diff --git a/README.rst b/README.rst
index ce91cb5e..2801db21 100644
--- a/README.rst
+++ b/README.rst
@@ -76,7 +76,7 @@ Configure masakari-api
 
 #. Create directory ``/etc/masakari``
 
-#. Copy ``masakari.conf``, ``api-paste.ini`` and ``policy.json`` file
+#. Copy ``masakari.conf``, ``api-paste.ini`` and ``policy.yaml`` file
    from ``masakari/etc/`` to ``/etc/masakari`` folder
 
 #. To run masakari-api simply use following binary:
diff --git a/devstack/plugin.sh b/devstack/plugin.sh
index a31e140a..66825ff4 100644
--- a/devstack/plugin.sh
+++ b/devstack/plugin.sh
@@ -278,7 +278,7 @@ function install_masakaridashboard {
     $HORIZON_DIR/openstack_dashboard/local/enabled
     ln -fs $MASAKARI_DASHBOARD_DIR/masakaridashboard/local/local_settings.d/_50_masakari.py \
     $HORIZON_DIR/openstack_dashboard/local/local_settings.d
-    ln -fs $MASAKARI_DASHBOARD_DIR/masakaridashboard/conf/masakari_policy.json \
+    ln -fs $MASAKARI_DASHBOARD_DIR/masakaridashboard/conf/masakari_policy.yaml \
     $HORIZON_DIR/openstack_dashboard/conf
 }
 
@@ -286,7 +286,7 @@ function install_masakaridashboard {
 function uninstall_masakaridashboard {
     sudo rm -f  $DEST/horizon/openstack_dashboard/local/enabled/_50_masakaridashboard.py
     sudo rm -f  $DEST/horizon/openstack_dashboard/local/local_settings.d/_50_masakari.py
-    sudo rm -f  $DEST/horizon/openstack_dashboard/conf/masakari_policy.json
+    sudo rm -f  $DEST/horizon/openstack_dashboard/conf/masakari_policy.yaml
     restart_apache_server
 }
 
diff --git a/devstack/settings b/devstack/settings
index 13d5c616..d8057cfd 100644
--- a/devstack/settings
+++ b/devstack/settings
@@ -16,13 +16,13 @@ MASAKARI_CONF_DIR=${MASAKARI_CONF_DIR:-/etc/masakari}
 MASAKARI_DASHBOARD_DIR=$DEST/masakari-dashboard
 MASAKARI_CONF=${MASAKARI_CONF:-${MASAKARI_CONF_DIR}/masakari.conf}
 MASAKARI_API_PASTE_INI=${MASAKARI_API_PASTE_INI:-${MASAKARI_CONF_DIR}/api-paste.ini}
-MASAKARI_POLICY_JSON=${MASAKARI_POLICY_JSON:-${MASAKARI_CONF_DIR}/policy.json}
+MASAKARI_POLICY_JSON=${MASAKARI_POLICY_JSON:-${MASAKARI_CONF_DIR}/policy.yaml}
 MASAKARI_MONITORS_CONF_DIR=${MASAKARI_MONITORS_CONF_DIR:-/etc/masakarimonitors}
 MASAKARI_MONITORS_CONF=${MASAKARI_MONITORS_CONF:-${MASAKARI_MONITORS_CONF_DIR}/masakarimonitors.conf}
 
 MASAKARI_LOCAL_CONF_DIR=${MASAKARI_LOCAL_CONF_DIR:-${MASAKARI_DIR}/etc/masakari}
 MASAKARI_LOCAL_API_PASTE_INI=${MASAKARI_LOCAL_API_PASTE_INI:-${MASAKARI_LOCAL_CONF_DIR}/api-paste.ini}
-MASAKARI_LOCAL_POLICY_JSON=${MASAKARI_LOCAL_POLICY_JSON:-${MASAKARI_LOCAL_CONF_DIR}/policy.json}
+MASAKARI_LOCAL_POLICY_JSON=${MASAKARI_LOCAL_POLICY_JSON:-${MASAKARI_LOCAL_CONF_DIR}/policy.yaml}
 MASAKARI_AUTH_CACHE_DIR=${MASAKARI_AUTH_CACHE_DIR:-/var/cache/masakari}
 
