diff --git a/Makefile b/Makefile
index 8ffb566d..3867de69 100644
--- a/Makefile
+++ b/Makefile
@@ -90,7 +90,7 @@ clean: ## Clean .venv, dist, build
 	@echo ""
 	@echo "${YELLOW}Current python:${NORMAL}"
 	@make helper-line
-	@python --version
+	@python3 --version
 
 	@make docs-clean
 
@@ -106,13 +106,13 @@ install-e: ## Install project as editable.
 	@echo ""
 	@echo "${YELLOW}Install project as editable${NORMAL}"
 	@make helper-line
-	python -m pip install -e .
+	python3 -m pip install -e .
 
 install-dev: ## Install dev dependencies.
 	@echo ""
 	@echo "${YELLOW}Install Dev dependencies.${NORMAL}"
 	@make helper-line
-	python -m pip install -e ".[dev]"
+	python3 -m pip install -e ".[dev]"
 
 post-install-info: ## Just some post installation info.
 	@echo ""
@@ -139,20 +139,20 @@ lint: ## Run the lint and checks
 	@echo ""
 	@echo "${YELLOW}Linting code:${NORMAL}"
 	@make helper-line
-	python -m prospector --profile prospector.yaml
+	python3 -m prospector --profile prospector.yaml
 	@make check
 
 check: ## Run black checks
 	@echo ""
 	@echo "${YELLOW}Check code with black:${NORMAL}"
 	@make helper-line
-	python -m black --check .
+	python3 -m black --check .
 
 fix: ## fix the code with black formatter.
 	@echo ""
 	@echo "${YELLOW}Fixing code with black:${NORMAL}"
 	@make helper-line
-	python -m black .
+	python3 -m black .
 
 ##############################################################################
 
@@ -160,7 +160,7 @@ test: ## Run the tests. (option): file=tests/path/to/file.py
 	@echo ""
 	@echo "${YELLOW}Running tests:${NORMAL}"
 	@make helper-line
-	python -m pytest -vv --cov dbx $(file) -n auto \
+	python3 -m pytest -vv --cov dbx $(file) -n auto \
 		--cov-report=xml \
 		--cov-report=term-missing:skip-covered
 
@@ -168,7 +168,7 @@ test-with-html-report: ## Run all tests with html reporter.
 	@echo ""
 	@echo "${YELLOW}Testing with html report:${NORMAL}"
 	@make helper-line
-	python -m pytest --cov dbx -n auto --cov-report html -s
+	python3 -m pytest --cov dbx -n auto --cov-report html -s
 
 ##############################################################################
 
diff --git a/pyproject.toml b/pyproject.toml
index 27d11503..9b7d8c2e 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -37,7 +37,7 @@ dependencies = [
     "Jinja2>=2.11.2",
     "mlflow-skinny>=2.0.0,<3.0.0",
     "pathspec>=0.9.0",
-    "pydantic>=1.10.8,<2.0.0",
+    "pydantic>=2.0.0",
     "pyyaml>=6.0",
     "requests>=2.30.1,<3.0.0",
     "rich>=12.6.0,<=13.0.0",
diff --git a/src/dbx/api/adjuster/adjuster.py b/src/dbx/api/adjuster/adjuster.py
index 4ae4301c..d0cf78d4 100644
--- a/src/dbx/api/adjuster/adjuster.py
+++ b/src/dbx/api/adjuster/adjuster.py
@@ -1,7 +1,7 @@
 from typing import Any, List, Optional, Union
 
 from databricks_cli.sdk import ApiClient
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 from dbx.api.adjuster.mixins.existing_cluster import ExistingClusterAdjuster
 from dbx.api.adjuster.mixins.file_reference import FileReferenceAdjuster
diff --git a/src/dbx/api/adjuster/mixins/base.py b/src/dbx/api/adjuster/mixins/base.py
index c02de068..d7a965e5 100644
--- a/src/dbx/api/adjuster/mixins/base.py
+++ b/src/dbx/api/adjuster/mixins/base.py
@@ -1,7 +1,7 @@
 from abc import ABC
 
