diff --git a/sky/setup_files/setup.py b/sky/setup_files/setup.py
index b74b31fa6b8..79f07f8a5ce 100644
--- a/sky/setup_files/setup.py
+++ b/sky/setup_files/setup.py
@@ -95,13 +95,15 @@ def parse_readme(readme: str) -> str:
     # we deprecate Python 3.7 (this will take a while).
     "typing_extensions; python_version < '3.8'",
     'filelock>=3.6.0',
-    # Adopted from ray's setup.py:
+    # Adopted from ray's setup.py: https://github.com/ray-project/ray/blob/ray-2.4.0/python/setup.py
+    # SkyPilot: != 1.48.0 is required to avoid the error where ray dashboard fails to start when
+    # ray start is called (#2054).
     # Tracking issue: https://github.com/ray-project/ray/issues/30984
-    "grpcio >= 1.32.0, <= 1.49.1; python_version < '3.10' and sys_platform == 'darwin'",  # noqa:E501
-    "grpcio >= 1.42.0, <= 1.49.1; python_version >= '3.10' and sys_platform == 'darwin'",  # noqa:E501
+    "grpcio >= 1.32.0, <= 1.49.1, != 1.48.0; python_version < '3.10' and sys_platform == 'darwin'",  # noqa:E501
+    "grpcio >= 1.42.0, <= 1.49.1, != 1.48.0; python_version >= '3.10' and sys_platform == 'darwin'",  # noqa:E501
     # Original issue: https://github.com/ray-project/ray/issues/33833
-    "grpcio >= 1.32.0, <= 1.51.3; python_version < '3.10' and sys_platform != 'darwin'",  # noqa:E501
-    "grpcio >= 1.42.0, <= 1.51.3; python_version >= '3.10' and sys_platform != 'darwin'",  # noqa:E501
+    "grpcio >= 1.32.0, <= 1.51.3, != 1.48.0; python_version < '3.10' and sys_platform != 'darwin'",  # noqa:E501
+    "grpcio >= 1.42.0, <= 1.51.3, != 1.48.0; python_version >= '3.10' and sys_platform != 'darwin'",  # noqa:E501
     'packaging',
     # Adopted from ray's setup.py:
     # https://github.com/ray-project/ray/blob/86fab1764e618215d8131e8e5068f0d493c77023/python/setup.py#L326