diff --git a/apps/api-extractor/package.json b/apps/api-extractor/package.json
index deaeac48356..e8f80fd7481 100644
--- a/apps/api-extractor/package.json
+++ b/apps/api-extractor/package.json
@@ -47,8 +47,7 @@
     "lodash": "~4.17.15",
     "resolve": "~1.22.1",
     "semver": "~7.5.4",
-    "source-map": "~0.6.1",
-    "typescript": "5.3.3"
+    "source-map": "~0.6.1"
   },
   "devDependencies": {
     "local-eslint-config": "workspace:*",
@@ -58,6 +57,10 @@
     "@types/lodash": "4.14.116",
     "@types/node": "18.17.15",
     "@types/resolve": "1.20.2",
-    "@types/semver": "7.5.0"
+    "@types/semver": "7.5.0",
+    "typescript": "^5.3.3"
+  },
+  "peerDependencies": {
+    "typescript": "^5.3.3"
   }
 }
diff --git a/common/changes/@microsoft/api-extractor/user-stuartwilcox-typescript-peer-dep_2023-01-13-00-17.json b/common/changes/@microsoft/api-extractor/user-stuartwilcox-typescript-peer-dep_2023-01-13-00-17.json
new file mode 100644
index 00000000000..c9690fd899f
--- /dev/null
+++ b/common/changes/@microsoft/api-extractor/user-stuartwilcox-typescript-peer-dep_2023-01-13-00-17.json
@@ -0,0 +1,10 @@
+{
+  "changes": [
+    {
+      "packageName": "@microsoft/api-extractor",
+      "comment": "convert typescript dependency to peerDependency",
+      "type": "patch"
+    }
+  ],
+  "packageName": "@microsoft/api-extractor"
+}
\ No newline at end of file
diff --git a/common/config/rush/common-versions.json b/common/config/rush/common-versions.json
index 30e8b437449..f9388a1769f 100644
--- a/common/config/rush/common-versions.json
+++ b/common/config/rush/common-versions.json
@@ -78,7 +78,7 @@
       // For testing Heft with TS V4
       "~4.9.5",
 
-      "5.3.3"
+      "^5.3.3"
     ],
     "source-map": [
       "~0.6.1" // API Extractor is using an older version of source-map because newer versions are async
diff --git a/common/config/rush/pnpm-lock.yaml b/common/config/rush/pnpm-lock.yaml
index e842bb0c9a9..eaac3e99900 100644
--- a/common/config/rush/pnpm-lock.yaml
+++ b/common/config/rush/pnpm-lock.yaml
@@ -85,9 +85,6 @@ importers:
       source-map:
         specifier: ~0.6.1
         version: 0.6.1
-      typescript:
-        specifier: 5.3.3
-        version: 5.3.3
     devDependencies:
       '@rushstack/heft':
         specifier: 0.62.0
@@ -113,6 +110,9 @@ importers:
       local-eslint-config:
         specifier: workspace:*
         version: link:../../eslint/local-eslint-config
+      typescript:
+        specifier: ^5.3.3
+        version: 5.3.3
 
   ../../apps/heft:
     dependencies:
@@ -24749,7 +24749,7 @@ packages:
     resolution: {integrity: sha512-pXWcraxM0uxAS+tN0AG/BF2TyqmHO014Z070UsJ+pFvYuRSq8KH8DmWpnbXe0pEPDHXZV3FcAbJkijJ5oNEnWw==}
     engines: {node: '>=14.17'}
     hasBin: true
-    dev: false
+    dev: true
 
   /uc.micro@1.0.6:
     resolution: {integrity: sha512-8Y75pvTYkLJW2hWQHXxoqRgV7qb9B+9vFEtidML+7koHUFapnVJAZ6cKs+Qjz5Aw3aZWHMC6u0wJE3At+nSGwA==}
diff --git a/common/config/rush/repo-state.json b/common/config/rush/repo-state.json
index 2f34722f151..6b7fd012e70 100644
--- a/common/config/rush/repo-state.json
+++ b/common/config/rush/repo-state.json
@@ -1,5 +1,5 @@
 // DO NOT MODIFY THIS FILE MANUALLY BUT DO COMMIT IT. It is generated and used by Rush.
 {
-  "pnpmShrinkwrapHash": "e42e10f7ac97560c9546f9077901b92b19a54310",
+  "pnpmShrinkwrapHash": "dbdfbf0b8741645f95f0776b4629943d4f31d6f6",
   "preferredVersionsHash": "1926a5b12ac8f4ab41e76503a0d1d0dccc9c0e06"
 }