diff --git a/jest.config.js b/jest.config.js
index 117724ba..d5038d9c 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -6,6 +6,7 @@ const config = {
 	testEnvironment: 'node',
 	reporters: ['default', 'jest-junit'],
 	setupFilesAfterEnv: ['./jest.setup.js'],
+	testPathIgnorePatterns: ['/node_modules/'],
 };
 
 module.exports = config;
diff --git a/package.json b/package.json
index 31bf2ade..7c2e1f7b 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
 	"name": "@adobe/aio-cli-plugin-api-mesh",
-	"version": "5.7.0",
+	"version": "5.7.1-beta.0",
 	"description": "Adobe I/O CLI plugin to develop and manage API mesh sources",
 	"keywords": [
 		"oclif-plugin"
@@ -34,6 +34,7 @@
 		"postpack": "rm -f oclif.manifest.json",
 		"test": "jest",
 		"test:ci": "jest --ci",
+		"test:integration": "jest --testPathPattern=\\.integration\\.test\\.js",
 		"unit-tests": "jest --ci",
 		"version": "oclif-dev readme && git add README.md"
 	},
@@ -51,7 +52,7 @@
 		"@escape.tech/graphql-armor": "3.2.0",
 		"@graphql-mesh/cli": "0.82.30",
 		"@graphql-mesh/graphql": "0.34.13",
-		"@graphql-mesh/http": "^0.96.9",
+		"@graphql-mesh/http": "0.3.26",
 		"@graphql-mesh/json-schema": "0.35.38",
 		"@graphql-mesh/openapi": "0.33.39",
 		"@graphql-mesh/plugin-http-details-extensions": "^0.103.4",
@@ -129,7 +130,8 @@
 		"stdout-stderr": "^0.1.9"
 	},
 	"overrides": {
-		"plain-crypto-js": "./_EXCLUDE_UNSAFE_DEPENDENCIES_/plain-crypto-js"
+		"plain-crypto-js": "./_EXCLUDE_UNSAFE_DEPENDENCIES_/plain-crypto-js",
+		"@graphql-mesh/utils": "0.43.20"
 	},
 	"engines": {
 		"node": "^16.13 || >=18.0.0",
diff --git a/src/commands/api-mesh/__tests__/init.integration.test.js b/src/commands/api-mesh/__tests__/init.integration.test.js
new file mode 100644
index 00000000..38d24cf7
--- /dev/null
+++ b/src/commands/api-mesh/__tests__/init.integration.test.js
@@ -0,0 +1,50 @@
+/*
+Copyright 2021 Adobe. All rights reserved.
+This file is licensed to you under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License. You may obtain a copy
+of the License at http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software distributed under
+the License is distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR REPRESENTATIONS
+OF ANY KIND, either express or implied. See the License for the specific language
+governing permissions and limitations under the License.
+*/
+
+const { execSync } = require('child_process');
+const fs = require('fs');
+const path = require('path');
+const os = require('os');
+
+jest.setTimeout(120000);
+
+describe('init template dependency resolution', () => {
+	let tmpDir;
+
+	beforeEach(() => {
+		tmpDir = fs.mkdtempSync(path.join(os.tmpdir(), 'mesh-init-'));
+		fs.copyFileSync(
+			path.resolve(__dirname, '../../../templates/package.json'),
+			path.join(tmpDir, 'package.json'),
+		);
+	});
+
+	afterEach(() => {
+		fs.rmSync(tmpDir, { recursive: true, force: true });
+	});
+
+	test('template package.json resolves without ERESOLVE errors', () => {
+		try {
+			execSync('npm install --dry-run --json', {
+				cwd: tmpDir,
+				encoding: 'utf8',
+				stdio: ['pipe', 'pipe', 'pipe'],
+			});
+		} catch (error) {
+			const stderr = error.stderr || '';
+			if (stderr.includes('ERESOLVE')) {
+				throw new Error(`Template package.json has dependency conflicts:\n${stderr}`);
+			}
+			throw error;
+		}
+	});
+});
diff --git a/src/templates/package.json b/src/templates/package.json
index 451171f1..bb874dda 100644
--- a/src/templates/package.json
+++ b/src/templates/package.json
@@ -24,7 +24,6 @@
 		"@graphql-mesh/transform-type-merging": "0.5.20",
 		"@graphql-mesh/types": "0.91.12",
 		"@graphql-mesh/soap": "0.14.25",
-		"@graphql-mesh/http": "^0.96.9",
 		"graphql": "^16.6.0",
 		"@adobe/plugin-hooks": "0.4.0",
 		"@adobe/plugin-on-fetch": "0.1.1",
@@ -35,6 +34,9 @@
 		"fastify": "^4.10.2",
 		"graphql-yoga": "3.1.1"
 	},
+	"overrides": {
+		"@graphql-mesh/utils": "0.43.20"
+	},
 	"engines": {
 		"node": ">=18.0.0"
 	},