diff --git a/CHANGELOG.md b/CHANGELOG.md
new file mode 100644
index 000000000..52239b905
--- /dev/null
+++ b/CHANGELOG.md
@@ -0,0 +1,7 @@
+# Changelog
+
+## [3.1.1] - 2025-05-16
+
+### Changed
+- Bumped `markdown` dependency to 3.8
+- Refactored custom Markdown extensions to remove `md_globals`, use `register()`, and adjust processor priorities for compatibility with markdown >=3.4.0
diff --git a/requirements/base.txt b/requirements/base.txt
index 31e20bf90..f34e5db75 100644
--- a/requirements/base.txt
+++ b/requirements/base.txt
@@ -23,10 +23,8 @@ django-mptt==0.17.0
     # via -r requirements/base.in
 django-sekizai==4.1.0
     # via -r requirements/base.in
-markdown==3.3.7
-    # via
-    #   -c requirements/constraints.txt
-    #   -r requirements/base.in
+markdown==3.8
+    # via -r requirements/base.in
 sorl-thumbnail==12.11.0
     # via -r requirements/base.in
 sqlparse==0.5.3
diff --git a/requirements/constraints.txt b/requirements/constraints.txt
index 982a6ca6e..3fefe22c8 100644
--- a/requirements/constraints.txt
+++ b/requirements/constraints.txt
@@ -11,8 +11,5 @@
 # Use Django LTS version pinned in common constraints
 -c https://raw.githubusercontent.com/edx/edx-lint/master/edx_lint/files/common_constraints.txt
 
-# markdown==3.4.0 contains refactoring which are breaking the package itself
-markdown<3.4.0
-
 # For python greater than or equal to 3.9 backports.zoneinfo causing failures
 backports.zoneinfo; python_version<'3.9'
diff --git a/requirements/test.txt b/requirements/test.txt
index 4c87211d2..c80dc1b17 100644
--- a/requirements/test.txt
+++ b/requirements/test.txt
@@ -32,10 +32,8 @@ django-sekizai==4.1.0
     # via -r requirements/base.txt
 iniconfig==2.1.0
     # via pytest
-markdown==3.3.7
-    # via
-    #   -c requirements/constraints.txt
-    #   -r requirements/base.txt
+markdown==3.8
+    # via -r requirements/base.txt
 packaging==25.0
     # via pytest
 pluggy==1.5.0
diff --git a/setup.py b/setup.py
index 4e066a679..85cb07868 100644
--- a/setup.py
+++ b/setup.py
@@ -59,7 +59,7 @@ def is_requirement(line):
 
 setup(
     name="openedx-django-wiki",
-    version="3.1.0",
+    version="3.1.1",
     author="Benjamin Bach",
     author_email="benjamin@overtag.dk",
     long_description_content_type='text/markdown',
diff --git a/wiki/core/extensions.py b/wiki/core/extensions.py
index 5d19e893c..9a1e150c6 100644
--- a/wiki/core/extensions.py
+++ b/wiki/core/extensions.py
@@ -7,5 +7,5 @@ class AnchorTagExtension(Extension):
     """
     Custom extension to register anchor tag processor with Markdown.
     """
-    def extendMarkdown(self, md, md_globals):
-        md.treeprocessors.add('AnchorTagProcessor', AnchorTagProcessor(md), '>inline')
+    def extendMarkdown(self, md):
+        md.treeprocessors.register(AnchorTagProcessor(md), 'AnchorTagProcessor', 20)
diff --git a/wiki/plugins/attachments/markdown_extensions.py b/wiki/plugins/attachments/markdown_extensions.py
index 9275af3a1..0af9c6982 100644
--- a/wiki/plugins/attachments/markdown_extensions.py
+++ b/wiki/plugins/attachments/markdown_extensions.py
@@ -12,9 +12,9 @@
 class AttachmentExtension(markdown.Extension):
     """ Abbreviation Extension for Python-Markdown. """
 
