diff --git a/NEXT_CHANGELOG.md b/NEXT_CHANGELOG.md
index c621b0d3fd..a23db094e9 100644
--- a/NEXT_CHANGELOG.md
+++ b/NEXT_CHANGELOG.md
@@ -12,6 +12,7 @@
 * Upgrade TF provider to 1.88.0 ([#3529](https://github.com/databricks/cli/pull/3529))
 
 ### Bundles
+* Update default-python template to make DB Connect work out of the box for unit tests, using uv to install dependencies ([#3254](https://github.com/databricks/cli/pull/3254))
 * Add support for `TaskRetryMode` for continuous jobs ([#3529](https://github.com/databricks/cli/pull/3529))
 * Add support for specifying database instance as an application resource ([#3529](https://github.com/databricks/cli/pull/3529))
 
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/README.md b/acceptance/bundle/templates/default-python/classic/output/my_default_python/README.md
index f3b5d153b2..e01be4259d 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/README.md
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/README.md
@@ -2,18 +2,39 @@
 
 The 'my_default_python' project was generated by using the default-python template.
 
+For documentation on the Databricks Asset Bundles format use for this project,
+and for CI/CD configuration, see https://docs.databricks.com/aws/en/dev-tools/bundles.
+
 ## Getting started
 
-0. Install UV: https://docs.astral.sh/uv/getting-started/installation/
+Choose how you want to work on this project:
+
+(a) Directly in your Databricks workspace, see
+    https://docs.databricks.com/dev-tools/bundles/workspace.
+
+(b) Locally with an IDE like Cursor or VS Code, see
+    https://docs.databricks.com/vscode-ext.
+
+(c) With command line tools, see https://docs.databricks.com/dev-tools/cli/databricks-cli.html
+
+
+Dependencies for this project should be installed using uv:
 
-1. Install the Databricks CLI from https://docs.databricks.com/dev-tools/cli/databricks-cli.html
+*  Make sure you have the UV package manager installed.
+   It's an alternative to tools like pip: https://docs.astral.sh/uv/getting-started/installation/.
+*  Run `uv sync --dev` to install the project's dependencies.
 
-2. Authenticate to your Databricks workspace, if you have not done so already:
+# Using this project using the CLI
+
+The Databricks workspace and IDE extensions provide a graphical interface for working
+with this project. It's also possible to interact with it directly using the CLI:
+
+1. Authenticate to your Databricks workspace, if you have not done so already:
     ```
     $ databricks configure
     ```
 
-3. To deploy a development copy of this project, type:
+2. To deploy a development copy of this project, type:
     ```
     $ databricks bundle deploy --target dev
     ```
@@ -23,9 +44,9 @@ The 'my_default_python' project was generated by using the default-python templa
     This deploys everything that's defined for this project.
     For example, the default template would deploy a job called
     `[dev yourname] my_default_python_job` to your workspace.
-    You can find that job by opening your workpace and clicking on **Workflows**.
+    You can find that job by opening your workpace and clicking on **Jobs & Pipelines**.
 
-4. Similarly, to deploy a production copy, type:
+3. Similarly, to deploy a production copy, type:
    ```
    $ databricks bundle deploy --target prod
    ```
@@ -35,17 +56,12 @@ The 'my_default_python' project was generated by using the default-python templa
    is paused when deploying in development mode (see
    https://docs.databricks.com/dev-tools/bundles/deployment-modes.html).
 
-5. To run a job or pipeline, use the "run" command:
+4. To run a job or pipeline, use the "run" command:
    ```
    $ databricks bundle run
    ```
-6. Optionally, install the Databricks extension for Visual Studio code for local development from
-   https://docs.databricks.com/dev-tools/vscode-ext.html. It can configure your
-   virtual environment and setup Databricks Connect for running unit tests locally.
-   When not using these tools, consult your development environment's documentation
-   and/or the documentation for Databricks Connect for manually setting up your environment
-   (https://docs.databricks.com/en/dev-tools/databricks-connect/python/index.html).
-
-7. For documentation on the Databricks asset bundles format used
-   for this project, and for CI/CD configuration, see
-   https://docs.databricks.com/dev-tools/bundles/index.html.
+
+5. Finally, to run tests locally, use `pytest`:
+   ```
+   $ uv run pytest
+   ```
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/pyproject.toml b/acceptance/bundle/templates/default-python/classic/output/my_default_python/pyproject.toml
index 5049f8a3ea..ef43b9429f 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/pyproject.toml
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/pyproject.toml
@@ -2,9 +2,9 @@
 name = "my_default_python"
 version = "0.0.1"
 authors = [{ name = "[USERNAME]" }]
-requires-python = ">= 3.11"
+requires-python = ">=3.10,<=3.13"
 
