diff --git a/dvc/utils/hydra.py b/dvc/utils/hydra.py
index 274ae2fd0e..5674c9696b 100644
--- a/dvc/utils/hydra.py
+++ b/dvc/utils/hydra.py
@@ -1,27 +1,9 @@
-import sys
 from pathlib import Path
 from typing import TYPE_CHECKING, List
 
-try:
-    from hydra import compose, initialize_config_dir
-    from hydra._internal.config_loader_impl import ConfigLoaderImpl
-    from hydra._internal.core_plugins.basic_sweeper import BasicSweeper
-    from hydra.core.override_parser.overrides_parser import OverridesParser
-    from hydra.core.override_parser.types import ValueType
-    from hydra.errors import ConfigCompositionException, OverrideParseException
-    from omegaconf import OmegaConf
-
-    hydra_compatible = True
-except ValueError:
-    if sys.version_info >= (3, 11):
-        hydra_compatible = False
-    else:
-        raise
-
-from dvc.exceptions import DvcException, InvalidArgumentError
+from dvc.exceptions import InvalidArgumentError
 
 from .collections import merge_dicts, remove_missing_keys, to_omegaconf
-from .serialize import DUMPERS, MODIFIERS
 
 if TYPE_CHECKING:
     from dvc.types import StrPath
@@ -46,10 +28,10 @@ def compose_and_dump(
     .. _Hydra Override:
         https://hydra.cc/docs/advanced/override_grammar/basic/
     """
-    if not hydra_compatible:
-        raise DvcException(
-            "hydra functionality is not supported in Python >= 3.11"
-        )
+    from hydra import compose, initialize_config_dir
+    from omegaconf import OmegaConf
+
+    from .serialize import DUMPERS
 
     with initialize_config_dir(config_dir, version_base=None):
         cfg = compose(config_name=config_name, overrides=overrides)
@@ -71,10 +53,11 @@ def apply_overrides(path: "StrPath", overrides: List[str]) -> None:
     .. _Hydra Override:
         https://hydra.cc/docs/next/advanced/override_grammar/basic/
     """
-    if not hydra_compatible:
-        raise DvcException(
-            "hydra functionality is not supported in Python >= 3.11"
-        )
+    from hydra._internal.config_loader_impl import ConfigLoaderImpl
+    from hydra.errors import ConfigCompositionException, OverrideParseException
+    from omegaconf import OmegaConf
+
+    from .serialize import MODIFIERS
 
     suffix = Path(path).suffix.lower()
 
@@ -101,10 +84,7 @@ def apply_overrides(path: "StrPath", overrides: List[str]) -> None:
 
 
 def to_hydra_overrides(path_overrides):
-    if not hydra_compatible:
-        raise DvcException(
-            "hydra functionality is not supported in Python >= 3.11"
-        )
+    from hydra.core.override_parser.overrides_parser import OverridesParser
 
     parser = OverridesParser.create()
     return parser.parse_overrides(overrides=path_overrides)
@@ -117,10 +97,8 @@ def dict_product(dicts):
 
 
 def get_hydra_sweeps(path_overrides):
-    if not hydra_compatible:
-        raise DvcException(
-            "hydra functionality is not supported in Python >= 3.11"
-        )
+    from hydra._internal.core_plugins.basic_sweeper import BasicSweeper
+    from hydra.core.override_parser.types import ValueType
 
     path_sweeps = {}
     for path, overrides in path_overrides.items():
diff --git a/pyproject.toml b/pyproject.toml
index 716b55fdac..78e422fa84 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -161,7 +161,7 @@ line_length = 79
 
 [tool.pytest.ini_options]
 log_level = "debug"
-addopts = "-ra -p no:hydra_pytest --cov-config pyproject.toml"
+addopts = "-ra --cov-config pyproject.toml"
 markers = [
     "needs_internet: Might need network access for the tests",
     "vscode: Tests verifying contract between DVC and VSCode plugin",
diff --git a/tests/conftest.py b/tests/conftest.py
index 72835f6f67..5337d4ff0e 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -250,18 +250,6 @@ def run(
     return run
 
