Warning: Contains SPOILERS for The Book of Boba Fett episode 5.
It’s previously been theorised that Grogu could become the second ever Mandalorian Jedi in Star Wars, and the events of The Book of Boba Fett further support the idea. After The Mandalorian season 2’s ending, Grogu has set back on the path to being a Jedi, nearly 30 years after he was smuggled to safety from the Jedi Temple during Order 66. Even with that, though, given he’s still just a child of 50, Grogu’s future remains clouded and uncertain, with no indication of exactly how long he’ll spend with Luke.
The darkest possible Grogu theory, of course, is that he ends up in Luke’s new Jedi Academy, and is either among the students massacred by Kylo Ren or is somehow miraculously saved once more. Such events are still around 18-19 years away in the Star Wars timeline though, and as Grogu is one of if not the most popular (and merchandisable) character(s) of the Disney Star Wars era, then it’s likely much more of his story will be told before then, and likely deal with his fate away from Luke’s fledgling Jedi Order.
Since his introduction, then, Star Wars has made clear Grogu has deep ties to the Jedi, but has also shown him forge strong bonds with the Mandalorians. Given he was taken in as a foundling by Din and was being raised and protected by him, combined with his Force-sensitivity, then it led to the theory that "Baby Yoda" would be the second Mandalorian Jedi in history, something The Book of Boba Fett episode 5 lends more weight to. For starters, it directly mentions the first Mandalorian Jedi, Tarre Vizsla, the creator of the Darksaber that Din himself now wields. The history lesson is significant for Din's own journey with the black0bladed lightsaber, but it could also be a seed planted for the future, pointing at Grogu's own destiny, reminding viewers that there is precedent for a Mandalorian Jedi.
The Book of Boba Fett later adds further fuel to the theory of Grogu being the second Mandalorian Jedi thanks to Din's own actions in episode 5, which include him having the Armorer make a gift for Grogu (likely Mandalorian armor of some kind), and then stating his intention to pay a visit to his "little friend," meaning Din and "Baby Yoda" should be reunited sooner rather than later. At the very least, this sets up Grogu wearing Mandalorian armor while training as a Jedi, but the fact Din wants to see him and maintain his relationship also points to how Grogu could be a different kind of Jedi.
The Armorer in The Book of Boba Fett episode 5 makes clear a distinction between the Mandalorians and Jedi, especially by painting the latter as needing to be devoid of emotions and attachments. With Din already strongly bonded with Grogu and that seemingly not going to be broken anytime soon, then it does mean Grogu will remain linked to the Mandalorians. Luke Skywalker himself knows the Jedi need to be different from before, with Yoda's dogmatic ways ultimately costing the Order in the end. Luke is no stranger to attachments and emotions, and nor is the one Jedi left by the end of the Star Wars sequel trilogy, Rey, so Grogu continuing this pattern would make sense.
With that, then Grogu could continue to train as a Jedi while also taking the Mandalorian Creed and working with Din, perhaps eventually, with enough time, coming to lead their people as the second Mandalorian Jedi. Star Wars loves to tell stories that come full circle and show examples of history repeating itself, and so with the mention of Tarre Vizsla and Grogu remaining both inextricably connected to Mandalorians and Jedi alike, the stage is perfectly set for him to become Vizsla's first successor. That could even provide a loophole for him to wield the Darksaber: while he and Din wouldn't fight, if Grogu were a Mandalorian Jedi then it might be seen as his by right, or Din himself, should he assume a leadership position among Mandalorians, could change the rules. Grogu as, a Force-user, would surely be able to bond to the Darksaber, and it would ultimately better serve as his weapon than Din's in the long term (or perhaps, as sad as it may be, being passed on to him after Din's death). Even if he gets his own lightsaber though, Grogu's best future is still as a Mandalorian Jedi, rather than having to choose between two halves that make up so much of his story.
The Book of Boba Fett releases new episodes Wednesdays on Disney+.