diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9ef7c8eefb..ef13145604 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,7 @@
 ## [UNRELEASED]
 
 - We will soon be rolling out a feature of the CodeQL Action that stores some information used to make future runs faster in the GitHub Actions cache. Initially, this will only be enabled on JavaScript repositories, but we plan to add more languages to this soon. The new feature can be disabled by passing the `trap-caching: false` option to your workflow's `init` step, for example if you are already using the GitHub Actions cache for a different purpose and are near the storage limit for it.
+- Add support for Python automatic dependency installation with Poetry 1.2 [#1258](https://github.com/github/codeql-action/pull/1258).
 
 ## 2.1.24 - 16 Sep 2022
 
diff --git a/python-setup/auto_install_packages.py b/python-setup/auto_install_packages.py
index b0a623735c..abef8cc313 100755
--- a/python-setup/auto_install_packages.py
+++ b/python-setup/auto_install_packages.py
@@ -9,27 +9,41 @@
 import extractor_version
 
 
-def _check_call(command):
+def _check_call(command, extra_env={}):
     print('+ {}'.format(' '.join(command)), flush=True)
-    subprocess.check_call(command, stdin=subprocess.DEVNULL)
+
+    env = os.environ.copy()
+    env.update(extra_env)
+    subprocess.check_call(command, stdin=subprocess.DEVNULL, env=env)
+    sys.stdout.flush()
+    sys.stderr.flush()
 
 
-def _check_output(command):
+def _check_output(command, extra_env={}):
     print('+ {}'.format(' '.join(command)), flush=True)
-    out = subprocess.check_output(command, stdin=subprocess.DEVNULL)
+
+    env = os.environ.copy()
+    env.update(extra_env)
+    out = subprocess.check_output(command, stdin=subprocess.DEVNULL, env=env)
     print(out, flush=True)
     sys.stderr.flush()
     return out
 
 
 def install_packages_with_poetry():
+
+    # To handle poetry 1.2, which started to use keyring interaction MUCH more, we need
+    # add a workaround. See
+    # https://github.com/python-poetry/poetry/issues/2692#issuecomment-1235683370
+    extra_poetry_env = {"PYTHON_KEYRING_BACKEND": "keyring.backends.null.Keyring"}
+
     command = [sys.executable, '-m', 'poetry']
     if sys.platform.startswith('win32'):
         # In windows the default path were the deps are installed gets wiped out between steps,
         # so we have to set it up to a folder that will be kept
         os.environ['POETRY_VIRTUALENVS_PATH'] = os.path.join(os.environ['RUNNER_WORKSPACE'], 'virtualenvs')
     try:
-        _check_call(command + ['install', '--no-root'])
+        _check_call(command + ['install', '--no-root'], extra_env=extra_poetry_env)
     except subprocess.CalledProcessError:
         sys.exit('package installation with poetry failed, see error above')
 
@@ -38,7 +52,7 @@ def install_packages_with_poetry():
     # virtualenv for the package, which was the case for using poetry for Python 2 when
     # default system interpreter was Python 3 :/
 
-    poetry_out = _check_output(command + ['run', 'which', 'python'])
+    poetry_out = _check_output(command + ['run', 'which', 'python'], extra_env=extra_poetry_env)
     python_executable_path = poetry_out.decode('utf-8').splitlines()[-1]
 
     if sys.platform.startswith('win32'):
diff --git a/python-setup/install_tools.ps1 b/python-setup/install_tools.ps1
index 3c78378a3d..6719966a2f 100644
--- a/python-setup/install_tools.ps1
+++ b/python-setup/install_tools.ps1
@@ -8,6 +8,5 @@ py -3 -m pip install --user --upgrade pip setuptools wheel
 py -2 -m pip install --user 'virtualenv<20.11'
 py -3 -m pip install --user 'virtualenv<20.11'
 
-# We aren't compatible with poetry 1.2
-py -3 -m pip install --user "poetry>=1.1,<1.2"
+py -3 -m pip install --user "poetry>=1.1"
 py -3 -m pip install --user pipenv
diff --git a/python-setup/install_tools.sh b/python-setup/install_tools.sh
index 7acb33f146..513c8892ae 100755
--- a/python-setup/install_tools.sh
+++ b/python-setup/install_tools.sh
@@ -24,8 +24,7 @@ python3 -m pip install --user 'virtualenv<20.11'
 #       "program uses threads.", RuntimeWarning)
 #     LGTM_PYTHON_SETUP_VERSION=The currently activated Python version 2.7.18 is not supported by the project (^3.5). Trying to find and use a compatible version. Using python3 (3.8.2) 3
 
-# We aren't compatible with poetry 1.2
-python3 -m pip install --user "poetry>=1.1,<1.2"
+python3 -m pip install --user "poetry>=1.1"
 python3 -m pip install --user pipenv
 
 if command -v python2 >/dev/null 2>&1; then