diff --git a/cms/conftest.py b/cms/conftest.py
index 80d971070a..131ea8e048 100644
--- a/cms/conftest.py
+++ b/cms/conftest.py
@@ -40,23 +40,3 @@ def _django_clear_site_cache():
     with what has been working for us so far.
     """
     pass  # lint-amnesty, pylint: disable=unnecessary-pass
-
-
-@pytest.fixture(autouse=True)
-def no_webpack_loader(monkeypatch):
-    """
-    Monkeypatch webpack_loader to make sure that webpack assets don't need to be
-    compiled before unit tests are run.
-    """
-    monkeypatch.setattr(
-        "webpack_loader.templatetags.webpack_loader.render_bundle",
-        lambda entry, extension=None, config='DEFAULT', attrs='': ''
-    )
-    monkeypatch.setattr(
-        "webpack_loader.utils.get_as_tags",
-        lambda entry, extension=None, config='DEFAULT', attrs='': []
-    )
-    monkeypatch.setattr(
-        "webpack_loader.utils.get_files",
-        lambda entry, extension=None, config='DEFAULT', attrs='': []
-    )
diff --git a/cms/envs/test.py b/cms/envs/test.py
index 1e249f18d0..9a294bf10b 100644
--- a/cms/envs/test.py
+++ b/cms/envs/test.py
@@ -70,6 +70,7 @@ TEST_ROOT = path("test_root")
 # Want static files in the same dir for running on jenkins.
 STATIC_ROOT = TEST_ROOT / "staticfiles"
 WEBPACK_LOADER["DEFAULT"]["STATS_FILE"] = STATIC_ROOT / "webpack-stats.json"
+WEBPACK_LOADER['DEFAULT']['LOADER_CLASS'] = 'webpack_loader.loader.FakeWebpackLoader'
 
 GITHUB_REPO_ROOT = TEST_ROOT / "data"
 DATA_DIR = TEST_ROOT / "data"
diff --git a/common/djangoapps/pipeline_mako/templates/static_content.html b/common/djangoapps/pipeline_mako/templates/static_content.html
index a5a2a575b0..fc80c77e9e 100644
--- a/common/djangoapps/pipeline_mako/templates/static_content.html
+++ b/common/djangoapps/pipeline_mako/templates/static_content.html
@@ -147,7 +147,7 @@ if not source:
     <%
         body = capture(caller.body)
     %>
-    ${HTML(render_bundle(entry, extension=None, config='DEFAULT', attrs=attrs))}
+    ${HTML(render_bundle(context, entry, extension=None, config='DEFAULT', attrs=attrs))}
     % if body:
       <script type="text/javascript">
         ${body | n, decode.utf8}
@@ -166,8 +166,8 @@ if not source:
         component as props.
     </%doc>
 
-    ${HTML(render_bundle(component))}
-    ${HTML(render_bundle('ReactRenderer'))}
+    ${HTML(render_bundle(context, component))}
+    ${HTML(render_bundle(context,'ReactRenderer'))}
 
     <div id="${id}"></div>
     <script type="text/javascript">
diff --git a/conftest.py b/conftest.py
index 2ed8f64360..3fc522a969 100644
--- a/conftest.py
+++ b/conftest.py
@@ -15,19 +15,3 @@ from cms.conftest import _django_clear_site_cache, pytest_configure  # pylint: d
 # When using self.assertEquals, diffs are truncated. We don't want that, always
 # show the whole diff.
 TestCase.maxDiff = None
-
-
-@pytest.fixture(autouse=True)
-def no_webpack_loader(monkeypatch):  # lint-amnesty, pylint: disable=missing-function-docstring
-    monkeypatch.setattr(
-        "webpack_loader.templatetags.webpack_loader.render_bundle",
-        lambda entry, extension=None, config='DEFAULT', attrs='': ''
-    )
-    monkeypatch.setattr(
-        "webpack_loader.utils.get_as_tags",
-        lambda entry, extension=None, config='DEFAULT', attrs='': []
-    )
-    monkeypatch.setattr(
-        "webpack_loader.utils.get_files",
-        lambda entry, extension=None, config='DEFAULT', attrs='': []
-    )
diff --git a/lms/envs/test.py b/lms/envs/test.py
index c2b2b15569..958a54be01 100644
--- a/lms/envs/test.py
+++ b/lms/envs/test.py
@@ -101,6 +101,7 @@ TEST_ROOT = path("test_root")
 # Want static files in the same dir for running on jenkins.
 STATIC_ROOT = TEST_ROOT / "staticfiles"
 WEBPACK_LOADER['DEFAULT']['STATS_FILE'] = STATIC_ROOT / "webpack-stats.json"
+WEBPACK_LOADER['DEFAULT']['LOADER_CLASS'] = 'webpack_loader.loader.FakeWebpackLoader'
 
