diff --git a/doc/README.rst b/doc/README.rst
index bf97d352..008ee691 100644
--- a/doc/README.rst
+++ b/doc/README.rst
@@ -46,7 +46,7 @@ edit config file
   # sudo mkdir -p /etc/freezer
   # sudo cp etc/freezer/freezer-api.conf.sample /etc/freezer/freezer-api.conf
   # sudo cp etc/freezer/freezer-paste.ini /etc/freezer/freezer-paste.ini
-  # sudo cp etc/freezer/policy.json /etc/freezer/policy.json
+  # sudo cp etc/freezer/policy.yaml /etc/freezer/policy.yaml
   # sudo vi /etc/freezer/freezer-api.conf
   # sudo vi /etc/freezer/freezer-paste.ini
 
diff --git a/etc/freezer/freezer-api.conf.sample b/etc/freezer/freezer-api.conf.sample
index f46812cd..fc7395d4 100644
--- a/etc/freezer/freezer-api.conf.sample
+++ b/etc/freezer/freezer-api.conf.sample
@@ -580,7 +580,7 @@
 #enforce_scope = false
 
 # The file that defines policies. (string value)
-#policy_file = policy.json
+#policy_file = policy.yaml
 
 # Default rule. Enforced when a requested rule is not found. (string value)
 #policy_default_rule = default
diff --git a/freezer_api/cmd/status.py b/freezer_api/cmd/status.py
index 7326a23a..1d755d8f 100644
--- a/freezer_api/cmd/status.py
+++ b/freezer_api/cmd/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 freezer_api.common._i18n import _
@@ -26,11 +27,6 @@ class Checks(upgradecheck.UpgradeCommands):
     and added to _upgrade_checks tuple.
     """
 
-    def _check_placeholder(self):
-        # This is just a placeholder for upgrade checks, it should be
-        # removed when the actual checks are added
-        return upgradecheck.Result(upgradecheck.Code.SUCCESS)
-
     # The format of the check functions is to return an
     # oslo_upgradecheck.upgradecheck.Result
     # object with the appropriate
@@ -39,8 +35,8 @@ class Checks(upgradecheck.UpgradeCommands):
     # in the returned Result's "details" attribute. The
     # summary will be rolled up at the end of the check() method.
     _upgrade_checks = (
-        # In the future there should be some real checks added here
-        (_('Placeholder'), _check_placeholder),
+        (_("Policy File JSON to YAML Migration"),
+         (common_checks.check_policy_json, {'conf': cfg.CONF})),
     )
 
 
diff --git a/freezer_api/common/config.py b/freezer_api/common/config.py
index e2c01152..5acc7b73 100644
--- a/freezer_api/common/config.py
+++ b/freezer_api/common/config.py
@@ -19,6 +19,7 @@ import os
 from keystonemiddleware import opts
 from oslo_config import cfg
 from oslo_log import log
+from oslo_policy import opts as policy_opts
 from oslo_policy import policy
 
 from freezer_api import __version__ as FREEZER_API_VERSION
@@ -106,13 +107,13 @@ def parse_args(args=[]):
     CONF.register_group(paste_grp)
     CONF.register_opts(paste_deploy, group=paste_grp)
     log.register_options(CONF)
-    policy.Enforcer(CONF)
     default_config_files = cfg.find_config_files('freezer', 'freezer-api')
     CONF(args=args,
          project='freezer-api',
          default_config_files=default_config_files,
          version=FREEZER_API_VERSION
          )
+    policy.Enforcer(CONF)
 
 
 def setup_logging():
@@ -167,3 +168,18 @@ def list_opts():
     # update the current list of opts with db backend drivers opts
     _OPTS.update({"storage": _DB_DRIVERS})
     return _OPTS.items()
+
+
+def set_lib_defaults():
+    """Update default value for configuration options from other namespace.
+
+    Example, oslo lib config options. This is needed for
+    config generator tool to pick these default value changes.
+    https://docs.openstack.org/oslo.config/latest/cli/
+    generator.html#modifying-defaults-from-other-namespaces
+    """
+
+    # 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
+    policy_opts.set_defaults(CONF, 'policy.yaml')
diff --git a/freezer_api/policy.py b/freezer_api/policy.py
index 34af9cb8..ded6537a 100644
--- a/freezer_api/policy.py
+++ b/freezer_api/policy.py
@@ -16,11 +16,19 @@ limitations under the License.
 
 import functools
 
+from oslo_config import cfg
+from oslo_policy import opts
 from oslo_policy import policy
 
 from freezer_api.common import exceptions
 from freezer_api.common import policies
 