-    def extendMarkdown(self, md, md_globals):
+    def extendMarkdown(self, md):
         """ Insert AbbrPreprocessor before ReferencePreprocessor. """
-        md.preprocessors.add('dw-attachments', AttachmentPreprocessor(md), '>html_block')
+        md.preprocessors.register(AttachmentPreprocessor(md), 'dw-attachments', 20)
 
 class AttachmentPreprocessor(markdown.preprocessors.Preprocessor):
     """django-wiki attachment preprocessor - parse text for [attachment:id] references. """
diff --git a/wiki/plugins/images/markdown_extensions.py b/wiki/plugins/images/markdown_extensions.py
index 8cca18c18..389fae123 100644
--- a/wiki/plugins/images/markdown_extensions.py
+++ b/wiki/plugins/images/markdown_extensions.py
@@ -13,9 +13,9 @@
 class ImageExtension(markdown.Extension):
     """ Images plugin markdown extension for django-wiki. """
 
-    def extendMarkdown(self, md, md_globals):
+    def extendMarkdown(self, md):
         """ Insert ImagePreprocessor before ReferencePreprocessor. """
-        md.preprocessors.add('dw-images', ImagePreprocessor(md), '>html_block')
+        md.preprocessors.register(ImagePreprocessor(md), 'dw-images', 20)
 
 class ImagePreprocessor(markdown.preprocessors.Preprocessor):
     """django-wiki image preprocessor - parse text for [image:id align:left|right|center] references. """
diff --git a/wiki/plugins/links/mdx/djangowikilinks.py b/wiki/plugins/links/mdx/djangowikilinks.py
index 77e8a9d9a..0d386ef05 100755
--- a/wiki/plugins/links/mdx/djangowikilinks.py
+++ b/wiki/plugins/links/mdx/djangowikilinks.py
@@ -44,14 +44,14 @@ def __init__(self, **kwargs):
         # Override defaults with user settings
         super().__init__(**kwargs)
 
-    def extendMarkdown(self, md, md_globals):
+    def extendMarkdown(self, md):
         self.md = md
 
         # append to end of inline patterns
         WIKI_RE =  r'\[(?P<linkTitle>[^\]]+?)\]\(wiki:(?P<wikiTitle>[a-zA-Z\d\./_-]*)\)'
         wikiPathPattern = WikiPath(WIKI_RE, self.config, md=md)
         wikiPathPattern.md = md
-        md.inlinePatterns.add('djangowikipath', wikiPathPattern, "<reference")
+        md.inlinePatterns.register(wikiPathPattern, 'djangowikipath', 170)
 
 
 class WikiPath(markdown.inlinepatterns.Pattern):
diff --git a/wiki/plugins/links/mdx/urlize.py b/wiki/plugins/links/mdx/urlize.py
index 68e2b591d..8e01c67d6 100644
--- a/wiki/plugins/links/mdx/urlize.py
+++ b/wiki/plugins/links/mdx/urlize.py
@@ -77,12 +77,12 @@ def handleMatch(self, m):
             else:
                 url = 'http://' + url
 
-        icon = markdown.util.etree.Element("span")
+        icon = xml.etree.ElementTree.Element("span")
         icon.set('class', 'icon-globe')
 
-        span_text = markdown.util.etree.Element("span")
+        span_text = xml.etree.ElementTree.Element("span")
         span_text.text = markdown.util.AtomicString(" " + text)
-        el = markdown.util.etree.Element("a")
+        el = xml.etree.ElementTree.Element("a")
         el.set('href', url)
         el.set('target', '_blank')
         el.extend([icon, span_text])
@@ -92,7 +92,7 @@ def handleMatch(self, m):
 class UrlizeExtension(markdown.Extension):
     """ Urlize Extension for Python-Markdown. """
 
-    def extendMarkdown(self, md, md_globals):
+    def extendMarkdown(self, md):
         """ Replace autolink with UrlizePattern """
         md.inlinePatterns['autolink'] = UrlizePattern(URLIZE_RE, md)