-[project.optional-dependencies]
+[dependency-groups]
 dev = [
     "pytest",
 
@@ -12,16 +12,10 @@ dev = [
     "databricks-dlt",
 
     # databricks-connect can be used to run parts of this project locally.
-    # See https://docs.databricks.com/dev-tools/databricks-connect.html.
-    #
-    # Note, databricks-connect is automatically installed if you're using Databricks
-    # extension for Visual Studio Code
-    # (https://docs.databricks.com/dev-tools/vscode-ext/dev-tasks/databricks-connect.html).
-    #
-    # To manually install databricks-connect, uncomment the line below to install a version
-    # of db-connect that corresponds to the Databricks Runtime version used for this project.
-    # See https://docs.databricks.com/dev-tools/databricks-connect.html
-    # "databricks-connect>=15.4,<15.5",
+    # Note that for local development, you should use a version that is not newer
+    # than the remote cluster or serverless compute you connect to.
+    # See also https://docs.databricks.com/dev-tools/databricks-connect.html.
+    "databricks-connect>=15.4,<15.5",
 ]
 
 [tool.pytest.ini_options]
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/exploration.ipynb b/acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/exploration.ipynb
index a12773d4e8..3f589fed74 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/exploration.ipynb
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/exploration.ipynb
@@ -32,7 +32,7 @@
     "sys.path.append(\"../src\")\n",
     "from my_default_python import main\n",
     "\n",
-    "main.get_taxis(spark).show(10)"
+    "main.get_taxis().show(10)"
    ]
   }
  ],
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/main.py b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/main.py
index 5ae344c7e2..04e8be4de0 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/main.py
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/main.py
@@ -1,24 +1,13 @@
-from pyspark.sql import SparkSession, DataFrame
+from databricks.sdk.runtime import spark
+from pyspark.sql import DataFrame
 
 
-def get_taxis(spark: SparkSession) -> DataFrame:
+def find_all_taxis() -> DataFrame:
     return spark.read.table("samples.nyctaxi.trips")
 
 
-# Create a new Databricks Connect session. If this fails,
-# check that you have configured Databricks Connect correctly.
-# See https://docs.databricks.com/dev-tools/databricks-connect.html.
-def get_spark() -> SparkSession:
-    try:
-        from databricks.connect import DatabricksSession
-
-        return DatabricksSession.builder.getOrCreate()
-    except ImportError:
-        return SparkSession.builder.getOrCreate()
-
-
 def main():
-    get_taxis(get_spark()).show(5)
+    find_all_taxis().show(5)
 