 STATUS_MESSAGE_PATH = TEST_ROOT / "status_message.json"
 
diff --git a/package-lock.json b/package-lock.json
index 6bc1261774..4e5be31004 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -72,7 +72,7 @@
         "underscore": "1.13.7",
         "underscore.string": "3.3.6",
         "webpack": "^5.90.3",
-        "webpack-bundle-tracker": "0.4.3",
+        "webpack-bundle-tracker": "3.2.1",
         "webpack-merge": "4.2.2",
         "which-country": "1.0.0"
       },
@@ -7369,15 +7369,6 @@
       "integrity": "sha512-xHjhDr3cNBK0BzdUJSPXZntQUx/mwMS5Rw4A7lPJ90XGAO6ISP/ePDNuo0vhqOZU+UD5JoodwCAAoZQd3FeAKw==",
       "license": "MIT"
     },
-    "node_modules/deep-extend": {
-      "version": "0.6.0",
-      "resolved": "https://registry.npmjs.org/deep-extend/-/deep-extend-0.6.0.tgz",
-      "integrity": "sha512-LOHxIOaPYdHlJRtCQfDIVZtfw/ufM8+rVj649RIHzcm/vGwQRXFt6OPqIFWsm2XEMrNIEtWR64sY1LEKD2vAOA==",
-      "license": "MIT",
-      "engines": {
-        "node": ">=4.0.0"
-      }
-    },
     "node_modules/deep-is": {
       "version": "0.1.4",
       "resolved": "https://registry.npmjs.org/deep-is/-/deep-is-0.1.4.tgz",
@@ -20494,36 +20485,10 @@
       }
     },
     "node_modules/webpack-bundle-tracker": {
-      "version": "0.4.3",
-      "resolved": "https://registry.npmjs.org/webpack-bundle-tracker/-/webpack-bundle-tracker-0.4.3.tgz",
-      "integrity": "sha512-Sl/+OsNhFAH3/c6XADupRu8jLvGojfXX0pZIIm3O5ZcJqkHHqlY4nLG+NVRcbDgM/jOeWimKDGQMVEa8FBeJ2g==",
-      "license": "MIT",
-      "dependencies": {
-        "deep-extend": "^0.6.0",
-        "mkdirp": "^0.5.1",
-        "strip-ansi": "^5.2.0"
-      }
-    },
-    "node_modules/webpack-bundle-tracker/node_modules/ansi-regex": {
-      "version": "4.1.1",
-      "resolved": "https://registry.npmjs.org/ansi-regex/-/ansi-regex-4.1.1.tgz",
-      "integrity": "sha512-ILlv4k/3f6vfQ4OoP2AGvirOktlQ98ZEL1k9FaQjxa3L1abBgbuTDAdPOpvbGncC0BTVQrl+OM8xZGK6tWXt7g==",
-      "license": "MIT",
-      "engines": {
-        "node": ">=6"
-      }
-    },
-    "node_modules/webpack-bundle-tracker/node_modules/strip-ansi": {
-      "version": "5.2.0",
-      "resolved": "https://registry.npmjs.org/strip-ansi/-/strip-ansi-5.2.0.tgz",
-      "integrity": "sha512-DuRs1gKbBqsMKIZlrffwlug8MHkcnpjs5VPmL1PAh+mA30U0DTotfDZ0d2UUsXpPmPmMMJ6W773MaA3J+lbiWA==",
-      "license": "MIT",
-      "dependencies": {
-        "ansi-regex": "^4.1.0"
-      },
-      "engines": {
-        "node": ">=6"
-      }
+      "version": "3.2.1",
+      "resolved": "https://registry.npmjs.org/webpack-bundle-tracker/-/webpack-bundle-tracker-3.2.1.tgz",
+      "integrity": "sha512-N1bi1Kok4kexXUvez2Jwrq2SpA4xm6JZfqK9L5hXNbe3E5pR4oS7UYgOq1ALapP89oRjHXc3fzblqDqo+zag2A==",
+      "license": "MIT"
     },
     "node_modules/webpack-cli": {
       "version": "5.1.4",
diff --git a/package.json b/package.json
index b9eb483e9c..5d7736cc34 100644
--- a/package.json
+++ b/package.json
@@ -97,7 +97,7 @@
     "underscore": "1.13.7",
     "underscore.string": "3.3.6",
     "webpack": "^5.90.3",
-    "webpack-bundle-tracker": "0.4.3",
+    "webpack-bundle-tracker": "3.2.1",
     "webpack-merge": "4.2.2",
     "which-country": "1.0.0"
   },
diff --git a/requirements/constraints.txt b/requirements/constraints.txt
index 20039017b2..9f9c41913e 100644
--- a/requirements/constraints.txt
+++ b/requirements/constraints.txt
@@ -29,11 +29,6 @@ Django<5.0
 # Issue for unpinning: https://github.com/openedx/edx-platform/issues/35277
 django-oauth-toolkit==1.7.1
 