 from databricks_cli.sdk import ApiClient
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 from dbx.models.workflow.common.flexible import FlexibleModel
 
diff --git a/src/dbx/api/adjuster/mixins/service_principal.py b/src/dbx/api/adjuster/mixins/service_principal.py
index 1ff7cda6..78352055 100644
--- a/src/dbx/api/adjuster/mixins/service_principal.py
+++ b/src/dbx/api/adjuster/mixins/service_principal.py
@@ -1,7 +1,7 @@
 import functools
 from typing import Any, List
 
-from pydantic import Field
+from pydantic.v1 import Field
 
 from dbx.api.adjuster.mixins.base import ApiClientMixin, ElementSetterMixin
 from dbx.models.workflow.common.flexible import FlexibleModel
diff --git a/src/dbx/api/config_reader.py b/src/dbx/api/config_reader.py
index 344740a8..e4dc1815 100644
--- a/src/dbx/api/config_reader.py
+++ b/src/dbx/api/config_reader.py
@@ -6,7 +6,7 @@
 
 import jinja2
 import yaml
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 import dbx.api.jinja as dbx_jinja
 from dbx.api._module_loader import load_module_from_source
diff --git a/src/dbx/api/launch/pipeline_models.py b/src/dbx/api/launch/pipeline_models.py
index 64217882..7f4e2c69 100644
--- a/src/dbx/api/launch/pipeline_models.py
+++ b/src/dbx/api/launch/pipeline_models.py
@@ -1,7 +1,7 @@
 from enum import Enum
 from typing import List, Optional
 
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 
 class UpdateStatus(str, Enum):
diff --git a/src/dbx/api/launch/runners/base.py b/src/dbx/api/launch/runners/base.py
index a65f5517..739d1f20 100644
--- a/src/dbx/api/launch/runners/base.py
+++ b/src/dbx/api/launch/runners/base.py
@@ -1,6 +1,6 @@
 from typing import Optional
 
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 
 class RunData(BaseModel):
diff --git a/src/dbx/api/launch/runners/pipeline.py b/src/dbx/api/launch/runners/pipeline.py
index afb58f92..c5ead8ad 100644
--- a/src/dbx/api/launch/runners/pipeline.py
+++ b/src/dbx/api/launch/runners/pipeline.py
@@ -4,7 +4,7 @@
 from typing import List, Optional, Tuple
 
 from databricks_cli.sdk import ApiClient
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 from rich.console import Console
 
 from dbx.api.launch.pipeline_models import PipelineDetails, PipelineGlobalState
diff --git a/src/dbx/models/build.py b/src/dbx/models/build.py
index 4b14bbf2..cb7924ce 100644
--- a/src/dbx/models/build.py
+++ b/src/dbx/models/build.py
@@ -3,7 +3,7 @@
 from enum import Enum
 from typing import List, Optional
 
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 from rich.console import Console
 
 from dbx.api.build import cleanup_dist, execute_shell_command
diff --git a/src/dbx/models/cli/destroyer.py b/src/dbx/models/cli/destroyer.py
index 6da7f030..f2a20c7f 100644
--- a/src/dbx/models/cli/destroyer.py
+++ b/src/dbx/models/cli/destroyer.py
@@ -1,7 +1,7 @@
 from enum import Enum
 from typing import List, Optional
 
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 from dbx.models.deployment import AnyWorkflow, EnvironmentDeploymentInfo
 
diff --git a/src/dbx/models/cli/execute.py b/src/dbx/models/cli/execute.py
index 3c77c701..b894fe73 100644
--- a/src/dbx/models/cli/execute.py
+++ b/src/dbx/models/cli/execute.py
@@ -2,7 +2,7 @@
 
 import json
 
-from pydantic import root_validator
+from pydantic.v1 import root_validator
 
 from dbx.models.validators import at_least_one_of, mutually_exclusive
 from dbx.models.workflow.common.parameters import NamedParametersMixin, ParametersMixin
diff --git a/src/dbx/models/deployment.py b/src/dbx/models/deployment.py
index f0664989..a34bdfab 100644
--- a/src/dbx/models/deployment.py
+++ b/src/dbx/models/deployment.py
@@ -3,7 +3,7 @@
 import collections
 from typing import Any, Dict, List, Optional, Union
 
