diff --git a/.github/workflows/cicd.yaml b/.github/workflows/cicd.yaml
index d1cf7c50..47496225 100644
--- a/.github/workflows/cicd.yaml
+++ b/.github/workflows/cicd.yaml
@@ -185,7 +185,7 @@ jobs:
           AIRFLOW__CORE__DAGBAG_IMPORT_TIMEOUT: 90.0
           AIRFLOW_HOME: ${{ github.workspace }}
           CONFIG_ROOT_DIR: ${{ github.workspace }}/dags
-          PYTHONPATH: ${{ github.workspace }}:${{ github.workspace }}/examples:$PYTHONPATH
+          PYTHONPATH: ${{ github.workspace }}:${{ github.workspace }}/dev/dags:$PYTHONPATH
           AUTO_CONVERT_TO_AF3: true
 
       - name: Upload coverage to Github
diff --git a/dagfactory/dagbuilder.py b/dagfactory/dagbuilder.py
index d8ee299c..4f58569b 100644
--- a/dagfactory/dagbuilder.py
+++ b/dagfactory/dagbuilder.py
@@ -3,8 +3,6 @@
 from __future__ import annotations
 
 import ast
-
-# pylint: disable=ungrouped-imports
 import inspect
 import os
 import re
@@ -14,8 +12,16 @@
 from functools import partial, reduce
 from typing import Any, Callable, Dict, List, Tuple, Union
 
-from airflow import DAG, configuration
-from airflow.models import BaseOperator, Variable
+from airflow import configuration
+
+try:
+    from airflow.sdk.bases.operator import BaseOperator
+    from airflow.sdk.definitions.dag import DAG
+    from airflow.sdk.definitions.variable import Variable
+except ImportError:
+    from airflow.models import BaseOperator, Variable
+    from airflow.models.dag import DAG
+
 from airflow.utils.module_loading import import_string
 from airflow.version import version as AIRFLOW_VERSION
 from packaging import version
@@ -1069,8 +1075,12 @@ def adjust_general_task_params(task_params: dict(str, Any)):
         if utils.check_dict_key(task_params, "variables_as_arguments"):
             variables: List[Dict[str, str]] = task_params.get("variables_as_arguments")
             for variable in variables:
-                if Variable.get(variable["variable"], default_var=None) is not None:
-                    task_params[variable["attribute"]] = Variable.get(variable["variable"], default_var=None)
+                default_argument_name = "default"
+                if INSTALLED_AIRFLOW_VERSION.major < AIRFLOW3_MAJOR_VERSION:
+                    default_argument_name = "default_var"
+                variable_value = Variable.get(variable["variable"], **{default_argument_name: None})
+                if variable_value is not None:
+                    task_params[variable["attribute"]] = variable_value
             del task_params["variables_as_arguments"]
 
         if version.parse(AIRFLOW_VERSION) >= version.parse("2.4.0"):
diff --git a/dagfactory/dagfactory.py b/dagfactory/dagfactory.py
index b95b6b3b..5ecfb19a 100644
--- a/dagfactory/dagfactory.py
+++ b/dagfactory/dagfactory.py
@@ -8,7 +8,11 @@
 
 import yaml
 from airflow.configuration import conf as airflow_conf
-from airflow.models import DAG
+
+try:
+    from airflow.sdk.definitions.dag import DAG
+except ImportError:
+    from airflow.models import DAG
 from airflow.version import version as AIRFLOW_VERSION
 from packaging import version
 
diff --git a/dagfactory/listeners/runtime_event.py b/dagfactory/listeners/runtime_event.py
index 20b57a65..79031dd6 100644
--- a/dagfactory/listeners/runtime_event.py
+++ b/dagfactory/listeners/runtime_event.py
@@ -1,7 +1,11 @@
 from __future__ import annotations
 
 from airflow.listeners import hookimpl
-from airflow.models.dag import DAG
+
+try:
+    from airflow.sdk.definitions.dag import DAG
+except ImportError:
+    from airflow.models import DAG
 from airflow.models.dagrun import DagRun
 
 from dagfactory import telemetry
diff --git a/scripts/test/pre-install-airflow.sh b/scripts/test/pre-install-airflow.sh
index f84da6fb..770f8028 100755
--- a/scripts/test/pre-install-airflow.sh
+++ b/scripts/test/pre-install-airflow.sh
@@ -1,5 +1,9 @@
 #!/bin/bash
 
+set -v
+set -x
+set -e
+
 AIRFLOW_VERSION="$1"
 PYTHON_VERSION="$2"
 
@@ -13,13 +17,35 @@ fi
 
 echo "${VIRTUAL_ENV}"
 
-CONSTRAINT_URL="https://raw.githubusercontent.com/apache/airflow/constraints-$AIRFLOW_VERSION.0/constraints-$PYTHON_VERSION.txt"
-curl -sSL $CONSTRAINT_URL -o /tmp/constraint.txt
+if [ "$AIRFLOW_VERSION" = "3.0" ] ; then
+  CONSTRAINT_URL="https://raw.githubusercontent.com/apache/airflow/constraints-$AIRFLOW_VERSION.2/constraints-$PYTHON_VERSION.txt"
+else
+  CONSTRAINT_URL="https://raw.githubusercontent.com/apache/airflow/constraints-$AIRFLOW_VERSION.0/constraints-$PYTHON_VERSION.txt"
+fi;
+
+curl -sSL "$CONSTRAINT_URL" -o /tmp/constraint.txt
 # Workaround to remove PyYAML constraint that will work on both Linux and MacOS
 sed '/PyYAML==/d' /tmp/constraint.txt > /tmp/constraint.txt.tmp
 mv /tmp/constraint.txt.tmp /tmp/constraint.txt
-# Install Airflow with constraints
-uv pip install "apache-airflow==$AIRFLOW_VERSION" --constraint /tmp/constraint.txt
 
