diff --git a/NEXT_CHANGELOG.md b/NEXT_CHANGELOG.md
index ba69c62c5c..7dc89a287e 100644
--- a/NEXT_CHANGELOG.md
+++ b/NEXT_CHANGELOG.md
@@ -10,6 +10,7 @@ To disable this, set the environment variable DATABRICKS_CACHE_ENABLED to false.
 
 ### Bundles
 * Enable caching user identity by default ([#4202](https://github.com/databricks/cli/pull/4202))
+* Replace Black formatter with Ruff in Python bundle templates for faster, all-in-one linting and formatting ([#4196](https://github.com/databricks/cli/pull/4196))
 * Pass additional Azure DevOps system variables ([#4236](https://github.com/databricks/cli/pull/4236))
 
 ### Dependency updates
diff --git a/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/extensions.json b/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/extensions.json
index 75a111a6a9..5ba48e79c9 100644
--- a/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/extensions.json
+++ b/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/extensions.json
@@ -2,6 +2,6 @@
     "recommendations": [
         "databricks.databricks",
         "redhat.vscode-yaml",
-        "ms-python.black-formatter"
+        "charliermarsh.ruff"
     ]
 }
diff --git a/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/settings.json b/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/settings.json
index c49593bc59..d73c73b570 100644
--- a/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/settings.json
+++ b/acceptance/bundle/templates/default-minimal/output/my_default_minimal/.vscode/settings.json
@@ -33,7 +33,7 @@
     "python.testing.unittestEnabled": false,
     "python.testing.pytestEnabled": true,
     "[python]": {
-        "editor.defaultFormatter": "ms-python.black-formatter",
+        "editor.defaultFormatter": "charliermarsh.ruff",
         "editor.formatOnSave": true,
     },
 }
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/extensions.json b/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/extensions.json
index 75a111a6a9..5ba48e79c9 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/extensions.json
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/extensions.json
@@ -2,6 +2,6 @@
     "recommendations": [
         "databricks.databricks",
         "redhat.vscode-yaml",
-        "ms-python.black-formatter"
+        "charliermarsh.ruff"
     ]
 }
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/settings.json b/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/settings.json
index c49593bc59..d73c73b570 100644
--- a/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/settings.json
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/settings.json
@@ -33,7 +33,7 @@
     "python.testing.unittestEnabled": false,
     "python.testing.pytestEnabled": true,
     "[python]": {
-        "editor.defaultFormatter": "ms-python.black-formatter",
+        "editor.defaultFormatter": "charliermarsh.ruff",
         "editor.formatOnSave": true,
     },
 }
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 aabcdf57d3..3c4c206276 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
@@ -14,6 +14,7 @@ dependencies = [
 [dependency-groups]
 dev = [
     "pytest",
+    "ruff",
     "databricks-dlt",
     "databricks-connect>=15.4,<15.5",
     "ipykernel",
@@ -26,5 +27,5 @@ main = "my_default_python.main:main"
 requires = ["hatchling"]
 build-backend = "hatchling.build"
 
-[tool.black]
-line-length = 125
+[tool.ruff]
+line-length = 120
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/extensions.json b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/extensions.json
index 75a111a6a9..5ba48e79c9 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/extensions.json
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/extensions.json
@@ -2,6 +2,6 @@
     "recommendations": [
         "databricks.databricks",
         "redhat.vscode-yaml",
-        "ms-python.black-formatter"
+        "charliermarsh.ruff"
     ]
 }
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/settings.json b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/settings.json
index c49593bc59..d73c73b570 100644
--- a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/settings.json
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/settings.json
@@ -33,7 +33,7 @@
     "python.testing.unittestEnabled": false,
     "python.testing.pytestEnabled": true,
     "[python]": {
-        "editor.defaultFormatter": "ms-python.black-formatter",
+        "editor.defaultFormatter": "charliermarsh.ruff",
         "editor.formatOnSave": true,
     },
 }
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 aabcdf57d3..3c4c206276 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
@@ -14,6 +14,7 @@ dependencies = [
 [dependency-groups]
 dev = [
     "pytest",
+    "ruff",
     "databricks-dlt",
     "databricks-connect>=15.4,<15.5",
     "ipykernel",
@@ -26,5 +27,5 @@ main = "my_default_python.main:main"
 requires = ["hatchling"]
 build-backend = "hatchling.build"
 
