diff --git a/CHANGELOG.md b/CHANGELOG.md
index 569a003..f1dfcb0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,6 +15,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Fixes
 
 - Improve `disabled` and `tabindex` prop handling ([#512](https://github.com/tailwindlabs/headlessui/pull/512))
+- Improve React peer dependency version range ([#544](https://github.com/tailwindlabs/headlessui/pull/544))
 
 ## [Unreleased - Vue]
 
diff --git a/packages/@headlessui-react/package.json b/packages/@headlessui-react/package.json
index e8ab7e4..7a1c1ff 100644
--- a/packages/@headlessui-react/package.json
+++ b/packages/@headlessui-react/package.json
@@ -30,7 +30,7 @@
     "lint": "../../scripts/lint.sh"
   },
   "peerDependencies": {
-    "react": ">=16"
+    "react": "^16 || ^17"
   },
   "devDependencies": {
     "@types/react": "^16.14.2",