diff --git a/.buildkite/serve.rayci.yml b/.buildkite/serve.rayci.yml
index a47c5d2d0294..e72e6c63f6f2 100644
--- a/.buildkite/serve.rayci.yml
+++ b/.buildkite/serve.rayci.yml
@@ -5,8 +5,8 @@ steps:
     wanda: ci/docker/serve.build.wanda.yaml
     depends_on: oss-ci-base_build
 
-  - name: servepydantic2build
-    wanda: ci/docker/servepydantic2.build.wanda.yaml
+  - name: servepydantic1build
+    wanda: ci/docker/servepydantic1.build.wanda.yaml
     depends_on: oss-ci-base_build
 
   - name: servepython311build
@@ -28,7 +28,7 @@ steps:
     depends_on: servebuild
     job_env: forge
 
-  - label: ":ray-serve: serve: pydantic >= 2.0 tests"
+  - label: ":ray-serve: serve: pydantic < 2.0 tests"
     parallelism: 2
     tags: 
       - serve
@@ -39,8 +39,8 @@ steps:
       - bazel run //ci/ray_ci:test_in_docker -- //python/ray/serve/... //python/ray/tests/...  serve 
         --except-tags post_wheel_build,gpu,worker-container,xcommit
         --workers "$${BUILDKITE_PARALLEL_JOB_COUNT}" --worker-id "$${BUILDKITE_PARALLEL_JOB}" --parallelism-per-worker 3
-        --build-name servepydantic2build --test-env=EXPECTED_PYTHON_VERSION=3.8 --test-env=EXPECTED_PYDANTIC_VERSION=2.4.2
-    depends_on: servepydantic2build
+        --build-name servepydantic1build --test-env=EXPECTED_PYTHON_VERSION=3.8 --test-env=EXPECTED_PYDANTIC_VERSION=1.10.12
+    depends_on: servepydantic1build
     job_env: forge
 
   - label: ":ray-serve: serve: Python 3.11 tests"
diff --git a/ci/docker/serve.build.Dockerfile b/ci/docker/serve.build.Dockerfile
index 733d8c8cf802..895ab4543fae 100644
--- a/ci/docker/serve.build.Dockerfile
+++ b/ci/docker/serve.build.Dockerfile
@@ -4,7 +4,7 @@ ARG DOCKER_IMAGE_BASE_BUILD=cr.ray.io/rayproject/oss-ci-base_build
 FROM $DOCKER_IMAGE_BASE_BUILD
 
 ARG PYTHON_VERSION
-ARG PYDANTIC_BUILD_COMMIT
+ARG PYDANTIC_VERSION
 
 # Unset dind settings; we are using the host's docker daemon.
 ENV DOCKER_TLS_CERTDIR=
@@ -45,8 +45,8 @@ pip install -c python/requirements_compiled.txt aioboto3
 git clone https://github.com/wg/wrk.git /tmp/wrk && pushd /tmp/wrk && make -j && sudo cp wrk /usr/local/bin && popd
 
 # Install custom Pydantic version if requested.
-if [[ -n "${PYDANTIC_BUILD_COMMIT-}" ]]; then 
-  pip install -U git+https://github.com/pydantic/pydantic@$PYDANTIC_BUILD_COMMIT
+if [[ -n "${PYDANTIC_VERSION-}" ]]; then 
+  pip install -U pydantic==$PYDANTIC_VERSION
 else 
   echo "Not installing Pydantic from source"
 fi
diff --git a/ci/docker/servepydantic1.build.wanda.yaml b/ci/docker/servepydantic1.build.wanda.yaml
new file mode 100644
index 000000000000..84dda6497b19
--- /dev/null
+++ b/ci/docker/servepydantic1.build.wanda.yaml
@@ -0,0 +1,11 @@
+name: "servepydantic1build"
+froms: ["cr.ray.io/rayproject/oss-ci-base_build"]
+dockerfile: ci/docker/serve.build.Dockerfile
+srcs:
+  - python/requirements.txt
+  - python/requirements_compiled.txt
+  - python/requirements/test-requirements.txt
+build_args:
+  - PYDANTIC_VERSION=1.10.12
+tags:
+  - cr.ray.io/rayproject/servepydantic1build
diff --git a/ci/docker/servepydantic2.build.wanda.yaml b/ci/docker/servepydantic2.build.wanda.yaml
deleted file mode 100644
index 1910f1340dfc..000000000000
--- a/ci/docker/servepydantic2.build.wanda.yaml
+++ /dev/null
@@ -1,15 +0,0 @@
-name: "servepydantic2build"
-froms: ["cr.ray.io/rayproject/oss-ci-base_build"]
-dockerfile: ci/docker/serve.build.Dockerfile
-srcs:
-  - python/requirements.txt
-  - python/requirements_compiled.txt
-  - python/requirements/test-requirements.txt
-build_args:
-  # Pydantic commit containing fixes for
-  # https://github.com/pydantic/pydantic/issues/6763.
-  # We can stop building from source once the next release containing
-  # these fixes goes out (should be 2.5.0).
-  - PYDANTIC_BUILD_COMMIT=60c5db6e1ea55d4e5fc13234810d513b3b1b03ae
-tags:
-  - cr.ray.io/rayproject/servepydantic2build
diff --git a/doc/requirements-doc.txt b/doc/requirements-doc.txt
index 5a5c37e359f5..e660e58313c9 100644
--- a/doc/requirements-doc.txt
+++ b/doc/requirements-doc.txt
@@ -19,10 +19,10 @@ sphinx-sitemap==2.2.0
 sphinxcontrib-redoc==1.6.0
 sphinx-tabs==3.4.0
 sphinx-remove-toctrees==0.0.3
-autodoc_pydantic==1.6.1
+autodoc_pydantic==2.0.1
 sphinx_design==0.4.1
 