 MASAKARI_SERVICE_HOST=${MASAKARI_SERVICE_HOST:-$SERVICE_HOST}
diff --git a/doc/source/configuration/policy.rst b/doc/source/configuration/policy.rst
index 0c304eaf..3802e343 100644
--- a/doc/source/configuration/policy.rst
+++ b/doc/source/configuration/policy.rst
@@ -2,6 +2,14 @@
 Masakari Policies
 =================
 
+.. warning::
+
+   JSON formatted policy file is deprecated since Masakari 11.0.0 (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 masakari.
 For a sample configuration file, refer to :doc:`sample_policy`.
 
diff --git a/doc/source/configuration/sample_policy.rst b/doc/source/configuration/sample_policy.rst
index 0daad277..af760f3e 100644
--- a/doc/source/configuration/sample_policy.rst
+++ b/doc/source/configuration/sample_policy.rst
@@ -2,6 +2,14 @@
 Sample Masakari Policy File
 ===========================
 
+.. warning::
+
+   JSON formatted policy file is deprecated since Masakari 11.0.0 (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 a sample masakari policy file for adaptation and use.
 
 The sample policy can also be viewed in :download:`file form
diff --git a/masakari/cmd/status.py b/masakari/cmd/status.py
index e135fba7..42d8b717 100644
--- a/masakari/cmd/status.py
+++ b/masakari/cmd/status.py
@@ -14,6 +14,7 @@
 
 import sys
 
+from oslo_upgradecheck import common_checks
 from oslo_upgradecheck import upgradecheck
 
 from masakari import 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/masakari/common/config.py b/masakari/common/config.py
index f132a8e8..5b3e0332 100644
--- a/masakari/common/config.py
+++ b/masakari/common/config.py
@@ -14,6 +14,24 @@
 
 from oslo_config import cfg
 from oslo_middleware import cors
+from oslo_policy import opts
+
+
+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
+    """
+
+    set_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(cfg.CONF, 'policy.yaml')
 
 
 def set_middleware_defaults():
diff --git a/masakari/policy.py b/masakari/policy.py
index 569d7b3c..6faef4c7 100644
--- a/masakari/policy.py
+++ b/masakari/policy.py
@@ -21,6 +21,7 @@ import re
 import sys
 
 from oslo_config import cfg
+from oslo_policy import opts
 from oslo_policy import policy
 from oslo_utils import excutils
 
@@ -31,6 +32,13 @@ from masakari import policies
 
 CONF = cfg.CONF
 LOG = logging.getLogger(__name__)
+
+# 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
 # saved_file_rules and used to compare with new rules to determine the
 # rules whether were updated.
diff --git a/masakari/tests/unit/cmd/test_status.py b/masakari/tests/unit/cmd/test_status.py
index 96bf00e9..b6cfcc82 100644
--- a/masakari/tests/unit/cmd/test_status.py
+++ b/masakari/tests/unit/cmd/test_status.py
@@ -24,7 +24,11 @@ class TestUpgradeChecks(test.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-57ad537ec19cc7e0.yaml b/releasenotes/notes/deprecate-json-formatted-policy-file-57ad537ec19cc7e0.yaml
new file mode 100644
index 00000000..c9c53000
--- /dev/null
+++ b/releasenotes/notes/deprecate-json-formatted-policy-file-57ad537ec19cc7e0.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 a490c869..575d8fd8 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -15,9 +15,9 @@ oslo.messaging>=5.29.0 # 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.service!=1.28.1,>=1.24.0 # Apache-2.0
-oslo.upgradecheck>=0.1.0 # Apache-2.0
+oslo.upgradecheck>=1.3.0 # Apache-2.0
 oslo.utils>=3.33.0 # Apache-2.0
 oslo.versionedobjects>=1.31.2 # Apache-2.0
 pbr!=2.1.0,>=2.0.0 # Apache-2.0
diff --git a/setup.cfg b/setup.cfg
index 784cc51d..54311a32 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -32,7 +32,7 @@ oslo.config.opts =
     customized_recovery_flow_opts = masakari.conf.opts:list_recovery_workflow_opts
 
 oslo.config.opts.defaults =
-    masakari.api = masakari.common.config:set_middleware_defaults
+    masakari.api = masakari.common.config:set_lib_defaults
 
 oslo.policy.enforcer =
     masakari = masakari.policy:get_enforcer