diff --git a/Makefile b/Makefile
index 529150c351..56ba48978e 100644
--- a/Makefile
+++ b/Makefile
@@ -8,7 +8,7 @@ clean:
 	pre-commit clean || true
 
 install-pip-setuptools:
-	pip install -U "pip>=21.2" "setuptools>=38.0" wheel
+	pip install -U "pip>=21.2" "setuptools>=65.5.1" wheel
 
 lint:
 	pre-commit run -a --hook-stage manual $(hook)
diff --git a/RELEASE.md b/RELEASE.md
index dd55055f8e..e7bcc363b5 100644
--- a/RELEASE.md
+++ b/RELEASE.md
@@ -36,6 +36,7 @@
 * Refactored `ShelveStore` to it's own module to ensure multiprocessing works with it.
 * `kedro.extras.datasets.pandas.SQLQueryDataSet` now takes optional argument `execution_options`.
 * Removed `attrs` upper bound to support newer versions of Airflow.
+* Bumped the lower bound for the `setuptools` dependency to <=61.5.1.
 
 ## Minor breaking changes to the API
 
diff --git a/dependency/requirements.txt b/dependency/requirements.txt
index 592a0f7d8c..4e10cac62c 100644
--- a/dependency/requirements.txt
+++ b/dependency/requirements.txt
@@ -15,6 +15,6 @@ pluggy~=1.0.0
 PyYAML>=4.2, <7.0
 rich~=12.0
 rope~=1.5.1  # subject to LGPLv3 license
-setuptools>=38.0
+setuptools>=65.5.1
 toml~=0.10
 toposort~=1.7  # Needs to be at least 1.5 to be able to raise CircularDependencyError
diff --git a/features/environment.py b/features/environment.py
index 6912626ca0..8fb541066d 100644
--- a/features/environment.py
+++ b/features/environment.py
@@ -105,7 +105,7 @@ def _setup_minimal_env(context):
             "install",
             "-U",
             "pip>=21.2",
-            "setuptools>=38.0",
+            "setuptools>=65.5.1",
             "wheel",
         ],
         env=context.env,
diff --git a/pyproject.toml b/pyproject.toml
index 9b17440f44..d58dc01706 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,7 +1,7 @@
 # PEP-518 https://peps.python.org/pep-0518/
 [build-system]
 # Minimum requirements for the build system to execute.
-requires = ["setuptools>=38.0", "wheel"]  # PEP 518 specifications.
+requires = ["setuptools>=65.5.1", "wheel"]  # PEP 518 specifications.
 
 [tool.black]
 exclude = "/templates/|^features/steps/test_starter"
diff --git a/tools/circleci/requirements.txt b/tools/circleci/requirements.txt
index 174e4734e6..224e670115 100644
--- a/tools/circleci/requirements.txt
+++ b/tools/circleci/requirements.txt
@@ -1,3 +1,3 @@
 pip>=21.2
-setuptools>=38.0
+setuptools>=65.5.1
 twine~=3.0