-pydantic<2 # Pydantic is required by autodoc_pydantic, but must be <2 for ray
+pydantic!=2.0.*,!=2.1.*,!=2.2.*,!=2.3.*,!=2.4.*,<3
 
 # MyST
 myst-parser==0.15.2
diff --git a/doc/source/_templates/autosummary/class_with_inherited_members.rst b/doc/source/_templates/autosummary/class_with_inherited_members.rst
new file mode 100644
index 000000000000..21b10a6d5150
--- /dev/null
+++ b/doc/source/_templates/autosummary/class_with_inherited_members.rst
@@ -0,0 +1,7 @@
+{{ fullname | escape | underline}}
+
+.. currentmodule:: {{ module }}
+
+.. autoclass:: {{ objname }}
+    :members:
+    :inherited-members: pydantic.BaseModel
diff --git a/doc/source/ray-overview/pip_freeze_ray-ml-py39-cpu.txt b/doc/source/ray-overview/pip_freeze_ray-ml-py39-cpu.txt
index 20e4672efa54..e827774e3e4f 100644
--- a/doc/source/ray-overview/pip_freeze_ray-ml-py39-cpu.txt
+++ b/doc/source/ray-overview/pip_freeze_ray-ml-py39-cpu.txt
@@ -96,7 +96,7 @@ databricks-cli==0.18.0
 datasets==2.0.0
 debugpy==1.8.0
 decorator==5.1.1
-deepspeed==0.8.3
+deepspeed==0.12.3
 defusedxml==0.7.1
 Deprecated==1.2.14
 dill==0.3.7
diff --git a/doc/source/serve/api/index.md b/doc/source/serve/api/index.md
index 4e51dcb11b27..eef56a6e5e95 100644
--- a/doc/source/serve/api/index.md
+++ b/doc/source/serve/api/index.md
@@ -354,6 +354,7 @@ Content-Type: application/json
 .. autosummary::
    :nosignatures:
    :toctree: doc/
+   :template: autosummary/class_with_inherited_members.rst
 
    schema.ServeInstanceDetails
    schema.ApplicationDetails
diff --git a/python/ray/_private/pydantic_compat.py b/python/ray/_private/pydantic_compat.py
index 0bf7a6cce822..8cfc64e26050 100644
--- a/python/ray/_private/pydantic_compat.py
+++ b/python/ray/_private/pydantic_compat.py
@@ -57,3 +57,35 @@
         root_validator,
         validator,
     )
+
+
+def register_pydantic_serializers(serialization_context):
+    if not PYDANTIC_INSTALLED:
+        return
+
+    if IS_PYDANTIC_2:
+        # TODO(edoakes): compare against the version that has the fixes.
+        from pydantic.v1.fields import ModelField
+    else:
+        from pydantic.fields import ModelField
+
+    # Pydantic's Cython validators are not serializable.
+    # https://github.com/cloudpipe/cloudpickle/issues/408
+    serialization_context._register_cloudpickle_serializer(
+        ModelField,
+        custom_serializer=lambda o: {
+            "name": o.name,
+            # outer_type_ is the original type for ModelFields,
+            # while type_ can be updated later with the nested type
+            # like int for List[int].
+            "type_": o.outer_type_,
+            "class_validators": o.class_validators,
+            "model_config": o.model_config,
+            "default": o.default,
+            "default_factory": o.default_factory,
+            "required": o.required,
+            "alias": o.alias,
+            "field_info": o.field_info,
+        },
+        custom_deserializer=lambda kwargs: ModelField(**kwargs),
+    )
diff --git a/python/ray/autoscaler/_private/commands.py b/python/ray/autoscaler/_private/commands.py
index d32b1b239043..e0b6ef7f514f 100644
--- a/python/ray/autoscaler/_private/commands.py
+++ b/python/ray/autoscaler/_private/commands.py
@@ -112,7 +112,9 @@ def try_reload_log_state(provider_config: Dict[str, Any], log_state: dict) -> No
         return reload_log_state(log_state)
 
 
-def debug_status(status, error, verbose: bool = False, address: str = None) -> str:
+def debug_status(
+    status, error, verbose: bool = False, address: Optional[str] = None
+) -> str:
     """
     Return a debug string for the autoscaler.
 