 
 if __name__ == "__main__":
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/notebook.ipynb b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/notebook.ipynb
index 472ccb2190..27c3f19e34 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/notebook.ipynb
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/notebook.ipynb
@@ -46,7 +46,7 @@
    "source": [
     "from my_default_python import main\n",
     "\n",
-    "main.get_taxis(spark).show(10)"
+    "main.find_all_taxis().show(10)"
    ]
   }
  ],
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/pipeline.ipynb b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/pipeline.ipynb
index 53148beff1..21e8560105 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/pipeline.ipynb
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/pipeline.ipynb
@@ -56,7 +56,7 @@
    "source": [
     "@dlt.view\n",
     "def taxi_raw():\n",
-    "    return main.get_taxis(spark)\n",
+    "    return main.find_all_taxis()\n",
     "\n",
     "\n",
     "@dlt.table\n",
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/conftest.py b/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/conftest.py
new file mode 100644
index 0000000000..579e398618
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/conftest.py
@@ -0,0 +1,57 @@
+"""This file configures pytest."""
+
+import os, sys, pathlib
+from contextlib import contextmanager
+
+
+try:
+    from databricks.connect import DatabricksSession
+    from databricks.sdk import WorkspaceClient
+    from pyspark.sql import SparkSession
+    import pytest
+except ImportError:
+    raise ImportError("Test dependencies not found.\n\nRun tests using 'uv run pytest'. See http://docs.astral.sh/uv to learn more about uv.")
+
+
+def enable_fallback_compute():
+    """Enable serverless compute if no compute is specified."""
+    conf = WorkspaceClient().config
+    if conf.serverless_compute_id or conf.cluster_id or os.environ.get("SPARK_REMOTE"):
+        return
+
+    url = "https://docs.databricks.com/dev-tools/databricks-connect/cluster-config"
+    print("☁️ no compute specified, falling back to serverless compute", file=sys.stderr)
+    print(f"  see {url} for manual configuration", file=sys.stderr)
+
+    os.environ["DATABRICKS_SERVERLESS_COMPUTE_ID"] = "auto"
+
+
+@contextmanager
+def allow_stderr_output(config: pytest.Config):
+    """Temporarily disable pytest output capture."""
+    capman = config.pluginmanager.get_plugin("capturemanager")
+    if capman:
+        with capman.global_and_fixture_disabled():
+            yield
+    else:
+        yield
+
+
+def pytest_configure(config: pytest.Config):
+    """Configure pytest session."""
+    with allow_stderr_output(config):
+        enable_fallback_compute()
+
+        # Initialize Spark session eagerly, so it is available even when
+        # SparkSession.builder.getOrCreate() is used. For DB Connect 15+,
+        # we validate version compatibility with the remote cluster.
+        if hasattr(DatabricksSession.builder, "validateSession"):
+            DatabricksSession.builder.validateSession().getOrCreate()
+        else:
+            DatabricksSession.builder.getOrCreate()
+
+
+@pytest.fixture(scope="session")
+def spark() -> SparkSession:
+    """Provide a SparkSession fixture for tests."""
+    return DatabricksSession.builder.getOrCreate()
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/main_test.py b/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/main_test.py
index dc449154a6..4bfd5e1550 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/main_test.py
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/main_test.py
@@ -1,6 +1,6 @@
-from my_default_python.main import get_taxis, get_spark
+from my_default_python import main
 
 
-def test_main():
-    taxis = get_taxis(get_spark())
+def test_find_all_taxis():
+    taxis = main.find_all_taxis()
     assert taxis.count() > 5
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/README.md b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/README.md
index f3b5d153b2..e01be4259d 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/README.md
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/README.md
@@ -2,18 +2,39 @@
 
 The 'my_default_python' project was generated by using the default-python template.
 
+For documentation on the Databricks Asset Bundles format use for this project,
+and for CI/CD configuration, see https://docs.databricks.com/aws/en/dev-tools/bundles.
+
 ## Getting started
 
-0. Install UV: https://docs.astral.sh/uv/getting-started/installation/
+Choose how you want to work on this project:
+
+(a) Directly in your Databricks workspace, see
+    https://docs.databricks.com/dev-tools/bundles/workspace.
+
+(b) Locally with an IDE like Cursor or VS Code, see
+    https://docs.databricks.com/vscode-ext.
+
+(c) With command line tools, see https://docs.databricks.com/dev-tools/cli/databricks-cli.html
+
+
+Dependencies for this project should be installed using uv:
 
-1. Install the Databricks CLI from https://docs.databricks.com/dev-tools/cli/databricks-cli.html
+*  Make sure you have the UV package manager installed.
+   It's an alternative to tools like pip: https://docs.astral.sh/uv/getting-started/installation/.
+*  Run `uv sync --dev` to install the project's dependencies.
 
