfaa6\trefs/tags/v8.0.4^{}
+c0125f5be8786d556a9d3edd70f51974fe045c1a\trefs/tags/v8.0.4
+f76d8a1cc979be6202aed93efddd2a0ebbfa0209\trefs/tags/v8.2.2
+c5846c13383c8b284897ff171e0c946868ed4c8c\trefs/tags/v8.2.2^{}"""
+        mock_run_command.return_value = mock_result
+
+        client = GitClient()
+        result = client.list_remote_tags(8)
+
+        # Expected behavior:
+        # - v8.0.3 has no peeled ref, so use the tag commit
+        # - v8.0.4 has a peeled ref, so use the peeled commit (2277e5ead99f0caacbd90e0d04693adb27ebfaa6)
+        # - v8.2.2 has a peeled ref, so use the peeled commit (c5846c13383c8b284897ff171e0c946868ed4c8c)
+        expected_result = [
+            ("101262a8cf05b98137d88bc17e77db90c24cc783", "refs/tags/v8.0.3"),  # No peeled ref
+            ("2277e5ead99f0caacbd90e0d04693adb27ebfaa6", "refs/tags/v8.0.4"),  # Use peeled ref
+            ("c5846c13383c8b284897ff171e0c946868ed4c8c", "refs/tags/v8.2.2")   # Use peeled ref
+        ]
+
+        assert result == expected_result