@@ -1058,7 +1060,7 @@ def attach_cluster(
 def exec_cluster(
     config_file: str,
     *,
-    cmd: str = None,
+    cmd: Optional[str] = None,
     run_env: str = "auto",
     screen: bool = False,
     tmux: bool = False,
diff --git a/python/ray/autoscaler/sdk/sdk.py b/python/ray/autoscaler/sdk/sdk.py
index 42c5557ac7b8..8cb07e947016 100644
--- a/python/ray/autoscaler/sdk/sdk.py
+++ b/python/ray/autoscaler/sdk/sdk.py
@@ -128,7 +128,7 @@ def rsync(
     source: Optional[str],
     target: Optional[str],
     down: bool,
-    ip_address: str = None,
+    ip_address: Optional[str] = None,
     use_internal_ip: bool = False,
     no_config_cache: bool = False,
     should_bootstrap: bool = True
diff --git a/python/ray/tests/test_client.py b/python/ray/tests/test_client.py
index 43ed1dc9f4f3..39d61e3a7d45 100644
--- a/python/ray/tests/test_client.py
+++ b/python/ray/tests/test_client.py
@@ -6,9 +6,12 @@
 import threading
 import time
 from unittest.mock import Mock, patch
+from typing import Type
 
 import numpy as np
 import pytest
+from pydantic import BaseModel as BaseModelV2
+from pydantic.v1 import BaseModel as BaseModelV1
 
 import ray.cloudpickle as cloudpickle
 import ray.util.client.server.server as ray_client_server
@@ -686,10 +689,9 @@ def test_client_gpu_ids(call_ray_start_shared):
             assert ray.get_gpu_ids() == []
 
 
-def test_client_serialize_addon(call_ray_start_shared):
-    import pydantic
-
-    class User(pydantic.BaseModel):
+@pytest.mark.parametrize("BaseModel", [BaseModelV1, BaseModelV2])
+def test_client_serialize_addon(call_ray_start_shared, BaseModel: Type):
+    class User(BaseModel):
         name: str
 
     with ray_start_client_server_for_address(call_ray_start_shared) as ray:
diff --git a/python/ray/tests/test_pydantic_serialization.py b/python/ray/tests/test_pydantic_serialization.py
index 93ee43d0d75b..bcc8c4d25833 100644
--- a/python/ray/tests/test_pydantic_serialization.py
+++ b/python/ray/tests/test_pydantic_serialization.py
@@ -1,15 +1,27 @@
 from dataclasses import dataclass
-from typing import Any, Dict, List, Optional
+from typing import Any, Dict, List, Optional, Type
+import os
+import sys
 
 import pytest
 from fastapi import FastAPI
 
-# Intentionally import directly from pydantic instead of pydantic_compat because
-# we want to test serializing both the v1 and v2 model implementations.
-from pydantic import BaseModel
+try:
+    # Testing with Pydantic 2
+    from pydantic import BaseModel as BaseModelV2
+    from pydantic.v1 import BaseModel as BaseModelV1
+
+    BASE_MODELS = [BaseModelV1, BaseModelV2]
+except ImportError:
+    # Testing with Pydantic 1
+    from pydantic import BaseModel as BaseModelV1
+
+    BaseModelV2 = None
+    BASE_MODELS = [BaseModelV1]
 
 import ray
-from ray._private.pydantic_compat import IS_PYDANTIC_2
+
+from ray.tests.pydantic_module import User, app, user, closure
 
 
 @pytest.fixture(scope="session")
@@ -17,38 +29,40 @@ def start_ray():
     ray.init(ignore_reinit_error=True)
 
 
-def test_serialize_cls(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_cls(start_ray, BaseModel: Type):
     class User(BaseModel):
         name: str
 
     ray.get(ray.put(User))
 
 
-def test_serialize_instance(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_instance(start_ray, BaseModel: Type):
     class User(BaseModel):
         name: str
 
     ray.get(ray.put(User(name="a")))
 
 
-def test_serialize_imported_cls(start_ray):
-    from pydantic_module import User
-
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_imported_cls(start_ray, BaseModel: Type):
     ray.get(ray.put(User))
 
 
-def test_serialize_imported_instance(start_ray):
-    from pydantic_module import user
-
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_imported_instance(start_ray, BaseModel: Type):
     ray.get(ray.put(user))
 
 
-def test_serialize_app_no_route(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_no_route(start_ray, BaseModel: Type):
     app = FastAPI()
     ray.get(ray.put(app))
 
 
-def test_serialize_app_no_validation(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_no_validation(start_ray, BaseModel: Type):
     app = FastAPI()
 
     @app.get("/")
@@ -58,7 +72,8 @@ def hello() -> str:
     ray.get(ray.put(app))
 
 
-def test_serialize_app_primitive_type(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_primitive_type(start_ray, BaseModel: Type):
     app = FastAPI()
 