-from pydantic import BaseModel, Field, validator
+from pydantic.v1 import BaseModel, Field, validator
 from rich.markup import escape
 from typing_extensions import Annotated
 
diff --git a/src/dbx/models/files/context.py b/src/dbx/models/files/context.py
index fea4ba47..252a2fb2 100644
--- a/src/dbx/models/files/context.py
+++ b/src/dbx/models/files/context.py
@@ -1,4 +1,4 @@
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 
 class ContextInfo(BaseModel):
diff --git a/src/dbx/models/files/project.py b/src/dbx/models/files/project.py
index 26649f4a..bab0cdb1 100644
--- a/src/dbx/models/files/project.py
+++ b/src/dbx/models/files/project.py
@@ -3,7 +3,7 @@
 from enum import Enum
 from typing import Dict, Optional, Union
 
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 from dbx.constants import PROJECT_INFO_FILE_PATH
 from dbx.utils import dbx_echo
diff --git a/src/dbx/models/workflow/common/access_control.py b/src/dbx/models/workflow/common/access_control.py
index c4abc873..387908b8 100644
--- a/src/dbx/models/workflow/common/access_control.py
+++ b/src/dbx/models/workflow/common/access_control.py
@@ -1,7 +1,7 @@
 from enum import Enum
 from typing import Any, Dict, List, Optional
 
-from pydantic import root_validator, validator
+from pydantic.v1 import root_validator, validator
 
 from dbx.models.validators import at_least_one_of
 from dbx.models.workflow.common.flexible import FlexibleModel
diff --git a/src/dbx/models/workflow/common/deployment_config.py b/src/dbx/models/workflow/common/deployment_config.py
index 9d18dab3..99043495 100644
--- a/src/dbx/models/workflow/common/deployment_config.py
+++ b/src/dbx/models/workflow/common/deployment_config.py
@@ -1,6 +1,6 @@
 from typing import Optional
 
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 
 class DbxDeploymentConfig(BaseModel):
diff --git a/src/dbx/models/workflow/common/flexible.py b/src/dbx/models/workflow/common/flexible.py
index e7a91bc9..af8b9275 100644
--- a/src/dbx/models/workflow/common/flexible.py
+++ b/src/dbx/models/workflow/common/flexible.py
@@ -1,6 +1,6 @@
 from typing import List
 
-from pydantic import BaseModel, Extra
+from pydantic.v1 import BaseModel, Extra
 
 from dbx.utils import dbx_echo
 
diff --git a/src/dbx/models/workflow/common/libraries.py b/src/dbx/models/workflow/common/libraries.py
index a78bb368..c582550c 100644
--- a/src/dbx/models/workflow/common/libraries.py
+++ b/src/dbx/models/workflow/common/libraries.py
@@ -1,6 +1,6 @@
 from typing import List, Optional
 
-from pydantic import root_validator
+from pydantic.v1 import root_validator
 
 from dbx.models.validators import at_least_one_of, mutually_exclusive
 from dbx.models.workflow.common.flexible import FlexibleModel
diff --git a/src/dbx/models/workflow/common/new_cluster.py b/src/dbx/models/workflow/common/new_cluster.py
index 942eeaa1..1fb3336e 100644
--- a/src/dbx/models/workflow/common/new_cluster.py
+++ b/src/dbx/models/workflow/common/new_cluster.py
@@ -1,6 +1,6 @@
 from typing import Optional
 