-# Date: 2021-05-17
-# greater version has breaking changes and requires some migration steps.
-# Issue for unpinning: https://github.com/openedx/edx-platform/issues/35276
-django-webpack-loader==0.7.0
-
 # Date: 2024-07-19
 # Generally speaking, the major version of django-stubs must either match the major version
 # of django, or exceed it by 1. So, we will need to perpetually constrain django-stubs and
diff --git a/requirements/edx/base.txt b/requirements/edx/base.txt
index 8584f630ae..3c075ecb4d 100644
--- a/requirements/edx/base.txt
+++ b/requirements/edx/base.txt
@@ -372,9 +372,8 @@ django-waffle==5.0.0
     #   edx-enterprise
     #   edx-proctoring
     #   edx-toggles
-django-webpack-loader==0.7.0
+django-webpack-loader==3.2.1
     # via
-    #   -c requirements/constraints.txt
     #   -r requirements/edx/kernel.in
     #   edx-proctoring
 djangorestframework==3.16.1
diff --git a/requirements/edx/development.txt b/requirements/edx/development.txt
index 98e6722517..970c02322f 100644
--- a/requirements/edx/development.txt
+++ b/requirements/edx/development.txt
@@ -606,9 +606,8 @@ django-waffle==5.0.0
     #   edx-enterprise
     #   edx-proctoring
     #   edx-toggles
-django-webpack-loader==0.7.0
+django-webpack-loader==3.2.1
     # via
-    #   -c requirements/constraints.txt
     #   -r requirements/edx/doc.txt
     #   -r requirements/edx/testing.txt
     #   edx-proctoring
diff --git a/requirements/edx/doc.txt b/requirements/edx/doc.txt
index 2d2e20dd69..0d26329bc7 100644
--- a/requirements/edx/doc.txt
+++ b/requirements/edx/doc.txt
@@ -444,9 +444,8 @@ django-waffle==5.0.0
     #   edx-enterprise
     #   edx-proctoring
     #   edx-toggles
-django-webpack-loader==0.7.0
+django-webpack-loader==3.2.1
     # via
-    #   -c requirements/constraints.txt
     #   -r requirements/edx/base.txt
     #   edx-proctoring
 djangorestframework==3.16.1
diff --git a/requirements/edx/testing.txt b/requirements/edx/testing.txt
index f085deabf2..d899611c82 100644
--- a/requirements/edx/testing.txt
+++ b/requirements/edx/testing.txt
@@ -470,9 +470,8 @@ django-waffle==5.0.0
     #   edx-enterprise
     #   edx-proctoring
     #   edx-toggles
-django-webpack-loader==0.7.0
+django-webpack-loader==3.2.1
     # via
-    #   -c requirements/constraints.txt
     #   -r requirements/edx/base.txt
     #   edx-proctoring
 djangorestframework==3.16.1