     @app.get("/")
@@ -68,9 +83,8 @@ def hello(v: str) -> str:
     ray.get(ray.put(app))
 
 
-def test_serialize_app_pydantic_type_imported(start_ray):
-    from pydantic_module import User
-
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_pydantic_type_imported(start_ray, BaseModel: Type):
     app = FastAPI()
 
     @app.get("/")
@@ -80,7 +94,8 @@ def hello(v: str, u: User) -> str:
     ray.get(ray.put(app))
 
 
-def test_serialize_app_pydantic_type_inline(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_pydantic_type_inline(start_ray, BaseModel: Type):
     class User(BaseModel):
         name: str
 
@@ -93,13 +108,13 @@ def hello(v: str, u: User) -> str:
     ray.get(ray.put(app))
 
 
-def test_serialize_app_imported(start_ray):
-    from pydantic_module import app
-
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_imported(start_ray, BaseModel: Type):
     ray.get(ray.put(app))
 
 
-def test_serialize_app_pydantic_type_closure_ref(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_pydantic_type_closure_ref(start_ray, BaseModel: Type):
     class User(BaseModel):
         name: str
 
@@ -115,9 +130,8 @@ def hello(v: str, u: User) -> str:
     ray.get(ray.put(make))
 
 
-def test_serialize_app_pydantic_type_closure_ref_import(start_ray):
-    from pydantic_module import User
-
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_pydantic_type_closure_ref_import(start_ray, BaseModel: Type):
     def make():
         app = FastAPI()
 
@@ -130,7 +144,8 @@ def hello(v: str, u: User) -> str:
     ray.get(ray.put(make))
 
 
-def test_serialize_app_pydantic_type_closure(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_pydantic_type_closure(start_ray, BaseModel: Type):
     def make():
         class User(BaseModel):
             name: str
@@ -146,17 +161,14 @@ def hello(v: str, u: User) -> str:
     ray.get(ray.put(make))
 
 
-def test_serialize_app_imported_closure(start_ray):
-    from pydantic_module import closure
-
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_app_imported_closure(start_ray, BaseModel: Type):
     ray.get(ray.put(closure))
 
 
-@pytest.mark.skipif(
-    not IS_PYDANTIC_2,
-    reason="Test fails with Pydantic 1.10.12, but succeeds with Pydantic 1.9.2.",
-)
-def test_serialize_serve_dataclass(start_ray):
+# TODO: Serializing a Serve dataclass doesn't work in Pydantic 1.10 – 2.0.
+@pytest.mark.parametrize("BaseModel", [BaseModelV2] if BaseModelV2 else [])
+def test_serialize_serve_dataclass(start_ray, BaseModel: Type):
     @dataclass
     class BackendMetadata:
         is_blocking: bool = True
@@ -174,7 +186,8 @@ def consume(f):
     ray.get(consume.remote(BackendConfig()))
 
 
-def test_serialize_nested_field(start_ray):
+@pytest.mark.parametrize("BaseModel", BASE_MODELS)
+def test_serialize_nested_field(start_ray, BaseModel: Type):
     class B(BaseModel):
         v: List[int]
 
@@ -190,9 +203,6 @@ def func():
 
 
 if __name__ == "__main__":
-    import os
-    import sys
-
     if os.environ.get("PARALLEL_CI"):
         sys.exit(pytest.main(["-n", "auto", "--boxed", "-vs", __file__]))
     else:
diff --git a/python/ray/tests/test_serialization.py b/python/ray/tests/test_serialization.py
index c042faeae075..084ff8b5cf37 100644
--- a/python/ray/tests/test_serialization.py
+++ b/python/ray/tests/test_serialization.py
@@ -678,33 +678,6 @@ def custom_deserializer(b):
     ray.get(ray.put(A(1)))  # success!
 
 
-def test_serialization_pydantic(ray_start_regular):
-    @ray.remote
-    def test(pydantic_model):
-        return pydantic_model.x
-
-    @ray.remote(runtime_env={"pip": ["pydantic<2"]})
-    def py1():
-        from pydantic import BaseModel
-
-        class Foo(BaseModel):
-            x: int
-
-        return ray.get(test.remote(Foo(x=1)))
-
-    @ray.remote(runtime_env={"pip": ["pydantic>=2"]})
-    def py2():
-        from pydantic.v1 import BaseModel
-
-        class Foo(BaseModel):
-            x: int
-
-        return ray.get(test.remote(Foo(x=2)))
-
-    assert ray.get(py1.remote()) == 1
-    assert ray.get(py2.remote()) == 2
-
-
 if __name__ == "__main__":
     import os
     import pytest
diff --git a/python/ray/tests/test_typing.py b/python/ray/tests/test_typing.py
index e36416bd2e0a..ee03f04fa232 100644
--- a/python/ray/tests/test_typing.py
+++ b/python/ray/tests/test_typing.py
@@ -1,49 +1,46 @@
 import os
 import shutil
 import sys
+import tempfile
 
