diff --git a/functions-templates/javascript/scheduled-function/package.json b/functions-templates/javascript/scheduled-function/package.json
index 3cef6d6a59d..6ed9301e850 100644
--- a/functions-templates/javascript/scheduled-function/package.json
+++ b/functions-templates/javascript/scheduled-function/package.json
@@ -15,6 +15,6 @@
   "author": "Netlify",
   "license": "MIT",
   "dependencies": {
-    "@netlify/functions": "^3.0.4"
+    "@netlify/functions": "^5.0.1"
   }
 }
diff --git a/functions-templates/typescript/hello-world/package-lock.json b/functions-templates/typescript/hello-world/package-lock.json
index 2742305b98e..f21e82ebfcd 100644
--- a/functions-templates/typescript/hello-world/package-lock.json
+++ b/functions-templates/typescript/hello-world/package-lock.json
@@ -9,28 +9,28 @@
       "version": "1.0.0",
       "license": "MIT",
       "dependencies": {
-        "@netlify/functions": "^3.0.4",
+        "@netlify/functions": "^5.0.1",
         "@types/node": "^22.0.0",
         "typescript": "^4.0.0"
       }
     },
     "node_modules/@netlify/functions": {
-      "version": "3.0.4",
-      "resolved": "https://registry.npmjs.org/@netlify/functions/-/functions-3.0.4.tgz",
-      "integrity": "sha512-Ox8+ABI+nsLK+c4/oC5dpquXuEIjzfTlJrdQKgQijCsDQoje7inXFAtKDLvvaGvuvE+PVpMLwQcIUL6P9Ob1hQ==",
+      "version": "5.0.1",
+      "resolved": "https://registry.npmjs.org/@netlify/functions/-/functions-5.0.1.tgz",
+      "integrity": "sha512-olCwsnp0GDpjSYPfWrtUIvOsZcrRta6lxwZWfl3XxucXOw5AcGDKSqKGRElzyyZoRA8OXVh5B5NHj5Jd4PRx+A==",
       "dependencies": {
-        "@netlify/serverless-functions-api": "1.36.0"
+        "@netlify/types": "2.1.0"
       },
       "engines": {
         "node": ">=18.0.0"
       }
     },
-    "node_modules/@netlify/serverless-functions-api": {
-      "version": "1.36.0",
-      "resolved": "https://registry.npmjs.org/@netlify/serverless-functions-api/-/serverless-functions-api-1.36.0.tgz",
-      "integrity": "sha512-z6okREyK8in0486a22Oro0k+YsuyEjDXJt46FpgeOgXqKJ9ElM8QPll0iuLBkpbH33ENiNbIPLd1cuClRQnhiw==",
+    "node_modules/@netlify/types": {
+      "version": "2.1.0",
+      "resolved": "https://registry.npmjs.org/@netlify/types/-/types-2.1.0.tgz",
+      "integrity": "sha512-ktUb5d58pt1lQGXO5E9S0F1ljM0g+CoQuGTVII0IxBc0apmPq5RI0o3OWLY7U3ZERRiYTg5UfjiMihBEzuZsuw==",
       "engines": {
-        "node": ">=18.0.0"
+        "node": "^18.14.0 || >=20"
       }
     },
     "node_modules/@types/node": {
@@ -61,17 +61,17 @@
   },
   "dependencies": {
     "@netlify/functions": {
-      "version": "3.0.4",
-      "resolved": "https://registry.npmjs.org/@netlify/functions/-/functions-3.0.4.tgz",
-      "integrity": "sha512-Ox8+ABI+nsLK+c4/oC5dpquXuEIjzfTlJrdQKgQijCsDQoje7inXFAtKDLvvaGvuvE+PVpMLwQcIUL6P9Ob1hQ==",
+      "version": "5.0.1",
+      "resolved": "https://registry.npmjs.org/@netlify/functions/-/functions-5.0.1.tgz",
+      "integrity": "sha512-olCwsnp0GDpjSYPfWrtUIvOsZcrRta6lxwZWfl3XxucXOw5AcGDKSqKGRElzyyZoRA8OXVh5B5NHj5Jd4PRx+A==",
       "requires": {
-        "@netlify/serverless-functions-api": "1.36.0"
+        "@netlify/types": "2.1.0"
       }
     },
-    "@netlify/serverless-functions-api": {
-      "version": "1.36.0",
-      "resolved": "https://registry.npmjs.org/@netlify/serverless-functions-api/-/serverless-functions-api-1.36.0.tgz",
-      "integrity": "sha512-z6okREyK8in0486a22Oro0k+YsuyEjDXJt46FpgeOgXqKJ9ElM8QPll0iuLBkpbH33ENiNbIPLd1cuClRQnhiw=="
+    "@netlify/types": {
+      "version": "2.1.0",
