diff --git a/acapy_agent/config/ledger.py b/acapy_agent/config/ledger.py
index 507113d531..e177d37fc8 100644
--- a/acapy_agent/config/ledger.py
+++ b/acapy_agent/config/ledger.py
@@ -8,7 +8,6 @@
 
 import markdown
 import prompt_toolkit
-from prompt_toolkit.eventloop.defaults import use_asyncio_event_loop
 from prompt_toolkit.formatted_text import HTML
 from uuid_utils import uuid4
 
@@ -239,9 +238,6 @@ async def select_aml_tty(taa_info, provision: bool = False) -> Optional[str]:
         + taa_html
     )
 
-    # setup for prompt_toolkit
-    use_asyncio_event_loop()
-
     prompt_toolkit.print_formatted_text(HTML(taa_html))
 
     opts = []
diff --git a/acapy_agent/config/tests/test_ledger.py b/acapy_agent/config/tests/test_ledger.py
index 813e9c5d88..3fb5af3f49 100644
--- a/acapy_agent/config/tests/test_ledger.py
+++ b/acapy_agent/config/tests/test_ledger.py
@@ -1,3 +1,4 @@
+import sys
 from unittest import IsolatedAsyncioTestCase
 
 import pytest
@@ -634,9 +635,8 @@ async def test_ledger_accept_taa_not_tty_not_accept_config(self, mock_stdout):
             None, self.profile, taa_info, provision=False
         )
 
-    @mock.patch("sys.stdout")
-    async def test_ledger_accept_taa_tty(self, mock_stdout):
-        mock_stdout.isatty = mock.MagicMock(return_value=True)
+    async def test_ledger_accept_taa_tty(self):
+        sys.stdout.isatty = mock.MagicMock(return_value=True)
         self.profile = await create_test_profile()
 
         taa_info = {
@@ -645,7 +645,6 @@ async def test_ledger_accept_taa_tty(self, mock_stdout):
         }
 
         with (
-            mock.patch.object(test_module, "use_asyncio_event_loop", mock.MagicMock()),
             mock.patch.object(
                 test_module.prompt_toolkit, "prompt", mock.CoroutineMock()
             ) as mock_prompt,
@@ -656,9 +655,6 @@ async def test_ledger_accept_taa_tty(self, mock_stdout):
             )
 
         with (
-            mock.patch.object(
-                test_module, "use_asyncio_event_loop", mock.MagicMock()
-            ) as mock_use_aio_loop,
             mock.patch.object(
                 test_module.prompt_toolkit, "prompt", mock.CoroutineMock()
             ) as mock_prompt,
@@ -669,9 +665,6 @@ async def test_ledger_accept_taa_tty(self, mock_stdout):
             )
 
         with (
-            mock.patch.object(
-                test_module, "use_asyncio_event_loop", mock.MagicMock()
-            ) as mock_use_aio_loop,
             mock.patch.object(
                 test_module.prompt_toolkit, "prompt", mock.CoroutineMock()
             ) as mock_prompt,
diff --git a/demo/runners/support/utils.py b/demo/runners/support/utils.py
index ebd8c9e67b..609528da4c 100644
--- a/demo/runners/support/utils.py
+++ b/demo/runners/support/utils.py
@@ -7,7 +7,6 @@
 import prompt_toolkit
 import pygments
 from prompt_toolkit.application import run_in_terminal
-from prompt_toolkit.eventloop.defaults import use_asyncio_event_loop
 from prompt_toolkit.formatted_text import FormattedText, PygmentsTokens
 from prompt_toolkit.patch_stdout import patch_stdout
 from prompt_toolkit.shortcuts import ProgressBar
@@ -142,15 +141,7 @@ def flatten(args):
             yield arg
 
 
-def prompt_init():
-    if hasattr(prompt_init, "_called"):
-        return
-    prompt_init._called = True
-    use_asyncio_event_loop()
-
-
 async def prompt(*args, **kwargs):
-    prompt_init()
     with patch_stdout():
         try:
             while True:
diff --git a/poetry.lock b/poetry.lock
index d1d78ec00c..f581e42aa7 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -1941,19 +1941,17 @@ virtualenv = ">=20.10.0"
 
 [[package]]
 name = "prompt-toolkit"
-version = "2.0.10"
+version = "3.0.50"
 description = "Library for building powerful interactive command lines in Python"
 optional = false
-python-versions = ">=2.6,<3.0.dev0 || >=3.3.dev0"
+python-versions = ">=3.8.0"
 groups = ["main"]
 files = [
-    {file = "prompt_toolkit-2.0.10-py2-none-any.whl", hash = "sha256:e7f8af9e3d70f514373bf41aa51bc33af12a6db3f71461ea47fea985defb2c31"},
-    {file = "prompt_toolkit-2.0.10-py3-none-any.whl", hash = "sha256:46642344ce457641f28fc9d1c9ca939b63dadf8df128b86f1b9860e59c73a5e4"},
-    {file = "prompt_toolkit-2.0.10.tar.gz", hash = "sha256:f15af68f66e664eaa559d4ac8a928111eebd5feda0c11738b5998045224829db"},
+    {file = "prompt_toolkit-3.0.50-py3-none-any.whl", hash = "sha256:9b6427eb19e479d98acff65196a307c555eb567989e6d88ebbb1b509d9779198"},
+    {file = "prompt_toolkit-3.0.50.tar.gz", hash = "sha256:544748f3860a2623ca5cd6d2795e7a14f3d0e1c3c9728359013f79877fc89bab"},
 ]
 
 [package.dependencies]
-six = ">=1.9.0"
 wcwidth = "*"
 
 [[package]]
@@ -2955,4 +2953,4 @@ didcommv2 = ["didcomm-messaging"]
 [metadata]
 lock-version = "2.1"
 python-versions = "^3.12"
-content-hash = "cc1de5dbba1f6550873d8aee9b7df0367ebe83606933cb92e341d5b523f47c3b"
+content-hash = "1176053f084869dafc9f1754b0eed17985beadc7b99dcbefd8290e86853bac55"
diff --git a/pyproject.toml b/pyproject.toml
index 564ee4c439..f056f653b3 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -31,7 +31,7 @@ marshmallow = "~3.26.1"
 nest_asyncio = "~1.6.0"
 packaging = "^24.2"
 portalocker = "^3.1.1"
-prompt_toolkit = ">=2.0.9,<2.1.0"
+prompt_toolkit = ">=2.0.9,<3.1.0"
 pydid = "^0.5.1"
 pyjwt = "~2.10.1"
 pyld = "^2.0.4"