 import mypy.api as mypy_api
 import pytest
 
-TYPING_TEST_DIRS = os.path.join(os.path.dirname(__file__), "typing_files")
+
+# Paths are relative to the directory where Bazel is run in the CI
+TYPING_GOOD_PATH = "python/ray/tests/typing_files/check_typing_good.py"
+TYPING_BAD_PATH = "python/ray/tests/typing_files/check_typing_bad.py"
 
 
 def test_typing_good():
-    script = "check_typing_good.py"
-    # the following check indicates that check_typing_good.py
-    # is not present in the current directory, so follow
-    # the path specified TYPING_TEST_DIRS
-    if not os.path.exists(script):
-        script = os.path.join(TYPING_TEST_DIRS, script)
-    _, msg, status_code = mypy_api.run([script])
+    typing_good_tmp_path = create_tmp_copy(TYPING_GOOD_PATH)
+    _, msg, status_code = mypy_api.run([typing_good_tmp_path])
     assert status_code == 0, msg
 
 
 def test_typing_bad():
-    script = "check_typing_bad.py"
-    # the following check indicates that check_typing_bad.py
-    # is not present in the current directory, so follow
-    # the path specified TYPING_TEST_DIRS
-    if not os.path.exists(script):
-        script = os.path.join(TYPING_TEST_DIRS, script)
-    _, msg, status_code = mypy_api.run([script])
+    typing_bad_tmp_path = create_tmp_copy(TYPING_BAD_PATH)
+    _, msg, status_code = mypy_api.run([typing_bad_tmp_path])
     assert status_code == 1, msg
 
 
+def create_tmp_copy(file_path: str) -> str:
+    """Copies file at file_path to a temporary file and returns the path."""
+
+    base_file_name = os.path.basename(file_path)
+    tmp_dir = tempfile.gettempdir()
+    tmp_path = os.path.join(tmp_dir, base_file_name)
+    shutil.copy(file_path, tmp_path)
+    print(f"Copied file at {file_path} to {tmp_path}")
+
+    return tmp_path
+
+
 if __name__ == "__main__":
     # Make subprocess happy in bazel.
     os.environ["LC_ALL"] = "en_US.UTF-8"
     os.environ["LANG"] = "en_US.UTF-8"
-    # copying is necessary because otherwise, ray is imported from the source
-    # files in directory, `Bazel.runfiles_*/runfiles/com_github_ray_project_ray/python`
-    # and mypy is unable to detect attributes that should be present in ray.
-    typing_files_dir = "python/ray/tests/typing_files/"
-    checking_typing_good = typing_files_dir + "check_typing_good.py"
-    checking_typing_bad = typing_files_dir + "check_typing_bad.py"
-    if os.path.exists(checking_typing_good):
-        shutil.copy(checking_typing_good, os.getcwd())
-    if os.path.exists(checking_typing_bad):
-        shutil.copy(checking_typing_bad, os.getcwd())
+
     if os.environ.get("PARALLEL_CI"):
         sys.exit(pytest.main(["-n", "auto", "--boxed", "-vs", __file__]))
     else:
diff --git a/python/ray/util/serialization_addons.py b/python/ray/util/serialization_addons.py
index ef4b4c1af902..cdf0b50a7a22 100644
--- a/python/ray/util/serialization_addons.py
+++ b/python/ray/util/serialization_addons.py
@@ -6,55 +6,7 @@
 import sys
 
 from ray.util.annotations import DeveloperAPI
-
-
-@DeveloperAPI
-def register_pydantic_serializer(serialization_context):
-    try:
-        from pydantic import fields
-    except ImportError:
-        fields = None
-
-    try:
-        from pydantic.v1 import fields as pydantic_v1_fields
-    except ImportError:
-        pydantic_v1_fields = None
-
-    if hasattr(fields, "ModelField"):
-        ModelField = fields.ModelField
-    elif pydantic_v1_fields:
-        ModelField = pydantic_v1_fields.ModelField
-    else:
-        ModelField = None
-
-    if ModelField is not None:
-        # In Pydantic 2.x, ModelField has been removed so this serialization
-        # strategy no longer works. We keep this code around to allow support
-        # for users with pydantic 1.x installed or users using pydantic.v1
-        # import within the pydantic 2.x package.
-        # TODO(aguo): Figure out how to enable cloudpickle serialization for
-        # pydantic 2.x
-
-        # Pydantic's Cython validators are not serializable.
-        # https://github.com/cloudpipe/cloudpickle/issues/408
-        serialization_context._register_cloudpickle_serializer(
-            ModelField,
-            custom_serializer=lambda o: {
-                "name": o.name,
-                # outer_type_ is the original type for ModelFields,
-                # while type_ can be updated later with the nested type
-                # like int for List[int].
-                "type_": o.outer_type_,
-                "class_validators": o.class_validators,
-                "model_config": o.model_config,
-                "default": o.default,
-                "default_factory": o.default_factory,
-                "required": o.required,
-                "alias": o.alias,
-                "field_info": o.field_info,
-            },
-            custom_deserializer=lambda kwargs: ModelField(**kwargs),
-        )
+from ray._private.pydantic_compat import register_pydantic_serializers
 