-uv pip install apache-airflow-providers-cncf-kubernetes --constraint /tmp/constraint.txt
+pip install uv
+uv pip install pip --upgrade
+
+
+if [ "$AIRFLOW_VERSION" = "3.0" ]; then
+  uv pip install "apache-airflow>=3.0.2" --constraint /tmp/constraint.txt
+else
+  uv pip install "apache-airflow==$AIRFLOW_VERSION" --constraint /tmp/constraint.txt
+  uv pip install apache-airflow-providers-cncf-kubernetes --constraint /tmp/constraint.txt
+fi;
+
 rm /tmp/constraint.txt
+
+actual_version=$(airflow version | cut -d. -f1,2)
+
+if [ "$actual_version" = $AIRFLOW_VERSION ]; then
+    echo "Version is as expected: $AIRFLOW_VERSION"
+else
+    echo "Version does not match. Expected: $AIRFLOW_VERSION, but got: $actual_version"
+    exit 1
+fi
diff --git a/tests/test_dagbuilder.py b/tests/test_dagbuilder.py
index ca205695..efcb378d 100644
--- a/tests/test_dagbuilder.py
+++ b/tests/test_dagbuilder.py
@@ -8,9 +8,10 @@
 import pytest
 
 try:
-    from airflow.sdk.definitions import DAG
+    from airflow.sdk.definitions.dag import DAG
 except ImportError:
     from airflow.models import DAG
+
 import yaml
 from airflow.providers.common.sql.sensors.sql import SqlSensor
 from airflow.providers.http.sensors.http import HttpSensor
diff --git a/tests/test_dagbuilder_httpoperator.py b/tests/test_dagbuilder_httpoperator.py
index 0d5be9bc..c8d32c6f 100644
--- a/tests/test_dagbuilder_httpoperator.py
+++ b/tests/test_dagbuilder_httpoperator.py
@@ -5,7 +5,11 @@
 
 import pendulum
 import pytest
-from airflow import DAG
+
+try:
+    from airflow.sdk.definitions.dag import DAG  # noqa: F401
+except ImportError:
+    from airflow.models.dag import DAG  # noqa: F401
 
 from dagfactory.dagbuilder import DagBuilder
 from dagfactory.exceptions import DagFactoryException
@@ -47,14 +51,14 @@
     "concurrency": 1,
     "max_active_runs": 1,
     "dagrun_timeout_sec": 600,
-    "schedule_interval": "0 1 * * *",
+    get_schedule_key(): "0 1 * * *",
 }
 
 # Basic DAG config for tests
 DAG_CONFIG = {
     "default_args": {"owner": "custom_owner"},
     "description": "this is an example dag",
-    "schedule_interval": "0 3 * * *",
+    get_schedule_key(): "0 3 * * *",
 }
 
 
diff --git a/tests/test_dagfactory.py b/tests/test_dagfactory.py
index e542c7db..797f9e21 100644
--- a/tests/test_dagfactory.py
+++ b/tests/test_dagfactory.py
@@ -6,9 +6,10 @@
 from airflow.version import version as AIRFLOW_VERSION
 
 try:
-    from airflow.sdk.definitions.variable import Variable
+    from airflow.sdk.definitions.variable import Variable  # noqa: F401
 except ImportError:
-    from airflow.models.variable import Variable
+    from airflow.models.variable import Variable  # noqa: F401
+
 from packaging import version
 
 from tests.utils import get_bash_operator_path, get_schedule_key
@@ -350,10 +351,7 @@ def test_kubernetes_pod_operator_dag_lt_2_7():
 def test_variables_as_arguments_dag(monkeypatch):
     monkeypatch.setenv("AUTO_CONVERT_TO_AF3", "true")
     override_command = "value_from_variable"
-    if version.parse(AIRFLOW_VERSION) >= version.parse("1.10.10"):
-        os.environ["AIRFLOW_VAR_VAR1"] = override_command
-    else:
-        Variable.set("var1", override_command)
+    os.environ["AIRFLOW_VAR_VAR1"] = override_command
     td = dagfactory.DagFactory(DAG_FACTORY_VARIABLES_AS_ARGUMENTS)
     td.generate_dags(globals())
     tasks = globals()["example_dag"].tasks
diff --git a/tests/utils.py b/tests/utils.py
index 1275ce80..974bc4f0 100644
--- a/tests/utils.py
+++ b/tests/utils.py
@@ -8,7 +8,11 @@
 import yaml
 from airflow.configuration import secrets_backend_list
 from airflow.exceptions import AirflowSkipException
-from airflow.models.dag import DAG
+
+try:
+    from airflow.sdk.definitions.dag import DAG
+except ImportError:
+    from airflow.models.dag import DAG
 from airflow.models.dagrun import DagRun
 from airflow.models.taskinstance import TaskInstance
 from airflow.secrets.local_filesystem import LocalFilesystemBackend