-2. Authenticate to your Databricks workspace, if you have not done so already:
+# Using this project using the CLI
+
+The Databricks workspace and IDE extensions provide a graphical interface for working
+with this project. It's also possible to interact with it directly using the CLI:
+
+1. Authenticate to your Databricks workspace, if you have not done so already:
     ```
     $ databricks configure
     ```
 
-3. To deploy a development copy of this project, type:
+2. To deploy a development copy of this project, type:
     ```
     $ databricks bundle deploy --target dev
     ```
@@ -23,9 +44,9 @@ The 'my_default_python' project was generated by using the default-python templa
     This deploys everything that's defined for this project.
     For example, the default template would deploy a job called
     `[dev yourname] my_default_python_job` to your workspace.
-    You can find that job by opening your workpace and clicking on **Workflows**.
+    You can find that job by opening your workpace and clicking on **Jobs & Pipelines**.
 
-4. Similarly, to deploy a production copy, type:
+3. Similarly, to deploy a production copy, type:
    ```
    $ databricks bundle deploy --target prod
    ```
@@ -35,17 +56,12 @@ The 'my_default_python' project was generated by using the default-python templa
    is paused when deploying in development mode (see
    https://docs.databricks.com/dev-tools/bundles/deployment-modes.html).
 
-5. To run a job or pipeline, use the "run" command:
+4. To run a job or pipeline, use the "run" command:
    ```
    $ databricks bundle run
    ```
-6. Optionally, install the Databricks extension for Visual Studio code for local development from
-   https://docs.databricks.com/dev-tools/vscode-ext.html. It can configure your
-   virtual environment and setup Databricks Connect for running unit tests locally.
-   When not using these tools, consult your development environment's documentation
-   and/or the documentation for Databricks Connect for manually setting up your environment
-   (https://docs.databricks.com/en/dev-tools/databricks-connect/python/index.html).
-
-7. For documentation on the Databricks asset bundles format used
-   for this project, and for CI/CD configuration, see
-   https://docs.databricks.com/dev-tools/bundles/index.html.
+
+5. Finally, to run tests locally, use `pytest`:
+   ```
+   $ uv run pytest
+   ```
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/pyproject.toml b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/pyproject.toml
index 5049f8a3ea..ef43b9429f 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/pyproject.toml
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/pyproject.toml
@@ -2,9 +2,9 @@
 name = "my_default_python"
 version = "0.0.1"
 authors = [{ name = "[USERNAME]" }]
-requires-python = ">= 3.11"
+requires-python = ">=3.10,<=3.13"
 
-[project.optional-dependencies]
+[dependency-groups]
 dev = [
     "pytest",
 
@@ -12,16 +12,10 @@ dev = [
     "databricks-dlt",
 
     # databricks-connect can be used to run parts of this project locally.
-    # See https://docs.databricks.com/dev-tools/databricks-connect.html.
-    #
-    # Note, databricks-connect is automatically installed if you're using Databricks
-    # extension for Visual Studio Code
-    # (https://docs.databricks.com/dev-tools/vscode-ext/dev-tasks/databricks-connect.html).
-    #
-    # To manually install databricks-connect, uncomment the line below to install a version
-    # of db-connect that corresponds to the Databricks Runtime version used for this project.
-    # See https://docs.databricks.com/dev-tools/databricks-connect.html
-    # "databricks-connect>=15.4,<15.5",
+    # Note that for local development, you should use a version that is not newer
+    # than the remote cluster or serverless compute you connect to.
+    # See also https://docs.databricks.com/dev-tools/databricks-connect.html.
+    "databricks-connect>=15.4,<15.5",
 ]
 
 [tool.pytest.ini_options]
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/exploration.ipynb b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/exploration.ipynb
index a12773d4e8..3f589fed74 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/exploration.ipynb
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/exploration.ipynb
@@ -32,7 +32,7 @@
     "sys.path.append(\"../src\")\n",
     "from my_default_python import main\n",
     "\n",
-    "main.get_taxis(spark).show(10)"
+    "main.get_taxis().show(10)"
    ]
   }
  ],
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/main.py b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/main.py
index 5ae344c7e2..04e8be4de0 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/main.py
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/main.py
@@ -1,24 +1,13 @@
-from pyspark.sql import SparkSession, DataFrame
+from databricks.sdk.runtime import spark
+from pyspark.sql import DataFrame
 
 
-def get_taxis(spark: SparkSession) -> DataFrame:
+def find_all_taxis() -> DataFrame:
     return spark.read.table("samples.nyctaxi.trips")
 