 
 @DeveloperAPI
@@ -75,7 +27,7 @@ def register_starlette_serializer(serialization_context):
 
 @DeveloperAPI
 def apply(serialization_context):
-    register_pydantic_serializer(serialization_context)
+    register_pydantic_serializers(serialization_context)
     register_starlette_serializer(serialization_context)
 
     if sys.platform != "win32":
diff --git a/python/requirements.txt b/python/requirements.txt
index 3a226f356298..89bb00cf7882 100644
--- a/python/requirements.txt
+++ b/python/requirements.txt
@@ -58,6 +58,6 @@ starlette
 typer
 fsspec
 pandas>=1.3
-pydantic<2
+pydantic!=2.0.*,!=2.1.*,!=2.2.*,!=2.3.*,!=2.4.*,<3  # Serve users can use pydantic<2
 py-spy>=0.2.0
 watchfiles
diff --git a/python/requirements/lint-requirements.txt b/python/requirements/lint-requirements.txt
index 530fc2435b24..8b0ae01d336f 100644
--- a/python/requirements/lint-requirements.txt
+++ b/python/requirements/lint-requirements.txt
@@ -4,7 +4,7 @@ flake8==3.9.1
 flake8-comprehensions==3.10.1
 flake8-quotes==2.0.0
 flake8-bugbear==21.9.2
-mypy==0.982
+mypy==1.7.0
 types-PyYAML==6.0.12.2
 black==22.10.0
 isort==5.10.1
diff --git a/python/requirements/ml/train-requirements.txt b/python/requirements/ml/train-requirements.txt
index 60aa442b4c32..397c7e254855 100644
--- a/python/requirements/ml/train-requirements.txt
+++ b/python/requirements/ml/train-requirements.txt
@@ -1,2 +1,2 @@
-deepspeed==0.8.3
+deepspeed==0.12.3
 datasets
diff --git a/python/requirements/test-requirements.txt b/python/requirements/test-requirements.txt
index f93087db50eb..06d2d1776111 100644
--- a/python/requirements/test-requirements.txt
+++ b/python/requirements/test-requirements.txt
@@ -32,7 +32,7 @@ kubernetes==24.2.0
 llvmlite==0.41.1
 lxml==4.9.1
 moto[s3,server]==4.0.7
-mypy==0.982
+mypy==1.7.0
 numba==0.58.1
 openpyxl==3.0.10
 opentelemetry-api==1.1.0
@@ -42,7 +42,7 @@ opentelemetry-exporter-opencensus==0.20b0
 pexpect==4.8.0
 Pillow==9.2.0; platform_system != "Windows"
 proxy.py==2.4.3
-pydantic==1.10.12
+pydantic==2.5.0
 pydot==1.4.2
 # Keep in sync with `ci/build/upload_build_info.sh`
 PyOpenSSL==22.1.0
diff --git a/python/requirements_compiled.txt b/python/requirements_compiled.txt
index 287b4de8b1b6..08cb88139701 100644
--- a/python/requirements_compiled.txt
+++ b/python/requirements_compiled.txt
@@ -79,14 +79,17 @@ alembic==1.12.1
     #   aim
     #   mlflow
     #   optuna
-alive-progress==3.1.4
+alive-progress==3.1.5
     # via pymoo
 altair==5.1.2
     # via gradio
+annotated-types==0.6.0
+    # via pydantic
 anyio==3.7.1
     # via
     #   fastapi
     #   httpcore
+    #   httpx
     #   jupyter-server
     #   starlette
     #   watchfiles
@@ -136,7 +139,7 @@ attrs==21.4.0
     #   sarif-om
     #   semgrep
     #   sphinx-external-toc
-autodoc-pydantic==1.6.1
+autodoc-pydantic==2.0.1
     # via -r /ray/ci/../doc/requirements-doc.txt
 autograd==1.6.2
     # via pymoo
@@ -258,9 +261,9 @@ cffi==1.16.0
     #   pymunk
     #   pynacl
     #   soundfile
-cfn-lint==0.83.1
+cfn-lint==0.83.3
     # via moto
-charset-normalizer==3.3.1
+charset-normalizer==3.3.2
     # via
     #   aiohttp
     #   requests
@@ -317,6 +320,7 @@ colorama==0.4.6
     #   bayesian-optimization
     #   nbdime
     #   semgrep
+    #   typer
 coloredlogs==15.0.1
     # via onnxruntime
 colorful==0.5.5
@@ -325,7 +329,7 @@ colorlog==6.7.0
     # via optuna
 comet-ml==3.31.9
     # via -r /ray/ci/../python/requirements/ml/core-requirements.txt
-comm==0.1.4
+comm==0.2.0
     # via
     #   ipykernel
     #   ipywidgets
@@ -384,7 +388,7 @@ decorator==5.1.1
     #   ipython
     #   paramz
     #   tensorflow-probability