 
-@pytest.fixture(autouse=True)
-def mock_hydra_conf(mocker):
-    if sys.version_info < (3, 11):
-        return
-
-    # `hydra.conf` fails to import in 3.11, it raises ValueError due to changes
-    # in dataclasses. See https://github.com/python/cpython/pull/29867.
-    # NOTE: using sentinel here so that any imports from `hydra.conf`
-    # return a mock.
-    sys.modules["hydra.conf"] = mocker.sentinel
-
-
 @pytest.fixture(autouse=True)
 def gc_collect_on_dvc_close_on_win_311(mocker):
     if sys.version_info < (3, 11) and os.name != "nt":
diff --git a/tests/func/experiments/test_set_params.py b/tests/func/experiments/test_set_params.py
index 5095c666d1..cfa8e25bed 100644
--- a/tests/func/experiments/test_set_params.py
+++ b/tests/func/experiments/test_set_params.py
@@ -1,5 +1,3 @@
-import sys
-
 import pytest
 
 from dvc.exceptions import InvalidArgumentError
@@ -21,18 +19,7 @@ def test_modify_params(params_repo, dvc, changes, expected):
         assert fobj.read().strip() == expected
 
 
-@pytest.mark.parametrize(
-    "hydra_enabled",
-    [
-        pytest.param(
-            True,
-            marks=pytest.mark.skipif(
-                sys.version_info >= (3, 11), reason="unsupported on 3.11"
-            ),
-        ),
-        False,
-    ],
-)
+@pytest.mark.parametrize("hydra_enabled", [True, False])
 @pytest.mark.parametrize(
     "config_dir,config_name",
     [
@@ -93,12 +80,7 @@ def test_hydra_compose_and_dump(
     "hydra_enabled,overrides,expected",
     [
         (
-            pytest.param(
-                True,
-                marks=pytest.mark.xfail(
-                    sys.version_info >= (3, 11), reason="unsupported on 3.11"
-                ),
-            ),
+            True,
             ["db=mysql,postgresql"],
             [
                 {"params.yaml": ["db=mysql"]},
diff --git a/tests/func/utils/test_hydra.py b/tests/func/utils/test_hydra.py
index cfde109a69..d2f7679c45 100644
--- a/tests/func/utils/test_hydra.py
+++ b/tests/func/utils/test_hydra.py
@@ -1,5 +1,3 @@
-import sys
-
 import pytest
 
 from dvc.exceptions import InvalidArgumentError
@@ -93,16 +91,16 @@
 def test_apply_overrides(tmp_dir, suffix, overrides, expected):
     from dvc.utils.hydra import apply_overrides
 
-    if suffix == "toml":
-        if overrides in [
-            ["foo=baz"],
-            ["foo.0=bar"],
-            ["foo=baz", "goo=bar"],
-            ["lorem=null"],
-        ]:
-            # TOML dumper breaks when overriding a list/dict with other type
-            # or when handling `null` values.
-            pytest.xfail()
+    if suffix == "toml" and overrides in [
+        ["foo=baz"],
+        ["foo.0=bar"],
+        ["foo=baz", "goo=bar"],
+        ["lorem=null"],
+    ]:
+        pytest.skip(
+            "TOML dumper breaks when overriding a list/dict with other type or"
+            " when handling `null` values."
+        )
 
     params_file = tmp_dir / f"params.{suffix}"
     params_file.dump(
@@ -140,7 +138,6 @@ def hydra_setup(tmp_dir, config_dir, config_name):
     return str(config_dir)
 
 
-@pytest.mark.skipif(sys.version_info >= (3, 11), reason="unsupported on 3.11")
 @pytest.mark.parametrize("suffix", ["yaml", "toml", "json"])
 @pytest.mark.parametrize(
     "overrides,expected",
@@ -180,7 +177,6 @@ def test_compose_and_dump(tmp_dir, suffix, overrides, expected):
     assert output_file.parse() == expected
 
 
-@pytest.mark.skipif(sys.version_info >= (3, 11), reason="unsupported on 3.11")
 def test_compose_and_dump_yaml_handles_string(tmp_dir):
     """Regression test for 8583"""
     from dvc.utils.hydra import compose_and_dump