diff --git a/environment.yml b/environment.yml
index 1ffcbb950f0..797d8ce22d9 100644
--- a/environment.yml
+++ b/environment.yml
@@ -9,7 +9,7 @@ dependencies:
   - matplotlib>=3.3.3
   - numpy>=1.19.3
   - pip
-  - pycocotools>=2.0.4
+  - pycocotools>=2.0.5
   - pyproj>=3
   - python>=3.9
   - pytorch>=1.12
diff --git a/pyproject.toml b/pyproject.toml
index c167af3458b..5ea282fd46b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -84,8 +84,8 @@ datasets = [
     "opencv-python>=4.4.0.46,<5",
     # pandas 1.1.3+ required for Python 3.9 wheels
     "pandas>=1.1.3,<3",
-    # pycocotools 2.0.4+ required to avoid use of deprecated setuptools fetch_build_eggs
-    "pycocotools>=2.0.4,<3",
+    # pycocotools 2.0.5+ required for cython 3+ support
+    "pycocotools>=2.0.5,<3",
     # pyvista 0.29+ required for to avoid segfault during testing
     "pyvista>=0.29,<0.41",
     # radiant-mlhub 0.3+ required for newer tqdm support required by lightning
diff --git a/requirements/min-reqs.old b/requirements/min-reqs.old
index 18f0890b2de..4d3831379be 100644
--- a/requirements/min-reqs.old
+++ b/requirements/min-reqs.old
@@ -25,7 +25,7 @@ h5py==3.0.0
 laspy==2.0.0
 opencv-python==4.4.0.46
 pandas==1.1.3
-pycocotools==2.0.4
+pycocotools==2.0.5
 pyvista==0.29.0
 radiant-mlhub==0.3.0
 rarfile==4.0