diff --git a/lower-constraints.txt b/lower-constraints.txt
index 499fcbbc..6fae158d 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -24,12 +24,12 @@ netaddr==0.7.20
 netifaces==0.10.4
 os-client-config==1.28.0
 os-testr==1.0.0
-oslo.config==5.2.0
-oslo.context==2.19.2
+oslo.config==6.8.0
+oslo.context==2.22.0
 oslo.i18n==3.15.3
-oslo.policy==1.30.0
+oslo.policy==3.6.0
 oslo.serialization==2.18.0
-oslo.utils==3.33.0
+oslo.utils==4.5.0
 oslotest==3.2.0
 pbr==2.0.0
 PyMySQL==0.8.0
@@ -37,11 +37,11 @@ pyparsing==2.1.0
 python-mimeparse==1.6.0
 python-subunit==1.0.0
 pytz==2013.6
-PyYAML==3.13
-requests==2.14.2
+PyYAML==5.1
+requests==2.20.0
 requests-mock==1.2.0
 requestsexceptions==1.2.0
-rfc3986==0.3.1
+rfc3986==1.2.0
 simplejson==3.13.2
 smmap==0.9.0
 stestr==1.0.0
diff --git a/monasca_common/policy/policy_engine.py b/monasca_common/policy/policy_engine.py
index 4d3a0fc4..61bbd2db 100644
--- a/monasca_common/policy/policy_engine.py
+++ b/monasca_common/policy/policy_engine.py
@@ -22,6 +22,7 @@ import sys
 
 import logging
 from oslo_config import cfg
+from oslo_policy import opts
 from oslo_policy import policy
 
 from monasca_common.policy.i18n import _LW
@@ -41,6 +42,13 @@ _ENFORCER = None
 saved_file_rules = []
 
 
+# TODO(gmann): Remove setting the default value of config policy_file
+# once oslo_policy change the default value to 'policy.yaml'.
+# https://github.com/openstack/oslo.policy/blob/a626ad12fe5a3abd49d70e3e5b95589d279ab578/oslo_policy/opts.py#L49
+DEFAULT_POLICY_FILE = 'policy.yaml'
+opts.set_defaults(cfg.CONF, DEFAULT_POLICY_FILE)
+
+
 def reset():
     """Reset Enforcer class."""
     global _ENFORCER
diff --git a/releasenotes/notes/deprecate-json-formatted-policy-file-dca87c0913f20f09.yaml b/releasenotes/notes/deprecate-json-formatted-policy-file-dca87c0913f20f09.yaml
new file mode 100644
index 00000000..c9c53000
--- /dev/null
+++ b/releasenotes/notes/deprecate-json-formatted-policy-file-dca87c0913f20f09.yaml
@@ -0,0 +1,20 @@
+---
+upgrade:
+  - |
+    The default value of ``[oslo_policy] policy_file`` config option has
+    been changed from ``policy.json`` to ``policy.yaml``.
+    Operators who are utilizing customized or previously generated
+    static policy JSON files (which are not needed by default), should
+    generate new policy files or convert them in YAML format. Use the
+    `oslopolicy-convert-json-to-yaml
+    <https://docs.openstack.org/oslo.policy/latest/cli/oslopolicy-convert-json-to-yaml.html>`_
+    tool to convert a JSON to YAML formatted policy file in
+    backward compatible way.
+deprecations:
+  - |
+    Use of JSON policy files was deprecated by the ``oslo.policy`` library
+    during the Victoria development cycle. As a result, this deprecation is
+    being noted in the Wallaby cycle with an anticipated future removal of support
+    by ``oslo.policy``. As such operators will need to convert to YAML policy
+    files. Please see the upgrade notes for details on migration of any
+    custom policy files.
diff --git a/requirements.txt b/requirements.txt
index 0d95e568..fdc60ed0 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -3,8 +3,8 @@
 # process, which may cause wedges in the gate later.
 kazoo>=2.8.0 # Apache-2.0
 PyMySQL>=0.8.0 # MIT License
-oslo.config>=5.2.0 # Apache-2.0
-oslo.policy>=1.30.0 # Apache-2.0
+oslo.config>=6.8.0 # Apache-2.0
+oslo.policy>=3.6.0 # Apache-2.0
 pbr!=2.1.0,>=2.0.0 # Apache-2.0
 pyparsing>=2.1.0 # MIT
 simplejson>=3.13.2 # MIT
diff --git a/test-requirements.txt b/test-requirements.txt
index 435462a0..2940b864 100644
--- a/test-requirements.txt
+++ b/test-requirements.txt
@@ -8,7 +8,7 @@ Babel!=2.4.0,>=2.3.4 # BSD
 coverage!=4.4,>=4.0 # Apache-2.0
 fixtures>=3.0.0 # Apache-2.0/BSD
 httplib2>=0.9.1 # MIT
-oslo.context>=2.19.2 # Apache-2.0
+oslo.context>=2.22.0 # Apache-2.0
 oslotest>=3.2.0 # Apache-2.0
 stestr>=1.0.0 # Apache-2.0
 requests-mock>=1.2.0 # Apache-2.0