diff --git a/.devcontainer/Dockerfile b/.devcontainer/Dockerfile
index 911d874d9e..97bd0e4f36 100644
--- a/.devcontainer/Dockerfile
+++ b/.devcontainer/Dockerfile
@@ -2,7 +2,7 @@
 ARG VARIANT="3.12"
 FROM mcr.microsoft.com/devcontainers/python:${VARIANT}
 
-ARG POETRY_VERSION="1.8.3"
+ARG POETRY_VERSION="2.1.1"
 ENV POETRY_HOME="/opt/poetry" \
     POETRY_VERSION=${POETRY_VERSION}
 
diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index f36fcbf963..311afbdf9b 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -7,7 +7,7 @@
         "context": "..",
         "args": {
           "VARIANT": "3.12-bookworm",
-          "POETRY_VERSION": "1.7.1"
+          "POETRY_VERSION": "2.1.1"
         }
     },
     "customizations": {
diff --git a/docker/Dockerfile b/docker/Dockerfile
index 1c4d5e6e37..5f3c99e5cc 100644
--- a/docker/Dockerfile
+++ b/docker/Dockerfile
@@ -6,7 +6,7 @@ WORKDIR /src
 COPY ./acapy_agent ./acapy_agent
 COPY ./pyproject.toml ./poetry.lock ./README.md ./
 
-RUN pip install --no-cache-dir poetry==1.8.3
+RUN pip install --no-cache-dir poetry==2.1.1
 RUN poetry build
 
 FROM python:${python_version}-slim-bookworm AS main
diff --git a/docker/Dockerfile.demo b/docker/Dockerfile.demo
index 10ca60c06f..2205f42063 100644
--- a/docker/Dockerfile.demo
+++ b/docker/Dockerfile.demo
@@ -10,7 +10,7 @@ RUN mkdir -p bin && curl -L -o bin/jq \
 	chmod ug+x bin/jq
 
 # Copy and install Aries Agent code
-RUN pip install --no-cache-dir poetry==1.8.3
+RUN pip install --no-cache-dir poetry==2.1.1
 
 COPY README.md pyproject.toml poetry.lock ./
 
diff --git a/docker/Dockerfile.run b/docker/Dockerfile.run
index d41de27d19..f7177ded4c 100644
--- a/docker/Dockerfile.run
+++ b/docker/Dockerfile.run
@@ -12,7 +12,7 @@ WORKDIR /usr/src/app
 # For consistency with base images, include curl for health checks
 RUN apt-get update && apt-get install -y curl && apt-get clean
 
-RUN pip install --no-cache-dir poetry==1.8.3
+RUN pip install --no-cache-dir poetry==2.1.1
 
 RUN mkdir -p acapy_agent && touch acapy_agent/__init__.py
 COPY pyproject.toml poetry.lock README.md ./
diff --git a/docker/Dockerfile.test b/docker/Dockerfile.test
index eeb6108ea3..c7cde4a2e4 100644
--- a/docker/Dockerfile.test
+++ b/docker/Dockerfile.test
@@ -9,7 +9,7 @@ RUN apt-get update -y && \
 
 WORKDIR /usr/src/app
 
-RUN pip install --no-cache-dir poetry==1.8.3
+RUN pip install --no-cache-dir poetry==2.1.1
 
 COPY ./README.md pyproject.toml ./poetry.lock ./
 RUN mkdir acapy_agent && touch acapy_agent/__init__.py
diff --git a/poetry.lock b/poetry.lock
index 39ec18bc97..fcff6ff092 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -1305,8 +1305,6 @@ python-versions = "*"
 groups = ["main"]
 files = [
     {file = "jsonpath-ng-1.7.0.tar.gz", hash = "sha256:f6f5f7fd4e5ff79c785f1573b394043b39849fb2bb47bcead935d12b00beab3c"},
-    {file = "jsonpath_ng-1.7.0-py2-none-any.whl", hash = "sha256:898c93fc173f0c336784a3fa63d7434297544b7198124a68f9a3ef9597b0ae6e"},
-    {file = "jsonpath_ng-1.7.0-py3-none-any.whl", hash = "sha256:f3d7f9e848cba1b6da28c55b1c26ff915dc9e0b1ba7e752a53d6da8d5cbd00b6"},
 ]
 
 [package.dependencies]
diff --git a/pyproject.toml b/pyproject.toml
index bfa80b5c62..57385329ba 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -158,5 +158,5 @@ show_missing = true
 output = "test-reports/coverage.xml"
 
 [build-system]
-requires = ["poetry-core"]
+requires = ["poetry-core>=2.1"]
 build-backend = "poetry.core.masonry.api"
diff --git a/scenarios/Dockerfile b/scenarios/Dockerfile
index d7017c7681..383137450a 100644
--- a/scenarios/Dockerfile
+++ b/scenarios/Dockerfile
@@ -2,7 +2,7 @@ FROM python:3.10
 
 WORKDIR /usr/src/app/
 
-ENV POETRY_VERSION=1.8.3
+ENV POETRY_VERSION=2.1.1
 ENV POETRY_HOME=/opt/poetry
 RUN curl --proto "=https" --tlsv1.2 -sSf -L https://install.python-poetry.org | python -
 
diff --git a/scenarios/pyproject.toml b/scenarios/pyproject.toml
index b1070e75c7..d9f76270a1 100644
--- a/scenarios/pyproject.toml
+++ b/scenarios/pyproject.toml
@@ -4,6 +4,7 @@ version = "0.1.0"
 description = ""
 authors = []
 readme = "README.md"
+package-mode = false
 
 [tool.poetry.dependencies]
 python = "^3.10"