+      "resolved": "https://registry.npmjs.org/@netlify/types/-/types-2.1.0.tgz",
+      "integrity": "sha512-ktUb5d58pt1lQGXO5E9S0F1ljM0g+CoQuGTVII0IxBc0apmPq5RI0o3OWLY7U3ZERRiYTg5UfjiMihBEzuZsuw=="
     },
     "@types/node": {
       "version": "22.18.11",
diff --git a/functions-templates/typescript/hello-world/package.json b/functions-templates/typescript/hello-world/package.json
index 00eea11d61b..0c5a4692b5f 100644
--- a/functions-templates/typescript/hello-world/package.json
+++ b/functions-templates/typescript/hello-world/package.json
@@ -14,7 +14,7 @@
   "author": "Netlify",
   "license": "MIT",
   "dependencies": {
-    "@netlify/functions": "^3.0.4",
+    "@netlify/functions": "^5.0.1",
     "@types/node": "^22.0.0",
     "typescript": "^4.0.0"
   }
diff --git a/functions-templates/typescript/scheduled-function/package.json b/functions-templates/typescript/scheduled-function/package.json
index b75d54b8525..6e3764c94a5 100644
--- a/functions-templates/typescript/scheduled-function/package.json
+++ b/functions-templates/typescript/scheduled-function/package.json
@@ -15,7 +15,7 @@
   "author": "Netlify",
   "license": "MIT",
   "dependencies": {
-    "@netlify/functions": "^3.0.4",
+    "@netlify/functions": "^5.0.1",
     "@types/node": "^22.0.0",
     "typescript": "^4.5.5"
   }
diff --git a/package-lock.json b/package-lock.json
index c554053486b..4ba92e40f9e 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -116,7 +116,7 @@
         "@bugsnag/js": "8.6.0",
         "@eslint/compat": "1.4.0",
         "@eslint/js": "9.36.0",
-        "@netlify/functions": "3.0.4",
+        "@netlify/functions": "5.0.1",
         "@netlify/types": "2.1.0",
         "@sindresorhus/slugify": "3.0.0",
         "@tsconfig/node18": "18.2.4",
@@ -2880,12 +2880,13 @@
       "license": "MIT"
     },
     "node_modules/@netlify/functions": {
-      "version": "3.0.4",
-      "resolved": "https://registry.npmjs.org/@netlify/functions/-/functions-3.0.4.tgz",
-      "integrity": "sha512-Ox8+ABI+nsLK+c4/oC5dpquXuEIjzfTlJrdQKgQijCsDQoje7inXFAtKDLvvaGvuvE+PVpMLwQcIUL6P9Ob1hQ==",
+      "version": "5.0.1",
+      "resolved": "https://registry.npmjs.org/@netlify/functions/-/functions-5.0.1.tgz",
+      "integrity": "sha512-olCwsnp0GDpjSYPfWrtUIvOsZcrRta6lxwZWfl3XxucXOw5AcGDKSqKGRElzyyZoRA8OXVh5B5NHj5Jd4PRx+A==",
       "dev": true,
+      "license": "MIT",
       "dependencies": {
-        "@netlify/serverless-functions-api": "1.36.0"
+        "@netlify/types": "2.1.0"
       },
       "engines": {
         "node": ">=18.0.0"
@@ -3430,15 +3431,6 @@
         "node": "^18.14.0 || >=20"
       }
     },
-    "node_modules/@netlify/serverless-functions-api": {
-      "version": "1.36.0",
-      "resolved": "https://registry.npmjs.org/@netlify/serverless-functions-api/-/serverless-functions-api-1.36.0.tgz",
-      "integrity": "sha512-z6okREyK8in0486a22Oro0k+YsuyEjDXJt46FpgeOgXqKJ9ElM8QPll0iuLBkpbH33ENiNbIPLd1cuClRQnhiw==",
-      "dev": true,
-      "engines": {
-        "node": ">=18.0.0"
-      }
-    },
     "node_modules/@netlify/types": {
       "version": "2.1.0",
       "resolved": "https://registry.npmjs.org/@netlify/types/-/types-2.1.0.tgz",
diff --git a/package.json b/package.json
index fe7840ede73..8cfe4e3ad11 100644
--- a/package.json
+++ b/package.json
@@ -159,7 +159,7 @@
     "@bugsnag/js": "8.6.0",
     "@eslint/compat": "1.4.0",
     "@eslint/js": "9.36.0",
-    "@netlify/functions": "3.0.4",
+    "@netlify/functions": "5.0.1",
     "@netlify/types": "2.1.0",
     "@sindresorhus/slugify": "3.0.0",
     "@tsconfig/node18": "18.2.4",