diff --git a/neutron_lib/policy/_engine.py b/neutron_lib/policy/_engine.py
index bb40df012..2a98cb8ac 100644
--- a/neutron_lib/policy/_engine.py
+++ b/neutron_lib/policy/_engine.py
@@ -13,6 +13,7 @@
 import sys
 
 from oslo_config import cfg
+from oslo_policy import opts
 from oslo_policy import policy
 
 
@@ -21,6 +22,13 @@ _ADMIN_CTX_POLICY = 'context_is_admin'
 _ADVSVC_CTX_POLICY = 'context_is_advsvc'
 
 
+# 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)
+
+
 _BASE_RULES = [
     policy.RuleDefault(
         _ADMIN_CTX_POLICY,
@@ -104,7 +112,7 @@ def get_enforcer():
         i += 1
 
     # 'project' must be 'neutron' so that get_enforcer looks at
-    # /etc/neutron/policy.json by default.
+    # /etc/neutron/policy.yaml by default.
     cfg.CONF(conf_args, project='neutron')
     init()
     return _ROLE_ENFORCER
diff --git a/neutron_lib/tests/etc/dummy_policy.json b/neutron_lib/tests/etc/dummy_policy.json
deleted file mode 100644
index 2e57efb43..000000000
--- a/neutron_lib/tests/etc/dummy_policy.json
+++ /dev/null
@@ -1,4 +0,0 @@
-{
-    "context_is_admin":  "role:dummy",
-    "context_is_advsvc":  "role:dummy"
-}
diff --git a/neutron_lib/tests/etc/dummy_policy.yaml b/neutron_lib/tests/etc/dummy_policy.yaml
new file mode 100644
index 000000000..93adfbd2d
--- /dev/null
+++ b/neutron_lib/tests/etc/dummy_policy.yaml
@@ -0,0 +1,2 @@
+"context_is_admin": "role:dummy"
+"context_is_advsvc": "role:dummy"
diff --git a/neutron_lib/tests/etc/policy.json b/neutron_lib/tests/etc/policy.json
deleted file mode 100644
index f5fca034b..000000000
--- a/neutron_lib/tests/etc/policy.json
+++ /dev/null
@@ -1,5 +0,0 @@
-{
-    "context_is_admin":  "role:admin",
-    "context_is_advsvc":  "role:advsvc",
-    "default": "rule:admin_or_owner"
-}
diff --git a/neutron_lib/tests/etc/policy.yaml b/neutron_lib/tests/etc/policy.yaml
new file mode 100644
index 000000000..69d9e4d1d
--- /dev/null
+++ b/neutron_lib/tests/etc/policy.yaml
@@ -0,0 +1,3 @@
+"context_is_admin": "role:admin"
+"context_is_advsvc": "role:advsvc"
+"default": "rule:admin_or_owner"
diff --git a/neutron_lib/tests/unit/policy/test__engine.py b/neutron_lib/tests/unit/policy/test__engine.py
index 872fc0a2f..c93ae7963 100644
--- a/neutron_lib/tests/unit/policy/test__engine.py
+++ b/neutron_lib/tests/unit/policy/test__engine.py
@@ -39,13 +39,13 @@ class TestPolicyEnforcer(base.BaseTestCase):
         self.assertTrue(policy_engine.check_is_admin(ctx))
 
     def test_check_is_admin_no_roles_no_admin(self):
-        policy_engine.init(policy_file='dummy_policy.json')
+        policy_engine.init(policy_file='dummy_policy.yaml')
         ctx = context.Context('me', 'my_project', roles=['user']).elevated()
         # With no admin role, elevated() should not work.
         self.assertFalse(policy_engine.check_is_admin(ctx))
 
     def test_check_user_elevated_is_admin_with_default_policy(self):
-        policy_engine.init(policy_file='no_policy.json')
+        policy_engine.init(policy_file='no_policy.yaml')
         ctx = context.Context('me', 'my_project', roles=['user']).elevated()
         self.assertTrue(policy_engine.check_is_admin(ctx))
 
@@ -63,12 +63,12 @@ class TestPolicyEnforcer(base.BaseTestCase):
         self.assertFalse(policy_engine.check_is_advsvc(ctx))
 
     def test_check_is_advsvc_no_roles_no_advsvc(self):
-        policy_engine.init(policy_file='dummy_policy.json')
+        policy_engine.init(policy_file='dummy_policy.yaml')
         ctx = context.Context('me', 'my_project', roles=['advsvc'])
         # No advsvc role in the policy file, so cannot assume the role.
         self.assertFalse(policy_engine.check_is_advsvc(ctx))
 
     def test_check_is_advsvc_role_with_default_policy(self):
-        policy_engine.init(policy_file='no_policy.json')
+        policy_engine.init(policy_file='no_policy.yaml')
         ctx = context.Context('me', 'my_project', roles=['advsvc'])
         self.assertTrue(policy_engine.check_is_advsvc(ctx))
diff --git a/neutron_lib/utils/net.py b/neutron_lib/utils/net.py
index c0400c60b..88e8d8abe 100644
--- a/neutron_lib/utils/net.py
+++ b/neutron_lib/utils/net.py
@@ -78,7 +78,7 @@ def is_port_trusted(port):
     """Used to determine if port can be trusted not to attack network.
 
     Trust is currently based on the device_owner field starting with 'network:'
-    since we restrict who can use that in the default policy.json file.
+    since we restrict who can use that in the default policy.yaml file.
 
     :param port: The port dict to inspect the 'device_owner' for.
     :returns: True if the port dict's 'device_owner' value starts with the