 
-# Create a new Databricks Connect session. If this fails,
-# check that you have configured Databricks Connect correctly.
-# See https://docs.databricks.com/dev-tools/databricks-connect.html.
-def get_spark() -> SparkSession:
-    try:
-        from databricks.connect import DatabricksSession
-
-        return DatabricksSession.builder.getOrCreate()
-    except ImportError:
-        return SparkSession.builder.getOrCreate()
-
-
 def main():
-    get_taxis(get_spark()).show(5)
+    find_all_taxis().show(5)
 
 
 if __name__ == "__main__":
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/notebook.ipynb b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/notebook.ipynb
index 472ccb2190..27c3f19e34 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/notebook.ipynb
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/notebook.ipynb
@@ -46,7 +46,7 @@
    "source": [
     "from my_default_python import main\n",
     "\n",
-    "main.get_taxis(spark).show(10)"
+    "main.find_all_taxis().show(10)"
    ]
   }
  ],
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/pipeline.ipynb b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/pipeline.ipynb
index 53148beff1..21e8560105 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/pipeline.ipynb
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/pipeline.ipynb
@@ -56,7 +56,7 @@
    "source": [
     "@dlt.view\n",
     "def taxi_raw():\n",
-    "    return main.get_taxis(spark)\n",
+    "    return main.find_all_taxis()\n",
     "\n",
     "\n",
     "@dlt.table\n",
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/conftest.py b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/conftest.py
new file mode 100644
index 0000000000..579e398618
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/conftest.py
@@ -0,0 +1,57 @@
+"""This file configures pytest."""
+
+import os, sys, pathlib
+from contextlib import contextmanager
+
+
+try:
+    from databricks.connect import DatabricksSession
+    from databricks.sdk import WorkspaceClient
+    from pyspark.sql import SparkSession
+    import pytest
+except ImportError:
+    raise ImportError("Test dependencies not found.\n\nRun tests using 'uv run pytest'. See http://docs.astral.sh/uv to learn more about uv.")
+
+
+def enable_fallback_compute():
+    """Enable serverless compute if no compute is specified."""
+    conf = WorkspaceClient().config
+    if conf.serverless_compute_id or conf.cluster_id or os.environ.get("SPARK_REMOTE"):
+        return
+
+    url = "https://docs.databricks.com/dev-tools/databricks-connect/cluster-config"
+    print("☁️ no compute specified, falling back to serverless compute", file=sys.stderr)
+    print(f"  see {url} for manual configuration", file=sys.stderr)
+
+    os.environ["DATABRICKS_SERVERLESS_COMPUTE_ID"] = "auto"
+
+
+@contextmanager
+def allow_stderr_output(config: pytest.Config):
+    """Temporarily disable pytest output capture."""
+    capman = config.pluginmanager.get_plugin("capturemanager")
+    if capman:
+        with capman.global_and_fixture_disabled():
+            yield
+    else:
+        yield
+
+
+def pytest_configure(config: pytest.Config):
+    """Configure pytest session."""
+    with allow_stderr_output(config):
+        enable_fallback_compute()
+
+        # Initialize Spark session eagerly, so it is available even when
+        # SparkSession.builder.getOrCreate() is used. For DB Connect 15+,
+        # we validate version compatibility with the remote cluster.
+        if hasattr(DatabricksSession.builder, "validateSession"):
+            DatabricksSession.builder.validateSession().getOrCreate()
+        else:
+            DatabricksSession.builder.getOrCreate()
+
+
+@pytest.fixture(scope="session")
+def spark() -> SparkSession:
+    """Provide a SparkSession fixture for tests."""
+    return DatabricksSession.builder.getOrCreate()
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/main_test.py b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/main_test.py
index dc449154a6..4bfd5e1550 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/main_test.py
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/main_test.py
@@ -1,6 +1,6 @@
-from my_default_python.main import get_taxis, get_spark
+from my_default_python import main
 
