diff --git a/cloudkitty/cli/status.py b/cloudkitty/cli/status.py
index 97248934..f1a1f345 100644
--- a/cloudkitty/cli/status.py
+++ b/cloudkitty/cli/status.py
@@ -15,6 +15,7 @@
 import sys
 
 from oslo_config import cfg
+from oslo_upgradecheck import common_checks
 from oslo_upgradecheck import upgradecheck
 
 from cloudkitty.i18n import _
@@ -38,6 +39,8 @@ class CloudkittyUpgradeChecks(upgradecheck.UpgradeCommands):
 
     _upgrade_checks = (
         (_('Storage version'), _storage_version),
+        (_("Policy File JSON to YAML Migration"),
+         (common_checks.check_policy_json, {'conf': CONF})),
     )
 
 
diff --git a/cloudkitty/common/defaults.py b/cloudkitty/common/defaults.py
index 7023beab..376f3f61 100644
--- a/cloudkitty/common/defaults.py
+++ b/cloudkitty/common/defaults.py
@@ -13,13 +13,22 @@
 #    under the License.
 #
 
+
+from oslo_config import cfg
 from oslo_middleware import cors
+from oslo_policy import opts as policy_opts
 
 
 def set_config_defaults():
     """This method updates all configuration default values."""
     set_cors_middleware_defaults()
 
+    # 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'
+    policy_opts.set_defaults(cfg.CONF, DEFAULT_POLICY_FILE)
+
 
 def set_cors_middleware_defaults():
     """Update default configuration options for oslo.middleware."""
diff --git a/cloudkitty/common/policy.py b/cloudkitty/common/policy.py
index 8b932ed6..6ae73c7d 100644
--- a/cloudkitty/common/policy.py
+++ b/cloudkitty/common/policy.py
@@ -29,7 +29,11 @@ from cloudkitty.common import policies
 
 LOG = logging.getLogger(__name__)
 CONF = cfg.CONF
-policy_opts.set_defaults(cfg.CONF, 'policy.json')
+# 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'
+policy_opts.set_defaults(cfg.CONF, DEFAULT_POLICY_FILE)
 
 _ENFORCER = None
 # oslo_policy will read the policy configuration file again when the file
diff --git a/cloudkitty/tests/gabbi/fixtures.py b/cloudkitty/tests/gabbi/fixtures.py
index 65c2e96d..381fdac1 100644
--- a/cloudkitty/tests/gabbi/fixtures.py
+++ b/cloudkitty/tests/gabbi/fixtures.py
@@ -202,7 +202,7 @@ class ConfigFixture(fixture.GabbiFixture):
         conf.set_override('auth_strategy', self.auth_strategy)
         conf.set_override('connection', 'sqlite:///', 'database')
         conf.set_override('policy_file',
-                          os.path.abspath('etc/cloudkitty/policy.json'),
+                          os.path.abspath('etc/cloudkitty/policy.yaml'),
                           group='oslo_policy')
         conf.set_override('api_paste_config',
                           os.path.abspath(
diff --git a/doc/source/_static/cloudkitty.conf.sample b/doc/source/_static/cloudkitty.conf.sample
index 5eb27ebe..9c00a17b 100644
--- a/doc/source/_static/cloudkitty.conf.sample
+++ b/doc/source/_static/cloudkitty.conf.sample
@@ -1260,7 +1260,7 @@
 # permissions for a given service. Relative paths must be specified in
 # relation to the configuration file setting this option. (string
 # value)
-#policy_file = policy.json
+#policy_file = policy.yaml
 
