diff --git a/infra/config/recipes.cfg b/infra/config/recipes.cfg
index 2cd994d183..f53f59717d 100644
--- a/infra/config/recipes.cfg
+++ b/infra/config/recipes.cfg
@@ -4,7 +4,7 @@
     {
       "branch": "master",
       "project_id": "recipe_engine",
-      "revision": "855168108b3dab668c36b56a99ca5a73f6d98932",
+      "revision": "e77477ba61ef082e2e34d58fd1251a1cb707f698",
       "url": "https://chromium.googlesource.com/external/github.com/luci/recipes-py.git"
     }
   ],
diff --git a/recipes/recipes.py b/recipes/recipes.py
index 3c0ffd9cfa..c0b68b7301 100755
--- a/recipes/recipes.py
+++ b/recipes/recipes.py
@@ -67,11 +67,15 @@ def parse(repo_root, recipes_cfg_path):
   with open(recipes_cfg_path, 'rU') as fh:
     pb = json.load(fh)
 
-  engine = next(
-    (d for d in pb['deps'] if d['project_id'] == 'recipe_engine'), None)
-  if engine is None:
-    raise ValueError('could not find recipe_engine dep in %r'
-                     % recipes_cfg_path)
+  if pb['api_version'] == 1:
+    # TODO(iannucci): remove when we only support version 2
+    engine = next(
+      (d for d in pb['deps'] if d['project_id'] == 'recipe_engine'), None)
+    if engine is None:
+      raise ValueError('could not find recipe_engine dep in %r'
+                       % recipes_cfg_path)
+  else:
+    engine = pb['deps']['recipe_engine']
   engine_url = engine['url']
   engine_revision = engine.get('revision', '')
   engine_subpath = engine.get('path_override', '')