 
-def test_main():
-    taxis = get_taxis(get_spark())
+def test_find_all_taxis():
+    taxis = main.find_all_taxis()
     assert taxis.count() > 5
diff --git a/libs/template/templates/default-python/library/versions.tmpl b/libs/template/templates/default-python/library/versions.tmpl
index 7d0c88e7df..79c3955c99 100644
--- a/libs/template/templates/default-python/library/versions.tmpl
+++ b/libs/template/templates/default-python/library/versions.tmpl
@@ -1,7 +1,24 @@
+{{/* The latest LTS DBR version; this should be updated a few months after each LTS.
+   */}}
 {{define "latest_lts_dbr_version" -}}
   15.4.x-scala2.12
 {{- end}}
 
-{{define "latest_lts_db_connect_version_spec" -}}
+{{/* A safe version of DB Connect that is compatible with at least half the
+   * clusters running in production.
+   *
+   * We need to be very conservative in updating this, since a newer version can
+   * only connect to compute of that same version and higher. If the version is
+   * deemed too old, customers can update the version themselves after initializing
+   * the template.
+   */}}
+{{define "conservative_db_connect_version_spec" -}}
   >=15.4,<15.5
 {{- end}}
+
+{{/* DB Connect 15 only supports versions up to 3.13 because of a limitation in
+   * pyarrow: https://arrow.apache.org/docs/python/install.html#python-compatibility
+   */}}
+{{define "conservative_db_connect_python_version_spec" -}}
+  >=3.10,<=3.13
+{{- end}}
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl
index bc4fe07b54..02da531477 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/README.md.tmpl
@@ -2,18 +2,40 @@
 
 The '{{.project_name}}' project was generated by using the default-python template.
 
+For documentation on the Databricks Asset Bundles format use for this project,
+and for CI/CD configuration, see https://docs.databricks.com/aws/en/dev-tools/bundles.
+
 ## Getting started
 
-0. Install UV: https://docs.astral.sh/uv/getting-started/installation/
+Choose how you want to work on this project:
+
+(a) Directly in your Databricks workspace, see
+    https://docs.databricks.com/dev-tools/bundles/workspace.
+
+(b) Locally with an IDE like Cursor or VS Code, see
+    https://docs.databricks.com/vscode-ext.
+
+(c) With command line tools, see https://docs.databricks.com/dev-tools/cli/databricks-cli.html
+
+{{if (eq .include_python "yes") }}
+Dependencies for this project should be installed using uv:
+
+*  Make sure you have the UV package manager installed.
+   It's an alternative to tools like pip: https://docs.astral.sh/uv/getting-started/installation/.
+*  Run `uv sync --dev` to install the project's dependencies.
+{{- end}}
+
+# Using this project using the CLI
 
-1. Install the Databricks CLI from https://docs.databricks.com/dev-tools/cli/databricks-cli.html
+The Databricks workspace and IDE extensions provide a graphical interface for working
+with this project. It's also possible to interact with it directly using the CLI:
 
-2. Authenticate to your Databricks workspace, if you have not done so already:
+1. Authenticate to your Databricks workspace, if you have not done so already:
     ```
     $ databricks configure
     ```
 
-3. To deploy a development copy of this project, type:
+2. To deploy a development copy of this project, type:
     ```
     $ databricks bundle deploy --target dev
     ```
@@ -23,9 +45,9 @@ The '{{.project_name}}' project was generated by using the default-python templa
     This deploys everything that's defined for this project.
     For example, the default template would deploy a job called
     `[dev yourname] {{.project_name}}_job` to your workspace.
-    You can find that job by opening your workpace and clicking on **Workflows**.
+    You can find that job by opening your workpace and clicking on **Jobs & Pipelines**.
 
-4. Similarly, to deploy a production copy, type:
+3. Similarly, to deploy a production copy, type:
    ```
    $ databricks bundle deploy --target prod
    ```
@@ -35,23 +57,12 @@ The '{{.project_name}}' project was generated by using the default-python templa
    is paused when deploying in development mode (see
    https://docs.databricks.com/dev-tools/bundles/deployment-modes.html).
 