 # Default rule. Enforced when a requested rule is not found. (string
 # value)
diff --git a/doc/source/admin/configuration/policy.rst b/doc/source/admin/configuration/policy.rst
index 7cea6f49..28bd75f0 100644
--- a/doc/source/admin/configuration/policy.rst
+++ b/doc/source/admin/configuration/policy.rst
@@ -5,6 +5,14 @@ Policy configuration
 Configuration
 ~~~~~~~~~~~~~
 
+.. warning::
+
+   JSON formatted policy file is deprecated since Cloudkitty 14.0.0 (Wallaby).
+   This `oslopolicy-convert-json-to-yaml`__ tool will migrate your existing
+   JSON-formatted policy file to YAML in a backward-compatible way.
+
+.. __: https://docs.openstack.org/oslo.policy/latest/cli/oslopolicy-convert-json-to-yaml.html
+
 The following is an overview of all available policies in Cloudkitty.
 For a sample configuration file, refer to :doc:`samples/policy-yaml`.
 
diff --git a/doc/source/admin/install/install-source.rst b/doc/source/admin/install/install-source.rst
index 8f684b6a..826806cf 100644
--- a/doc/source/admin/install/install-source.rst
+++ b/doc/source/admin/install/install-source.rst
@@ -24,7 +24,7 @@ Install sample configuration files::
     mkdir /etc/cloudkitty
     tox -e genconfig
     cp etc/cloudkitty/cloudkitty.conf.sample /etc/cloudkitty/cloudkitty.conf
-    cp etc/cloudkitty/policy.json /etc/cloudkitty
+    cp etc/cloudkitty/policy.yaml /etc/cloudkitty
     cp etc/cloudkitty/api_paste.ini /etc/cloudkitty
 
 Create the log directory::
diff --git a/lower-constraints.txt b/lower-constraints.txt
index d1dd8146..d40b5a17 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -18,9 +18,9 @@ oslo.i18n==5.0.1 # Apache-2.0
 oslo.log==4.4.0 # Apache-2.0
 oslo.messaging==12.6.0 # Apache-2.0
 oslo.middleware==4.1.1 # Apache-2.0
-oslo.policy==3.5.0 # Apache-2.0
+oslo.policy==3.6.0 # Apache-2.0
 oslo.utils==4.7.0 # Apache-2.0
-oslo.upgradecheck==1.2.0 # Apache-2.0
+oslo.upgradecheck==1.3.0 # Apache-2.0
 python-dateutil==2.7.0 # BSD
 SQLAlchemy==1.3.20 # MIT
 six==1.15.0 # MIT
diff --git a/releasenotes/notes/deprecate-json-formatted-policy-file-01ceb65712fd0a39.yaml b/releasenotes/notes/deprecate-json-formatted-policy-file-01ceb65712fd0a39.yaml
new file mode 100644
index 00000000..c9c53000
--- /dev/null
+++ b/releasenotes/notes/deprecate-json-formatted-policy-file-01ceb65712fd0a39.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 2fec85c5..aec4d481 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -20,9 +20,9 @@ oslo.i18n>=5.0.1 # Apache-2.0
 oslo.log>=4.4.0 # Apache-2.0
 oslo.messaging>=12.6.0 # Apache-2.0
 oslo.middleware>=4.1.1 # Apache-2.0
-oslo.policy>=3.5.0 # Apache-2.0
+oslo.policy>=3.6.0 # Apache-2.0
 oslo.utils>=4.7.0 # Apache-2.0
-oslo.upgradecheck>=1.2.0 # Apache-2.0
+oslo.upgradecheck>=1.3.0 # Apache-2.0
 python-dateutil>=2.7.0 # BSD
 SQLAlchemy>=1.3.20 # MIT
 six>=1.15.0 # MIT
diff --git a/setup.cfg b/setup.cfg
index 9e66d4de..2c4a895f 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -44,7 +44,7 @@ oslo.config.opts =
     cloudkitty.common.config = cloudkitty.common.config:list_opts
 
 oslo.config.opts.defaults =
-    cloudkitty.common.config = cloudkitty.common.defaults:set_cors_middleware_defaults
+    cloudkitty.common.config = cloudkitty.common.defaults:set_config_defaults
 
 cloudkitty.collector.backends =
     gnocchi = cloudkitty.collector.gnocchi:GnocchiCollector