diff --git a/CHANGELOG.md b/CHANGELOG.md
index e69de29bb2d..e6840d5fb32 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -0,0 +1 @@
+- Update typescript version in functions template to avoid build issue with @google-cloud/storage depedency (#8194)
diff --git a/templates/init/functions/typescript/package.lint.json b/templates/init/functions/typescript/package.lint.json
index 7b3ffc8aa4e..c2d4f5493e6 100644
--- a/templates/init/functions/typescript/package.lint.json
+++ b/templates/init/functions/typescript/package.lint.json
@@ -25,7 +25,7 @@
     "eslint-config-google": "^0.14.0",
     "eslint-plugin-import": "^2.25.4",
     "firebase-functions-test": "^3.1.0",
-    "typescript": "^4.9.0"
+    "typescript": "^5.7.3"
   },
   "private": true
 }
diff --git a/templates/init/functions/typescript/package.nolint.json b/templates/init/functions/typescript/package.nolint.json
index b250e35a10a..066161c31cd 100644
--- a/templates/init/functions/typescript/package.nolint.json
+++ b/templates/init/functions/typescript/package.nolint.json
@@ -18,7 +18,7 @@
     "firebase-functions": "^6.0.1"
   },
   "devDependencies": {
-    "typescript": "^4.9.0",
+    "typescript": "^5.7.3",
     "firebase-functions-test": "^3.1.0"
   },
   "private": true