-5. To run a job or pipeline, use the "run" command:
+4. To run a job or pipeline, use the "run" command:
    ```
    $ databricks bundle run
    ```
 
-{{- if (eq .include_python "no") }}
-6. Optionally, install developer tools such as the Databricks extension for Visual Studio Code from
-   https://docs.databricks.com/dev-tools/vscode-ext.html.
-{{- else }}
-6. Optionally, install the Databricks extension for Visual Studio code for local development from
-   https://docs.databricks.com/dev-tools/vscode-ext.html. It can configure your
-   virtual environment and setup Databricks Connect for running unit tests locally.
-   When not using these tools, consult your development environment's documentation
-   and/or the documentation for Databricks Connect for manually setting up your environment
-   (https://docs.databricks.com/en/dev-tools/databricks-connect/python/index.html).
-{{- end}}
-
-7. For documentation on the Databricks asset bundles format used
-   for this project, and for CI/CD configuration, see
-   https://docs.databricks.com/dev-tools/bundles/index.html.
+5. Finally, to run tests locally, use `pytest`:
+   ```
+   $ uv run pytest
+   ```
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/pyproject.toml.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/pyproject.toml.tmpl
index 7dd4694ea9..3d83de0077 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/pyproject.toml.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/pyproject.toml.tmpl
@@ -2,9 +2,9 @@
 name = "{{.project_name}}"
 version = "0.0.1"
 authors = [{ name = "{{user_name}}" }]
-requires-python = ">= 3.11"
+requires-python = "{{template "conservative_db_connect_python_version_spec"}}"
 
-[project.optional-dependencies]
+[dependency-groups]
 dev = [
     "pytest",
 
@@ -12,16 +12,10 @@ dev = [
     "databricks-dlt",
 
     # databricks-connect can be used to run parts of this project locally.
-    # See https://docs.databricks.com/dev-tools/databricks-connect.html.
-    #
-    # Note, databricks-connect is automatically installed if you're using Databricks
-    # extension for Visual Studio Code
-    # (https://docs.databricks.com/dev-tools/vscode-ext/dev-tasks/databricks-connect.html).
-    #
-    # To manually install databricks-connect, uncomment the line below to install a version
-    # of db-connect that corresponds to the Databricks Runtime version used for this project.
-    # See https://docs.databricks.com/dev-tools/databricks-connect.html
-    # "databricks-connect{{template "latest_lts_db_connect_version_spec"}}",
+    # Note that for local development, you should use a version that is not newer
+    # than the remote cluster or serverless compute you connect to.
+    # See also https://docs.databricks.com/dev-tools/databricks-connect.html.
+    "databricks-connect{{template "conservative_db_connect_version_spec"}}",
 ]
 
 [tool.pytest.ini_options]
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/scratch/exploration.ipynb.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/scratch/exploration.ipynb.tmpl
index d3e9beef37..d5c05798ac 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/scratch/exploration.ipynb.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/scratch/exploration.ipynb.tmpl
@@ -33,9 +33,9 @@
     "sys.path.append(\"../src\")\n",
     "from {{.project_name}} import main\n",
     "\n",
-    "main.get_taxis(spark).show(10)"
+    "main.get_taxis().show(10)"
    {{else}}
-    "spark.range(10)"
+    "spark.read.table(\"samples.nyctaxi.trips\")"
    {{end -}}
    ]
   }
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/src/notebook.ipynb.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/src/notebook.ipynb.tmpl
index 6782a053ba..53cb3040c6 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/src/notebook.ipynb.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/src/notebook.ipynb.tmpl
@@ -47,9 +47,9 @@
    {{- if (eq .include_python "yes") }}
     "from {{.project_name}} import main\n",
     "\n",
-    "main.get_taxis(spark).show(10)"
+    "main.find_all_taxis().show(10)"
    {{else}}
-    "spark.range(10)"
+    "display(spark.read.table(\"samples.nyctaxi.trips\"))"
    {{end -}}
    ]
   }
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/src/pipeline.ipynb.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/src/pipeline.ipynb.tmpl
index a8e35c53be..342fafcf6f 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/src/pipeline.ipynb.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/src/pipeline.ipynb.tmpl
@@ -64,7 +64,7 @@
     {{- if (eq .include_python "yes") }}
     "@dlt.view\n",
     "def taxi_raw():\n",
-    "    return main.get_taxis(spark)\n",
+    "    return main.find_all_taxis()\n",
     {{else}}
     "\n",
     "@dlt.view\n",
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/src/{{.project_name}}/main.py.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/src/{{.project_name}}/main.py.tmpl
index 5ae344c7e2..04e8be4de0 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/src/{{.project_name}}/main.py.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/src/{{.project_name}}/main.py.tmpl
@@ -1,24 +1,13 @@
-from pyspark.sql import SparkSession, DataFrame
+from databricks.sdk.runtime import spark
+from pyspark.sql import DataFrame
 
