diff --git a/doc/source/configuration/sample-policy.rst b/doc/source/configuration/sample-policy.rst
index 22e37f4675..6ff85c1f0f 100644
--- a/doc/source/configuration/sample-policy.rst
+++ b/doc/source/configuration/sample-policy.rst
@@ -5,6 +5,14 @@ Policy configuration
 Configuration
 ~~~~~~~~~~~~~
 
+.. warning::
+
+   JSON formatted policy file is deprecated since Magnum 12.0.0 (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 Magnum. For a sample
 configuration file, refer to :doc:`samples/policy-yaml`.
 
diff --git a/doc/source/configuration/samples/policy-yaml.rst b/doc/source/configuration/samples/policy-yaml.rst
index 3269172cbd..624a6c93bb 100644
--- a/doc/source/configuration/samples/policy-yaml.rst
+++ b/doc/source/configuration/samples/policy-yaml.rst
@@ -2,6 +2,14 @@
 policy.yaml
 ===========
 
+.. warning::
+
+   JSON formatted policy file is deprecated since Magnum 12.0.0 (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
+
 Use the ``policy.yaml`` file to define additional access controls that apply to
 the Container Infrastructure Management service:
 
diff --git a/doc/source/user/index.rst b/doc/source/user/index.rst
index 9f0fc5a951..6169724408 100644
--- a/doc/source/user/index.rst
+++ b/doc/source/user/index.rst
@@ -2782,12 +2782,12 @@ proceed as follows:
    (`False` by default).
 
 2. Update heat policy to allow magnum list stacks. To this end, edit your heat
-   policy file, usually etc/heat/policy.json``:
+   policy file, usually etc/heat/policy.yaml``:
 
    .. code-block:: ini
 
       ...
-      stacks:global_index: "rule:context_is_admin",
+      stacks:global_index: "rule:context_is_admin"
 
    Now restart heat.
 
diff --git a/lower-constraints.txt b/lower-constraints.txt
index c571369f6b..a4de50f9b5 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -78,11 +78,11 @@ oslo.i18n==5.0.0
 oslo.log==4.2.0
 oslo.messaging==12.2.0
 oslo.middleware==4.1.0
-oslo.policy==3.2.0
+oslo.policy==3.6.0
 oslo.reports==2.1.0
 oslo.serialization==3.2.0
 oslo.service==2.2.0
-oslo.upgradecheck==1.1.0
+oslo.upgradecheck==1.3.0
 oslo.utils==4.2.0
 oslo.versionedobjects==2.1.0
 oslotest==4.4.1
diff --git a/magnum/cmd/status.py b/magnum/cmd/status.py
index ca5ea68f22..7d6fb36ad2 100644
--- a/magnum/cmd/status.py
+++ b/magnum/cmd/status.py
@@ -14,6 +14,7 @@
 
 import sys
 
+from oslo_upgradecheck import common_checks
 from oslo_upgradecheck import upgradecheck
 
 import magnum.conf
@@ -30,17 +31,9 @@ class Checks(upgradecheck.UpgradeCommands):
     and added to _upgrade_checks tuple.
     """
 
-    def _sample_check(self):
-        """This is sample check added to test the upgrade check framework
-
-        It needs to be removed after adding any real upgrade check
-        """
-        return upgradecheck.Result(upgradecheck.Code.SUCCESS, 'Sample detail')
-
     _upgrade_checks = (
-        # Sample check added for now.
-        # Whereas in future real checks must be added here in tuple
-        (_('Sample Check'), _sample_check),
+        (_('Policy File JSON to YAML Migration'),
+         (common_checks.check_policy_json, {'conf': CONF})),
     )
 
 
diff --git a/magnum/common/config.py b/magnum/common/config.py
index c84645332d..a59249e59c 100644
--- a/magnum/common/config.py
+++ b/magnum/common/config.py
@@ -16,6 +16,7 @@
 #    under the License.
 
 from oslo_middleware import cors
+from oslo_policy import opts
 
 from magnum.common import rpc
 import magnum.conf
@@ -34,9 +35,20 @@ def parse_args(argv, default_config_files=None):
 
 
 def set_config_defaults():
-    """This method updates all configuration default values."""
+    """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
+    """
     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
+    opts.set_defaults(CONF, 'policy.yaml')
+
 
 def set_cors_middleware_defaults():
     """Update default configuration options for oslo.middleware."""
diff --git a/magnum/common/policy.py b/magnum/common/policy.py
index d00261bfa5..d4bfff77b5 100644
--- a/magnum/common/policy.py
+++ b/magnum/common/policy.py
@@ -17,6 +17,7 @@
 
 import decorator
 from oslo_config import cfg
+from oslo_policy import opts
 from oslo_policy import policy
 from oslo_utils import importutils
 import pecan
@@ -29,6 +30,12 @@ from magnum.common import policies
 _ENFORCER = None
 CONF = cfg.CONF
 
+# 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(CONF, DEFAULT_POLICY_FILE)
+
 
