diff --git a/package/python-paho-mqtt/python-paho-mqtt.hash b/package/python-paho-mqtt/python-paho-mqtt.hash
index 81b9dda81d..5fe91c5c54 100644
--- a/package/python-paho-mqtt/python-paho-mqtt.hash
+++ b/package/python-paho-mqtt/python-paho-mqtt.hash
@@ -1,5 +1,5 @@
 # locally computed
-sha256  6e35c1be242a901fc9c00bad7d37b5cc4a497f398dfceb4ed0d8018a959be650  python-paho-mqtt-1.6.1.tar.gz
+sha256  3602ce9d1ada58b063f2052ff013ff8cdd06d66cef918d5f6d048b6f68ccf049  python-paho-mqtt-2.1.0.tar.gz
 sha256  66408b049249c3bdb0ba1ed285f5422ce67e371d40151bebd4d806af454ffe7c  LICENSE.txt
 sha256  e8cf7d54ea46c19aba793983889b7f7425e1ebfcaaccec764a7db091646e203c  edl-v10
 sha256  8c349f80764d0648e645f41ef23772a70c995a0924b5235f735f4a3d09df127c  epl-v20
diff --git a/package/python-paho-mqtt/python-paho-mqtt.mk b/package/python-paho-mqtt/python-paho-mqtt.mk
index f255a7847d..095d6e1f90 100644
--- a/package/python-paho-mqtt/python-paho-mqtt.mk
+++ b/package/python-paho-mqtt/python-paho-mqtt.mk
@@ -4,10 +4,11 @@
 #
 ################################################################################
 
-PYTHON_PAHO_MQTT_VERSION = 1.6.1
+PYTHON_PAHO_MQTT_VERSION = 2.1.0
 PYTHON_PAHO_MQTT_SITE = $(call github,eclipse,paho.mqtt.python,v$(PYTHON_PAHO_MQTT_VERSION))
 PYTHON_PAHO_MQTT_LICENSE = EPL-2.0, EDLv1.0
 PYTHON_PAHO_MQTT_LICENSE_FILES = LICENSE.txt epl-v20 edl-v10
-PYTHON_PAHO_MQTT_SETUP_TYPE = setuptools
+PYTHON_PAHO_MQTT_SETUP_TYPE = pep517
+PYTHON_PAHO_MQTT_DEPENDENCIES = host-python-hatchling
 
 $(eval $(python-package))
diff --git a/support/testing/tests/package/test_python_paho_mqtt.py b/support/testing/tests/package/test_python_paho_mqtt.py
index 0fe7fa5904..217293e4ee 100644
--- a/support/testing/tests/package/test_python_paho_mqtt.py
+++ b/support/testing/tests/package/test_python_paho_mqtt.py
@@ -18,6 +18,7 @@ class TestPythonPahoMQTT(TestPythonPackageBase):
         self.check_sample_scripts_exist()
 
         cmd = "%s %s" % (self.interpreter, os.path.basename(self.sample_scripts[0]))
-        output, exit_code = self.emulator.run(cmd)
+        # Increase timeout to let the crng init complete
+        output, exit_code = self.emulator.run(cmd, timeout=15)
         self.assertEqual(exit_code, 0)
         self.assertEqual(output[0], "Hello, World!")