The KDE team recently announced the release of KDE 3.5.6.
It's only a minor release, as indicated by the version number, and it mainly includes bug fixes and a few small new features to some of KDE's flagship applications.
Interestingly, though, it also includes better support for Compiz (think wobbly windows!) with KDE, which has been an issue for some time for KDE users wanting those effects (although some of that has been solved with the community fork of Compiz, Beryl).
A full changelog is available here.
If you're a KDE user wondering how best to upgrade, my advice is don't. Wait for your distribution to update KDE and you should get it via the software update system fairly soon (at the time of writing, Red Hat haven't yet packaged it for FC6, so I'm still waiting too).