diff --git a/src/backend/langflow/initial_setup/setup.py b/src/backend/langflow/initial_setup/setup.py
index f1e3fd9ce..040ae2594 100644
--- a/src/backend/langflow/initial_setup/setup.py
+++ b/src/backend/langflow/initial_setup/setup.py
@@ -6,8 +6,9 @@ from emoji import demojize, purely_emoji
 from loguru import logger
 from sqlmodel import select
 
+from langflow.interface.types import get_all_components
 from langflow.services.database.models.flow.model import Flow, FlowCreate
-from langflow.services.deps import session_scope
+from langflow.services.deps import get_settings_service, session_scope
 
 STARTER_FOLDER_NAME = "Starter Projects"
 
@@ -17,6 +18,23 @@ STARTER_FOLDER_NAME = "Starter Projects"
 # can use them as a starting point for their own projects.
 
 
+def update_projects_components_with_latest_component_versions(
+    project_data, all_types_dict
+):
+
+    # project data has a nodes key, which is a list of nodes
+    # we want to run through each node and see if it exists in the all_types_dict
+    # if so, we go into  the template key and also get the template from all_types_dict
+    # and update it all
+    for node in project_data.get("nodes", []):
+        node_data = node.get("data").get("node")
+        if node_data.get("display_name") in all_types_dict:
+            latest_node = all_types_dict.get(node_data.get("display_name"))
+            latest_template = latest_node.get("template")
+            node_data["template"]["code"] = latest_template["code"]
+    return project_data
+
+
 def load_starter_projects():
     starter_projects = []
     folder = Path(__file__).parent / "starter_projects"
@@ -115,6 +133,8 @@ def delete_start_projects(session):
 
 
 def create_or_update_starter_projects():
+    components_paths = get_settings_service().settings.COMPONENTS_PATH
+    all_types_dict = get_all_components(components_paths, as_dict=True)
     with session_scope() as session:
         starter_projects = load_starter_projects()
         delete_start_projects(session)
@@ -128,6 +148,9 @@ def create_or_update_starter_projects():
                 project_icon,
                 project_icon_bg_color,
             ) = get_project_data(project)
+            project_data = update_projects_components_with_latest_component_versions(
+                project_data, all_types_dict
+            )
             if project_name and project_data:
                 for existing_project in get_all_flows_similar_to_project(
                     session, project_name
diff --git a/src/backend/langflow/interface/types.py b/src/backend/langflow/interface/types.py
index 32e8c2987..4908a60e3 100644
--- a/src/backend/langflow/interface/types.py
+++ b/src/backend/langflow/interface/types.py
@@ -72,3 +72,17 @@ def get_all_types_dict(components_paths):
     return merge_nested_dicts_with_renaming(
         native_components, custom_components_from_file
     )
+
+
+def get_all_components(components_paths, as_dict=False):
+    """Get all components names combining native and custom components."""
+    all_types_dict = get_all_types_dict(components_paths)
+    components = [] if not as_dict else {}
+    for category in all_types_dict.values():
+        for component in category.values():
+            component["name"] = component["display_name"]
+            if as_dict:
+                components[component["name"]] = component
+            else:
+                components.append(component)
+    return components