diff --git a/source/isaaclab_mimic/config/extension.toml b/source/isaaclab_mimic/config/extension.toml
index 6ac398658874..f53461c3fc6f 100644
--- a/source/isaaclab_mimic/config/extension.toml
+++ b/source/isaaclab_mimic/config/extension.toml
@@ -1,7 +1,7 @@
 [package]
 
 # Semantic Versioning is used: https://semver.org/
-version = "1.2.4"
+version = "1.2.5"
 
 # Description
 category = "isaaclab"
diff --git a/source/isaaclab_mimic/docs/CHANGELOG.rst b/source/isaaclab_mimic/docs/CHANGELOG.rst
index 65659942492f..4afd299d7f88 100644
--- a/source/isaaclab_mimic/docs/CHANGELOG.rst
+++ b/source/isaaclab_mimic/docs/CHANGELOG.rst
@@ -1,6 +1,16 @@
 Changelog
 ---------
 
+1.2.5 (2026-04-23)
+~~~~~~~~~~~~~~~~~~~
+
+Changed
+^^^^^^^
+
+* Replaced the deprecated ``--headless`` CLI flag with ``--viz none`` in the dataset-generation
+  tests under ``isaaclab_mimic/test/`` to silence the ``AppLauncher`` deprecation warning.
+
+
 1.2.4 (2026-04-06)
 ~~~~~~~~~~~~~~~~~~~
 
diff --git a/source/isaaclab_mimic/test/test_generate_dataset_franka_state.py b/source/isaaclab_mimic/test/test_generate_dataset_franka_state.py
index 3b7a636791a0..3db4f08c8a98 100644
--- a/source/isaaclab_mimic/test/test_generate_dataset_franka_state.py
+++ b/source/isaaclab_mimic/test/test_generate_dataset_franka_state.py
@@ -75,7 +75,8 @@ def setup_test_environment():
         "--output_file",
         annotated_output_path,
         "--auto",
-        "--headless",
+        "--viz",
+        "none",
     ]
     print(config_command)
 
@@ -139,7 +140,8 @@ def _run_generation(workflow_root: str, input_file: str, output_file: str, num_e
         str(num_envs),
         "--generation_num_trials",
         "1",
-        "--headless",
+        "--viz",
+        "none",
     ]
 
     result = run_script(command, timeout=_SUBPROCESS_TIMEOUT)
diff --git a/source/isaaclab_mimic/test/test_generate_dataset_franka_visuomotor.py b/source/isaaclab_mimic/test/test_generate_dataset_franka_visuomotor.py
index 3f8d2c6cee52..68e33e48a448 100644
--- a/source/isaaclab_mimic/test/test_generate_dataset_franka_visuomotor.py
+++ b/source/isaaclab_mimic/test/test_generate_dataset_franka_visuomotor.py
@@ -75,7 +75,8 @@ def _run_generation(workflow_root: str, input_file: str, output_file: str, num_e
         "--generation_num_trials",
         "1",
         "--enable_cameras",
-        "--headless",
+        "--viz",
+        "none",
     ]
 
     result = run_script(command)
diff --git a/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_nutpour.py b/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_nutpour.py
index f1e4dd039fb3..1091e5d40f8b 100644
--- a/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_nutpour.py
+++ b/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_nutpour.py
@@ -75,7 +75,8 @@ def _run_generation(workflow_root: str, input_file: str, output_file: str, num_e
         "--generation_num_trials",
         "1",
         "--enable_cameras",
-        "--headless",
+        "--viz",
+        "none",
     ]
 
     result = run_script(command)
diff --git a/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_pickplace.py b/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_pickplace.py
index c9bb13ab72eb..ab1ed735ea16 100644
--- a/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_pickplace.py
+++ b/source/isaaclab_mimic/test/test_generate_dataset_gr1t2_pickplace.py
@@ -74,7 +74,8 @@ def _run_generation(workflow_root: str, input_file: str, output_file: str, num_e
         str(num_envs),
         "--generation_num_trials",
         "1",
-        "--headless",
+        "--viz",
+        "none",
     ]
 
     result = run_script(command)
diff --git a/source/isaaclab_mimic/test/test_generate_dataset_skillgen.py b/source/isaaclab_mimic/test/test_generate_dataset_skillgen.py
index abd75517b9c4..47cf29ec1487 100644
--- a/source/isaaclab_mimic/test/test_generate_dataset_skillgen.py
+++ b/source/isaaclab_mimic/test/test_generate_dataset_skillgen.py
@@ -85,7 +85,8 @@ def test_generate_dataset_skillgen(setup_skillgen_test_environment):
         "--generation_num_trials",
         "1",
         "--use_skillgen",
-        "--headless",
+        "--viz",
+        "none",
         "--task",
         "Isaac-Stack-Cube-Franka-IK-Rel-Skillgen-v0",
     ]