diff --git a/packages/test-app/package.json b/packages/test-app/package.json
index 297c8b93..2d27c716 100644
--- a/packages/test-app/package.json
+++ b/packages/test-app/package.json
@@ -28,7 +28,7 @@
     "@ember/string": "3.1.1",
     "@ember/test-helpers": "3.2.1",
     "@embroider/macros": "1.16.2",
-    "@embroider/test-setup": "3.0.3",
+    "@embroider/test-setup": "4.0.0",
     "broccoli-asset-rev": "3.0.0",
     "ember-auto-import": "2.7.2",
     "ember-cli": "4.12.3",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 1832ff01..9e6a62ff 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -118,8 +118,8 @@ importers:
         specifier: 1.16.2
         version: 1.16.2
       '@embroider/test-setup':
-        specifier: 3.0.3
-        version: 3.0.3
+        specifier: 4.0.0
+        version: 4.0.0
       broccoli-asset-rev:
         specifier: 3.0.0
         version: 3.0.0
@@ -2451,13 +2451,13 @@ packages:
     transitivePeerDependencies:
       - supports-color
 
-  /@embroider/test-setup@3.0.3:
-    resolution: {integrity: sha512-3K5KSyTdnxAkZQill6+TdC/XTRr6226LNwZMsrhRbBM0FFZXw2D8qmJSHPvZLheQx3A1jnF9t1lyrAzrKlg6Yw==}
+  /@embroider/test-setup@4.0.0:
+    resolution: {integrity: sha512-1S3Ebk0CEh3XDqD93AWSwQZBCk+oGv03gtkaGgdgyXGIR7jrVyDgEnEuslN/hJ0cuU8TqhiXrzHMw7bJwIGhWw==}
     engines: {node: 12.* || 14.* || >= 16}
     peerDependencies:
-      '@embroider/compat': ^3.3.0
-      '@embroider/core': ^3.4.0
-      '@embroider/webpack': ^3.2.1
+      '@embroider/compat': ^3.4.8
+      '@embroider/core': ^3.4.8
+      '@embroider/webpack': ^4.0.0
     peerDependenciesMeta:
       '@embroider/compat':
         optional: true