 
-def get_taxis(spark: SparkSession) -> DataFrame:
+def find_all_taxis() -> DataFrame:
     return spark.read.table("samples.nyctaxi.trips")
 
 
-# Create a new Databricks Connect session. If this fails,
-# check that you have configured Databricks Connect correctly.
-# See https://docs.databricks.com/dev-tools/databricks-connect.html.
-def get_spark() -> SparkSession:
-    try:
-        from databricks.connect import DatabricksSession
-
-        return DatabricksSession.builder.getOrCreate()
-    except ImportError:
-        return SparkSession.builder.getOrCreate()
-
-
 def main():
-    get_taxis(get_spark()).show(5)
+    find_all_taxis().show(5)
 
 
 if __name__ == "__main__":
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/tests/conftest.py.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/tests/conftest.py.tmpl
new file mode 100644
index 0000000000..579e398618
--- /dev/null
+++ b/libs/template/templates/default-python/template/{{.project_name}}/tests/conftest.py.tmpl
@@ -0,0 +1,57 @@
+"""This file configures pytest."""
+
+import os, sys, pathlib
+from contextlib import contextmanager
+
+
+try:
+    from databricks.connect import DatabricksSession
+    from databricks.sdk import WorkspaceClient
+    from pyspark.sql import SparkSession
+    import pytest
+except ImportError:
+    raise ImportError("Test dependencies not found.\n\nRun tests using 'uv run pytest'. See http://docs.astral.sh/uv to learn more about uv.")
+
+
+def enable_fallback_compute():
+    """Enable serverless compute if no compute is specified."""
+    conf = WorkspaceClient().config
+    if conf.serverless_compute_id or conf.cluster_id or os.environ.get("SPARK_REMOTE"):
+        return
+
+    url = "https://docs.databricks.com/dev-tools/databricks-connect/cluster-config"
+    print("☁️ no compute specified, falling back to serverless compute", file=sys.stderr)
+    print(f"  see {url} for manual configuration", file=sys.stderr)
+
+    os.environ["DATABRICKS_SERVERLESS_COMPUTE_ID"] = "auto"
+
+
+@contextmanager
+def allow_stderr_output(config: pytest.Config):
+    """Temporarily disable pytest output capture."""
+    capman = config.pluginmanager.get_plugin("capturemanager")
+    if capman:
+        with capman.global_and_fixture_disabled():
+            yield
+    else:
+        yield
+
+
+def pytest_configure(config: pytest.Config):
+    """Configure pytest session."""
+    with allow_stderr_output(config):
+        enable_fallback_compute()
+
+        # Initialize Spark session eagerly, so it is available even when
+        # SparkSession.builder.getOrCreate() is used. For DB Connect 15+,
+        # we validate version compatibility with the remote cluster.
+        if hasattr(DatabricksSession.builder, "validateSession"):
+            DatabricksSession.builder.validateSession().getOrCreate()
+        else:
+            DatabricksSession.builder.getOrCreate()
+
+
+@pytest.fixture(scope="session")
+def spark() -> SparkSession:
+    """Provide a SparkSession fixture for tests."""
+    return DatabricksSession.builder.getOrCreate()
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/tests/main_test.py.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/tests/main_test.py.tmpl
index fea2f3f665..084454eb3e 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/tests/main_test.py.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/tests/main_test.py.tmpl
@@ -1,6 +1,6 @@
-from {{.project_name}}.main import get_taxis, get_spark
+from {{.project_name}} import main
 
 
-def test_main():
-    taxis = get_taxis(get_spark())
+def test_find_all_taxis():
+    taxis = main.find_all_taxis()
     assert taxis.count() > 5