+# 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)
+
 ENFORCER = None
 
 
diff --git a/freezer_api/tests/unit/cmd/test_status.py b/freezer_api/tests/unit/cmd/test_status.py
deleted file mode 100644
index 2252fdf2..00000000
--- a/freezer_api/tests/unit/cmd/test_status.py
+++ /dev/null
@@ -1,31 +0,0 @@
-# Copyright (c) 2018 NEC, Corp.
-#
-#    Licensed under the Apache License, Version 2.0 (the "License"); you may
-#    not use this file except in compliance with the License. You may obtain
-#    a copy of the License at
-#
-#         http://www.apache.org/licenses/LICENSE-2.0
-#
-#    Unless required by applicable law or agreed to in writing, software
-#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
-#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
-#    License for the specific language governing permissions and limitations
-#    under the License.
-
-import unittest
-
-from oslo_upgradecheck.upgradecheck import Code
-
-from freezer_api.cmd import status
-
-
-class TestUpgradeChecks(unittest.TestCase):
-
-    def setUp(self):
-        super(TestUpgradeChecks, self).setUp()
-        self.cmd = status.Checks()
-
-    def test__check_placeholder(self):
-        check_result = self.cmd._check_placeholder()
-        self.assertEqual(
-            Code.SUCCESS, check_result.code)
diff --git a/lower-constraints.txt b/lower-constraints.txt
index 22714029..81c63bb7 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -31,16 +31,16 @@ netifaces==0.10.6
 openstackdocstheme==1.31.2
 os-api-ref==1.4.0
 oslo.cache==1.29.0
-oslo.config==5.2.0
-oslo.context==2.19.2
+oslo.config==6.8.0
+oslo.context==2.22.0
 oslo.db==4.44.0
 oslo.i18n==3.15.3
 oslo.log==3.36.0
 oslo.middleware==3.31.0
-oslo.policy==1.30.0
+oslo.policy==3.6.0
 oslo.serialization==2.25.0
-oslo.upgradecheck==0.1.0
-oslo.utils==3.36.0
+oslo.upgradecheck==1.3.0
+oslo.utils==4.5.0
 oslotest==3.3.0
 Paste==2.0.2
 PasteDeploy==1.5.0
@@ -57,10 +57,10 @@ python-keystoneclient==3.15.0
 python-mimeparse==1.6.0
 python-subunit==1.2.0
 pytz==2018.3
-PyYAML==3.13
+PyYAML==5.1
 reno==2.5.0
-requests==2.18.4
-rfc3986==1.1.0
+requests==2.23.0
+rfc3986==1.2.0
 snowballstemmer==1.2.1
 Sphinx==1.8.0
 sphinxcontrib-websupport==1.0.1
@@ -79,4 +79,4 @@ traceback2==1.4.0
 unittest2==1.1.0
 urllib3==1.22
 WebOb==1.7.4
-wrapt==1.10.11
+wrapt==1.11.0
diff --git a/releasenotes/notes/deprecate-json-formatted-policy-file-d703706239831caa.yaml b/releasenotes/notes/deprecate-json-formatted-policy-file-d703706239831caa.yaml
new file mode 100644
index 00000000..c9c53000
--- /dev/null
+++ b/releasenotes/notes/deprecate-json-formatted-policy-file-d703706239831caa.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 713ff3d0..308d4454 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -7,12 +7,12 @@ jsonschema>=3.2.0 # MIT
 keystonemiddleware>=4.17.0 # Apache-2.0
 Paste>=2.0.2 # MIT
 PasteDeploy>=1.5.0 # MIT
-oslo.config>=5.2.0 # Apache-2.0
-oslo.context>=2.19.2 # Apache-2.0
+oslo.config>=6.8.0 # Apache-2.0
+oslo.context>=2.22.0 # Apache-2.0
 oslo.db>=4.44.0 # Apache-2.0
 oslo.i18n>=3.15.3 # Apache-2.0
 oslo.log>=3.36.0 # Apache-2.0
 oslo.middleware>=3.31.0 # Apache-2.0
-oslo.policy>=1.30.0 # Apache-2.0
+oslo.policy>=3.6.0 # Apache-2.0
 oslo.serialization>=2.25.0 # Apache-2.0
-oslo.upgradecheck>=0.1.0 # Apache-2.0
+oslo.upgradecheck>=1.3.0 # Apache-2.0
diff --git a/setup.cfg b/setup.cfg
index 02f1436b..5fee6ea4 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -40,6 +40,8 @@ packages =
 [entry_points]
 oslo.config.opts =
     freezer-api = freezer_api.common.config:list_opts
+oslo.config.opts.defaults =
+    freezer-api = freezer_api.common.config:set_lib_defaults
 oslo.policy.policies =
     freezer-api = freezer_api.common.policies:list_rules
 console_scripts =