diff --git a/setup.py b/setup.py
index 519d04eab8..41598aeba5 100644
--- a/setup.py
+++ b/setup.py
@@ -80,7 +80,7 @@
     "nncf": "optimum-intel[nncf]>=1.18.0",
     "neural-compressor": "optimum-intel[neural-compressor]>=1.18.0",
     "ipex": "optimum-intel[ipex]>=1.18.0",
-    "habana": ["optimum-habana", "transformers >= 4.38.0, < 4.39.0"],
+    "habana": ["optimum-habana", "transformers >= 4.40.0, < 4.41.0"],
     "neuron": ["optimum-neuron[neuron]>=0.0.20", "transformers >= 4.36.2, < 4.42.0"],
     "neuronx": ["optimum-neuron[neuronx]>=0.0.20", "transformers >= 4.36.2, < 4.42.0"],
     "graphcore": "optimum-graphcore",