diff --git a/CHANGELOG.md b/CHANGELOG.md
index e69de29bb2d..de1122d8752 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -0,0 +1 @@
+- Updated TypeScript templates for `ext:dev:init` to fix build failures (#9524)
diff --git a/templates/extensions/typescript/index.ts b/templates/extensions/typescript/index.ts
index 56462c43dc3..1b3582b0a71 100644
--- a/templates/extensions/typescript/index.ts
+++ b/templates/extensions/typescript/index.ts
@@ -8,7 +8,7 @@
  * https://firebase.google.com/docs/extensions/publishers
  */
 
-import * as functions from "firebase-functions";
+import * as functions from "firebase-functions/v1";
 
 exports.greetTheWorld = functions.https.onRequest(
   (req: functions.Request, res: functions.Response) => {
diff --git a/templates/extensions/typescript/package.lint.json b/templates/extensions/typescript/package.lint.json
index 2c2c0c39071..40df0e9f643 100644
--- a/templates/extensions/typescript/package.lint.json
+++ b/templates/extensions/typescript/package.lint.json
@@ -21,7 +21,7 @@
     "eslint": "^8.15.1",
     "eslint-plugin-import": "^2.26.0",
     "eslint-config-google": "^0.14.0",
-    "typescript": "^4.9.0",
+    "typescript": "^5.3.0",
     "axios": "^1.3.2",
     "chai": "^4.3.7",
     "mocha": "^10.2.0",
diff --git a/templates/extensions/typescript/package.nolint.json b/templates/extensions/typescript/package.nolint.json
index b6bbea0a86b..937889815fc 100644
--- a/templates/extensions/typescript/package.nolint.json
+++ b/templates/extensions/typescript/package.nolint.json
@@ -14,7 +14,7 @@
   "devDependencies": {
     "@types/chai": "^4.3.4",
     "@types/mocha": "^10.0.1",
-    "typescript": "^4.9.0",
+    "typescript": "^5.3.0",
     "axios": "^1.3.2",
     "chai": "^4.3.7",
     "mocha": "^10.2.0",
diff --git a/templates/extensions/typescript/tsconfig.json b/templates/extensions/typescript/tsconfig.json
index 7ce05d039d6..0eacb27b450 100644
--- a/templates/extensions/typescript/tsconfig.json
+++ b/templates/extensions/typescript/tsconfig.json
@@ -6,7 +6,8 @@
     "outDir": "lib",
     "sourceMap": true,
     "strict": true,
-    "target": "es2017"
+    "target": "es2017",
+    "skipLibCheck": true
   },
   "compileOnSave": true,
   "include": [