 # we can get a policy enforcer by this init.
 # oslo policy support change policy rule dynamically.
diff --git a/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/Dockerfile b/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/Dockerfile
index 7ae36af57d..7a77a0d496 100644
--- a/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/Dockerfile
+++ b/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/Dockerfile
@@ -9,7 +9,7 @@ RUN dnf -y install openvswitch \
     && dnf clean all
 RUN cd /opt \
     && git clone https://git.openstack.org/openstack/neutron \
-    && cp neutron/etc/policy.json /etc/neutron/. \
+    && cp neutron/etc/policy.yaml /etc/neutron/. \
     && rm -rf neutron \
     && dnf -y remove git
 VOLUME /var/run/openvswitch
diff --git a/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/README.rst b/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/README.rst
index b368cf0eff..973656f489 100644
--- a/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/README.rst
+++ b/magnum/drivers/swarm_fedora_atomic_v1/image/openvswitch/README.rst
@@ -39,11 +39,11 @@ For the Neutron agent, you will need to provide 3 files at these
 locations:
 
 - /etc/neutron/neutron.conf
-- /etc/neutron/policy.json
+- /etc/neutron/policy.yaml
 - /etc/neutron/plugins/ml2/ml2_conf.ini
 
 These files are typically installed in the same locations on the
-Neutron controller node.  The policy.json file is copied into the
+Neutron controller node.  The policy.yaml file is copied into the
 Docker image because it is fairly static and does not require
 customization for the cluster.  If it is changed in the Neutron master
 repo, you just need to rebuild the Docker image to update the file.
diff --git a/magnum/tests/contrib/post_test_hook.sh b/magnum/tests/contrib/post_test_hook.sh
index c2adfb40e8..d40669863b 100755
--- a/magnum/tests/contrib/post_test_hook.sh
+++ b/magnum/tests/contrib/post_test_hook.sh
@@ -115,7 +115,7 @@ EOF
 }
 
 function add_flavor {
-    # because of policy.json change in nova, flavor-create is now an admin-only feature
+    # because of policy.yaml change in nova, flavor-create is now an admin-only feature
     # moving this out to only be used by admins
 
     # Get admin credentials
diff --git a/magnum/tests/policy_fixture.py b/magnum/tests/policy_fixture.py
index b2ddc8ed9a..6bcaaa77e9 100644
--- a/magnum/tests/policy_fixture.py
+++ b/magnum/tests/policy_fixture.py
@@ -14,7 +14,6 @@
 
 import fixtures
 from oslo_policy import _parser
-from oslo_policy import opts as policy_opts
 
 from magnum.common import policy as magnum_policy
 import magnum.conf
@@ -25,7 +24,7 @@ CONF = magnum.conf.CONF
 class PolicyFixture(fixtures.Fixture):
 
     def _setUp(self):
-        policy_opts.set_defaults(CONF)
+        CONF(args=[], project='magnum')
         magnum_policy._ENFORCER = None
         self.addCleanup(magnum_policy.init().clear)
 
diff --git a/magnum/tests/unit/cmd/test_status.py b/magnum/tests/unit/cmd/test_status.py
index 27ebbc6f52..200b42e7cf 100644
--- a/magnum/tests/unit/cmd/test_status.py
+++ b/magnum/tests/unit/cmd/test_status.py
@@ -24,7 +24,11 @@ class TestUpgradeChecks(base.TestCase):
         super(TestUpgradeChecks, self).setUp()
         self.cmd = status.Checks()
 
-    def test__sample_check(self):
-        check_result = self.cmd._sample_check()
-        self.assertEqual(
-            Code.SUCCESS, check_result.code)
+    def test_checks(self):
+        for name, func in self.cmd._upgrade_checks:
+            if isinstance(func, tuple):
+                func_name, kwargs = func
+                result = func_name(self, **kwargs)
+            else:
+                result = func(self)
+            self.assertEqual(Code.SUCCESS, result.code)
diff --git a/releasenotes/notes/deprecate-json-formatted-policy-file-b52d805359bc73b7.yaml b/releasenotes/notes/deprecate-json-formatted-policy-file-b52d805359bc73b7.yaml
new file mode 100644
index 0000000000..c9c5300045
--- /dev/null
+++ b/releasenotes/notes/deprecate-json-formatted-policy-file-b52d805359bc73b7.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 d87307860f..95d874a876 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -30,11 +30,11 @@ oslo.i18n>=5.0.0 # Apache-2.0
 oslo.log>=4.2.0 # Apache-2.0
 oslo.messaging>=12.2.0 # Apache-2.0
 oslo.middleware>=4.1.0 # Apache-2.0
-oslo.policy>=3.2.0 # Apache-2.0
+oslo.policy>=3.6.0 # Apache-2.0
 oslo.reports>=2.1.0 # Apache-2.0
 oslo.serialization>=3.2.0 # Apache-2.0
 oslo.service>=2.2.0 # Apache-2.0
-oslo.upgradecheck>=1.1.0 # Apache-2.0
+oslo.upgradecheck>=1.3.0 # Apache-2.0
 oslo.utils>=4.2.0 # Apache-2.0
 oslo.versionedobjects>=2.1.0 # Apache-2.0
 pbr>=5.5.0 # Apache-2.0
diff --git a/setup.cfg b/setup.cfg
index 8f0bdecfae..66f58a49db 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -59,7 +59,7 @@ oslo.config.opts =
     magnum.conf = magnum.conf.opts:list_opts
 
 oslo.config.opts.defaults =
-    magnum = magnum.common.config:set_cors_middleware_defaults
+    magnum = magnum.common.config:set_config_defaults
 
 oslo.policy.policies =
     magnum = magnum.common.policies:list_rules