diff --git a/providers/teradata/pyproject.toml b/providers/teradata/pyproject.toml
index 553acc1f033f6..a6ea026c00adb 100644
--- a/providers/teradata/pyproject.toml
+++ b/providers/teradata/pyproject.toml
@@ -77,6 +77,9 @@ dependencies = [
 "ssh" = [
     "apache-airflow-providers-ssh"
 ]
+"sqlalchemy" = [
+    "sqlalchemy>=1.4.49",
+]
 
 [dependency-groups]
 dev = [
diff --git a/providers/teradata/src/airflow/providers/teradata/hooks/teradata.py b/providers/teradata/src/airflow/providers/teradata/hooks/teradata.py
index 4429a1c093262..6131c4c3c317c 100644
--- a/providers/teradata/src/airflow/providers/teradata/hooks/teradata.py
+++ b/providers/teradata/src/airflow/providers/teradata/hooks/teradata.py
@@ -23,9 +23,9 @@
 from typing import TYPE_CHECKING, Any
 
 import teradatasql
-from sqlalchemy.engine import URL
 from teradatasql import TeradataConnection
 
+from airflow.exceptions import AirflowOptionalProviderFeatureException
 from airflow.providers.common.sql.hooks.sql import DbApiHook
 
 if TYPE_CHECKING:
@@ -38,6 +38,18 @@
 PARAM_TYPES = {bool, float, int, str}
 
 
+def _get_sqlalchemy_url():
+    try:
+        from sqlalchemy.engine import URL
+
+        return URL
+    except ImportError:
+        raise AirflowOptionalProviderFeatureException(
+            "SQLAlchemy is required for this Teradata feature."
+            "Install it with: pip install 'apache-airflow-providers-teradata[sqlalchemy]'"
+        )
+
+
 def _map_param(value):
     if value in PARAM_TYPES:
         # In this branch, value is a Python type; calling it produces
@@ -197,12 +209,13 @@ def _get_conn_config_teradatasql(self) -> dict[str, Any]:
         return conn_config
 
     @property
-    def sqlalchemy_url(self) -> URL:
+    def sqlalchemy_url(self):
         """
          Override to return a Sqlalchemy.engine.URL object from the Teradata connection.
 
         :return: the extracted sqlalchemy.engine.URL object.
         """
+        URL = _get_sqlalchemy_url()
         connection = self.get_connection(self.get_conn_id())
         # Adding only teradatasqlalchemy supported connection parameters.
         # https://pypi.org/project/teradatasqlalchemy/#ConnectionParameters