-deepspeed==0.8.3
+deepspeed==0.12.3
     # via -r /ray/ci/../python/requirements/ml/train-requirements.txt
 defusedxml==0.7.1
     # via
@@ -462,7 +466,7 @@ etils==1.3.0
     #   tensorflow-datasets
 evaluate==0.4.0
     # via -r /ray/ci/../python/requirements/ml/train-test-requirements.txt
-everett==3.2.0
+everett==3.3.0
     # via comet-ml
 exceptiongroup==1.1.3
     # via anyio
@@ -486,7 +490,7 @@ fasteners==0.19
     # via
     #   google-apitools
     #   gsutil
-fastjsonschema==2.18.1
+fastjsonschema==2.19.0
     # via nbformat
 feather-format==0.4.1
     # via -r /ray/ci/../python/requirements/test-requirements.txt
@@ -532,7 +536,7 @@ flatbuffers==2.0.7
     #   tf2onnx
 flax==0.7.2
     # via dopamine-rl
-fonttools==4.43.1
+fonttools==4.44.3
     # via matplotlib
 fqdn==1.5.1
     # via jsonschema
@@ -585,7 +589,7 @@ glfw==2.6.2
     #   mujoco
 glom==22.1.0
     # via semgrep
-google-api-core==2.12.0
+google-api-core==2.14.0
     # via
     #   google-api-python-client
     #   google-cloud-bigquery
@@ -728,7 +732,7 @@ httpx==0.24.1
     # via
     #   gradio
     #   gradio-client
-huggingface-hub==0.18.0
+huggingface-hub==0.19.3
     # via
     #   datasets
     #   evaluate
@@ -764,6 +768,7 @@ importlib-metadata==4.10.0
     #   -r /ray/ci/../python/requirements/test-requirements.txt
     #   ale-py
     #   alembic
+    #   autodoc-pydantic
     #   flask
     #   gym
     #   gymnasium
@@ -1013,7 +1018,7 @@ lxml==4.9.1
     #   vsphere-automation-sdk
 lz4==4.3.2
     # via -r /ray/ci/../python/requirements.txt
-mako==1.2.4
+mako==1.3.0
     # via alembic
 markdown==3.5.1
     # via
@@ -1066,8 +1071,7 @@ mlagents-envs==0.28.0
 mlflow==2.4.1
     # via -r /ray/ci/../python/requirements/ml/core-requirements.txt
 mock==5.1.0
-    # via
-    #   pytest-shutil
+    # via pytest-shutil
 modin==0.22.2
     # via -r /ray/ci/../python/requirements/ml/data-requirements.txt
 monotonic==1.6
@@ -1124,7 +1128,7 @@ multiprocess==0.70.15
     # via
     #   datasets
     #   evaluate
-mypy==0.982
+mypy==1.7.0
     # via
     #   -r /ray/ci/../python/requirements/lint-requirements.txt
     #   -r /ray/ci/../python/requirements/test-requirements.txt
@@ -1307,7 +1311,7 @@ numpy==1.23.5 ; python_version < "3.9"
     #   xgboost
     #   xgboost-ray
     #   zoopt
-nvidia-ml-py==12.535.108
+nvidia-ml-py==12.535.133
     # via gpustat
 oauth2client==4.1.3
     # via
@@ -1464,7 +1468,7 @@ pathtools==0.1.2
     # via wandb
 patsy==0.5.3
     # via statsmodels
-pbr==5.11.1
+pbr==6.0.0
     # via
     #   jschema-to-python
     #   sarif-om
@@ -1521,7 +1525,7 @@ promise==2.3
     # via
     #   tensorflow-datasets
     #   wandb
-prompt-toolkit==3.0.39
+prompt-toolkit==3.0.41
     # via ipython
 proto-plus==1.22.3
     # via
@@ -1614,7 +1618,7 @@ pycodestyle==2.7.0
     # via flake8
 pycparser==2.21
     # via cffi
-pydantic==1.10.12
+pydantic==2.5.0
     # via
     #   -r /ray/ci/../doc/requirements-doc.txt
     #   -r /ray/ci/../python/requirements.txt
@@ -1624,6 +1628,11 @@ pydantic==1.10.12
     #   deepspeed
     #   fastapi
     #   gradio
+    #   pydantic-settings
+pydantic-core==2.14.1
+    # via pydantic
+pydantic-settings==2.1.0
+    # via autodoc-pydantic
 pydata-sphinx-theme==0.8.1
     # via sphinx-book-theme
 pydeprecate==0.3.2
@@ -1762,6 +1771,8 @@ python-dateutil==2.8.2
     #   moto
     #   pandas
     #   segment-analytics-python
+python-dotenv==1.0.0
+    # via pydantic-settings
 python-jose==3.3.0
     # via moto
 python-json-logger==2.0.7
@@ -1908,7 +1919,6 @@ requests-toolbelt==1.0.0
 responses==0.13.4
     # via
