diff --git a/.github/release-drafter-template.yml b/.github/release-drafter-template.yml
new file mode 100644
index 0000000000..7fc0b3c47b
--- /dev/null
+++ b/.github/release-drafter-template.yml
@@ -0,0 +1,83 @@
+# For core module (empty folder), we want:
+# - tag: v1.0.0
+# - name: v1.0.0
+# For other modules (modulegen, modules/mssql), we want:
+# - tag: modulegen/v1.0.0 or modules/mssql/v1.0.0
+# - name: modulegen - v1.0.0 or modules/mssql - v1.0.0
+name-template: '{{FOLDER}}{{FOLDER_SEP}}v$RESOLVED_VERSION'
+tag-template: '{{FOLDER}}{{FOLDER_SLASH}}v$RESOLVED_VERSION'
+tag-prefix: '{{FOLDER}}{{FOLDER_SLASH}}v'
+include-paths:
+  - {{FOLDER_PATH}}
+categories:
+  - title: ⚠️ Breaking Changes
+    labels:
+      - 'breaking change'
+  - title: 🔒 Security
+    labels:
+      - 'security'
+  - title: 🚀 Features
+    labels:
+      - 'enhancement'
+      - 'feature'
+  - title: 🐛 Bug Fixes
+    labels:
+      - 'bug'
+  - title: 📖 Documentation
+    labels:
+      - 'documentation'
+  - title: 🧹 Housekeeping
+    labels:
+      - 'chore'
+      - 'test flakiness'
+  - title: 📦 Dependency updates
+    label: 'dependencies'
+change-template: '- $TITLE (#$NUMBER)'
+change-title-escapes: '\<*_&' # You can add # and @ to disable mentions, and add ` to disable code blocks.
+exclude-contributors:
+    - dependabot
+    - dependabot[bot]
+version-resolver:
+    major:
+        labels:
+            - 'breaking change'
+    minor:
+        labels:
+            - 'feature'
+            - 'security'
+    patch:
+        labels:
+            - 'bug'
+            - 'chore'
+            - 'documentation'
+            - 'dependencies'
+    default: patch
+template: |
+    # What's Changed
+    $CHANGES
+
+    **Full Changelog**: https://github.com/$OWNER/$REPOSITORY/compare/$PREVIOUS_TAG...{{FOLDER}}/v$RESOLVED_VERSION
+
+    Thank you $CONTRIBUTORS for making this update possible.
+autolabeler:
+  - label: 'breaking change'
+    title:
+      - '/^[a-z]+(\(.+\))?!\:/'
+  - label: 'security'
+    title:
+      - '/^security(\(.+\))?!?\:/'
+  - label: 'feature'
+    title:
+      - '/^feat(\(.+\))?!?\:/'
+  - label: 'bug'
+    title:
+      - '/^(fix)(\(.+\))?!?\:/'
+  - label: 'documentation'
+    title:
+      - '/^docs(\(.+\))?!?\:/'
+  - label: 'chore'
+    title:
+      - '/^chore(\(.+\))?!?\:/'
+  - label: 'dependencies'
+    title:
+      - '/^deps(\(.+\))?!?\:/'
diff --git a/.github/release-drafter.yml b/.github/release-drafter.yml
deleted file mode 100644
index 2e5efff2b1..0000000000
--- a/.github/release-drafter.yml
+++ /dev/null
@@ -1,50 +0,0 @@
-name-template: v$NEXT_PATCH_VERSION
-tag-template: v$NEXT_PATCH_VERSION
-template: |
-    # What's Changed
-    $CHANGES
-categories:
-  - title: ⚠️ Breaking Changes
-    labels:
-      - 'breaking change'
-  - title: 🔒 Security
-    labels:
-      - 'security'
-  - title: 🚀 Features
-    labels:
-      - 'enhancement'
-      - 'feature'
-  - title: 🐛 Bug Fixes
-    labels:
-      - 'bug'
-  - title: 📖 Documentation
-    labels:
-      - 'documentation'
-  - title: 🧹 Housekeeping
-    labels:
-      - 'chore'
-      - 'test flakiness'
-  - title: 📦 Dependency updates
-    label: 'dependencies'
-autolabeler:
-  - label: 'breaking change'
-    title:
-      - '/^[a-z]+(\(.+\))?!\:/'
-  - label: 'security'
-    title:
-      - '/^security(\(.+\))?!?\:/'
-  - label: 'feature'
-    title:
-      - '/^feat(\(.+\))?!?\:/'
-  - label: 'bug'
-    title:
-      - '/^(fix)(\(.+\))?!?\:/'
-  - label: 'documentation'
-    title:
-      - '/^docs(\(.+\))?!?\:/'
-  - label: 'chore'
-    title:
-      - '/^chore(\(.+\))?!?\:/'
-  - label: 'dependencies'
-    title:
-      - '/^deps(\(.+\))?!?\:/'