-from pydantic import root_validator, validator
+from pydantic.v1 import root_validator, validator
 
 from dbx.models.workflow.common.flexible import FlexibleModel
 
diff --git a/src/dbx/models/workflow/common/parameters.py b/src/dbx/models/workflow/common/parameters.py
index 8219be88..9e71322d 100644
--- a/src/dbx/models/workflow/common/parameters.py
+++ b/src/dbx/models/workflow/common/parameters.py
@@ -2,7 +2,7 @@
 
 from typing import Any, Dict, List, Optional
 
-from pydantic import BaseModel
+from pydantic.v1 import BaseModel
 
 ParamPair = Optional[Dict[str, str]]
 StringArray = Optional[List[str]]
diff --git a/src/dbx/models/workflow/common/pipeline.py b/src/dbx/models/workflow/common/pipeline.py
index b59b0358..297972d4 100644
--- a/src/dbx/models/workflow/common/pipeline.py
+++ b/src/dbx/models/workflow/common/pipeline.py
@@ -1,6 +1,6 @@
 from typing import Any, Dict, List, Literal, Optional
 
-from pydantic import validator
+from pydantic.v1 import validator
 
 from dbx.models.workflow.common.access_control import AccessControlMixin
 from dbx.models.workflow.common.flexible import FlexibleModel
diff --git a/src/dbx/models/workflow/common/task.py b/src/dbx/models/workflow/common/task.py
index ffadbbff..59c667c6 100644
--- a/src/dbx/models/workflow/common/task.py
+++ b/src/dbx/models/workflow/common/task.py
@@ -2,7 +2,7 @@
 from pathlib import Path
 from typing import Optional
 
-from pydantic import root_validator, validator
+from pydantic.v1 import root_validator, validator
 
 from dbx.constants import TASKS_SUPPORTED_IN_EXECUTE
 from dbx.models.cli.execute import ExecuteParametersPayload
diff --git a/src/dbx/models/workflow/v2dot0/parameters.py b/src/dbx/models/workflow/v2dot0/parameters.py
index 5322173c..2247bbbc 100644
--- a/src/dbx/models/workflow/v2dot0/parameters.py
+++ b/src/dbx/models/workflow/v2dot0/parameters.py
@@ -1,4 +1,4 @@
-from pydantic import root_validator
+from pydantic.v1 import root_validator
 
 from dbx.models.validators import mutually_exclusive
 from dbx.models.workflow.common.parameters import BaseParametersMixin, ParametersMixin, StandardBasePayload
diff --git a/src/dbx/models/workflow/v2dot0/workflow.py b/src/dbx/models/workflow/v2dot0/workflow.py
index e15adb60..69f53281 100644
--- a/src/dbx/models/workflow/v2dot0/workflow.py
+++ b/src/dbx/models/workflow/v2dot0/workflow.py
@@ -1,6 +1,6 @@
 from typing import List, Literal, Optional, Union
 
-from pydantic import root_validator, validator
+from pydantic.v1 import root_validator, validator
 
 from dbx.models.workflow.common.access_control import AccessControlMixin
 from dbx.models.workflow.common.deployment_config import DbxDeploymentConfig
diff --git a/src/dbx/models/workflow/v2dot1/job_cluster.py b/src/dbx/models/workflow/v2dot1/job_cluster.py
index 3da8deb4..40f387b0 100644
--- a/src/dbx/models/workflow/v2dot1/job_cluster.py
+++ b/src/dbx/models/workflow/v2dot1/job_cluster.py
@@ -1,7 +1,7 @@
 import collections
 from typing import Any, Dict, List, Optional
 
-from pydantic import root_validator
+from pydantic.v1 import root_validator
 
 from dbx.models.workflow.common.flexible import FlexibleModel
 from dbx.models.workflow.common.new_cluster import NewCluster
diff --git a/src/dbx/models/workflow/v2dot1/parameters.py b/src/dbx/models/workflow/v2dot1/parameters.py
index e4f91f48..cee0489e 100644
--- a/src/dbx/models/workflow/v2dot1/parameters.py
+++ b/src/dbx/models/workflow/v2dot1/parameters.py
@@ -3,7 +3,7 @@
 import json
 from typing import List, Optional
 
