diff --git a/.setup/pip/system_requirements.txt b/.setup/pip/system_requirements.txt
index c656af6c987..2f7080f335d 100644
--- a/.setup/pip/system_requirements.txt
+++ b/.setup/pip/system_requirements.txt
@@ -21,7 +21,7 @@ psycopg2-binary==2.9.9
 sqlalchemy==1.4.29
 psutil==5.9.6
 python-dateutil==2.8.2
-watchdog==3.0.0
+watchdog==4.0.0
 # Held back from 0.8.2 as no whl is available which breaks installing on Ubuntu 22.04
 xlsx2csv==0.8.1
 pause==0.3