-[tool.black]
-line-length = 125
+[tool.ruff]
+line-length = 120
diff --git a/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/extensions.json b/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/extensions.json
index 75a111a6a9..5ba48e79c9 100644
--- a/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/extensions.json
+++ b/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/extensions.json
@@ -2,6 +2,6 @@
     "recommendations": [
         "databricks.databricks",
         "redhat.vscode-yaml",
-        "ms-python.black-formatter"
+        "charliermarsh.ruff"
     ]
 }
diff --git a/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/settings.json b/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/settings.json
index c49593bc59..d73c73b570 100644
--- a/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/settings.json
+++ b/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/.vscode/settings.json
@@ -33,7 +33,7 @@
     "python.testing.unittestEnabled": false,
     "python.testing.pytestEnabled": true,
     "[python]": {
-        "editor.defaultFormatter": "ms-python.black-formatter",
+        "editor.defaultFormatter": "charliermarsh.ruff",
         "editor.formatOnSave": true,
     },
 }
diff --git a/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/pyproject.toml b/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/pyproject.toml
index f374167ec7..e3e451122d 100644
--- a/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/pyproject.toml
+++ b/acceptance/bundle/templates/lakeflow-pipelines/python/output/my_lakeflow_pipelines/pyproject.toml
@@ -14,6 +14,7 @@ dependencies = [
 [dependency-groups]
 dev = [
     "pytest",
+    "ruff",
     "databricks-dlt",
     "databricks-connect>=15.4,<15.5",
     "ipykernel",
@@ -29,5 +30,5 @@ build-backend = "hatchling.build"
 [tool.hatch.build.targets.wheel]
 packages = ["src"]
 
-[tool.black]
-line-length = 125
+[tool.ruff]
+line-length = 120
diff --git a/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/extensions.json b/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/extensions.json
index 75a111a6a9..5ba48e79c9 100644
--- a/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/extensions.json
+++ b/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/extensions.json
@@ -2,6 +2,6 @@
     "recommendations": [
         "databricks.databricks",
         "redhat.vscode-yaml",
-        "ms-python.black-formatter"
+        "charliermarsh.ruff"
     ]
 }
diff --git a/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/settings.json b/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/settings.json
index c49593bc59..d73c73b570 100644
--- a/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/settings.json
+++ b/acceptance/bundle/templates/lakeflow-pipelines/sql/output/my_lakeflow_pipelines/.vscode/settings.json
@@ -33,7 +33,7 @@
     "python.testing.unittestEnabled": false,
     "python.testing.pytestEnabled": true,
     "[python]": {
-        "editor.defaultFormatter": "ms-python.black-formatter",
+        "editor.defaultFormatter": "charliermarsh.ruff",
         "editor.formatOnSave": true,
     },
 }
diff --git a/acceptance/bundle/templates/pydabs/init-classic/output/my_pydabs/pyproject.toml b/acceptance/bundle/templates/pydabs/init-classic/output/my_pydabs/pyproject.toml
index 61378bd72c..eea1c50a64 100644
--- a/acceptance/bundle/templates/pydabs/init-classic/output/my_pydabs/pyproject.toml
+++ b/acceptance/bundle/templates/pydabs/init-classic/output/my_pydabs/pyproject.toml
@@ -14,6 +14,7 @@ dependencies = [
 [dependency-groups]
 dev = [
     "pytest",
+    "ruff",
     "databricks-dlt",
     "databricks-connect>=15.4,<15.5",
     "ipykernel",
@@ -27,5 +28,5 @@ main = "my_pydabs.main:main"
 requires = ["hatchling"]
 build-backend = "hatchling.build"
 
-[tool.black]
-line-length = 125
+[tool.ruff]
+line-length = 120
diff --git a/libs/template/templates/default/template/{{.project_name}}/.vscode/extensions.json b/libs/template/templates/default/template/{{.project_name}}/.vscode/extensions.json
index 75a111a6a9..5ba48e79c9 100644
--- a/libs/template/templates/default/template/{{.project_name}}/.vscode/extensions.json
+++ b/libs/template/templates/default/template/{{.project_name}}/.vscode/extensions.json
@@ -2,6 +2,6 @@
     "recommendations": [
         "databricks.databricks",
         "redhat.vscode-yaml",
-        "ms-python.black-formatter"
+        "charliermarsh.ruff"
     ]
 }
diff --git a/libs/template/templates/default/template/{{.project_name}}/.vscode/settings.json b/libs/template/templates/default/template/{{.project_name}}/.vscode/settings.json
index c49593bc59..d73c73b570 100644
--- a/libs/template/templates/default/template/{{.project_name}}/.vscode/settings.json
+++ b/libs/template/templates/default/template/{{.project_name}}/.vscode/settings.json
@@ -33,7 +33,7 @@
     "python.testing.unittestEnabled": false,
     "python.testing.pytestEnabled": true,
     "[python]": {
-        "editor.defaultFormatter": "ms-python.black-formatter",
+        "editor.defaultFormatter": "charliermarsh.ruff",
         "editor.formatOnSave": true,
     },
 }
diff --git a/libs/template/templates/default/template/{{.project_name}}/pyproject.toml.tmpl b/libs/template/templates/default/template/{{.project_name}}/pyproject.toml.tmpl
index 2b1bcc88d3..fb776300bb 100644
--- a/libs/template/templates/default/template/{{.project_name}}/pyproject.toml.tmpl
+++ b/libs/template/templates/default/template/{{.project_name}}/pyproject.toml.tmpl
@@ -14,6 +14,7 @@ dependencies = [
 [dependency-groups]
 dev = [
     "pytest",
+    "ruff",
     "databricks-dlt",
     "databricks-connect{{template "conservative_db_connect_version_spec"}}",
     "ipykernel",
@@ -38,5 +39,5 @@ build-backend = "hatchling.build"
 packages = ["src"]
 {{- end }}
 
-[tool.black]
-line-length = 125
+[tool.ruff]
+line-length = 120