diff --git a/.changes/unreleased/Dependencies-20231213-113016.yaml b/.changes/unreleased/Dependencies-20231213-113016.yaml
new file mode 100644
index 00000000..d69adce5
--- /dev/null
+++ b/.changes/unreleased/Dependencies-20231213-113016.yaml
@@ -0,0 +1,7 @@
+kind: Dependencies
+body: Relax Pydantic dependency to allow DSI to be installed in environments alongside
+  Pydantic v1 or v2
+time: 2023-12-13T11:30:16.376387Z
+custom:
+  Author: bernardcooke53
+  PR: "227"
diff --git a/dbt_semantic_interfaces/dataclass_serialization.py b/dbt_semantic_interfaces/dataclass_serialization.py
index 44ada7b1..1953ed08 100644
--- a/dbt_semantic_interfaces/dataclass_serialization.py
+++ b/dbt_semantic_interfaces/dataclass_serialization.py
@@ -19,8 +19,16 @@
     get_type_hints,
 )
 
-import pydantic
-from pydantic import BaseModel
+try:
+    import pydantic.v1 as pydantic
+except (ImportError, ModuleNotFoundError):
+    import pydantic
+
+try:
+    from pydantic.v1 import BaseModel  # pydantic v2
+except ModuleNotFoundError:
+    from pydantic import BaseModel  # pydantic v1
+
 from typing_extensions import TypeAlias
 
 from dbt_semantic_interfaces.pretty_print import pformat_big_objects
diff --git a/dbt_semantic_interfaces/implementations/base.py b/dbt_semantic_interfaces/implementations/base.py
index 31c9faeb..cf469ffc 100644
--- a/dbt_semantic_interfaces/implementations/base.py
+++ b/dbt_semantic_interfaces/implementations/base.py
@@ -5,7 +5,10 @@
 from abc import ABC, abstractmethod
 from typing import Any, Callable, ClassVar, Generator, Generic, Type, TypeVar
 
-from pydantic import BaseModel, root_validator
+try:
+    from pydantic.v1 import BaseModel, root_validator  # pydantic v2
+except ModuleNotFoundError:
+    from pydantic import BaseModel, root_validator  # pydantic v1
 
 from dbt_semantic_interfaces.errors import ParsingException
 from dbt_semantic_interfaces.parsing.yaml_loader import (
diff --git a/dbt_semantic_interfaces/implementations/export.py b/dbt_semantic_interfaces/implementations/export.py
index 7a06d1b0..1263accf 100644
--- a/dbt_semantic_interfaces/implementations/export.py
+++ b/dbt_semantic_interfaces/implementations/export.py
@@ -2,7 +2,11 @@
 
 from typing import Optional
 
-from pydantic import Field
+try:
+    from pydantic.v1 import Field  # pydantic v2
+except ModuleNotFoundError:
+    from pydantic import Field  # pydantic v1
+
 from typing_extensions import override
 
 from dbt_semantic_interfaces.implementations.base import HashableBaseModel
diff --git a/dbt_semantic_interfaces/implementations/metric.py b/dbt_semantic_interfaces/implementations/metric.py
index 366648a4..ad42d710 100644
--- a/dbt_semantic_interfaces/implementations/metric.py
+++ b/dbt_semantic_interfaces/implementations/metric.py
@@ -2,7 +2,10 @@
 
 from typing import List, Optional, Sequence
 
-from pydantic import Field
+try:
+    from pydantic.v1 import Field  # pydantic v2
+except ModuleNotFoundError:
+    from pydantic import Field  # pydantic v1
 
 from dbt_semantic_interfaces.enum_extension import assert_values_exhausted
 from dbt_semantic_interfaces.errors import ParsingException
diff --git a/dbt_semantic_interfaces/implementations/project_configuration.py b/dbt_semantic_interfaces/implementations/project_configuration.py
index 3e52fd91..ffacc4d9 100644
--- a/dbt_semantic_interfaces/implementations/project_configuration.py
+++ b/dbt_semantic_interfaces/implementations/project_configuration.py
@@ -3,7 +3,12 @@
 from typing import List, Optional
 
 from importlib_metadata import version
-from pydantic import validator
+
+try:
+    from pydantic.v1 import validator  # pydantic v2
+except ModuleNotFoundError:
+    from pydantic import validator  # pydantic v1
+
 from typing_extensions import override
 
 from dbt_semantic_interfaces.implementations.base import (
diff --git a/dbt_semantic_interfaces/implementations/semantic_model.py b/dbt_semantic_interfaces/implementations/semantic_model.py
index 45b90ae0..7b6984d0 100644
--- a/dbt_semantic_interfaces/implementations/semantic_model.py
+++ b/dbt_semantic_interfaces/implementations/semantic_model.py
@@ -2,7 +2,11 @@
 
 from typing import Any, List, Optional, Sequence
 
-from pydantic import validator
+try:
+    from pydantic.v1 import validator  # pydantic v2
+except ModuleNotFoundError:
+    from pydantic import validator  # pydantic v1
+
 from typing_extensions import override
 
 from dbt_semantic_interfaces.implementations.base import (
diff --git a/dbt_semantic_interfaces/validations/validator_helpers.py b/dbt_semantic_interfaces/validations/validator_helpers.py
index 6ea60f48..35e2b9c9 100644
--- a/dbt_semantic_interfaces/validations/validator_helpers.py
+++ b/dbt_semantic_interfaces/validations/validator_helpers.py
@@ -20,7 +20,11 @@
 )
 
 import click
-from pydantic import BaseModel, Extra
+
+try:
+    from pydantic.v1 import BaseModel, Extra  # pydantic v2
+except ModuleNotFoundError:
+    from pydantic import BaseModel, Extra  # pydantic v1
 
 from dbt_semantic_interfaces.implementations.base import FrozenBaseModel
 from dbt_semantic_interfaces.protocols import Metadata, SemanticManifestT, SemanticModel
diff --git a/mypy.ini b/mypy.ini
index 6d2a7c15..8701113b 100644
--- a/mypy.ini
+++ b/mypy.ini
@@ -1,6 +1,9 @@
 [mypy]
 plugins = pydantic.mypy
 
+[mypy-pydantic.*]
+ignore_missing_imports = True
+
 [pydantic-mypy]
 init_forbid_extra = True
 init_typed = True
diff --git a/pyproject.toml b/pyproject.toml
index a892f39d..c133e501 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -20,7 +20,7 @@ classifiers = [
   "Programming Language :: Python :: Implementation :: PyPy",
 ]
 dependencies = [
-  "pydantic~=1.10",
+  "pydantic>=1.10,<3.0",
   "jsonschema~=4.0",
   "PyYAML~=6.0",
   "more-itertools>=8.0,<11.0",