diff --git a/examples/python/xds/README.md b/examples/python/xds/README.md
index 51bfe715583..bf7809e814d 100644
--- a/examples/python/xds/README.md
+++ b/examples/python/xds/README.md
@@ -22,7 +22,7 @@ cd grpc/examples/python/xds
 ```sh
 virtualenv venv -p python3
 source venv/bin/activate
-pip install grpcio protobuf grpcio-reflection grpcio-health-checking
+pip install -r requirements.txt
 python server.py
 ```
 
diff --git a/examples/python/xds/requirements.txt b/examples/python/xds/requirements.txt
new file mode 100644
index 00000000000..a7ac2e7c8b3
--- /dev/null
+++ b/examples/python/xds/requirements.txt
@@ -0,0 +1,5 @@
+grpcio>=1.28.0
+protobuf
+grpcio-reflection
+grpcio-health-checking
+
diff --git a/examples/python/xds/server.py b/examples/python/xds/server.py
index 3cff567667f..75043857f3b 100644
--- a/examples/python/xds/server.py
+++ b/examples/python/xds/server.py
@@ -43,7 +43,7 @@ class Greeter(helloworld_pb2_grpc.GreeterServicer):
             message=f"Hello {request.name} from {self._hostname}!")
 
 
-def serve(port, hostname):
+def serve(port: int, hostname: str):
     server = grpc.server(
         futures.ThreadPoolExecutor(max_workers=multiprocessing.cpu_count()))