diff --git a/package-lock.json b/package-lock.json
index 320ab093..72ed6f5f 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -11,7 +11,7 @@
             "dependencies": {
                 "@floating-ui/dom": "^1.7.2",
                 "@preact/compat": "^18.3.1",
-                "@preact/signals": "^1.3.2",
+                "@preact/signals": "^2.0.0",
                 "classnames": "^2.5.1",
                 "dayjs": "^1.11.13",
                 "deepsignal": "^1.5.0",
@@ -1559,9 +1559,9 @@
             }
         },
         "node_modules/@preact/signals": {
-            "version": "1.3.2",
-            "resolved": "https://registry.npmjs.org/@preact/signals/-/signals-1.3.2.tgz",
-            "integrity": "sha512-naxcJgUJ6BTOROJ7C3QML7KvwKwCXQJYTc5L/b0eEsdYgPB6SxwoQ1vDGcS0Q7GVjAenVq/tXrybVdFShHYZWg==",
+            "version": "2.0.0",
+            "resolved": "https://registry.npmjs.org/@preact/signals/-/signals-2.0.0.tgz",
+            "integrity": "sha512-wzx6YEXw2a+vKdE+p+XlIGsmH2bDjJzzevirtshT9ixoNIV2WJg83kG+QErPHs/ZkeR+MsqgRIFB6x22fDVRlg==",
             "license": "MIT",
             "dependencies": {
                 "@preact/signals-core": "^1.7.0"
diff --git a/package.json b/package.json
index 3709de35..ac957376 100644
--- a/package.json
+++ b/package.json
@@ -85,9 +85,9 @@
         "url": "https://github.com/contentstack/live-preview-sdk.git"
     },
     "dependencies": {
+        "@preact/signals": "^2.0.0",
         "@preact/compat": "^18.3.1",
         "@floating-ui/dom": "^1.7.2",
-        "@preact/signals": "^1.3.2",
         "classnames": "^2.5.1",
         "dayjs": "^1.11.13",
         "deepsignal": "^1.5.0",