diff --git a/changelogs/CHANGELOG-v2.21.rst b/changelogs/CHANGELOG-v2.21.rst
index 5c10c619512..91dd7d1bdef 100644
--- a/changelogs/CHANGELOG-v2.21.rst
+++ b/changelogs/CHANGELOG-v2.21.rst
@@ -4,6 +4,27 @@ ansible-core 2.21 "The Rain Song" Release Notes
 
 .. contents:: Topics
 
+v2.21.2rc1
+==========
+
+Release Summary
+---------------
+
+| Release Date: 2026-07-06
+| `Porting Guide <https://docs.ansible.com/ansible-core/2.21/porting_guides/porting_guide_core_2.21.html>`__
+
+Minor Changes
+-------------
+
+- ansible-test - Added a timeout callback that dumps thread stacks when the test execution deadline defined by ``ansible-test env --timeout`` is approaching.
+- parallel fact gathering - the async wrapper now considers the timeout when determining whether to kill the process running the module. Previously, a 5 second sleep occurred twice before checking if the job had remaining time.
+
+Bugfixes
+--------
+
+- encrypt - fix bcrypt salt string formatting on musl libc by ensuring it is always zero-padded to 2 digits (https://github.com/ansible/ansible/issues/87180).
+- parallel fact gathering - fix hang caused by corrupt async job files.
+
 v2.21.1
 =======
 
diff --git a/changelogs/changelog.yaml b/changelogs/changelog.yaml
index 054553a4204..6cf59dddd7d 100644
--- a/changelogs/changelog.yaml
+++ b/changelogs/changelog.yaml
@@ -692,3 +692,27 @@ releases:
     - sort_obfuscation.yml
     - winrm-psrp-nolog.yml
     release_date: '2026-06-11'
+  2.21.2rc1:
+    changes:
+      bugfixes:
+      - encrypt - fix bcrypt salt string formatting on musl libc by ensuring it is
+        always zero-padded to 2 digits (https://github.com/ansible/ansible/issues/87180).
+      - parallel fact gathering - fix hang caused by corrupt async job files.
+      minor_changes:
+      - ansible-test - Added a timeout callback that dumps thread stacks when the
+        test execution deadline defined by ``ansible-test env --timeout`` is approaching.
+      - parallel fact gathering - the async wrapper now considers the timeout when
+        determining whether to kill the process running the module. Previously, a
+        5 second sleep occurred twice before checking if the job had remaining time.
+      release_summary: '| Release Date: 2026-07-06
+
+        | `Porting Guide <https://docs.ansible.com/ansible-core/2.21/porting_guides/porting_guide_core_2.21.html>`__
+
+        '
+    codename: The Rain Song
+    fragments:
+    - 2.21.2rc1_summary.yaml
+    - 87180-crypt-fixes.yml
+    - ansible-test-timeout-callback.yml
+    - fix-short-timeout-async-wrapper.yml
+    release_date: '2026-07-06'
diff --git a/changelogs/fragments/2.21.2rc1_summary.yaml b/changelogs/fragments/2.21.2rc1_summary.yaml
new file mode 100644
index 00000000000..e838e15d2b6
--- /dev/null
+++ b/changelogs/fragments/2.21.2rc1_summary.yaml
@@ -0,0 +1,3 @@
+release_summary: |
+   | Release Date: 2026-07-06
+   | `Porting Guide <https://docs.ansible.com/ansible-core/2.21/porting_guides/porting_guide_core_2.21.html>`__
diff --git a/lib/ansible/release.py b/lib/ansible/release.py
index df5fb084c7f..295d403d0df 100644
--- a/lib/ansible/release.py
+++ b/lib/ansible/release.py
@@ -17,6 +17,6 @@
 
 from __future__ import annotations
 
-__version__ = '2.21.1.post0'
+__version__ = '2.21.2rc1'
 __author__ = 'Ansible, Inc.'
 __codename__ = "The Rain Song"
diff --git a/pyproject.toml b/pyproject.toml
index 61bd257fdb9..8ce2384de80 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,5 +1,5 @@
 [build-system]
-requires = ["setuptools >= 77.0.3, <= 82.0.1"]  # lower bound to support license/license-files (PEP 639), upper bound for latest version tested at release
+requires = ["setuptools >= 77.0.3, <= 83.0.0"]  # lower bound to support license/license-files (PEP 639), upper bound for latest version tested at release
 build-backend = "setuptools.build_meta"
 
 [project]