diff --git a/Lib/ensurepip/__init__.py b/Lib/ensurepip/__init__.py
index 4748ba4efc4..09c572db71c 100644
--- a/Lib/ensurepip/__init__.py
+++ b/Lib/ensurepip/__init__.py
@@ -8,9 +8,9 @@ import tempfile
 __all__ = ["version", "bootstrap"]
 
 
-_SETUPTOOLS_VERSION = "39.0.1"
+_SETUPTOOLS_VERSION = "40.6.2"
 
-_PIP_VERSION = "10.0.1"
+_PIP_VERSION = "18.1"
 
 _PROJECTS = [
     ("setuptools", _SETUPTOOLS_VERSION),
diff --git a/Lib/ensurepip/_bundled/pip-10.0.1-py2.py3-none-any.whl b/Lib/ensurepip/_bundled/pip-10.0.1-py2.py3-none-any.whl
deleted file mode 100644
index 9837092c07b..00000000000
Binary files a/Lib/ensurepip/_bundled/pip-10.0.1-py2.py3-none-any.whl and /dev/null differ
diff --git a/Lib/ensurepip/_bundled/pip-18.1-py2.py3-none-any.whl b/Lib/ensurepip/_bundled/pip-18.1-py2.py3-none-any.whl
new file mode 100644
index 00000000000..c3c146f6da2
Binary files /dev/null and b/Lib/ensurepip/_bundled/pip-18.1-py2.py3-none-any.whl differ
diff --git a/Lib/ensurepip/_bundled/setuptools-39.0.1-py2.py3-none-any.whl b/Lib/ensurepip/_bundled/setuptools-40.6.2-py2.py3-none-any.whl
similarity index 54%
rename from Lib/ensurepip/_bundled/setuptools-39.0.1-py2.py3-none-any.whl
rename to Lib/ensurepip/_bundled/setuptools-40.6.2-py2.py3-none-any.whl
index edc3ca2d8ec..4c8a619571d 100644
Binary files a/Lib/ensurepip/_bundled/setuptools-39.0.1-py2.py3-none-any.whl and b/Lib/ensurepip/_bundled/setuptools-40.6.2-py2.py3-none-any.whl differ
diff --git a/Misc/NEWS.d/next/Library/2018-11-19-07-22-04.bpo-35277.dsD-2E.rst b/Misc/NEWS.d/next/Library/2018-11-19-07-22-04.bpo-35277.dsD-2E.rst
new file mode 100644
index 00000000000..ff76988e33e
--- /dev/null
+++ b/Misc/NEWS.d/next/Library/2018-11-19-07-22-04.bpo-35277.dsD-2E.rst
@@ -0,0 +1 @@
+Update ensurepip to install pip 18.1 and setuptools 40.6.2.