diff --git a/release_notes.md b/release_notes.md
index c10a83759..a2b52e6c8 100644
--- a/release_notes.md
+++ b/release_notes.md
@@ -16,3 +16,6 @@
 - Enhanced dotnet installation discovery by adopting the same `Muxer` logic used by the .NET SDK itself (#4732)
 - Update .NET templates package version to 4.0.5337 (#4728)
 - Fix `func pack --build-native-deps` failure on Windows for Python 3.13+ (#4742)
+- Update the TypeScript project template to improve interoperability
+  - Upgrade `typescript` from `^4.0.0` to `^5.0.0`
+  - Add `"esModuleInterop": true` option to `tsconfig.json`
\ No newline at end of file
diff --git a/src/Cli/func/StaticResources/package-ts-v4.json b/src/Cli/func/StaticResources/package-ts-v4.json
index 42f5190e7..c85376e6f 100644
--- a/src/Cli/func/StaticResources/package-ts-v4.json
+++ b/src/Cli/func/StaticResources/package-ts-v4.json
@@ -17,7 +17,7 @@
   "devDependencies": {
     "azure-functions-core-tools": "^4.x",
     "@types/node": "18.x",
-    "typescript": "^4.0.0",
+    "typescript": "^5.0.0",
     "rimraf": "^5.0.0"
   }
 }
diff --git a/src/Cli/func/StaticResources/package-ts.json b/src/Cli/func/StaticResources/package-ts.json
index 2fbf71c2b..1b43e4a20 100644
--- a/src/Cli/func/StaticResources/package-ts.json
+++ b/src/Cli/func/StaticResources/package-ts.json
@@ -14,6 +14,6 @@
     "@azure/functions": "^3.0.0",
     "azure-functions-core-tools": "^4.x",
     "@types/node": "18.x",
-    "typescript": "^4.0.0"
+    "typescript": "^5.0.0"
   }
 }
diff --git a/src/Cli/func/StaticResources/tsconfig.json b/src/Cli/func/StaticResources/tsconfig.json
index 77d91aa8b..116299424 100644
--- a/src/Cli/func/StaticResources/tsconfig.json
+++ b/src/Cli/func/StaticResources/tsconfig.json
@@ -5,6 +5,7 @@
     "outDir": "dist",
     "rootDir": ".",
     "sourceMap": true,
-    "strict": false
+    "strict": false,
+    "esModuleInterop": true
   }
 }