diff --git a/crates/cli/src/init.rs b/crates/cli/src/init.rs
index 2f3792a6..8e9cad06 100644
--- a/crates/cli/src/init.rs
+++ b/crates/cli/src/init.rs
@@ -646,9 +646,24 @@ pub fn generate_grammar_files(
                 generate_file(path, INIT_PY_TEMPLATE, language_name, &generate_opts)
             })?;
 
-            missing_path(lang_path.join("__init__.pyi"), |path| {
-                generate_file(path, INIT_PYI_TEMPLATE, language_name, &generate_opts)
-            })?;
+            missing_path_else(
+                lang_path.join("__init__.pyi"),
+                allow_update,
+                |path| generate_file(path, INIT_PYI_TEMPLATE, language_name, &generate_opts),
+                |path| {
+                    let mut contents = fs::read_to_string(path)?;
+                    if !contents.contains("CapsuleType") {
+                        contents = contents
+                            .replace(
+                                "from typing import Final",
+                                "from typing import Final\nfrom typing_extensions import CapsuleType"
+                            )
+                            .replace("-> object:", "-> CapsuleType:");
+                        write_file(path, contents)?;
+                    }
+                    Ok(())
+                },
+            )?;
 
             missing_path(lang_path.join("py.typed"), |path| {
                 generate_file(path, "", language_name, &generate_opts) // py.typed is empty
diff --git a/crates/cli/src/templates/__init__.pyi b/crates/cli/src/templates/__init__.pyi
index abf6633f..5c63215d 100644
--- a/crates/cli/src/templates/__init__.pyi
+++ b/crates/cli/src/templates/__init__.pyi
@@ -1,4 +1,5 @@
 from typing import Final
+from typing_extensions import CapsuleType
 
 # NOTE: uncomment these to include any queries that this grammar contains:
 
@@ -7,4 +8,4 @@ from typing import Final
 # LOCALS_QUERY: Final[str]
 # TAGS_QUERY: Final[str]
 
-def language() -> object: ...
+def language() -> CapsuleType: ...