diff --git a/.github/workflows/release-drafter.yml b/.github/workflows/release-drafter.yml
index 7f64281774..3f117223ba 100644
--- a/.github/workflows/release-drafter.yml
+++ b/.github/workflows/release-drafter.yml
@@ -14,14 +14,81 @@ permissions:
   contents: read
 
 jobs:
+  detect-modules:
+    runs-on: ubuntu-latest
+    outputs:
+      modules: ${{ steps.set-modified-modules.outputs.modules }}
+      modules_count: ${{ steps.set-modified-modules-count.outputs.modules_count }}
+    steps:
+      - name: Check out code into the Go module directory
+        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
+
+      - id: changed-files
+        name: Get changed files
+        uses: tj-actions/changed-files@823fcebdb31bb35fdf2229d9f769b400309430d0 # v46.0.3
+
+      - id: set-modified-modules
+        name: Set all modified modules
+        env:
+          ALL_CHANGED_FILES: "${{ steps.changed-files.outputs.all_changed_files }}"
+        run: echo "modules=$(./scripts/changed-modules.sh)" >> $GITHUB_OUTPUT
+
+      - id: set-modified-modules-count
+        name: Set all modified modules count
+        run: echo "modules_count=$(echo ${{ toJSON(steps.set-modified-modules.outputs.modules) }} | jq '. | length')" >> $GITHUB_OUTPUT
+
+      - name: Print out the modules to be used
+        run: |
+          echo "${{ steps.set-modified-modules-count.outputs.modules_count }} modules in the build"
+          echo "${{ steps.set-modified-modules.outputs.modules }}"
+
   update_release_draft:
+    needs: detect-modules
+    if: ${{ needs.detect-modules.outputs.modules_count > 0  }}
     permissions:
       contents: write  # for release-drafter/release-drafter to create a github release
       pull-requests: write  # for release-drafter/release-drafter to add label to PR
     runs-on: ubuntu-latest
+    strategy:
+      matrix:
+        module: ${{ fromJSON(needs.detect-modules.outputs.modules) }}
     steps:
-      - uses: release-drafter/release-drafter@b1476f6e6eb133afa41ed8589daba6dc69b4d3f5 # v6.1.0
+      - name: Check out code into the Go module directory
+        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
         with:
-          disable-autolabeler: false
+          # Disabling shallow clone is recommended for improving relevancy of reporting
+          fetch-depth: 0
+
+      - name: Generate dynamic config from template
+        id: generate-config
+        run: |
+          folder="${{ matrix.module }}"
+          if [ -z "$folder" ]; then
+            # Core module
+            folder_sep=""
+            folder_slash=""
+            folder_filename="core"
+            folder_path="."
+          else
+            # Any other module
+            folder_sep=" - "
+            folder_slash="/"
+            # Sanitize folder name for filename by replacing / with -
+            folder_filename=$(echo "$folder" | tr '/' '-')
+            folder_path="$folder"
+          fi
+          sed -e "s|{{FOLDER}}|$folder|g" \
+              -e "s|{{FOLDER_SEP}}|$folder_sep|g" \
+              -e "s|{{FOLDER_PATH}}|$folder_path|g" \
+              -e "s|{{FOLDER_SLASH}}|$folder_slash|g" \
+              .github/release-drafter-template.yml > .github/release-drafter-$folder_filename.yml
+          echo "config<<EOF" >> $GITHUB_OUTPUT
+          cat .github/release-drafter-$folder_filename.yml >> $GITHUB_OUTPUT
+          echo "EOF" >> $GITHUB_OUTPUT
+
+      - name: Use dynamic release-drafter configuration
         env:
           GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+        uses: ReneWerner87/release-drafter@6dec4ceb1fb86b6514f11a2e7a39e1dedce709d0
+        with:
+            config: ${{ steps.generate-config.outputs.config }}