diff --git a/pyproject.toml b/pyproject.toml
index bfde2b917f..d4db8340fe 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -49,7 +49,7 @@ dependencies = [
   "requests",
   "httpx",
   "pydantic<2",
-  "transformers==4.36.2",
+  "transformers==4.37.2",
   "pandas",
   "rank_bm25",
   "scikit-learn>=1.3.0", # TF-IDF and metrics
@@ -86,7 +86,7 @@ dependencies = [
 
 [project.optional-dependencies]
 inference = [
-  "transformers[torch,sentencepiece]==4.36.2",
+  "transformers[torch,sentencepiece]==4.37.2",
   "sentence-transformers>=2.2.0",  # See haystack/nodes/retriever/_embedding_encoder.py, _SentenceTransformersEmbeddingEncoder
   "huggingface-hub>=0.5.0",
 ]
diff --git a/releasenotes/notes/bump-transformers-4-37-2-d265006022c21671.yaml b/releasenotes/notes/bump-transformers-4-37-2-d265006022c21671.yaml
new file mode 100644
index 0000000000..d939c98ffa
--- /dev/null
+++ b/releasenotes/notes/bump-transformers-4-37-2-d265006022c21671.yaml
@@ -0,0 +1,5 @@
+---
+enhancements:
+  - |
+    Upgrade Transformers to the latest version 4.37.2.
+    This version adds support for the Phi-2 and Qwen2 models and improves support for quantization.