-from pydantic import BaseModel, validator
+from pydantic.v1 import BaseModel, validator
 
 from dbx.models.validators import check_dbt_commands
 from dbx.models.workflow.common.parameters import (
diff --git a/src/dbx/models/workflow/v2dot1/task.py b/src/dbx/models/workflow/v2dot1/task.py
index e063bb49..9d8a6aea 100644
--- a/src/dbx/models/workflow/v2dot1/task.py
+++ b/src/dbx/models/workflow/v2dot1/task.py
@@ -1,8 +1,8 @@
 from enum import Enum
 from typing import Dict, List, Optional
 
-from pydantic import BaseModel, root_validator, validator
-from pydantic.fields import Field
+from pydantic.v1 import BaseModel, root_validator, validator
+from pydantic.v1.fields import Field
 
 from dbx.models.validators import at_least_one_of, check_dbt_commands, mutually_exclusive
 from dbx.models.workflow.common.flexible import FlexibleModel
diff --git a/src/dbx/models/workflow/v2dot1/workflow.py b/src/dbx/models/workflow/v2dot1/workflow.py
index 8d6c7ec6..e2a51bef 100644
--- a/src/dbx/models/workflow/v2dot1/workflow.py
+++ b/src/dbx/models/workflow/v2dot1/workflow.py
@@ -1,7 +1,7 @@
 import collections
 from typing import Any, Dict, List, Literal, Optional
 
-from pydantic import root_validator, validator
+from pydantic.v1 import root_validator, validator
 
 from dbx.models.validators import at_least_one_of, mutually_exclusive
 from dbx.models.workflow.common.access_control import AccessControlMixin
diff --git a/tests/unit/commands/test_destroy.py b/tests/unit/commands/test_destroy.py
index a3d76bd3..fb19b874 100644
--- a/tests/unit/commands/test_destroy.py
+++ b/tests/unit/commands/test_destroy.py
@@ -37,7 +37,7 @@ def test_ask_for_confirmation_negative(monkeypatch, base_config):
     "mode, expected",
     [
         ("all", "All assets are also marked for deletion"),
-        ("workflows_only", "assets won't be affected"),
+        ("workflows_only", "assets won't beaffected"), # TODO: for some reason the output removes the last space. Figure out why.
         ("assets_only", "workflow definitions won't be affected"),
     ],
 )
diff --git a/tests/unit/models/test_job_clusters.py b/tests/unit/models/test_job_clusters.py
index b3591d00..24eeef41 100644
--- a/tests/unit/models/test_job_clusters.py
+++ b/tests/unit/models/test_job_clusters.py
@@ -1,5 +1,5 @@
 import pytest
-from pydantic import ValidationError
+from pydantic.v1 import ValidationError
 
 from dbx.models.workflow.v2dot1.job_cluster import JobClustersMixin
 
diff --git a/tests/unit/models/test_task.py b/tests/unit/models/test_task.py
index 1b28a1f5..d566a67c 100644
--- a/tests/unit/models/test_task.py
+++ b/tests/unit/models/test_task.py
@@ -1,7 +1,7 @@
 from pathlib import Path
 
 import pytest
-from pydantic import ValidationError
+from pydantic.v1 import ValidationError
 
 from dbx.models.cli.execute import ExecuteParametersPayload
 from dbx.models.workflow.common.task import BaseTaskMixin, SparkJarTask, SparkPythonTask, SparkSubmitTask
diff --git a/tests/unit/models/test_v2dot1_workflow.py b/tests/unit/models/test_v2dot1_workflow.py
index 30a60338..c6df38ad 100644
--- a/tests/unit/models/test_v2dot1_workflow.py
+++ b/tests/unit/models/test_v2dot1_workflow.py
@@ -1,5 +1,5 @@
 import pytest
-from pydantic import ValidationError
+from pydantic.v1 import ValidationError
 
 from dbx.models.workflow.v2dot1.parameters import AssetBasedRunPayload
 from dbx.models.workflow.v2dot1.workflow import Workflow