diff --git a/CHANGELOG.md b/CHANGELOG.md
index 097e22e2421..300356787f8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1 +1,2 @@
+- Update dependencies in functions initialization template. (#7084)
 - Adds `*.local` to .gitignore and functions ignore for `init functions`. (#7018)
diff --git a/templates/extensions/javascript/package.lint.json b/templates/extensions/javascript/package.lint.json
index 75eaa09a938..73c25633ae6 100644
--- a/templates/extensions/javascript/package.lint.json
+++ b/templates/extensions/javascript/package.lint.json
@@ -3,8 +3,8 @@
   "description": "Greet the world",
   "main": "index.js",
   "dependencies": {
-    "firebase-admin": "^11.5.0",
-    "firebase-functions": "^4.2.0"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "eslint": "^8.15.1",
diff --git a/templates/extensions/javascript/package.nolint.json b/templates/extensions/javascript/package.nolint.json
index a42c894a265..6c83869c94d 100644
--- a/templates/extensions/javascript/package.nolint.json
+++ b/templates/extensions/javascript/package.nolint.json
@@ -3,8 +3,8 @@
   "description": "Greet the world",
   "main": "index.js",
   "dependencies": {
-    "firebase-admin": "^11.5.0",
-    "firebase-functions": "^4.2.0"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "axios": "^1.3.2",
diff --git a/templates/extensions/typescript/package.lint.json b/templates/extensions/typescript/package.lint.json
index 5e8da3e6001..05f17ce4e7a 100644
--- a/templates/extensions/typescript/package.lint.json
+++ b/templates/extensions/typescript/package.lint.json
@@ -10,8 +10,8 @@
   },
   "main": "lib/index.js",
   "dependencies": {
-    "firebase-admin": "^11.5.0",
-    "firebase-functions": "^4.2.0"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "@types/chai": "^4.3.4",
diff --git a/templates/extensions/typescript/package.nolint.json b/templates/extensions/typescript/package.nolint.json
index f6914b638dc..06708498ad5 100644
--- a/templates/extensions/typescript/package.nolint.json
+++ b/templates/extensions/typescript/package.nolint.json
@@ -8,8 +8,8 @@
   },
   "main": "lib/index.js",
   "dependencies": {
-    "firebase-admin": "^11.5.0",
-    "firebase-functions": "^4.2.0"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "@types/chai": "^4.3.4",
diff --git a/templates/init/functions/javascript/package.lint.json b/templates/init/functions/javascript/package.lint.json
index a88bc5e225c..071683feb3d 100644
--- a/templates/init/functions/javascript/package.lint.json
+++ b/templates/init/functions/javascript/package.lint.json
@@ -14,8 +14,8 @@
   },
   "main": "index.js",
   "dependencies": {
-    "firebase-admin": "^11.8.0",
-    "firebase-functions": "^4.3.1"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "eslint": "^8.15.0",
diff --git a/templates/init/functions/javascript/package.nolint.json b/templates/init/functions/javascript/package.nolint.json
index 392196b9844..2e86341e08d 100644
--- a/templates/init/functions/javascript/package.nolint.json
+++ b/templates/init/functions/javascript/package.nolint.json
@@ -13,8 +13,8 @@
   },
   "main": "index.js",
   "dependencies": {
-    "firebase-admin": "^11.8.0",
-    "firebase-functions": "^4.3.1"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "firebase-functions-test": "^3.1.0"
diff --git a/templates/init/functions/typescript/package.lint.json b/templates/init/functions/typescript/package.lint.json
index dc3a3cb5dbe..b7acb3bbcb9 100644
--- a/templates/init/functions/typescript/package.lint.json
+++ b/templates/init/functions/typescript/package.lint.json
@@ -15,8 +15,8 @@
   },
   "main": "lib/index.js",
   "dependencies": {
-    "firebase-admin": "^11.8.0",
-    "firebase-functions": "^4.3.1"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "@typescript-eslint/eslint-plugin": "^5.12.0",
diff --git a/templates/init/functions/typescript/package.nolint.json b/templates/init/functions/typescript/package.nolint.json
index b1c3181675b..e27e3f2f880 100644
--- a/templates/init/functions/typescript/package.nolint.json
+++ b/templates/init/functions/typescript/package.nolint.json
@@ -14,8 +14,8 @@
   },
   "main": "lib/index.js",
   "dependencies": {
-    "firebase-admin": "^11.8.0",
-    "firebase-functions": "^4.3.1"
+    "firebase-admin": "^12.1.0",
+    "firebase-functions": "^5.0.0"
   },
   "devDependencies": {
     "typescript": "^4.9.0",