diff --git a/RELEASE.md b/RELEASE.md
index bbcbd98836..901100e061 100644
--- a/RELEASE.md
+++ b/RELEASE.md
@@ -4,6 +4,7 @@
 
 ## Bug fixes and other changes
 * Removed example pipeline requirements when examples are not selected in `tools`.
+* Allowed modern versions of JupyterLab and Jupyter Notebooks.
 
 ## Breaking changes to the API
 * Added logging about not using async mode in `SequentiallRunner` and `ParallelRunner`.
diff --git a/features/steps/cli_steps.py b/features/steps/cli_steps.py
index 123f52def6..d3d4f9afd1 100644
--- a/features/steps/cli_steps.py
+++ b/features/steps/cli_steps.py
@@ -4,7 +4,7 @@
 import shutil
 import textwrap
 from pathlib import Path
-from time import time
+from time import sleep, time
 
 import behave
 import requests
@@ -391,9 +391,12 @@ def exec_notebook(context, command):
 @then('I wait for the jupyter webserver to run for up to "{timeout:d}" seconds')
 def wait_for_notebook_to_run(context, timeout):
     timeout_start = time()
+    # FIXME: Will continue iterating after the process has returned
     while time() < timeout_start + timeout:
         stdout = context.result.stdout.readline()
         if "http://127.0.0.1:" in stdout:
+            # Take a breath, and declare success
+            sleep(1)
             break
 
     if time() >= timeout_start + timeout:
@@ -661,7 +664,7 @@ def check_jupyter_nb_proc_on_port(context: behave.runner.Context, port: int):
     """
     url = f"http://localhost:{port}"
     try:
-        _check_service_up(context, url, "Jupyter Notebook")
+        _check_service_up(context, url, "Jupyter Server")
     finally:
         context.result.terminate()
 
diff --git a/features/steps/test_starter/{{ cookiecutter.repo_name }}/requirements.txt b/features/steps/test_starter/{{ cookiecutter.repo_name }}/requirements.txt
index baa2f190d4..7904db0fe8 100644
--- a/features/steps/test_starter/{{ cookiecutter.repo_name }}/requirements.txt	
+++ b/features/steps/test_starter/{{ cookiecutter.repo_name }}/requirements.txt	
@@ -1,9 +1,7 @@
 black~=22.0
-ipython>=7.31.1, <8.0; python_version < '3.8'
-ipython~=8.10; python_version >= '3.8'
-jupyter~=1.0
-jupyterlab_server>=2.11.1, <2.16.0
-jupyterlab~=3.0, <3.6.0
+ipython>=8.10
+jupyterlab>=3.0
+notebook
 kedro~={{ cookiecutter.kedro_version}}
 kedro-datasets[pandas.CSVDataset]
 kedro-telemetry>=0.3.1
diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/requirements.txt b/kedro/templates/project/{{ cookiecutter.repo_name }}/requirements.txt
index 842ebd8abd..ce407f7b6d 100644
--- a/kedro/templates/project/{{ cookiecutter.repo_name }}/requirements.txt	
+++ b/kedro/templates/project/{{ cookiecutter.repo_name }}/requirements.txt	
@@ -1,13 +1,10 @@
 black~=22.0
-ipython~=8.10; python_version >= '3.8'
-jupyter~=1.0
-jupyterlab_server>=2.11.1, <2.16.0
-jupyterlab~=3.0, <3.6.0
+ipython>=8.10
+jupyterlab>=3.0
+notebook
 kedro~={{ cookiecutter.kedro_version }}
 kedro-telemetry>=0.3.1
 pytest-cov~=3.0
 pytest-mock>=1.7.1, <2.0
 pytest~=7.2
 ruff~=0.0.290
-# Pin problematic traitlets release -  https://github.com/jupyter/notebook/issues/7048
-traitlets<5.10.0