diff --git a/CMakeLists.txt b/CMakeLists.txt
index a3f1893..88da234 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -15,12 +15,17 @@
 # Correct RPATH usage on OS X
 set(CMAKE_MACOSX_RPATH TRUE)
 
-# set version
-set(LIBYANG_MAJOR_VERSION 1)
+# set version of the project
+set(LIBYANG_MAJOR_VERSION 2)
 set(LIBYANG_MINOR_VERSION 0)
 set(LIBYANG_MICRO_VERSION 0)
 set(LIBYANG_VERSION ${LIBYANG_MAJOR_VERSION}.${LIBYANG_MINOR_VERSION}.${LIBYANG_MICRO_VERSION})
-set(LIBYANG_SOVERSION ${LIBYANG_MAJOR_VERSION}.${LIBYANG_MINOR_VERSION})
+# set version of the library
+set(LIBYANG_MAJOR_SOVERSION 2)
+set(LIBYANG_MINOR_SOVERSION 0)
+set(LIBYANG_MICRO_SOVERSION 0)
+set(LIBYANG_SOVERSION_FULL ${LIBYANG_MAJOR_SOVERSION}.${LIBYANG_MINOR_SOVERSION}.${LIBYANG_MICRO_SOVERSION})
+set(LIBYANG_SOVERSION ${LIBYANG_MAJOR_SOVERSION})
 
 # set default build type if not specified by user
 if(NOT CMAKE_BUILD_TYPE)
@@ -223,7 +228,7 @@
     target_link_libraries(yang ${CMAKE_DL_LIBS})
 endif(ENABLE_STATIC)
 
-set_target_properties(yang PROPERTIES VERSION ${LIBYANG_VERSION} SOVERSION ${LIBYANG_SOVERSION})
+set_target_properties(yang PROPERTIES VERSION ${LIBYANG_SOVERSION_FULL} SOVERSION ${LIBYANG_SOVERSION})
 set_target_properties(yangobj PROPERTIES COMPILE_FLAGS "-fvisibility=hidden")
 
 # link math
diff --git a/src/config.h.in b/src/config.h.in
index 0d9284b..be52bdb 100644
--- a/src/config.h.in
+++ b/src/config.h.in
@@ -27,8 +27,9 @@
  */
 #define _PACKED @COMPILER_PACKED_ATTR@
 
-#define LY_VERSION_MAJOR @LIBYANG_MAJOR_VERSION@ /**< libyang major version number */
-#define LY_VERSION_MINOR @LIBYANG_MINOR_VERSION@ /**< libyang minor version number */
-#define LY_VERSION_MICRO @LIBYANG_MICRO_VERSION@ /**< libyang micro version number */
+#define LY_VERSION_MAJOR @LIBYANG_MAJOR_SOVERSION@ /**< libyang major version number */
+#define LY_VERSION_MINOR @LIBYANG_MINOR_SOVERSION@ /**< libyang minor version number */
+#define LY_VERSION_MICRO @LIBYANG_MICRO_SOVERSION@ /**< libyang micro version number */
+#define LY_VERSION "@LIBYANG_SOVERSION_FULL@" /**< libyang version string */
 
 #endif /* LY_CONFIG_H_ */