     #   -r /ray/ci/../python/requirements/ml/data-requirements.txt
-    #   datasets
     #   evaluate
     #   moto
 restrictedpython==6.2
@@ -1933,6 +1943,7 @@ rich==12.6.0
     #   flax
     #   memray
     #   semgrep
+    #   typer
 rsa==4.7.2
     # via
     #   gcs-oauth2-boto-plugin
@@ -2019,7 +2030,7 @@ send2trash==1.8.2
     #   notebook
 sentencepiece==0.1.96
     # via -r /ray/ci/../python/requirements/ml/train-test-requirements.txt
-sentry-sdk==1.33.1
+sentry-sdk==1.35.0
     # via
     #   comet-ml
     #   wandb
@@ -2031,6 +2042,8 @@ setproctitle==1.3.3
     # via wandb
 shellcheck-py==0.7.1.1
     # via -r /ray/ci/../python/requirements/lint-requirements.txt
+shellingham==1.5.4
+    # via typer
 shimmy==1.3.0
     # via -r /ray/ci/../python/requirements/ml/rllib-test-requirements.txt
 shortuuid==1.0.1
@@ -2245,7 +2258,7 @@ termcolor==2.3.0
     #   pytest-sugar
     #   tensorflow
     #   tensorflow-datasets
-terminado==0.17.1
+terminado==0.18.0
     # via
     #   jupyter-server
     #   nbclassic
@@ -2283,8 +2296,10 @@ tomli==2.0.1
     #   mypy
     #   pytest
     #   semgrep
-tomlkit==0.12.1
-    # via yq
+tomlkit==0.12.0
+    # via
+    #   gradio
+    #   yq
 toolz==0.12.0
     # via
     #   altair
@@ -2386,7 +2401,9 @@ trustme==0.9.0
 typeguard==2.13.3
     # via ax-platform
 typer==0.9.0
-    # via -r /ray/ci/../python/requirements.txt
+    # via
+    #   -r /ray/ci/../python/requirements.txt
+    #   gradio
 types-python-dateutil==2.8.19.14
     # via arrow
 types-pyyaml==6.0.12.2
@@ -2398,6 +2415,7 @@ typing-extensions==4.8.0
     #   ale-py
     #   alembic
     #   altair
+    #   annotated-types
     #   aws-sam-translator
     #   azure-core
     #   black
@@ -2418,6 +2436,7 @@ typing-extensions==4.8.0
     #   orbax-checkpoint
     #   polars
     #   pydantic
+    #   pydantic-core
     #   pytorch-lightning
     #   rich
     #   semgrep
@@ -2490,7 +2509,7 @@ watchfiles==0.19.0
     #   -r /ray/ci/../python/requirements/test-requirements.txt
 wcmatch==8.5
     # via semgrep
-wcwidth==0.2.9
+wcwidth==0.2.10
     # via
     #   blessed
     #   prompt-toolkit
@@ -2509,7 +2528,6 @@ websocket-client==1.6.4
 websockets==11.0.3
     # via
     #   -r /ray/ci/../python/requirements/test-requirements.txt
-    #   gradio
     #   gradio-client
 werkzeug==2.1.2
     # via
@@ -2526,7 +2544,7 @@ wheel==0.41.3
     #   tensorboard
 widgetsnbextension==3.6.6
     # via ipywidgets
-wrapt==1.15.0
+wrapt==1.16.0
     # via
     #   aiobotocore
     #   aws-xray-sdk
diff --git a/python/setup.py b/python/setup.py
index ab036bdfa325..48df2064b749 100644
--- a/python/setup.py
+++ b/python/setup.py
@@ -251,7 +251,7 @@ def get_packages(self):
             "grpcio >= 1.32.0; python_version < '3.10'",  # noqa:E501
             "grpcio >= 1.42.0; python_version >= '3.10'",  # noqa:E501
             "opencensus",
-            "pydantic < 2",  # 2.0.0 brings breaking changes
+            "pydantic!=2.0.*,!=2.1.*,!=2.2.*,!=2.3.*,!=2.4.*,<3",
             "prometheus_client >= 0.7.1",
             "smart_open",
             "virtualenv >=20.0.24, < 20.21.1",  # For pip runtime env.
diff --git a/release/ray_release/byod/byod_finetune_llvms.sh b/release/ray_release/byod/byod_finetune_llvms.sh
index 5052b4ebfc3b..f752c2655370 100755
--- a/release/ray_release/byod/byod_finetune_llvms.sh
+++ b/release/ray_release/byod/byod_finetune_llvms.sh
@@ -8,7 +8,7 @@ pip3 install -U \
     torch==2.0.0 \
     torchvision==0.15.1 \
     torchaudio==2.0.1 \
-    deepspeed==0.10.0 \
+    deepspeed==0.12.3 \
     fairscale==0.4.13 \
     datasets==2.14.4 \
     accelerate==0.21.0 \