diff --git a/doc/source/configuration/policy.rst b/doc/source/configuration/policy.rst
index 0d34f5e1b..c4d4a7bfe 100644
--- a/doc/source/configuration/policy.rst
+++ b/doc/source/configuration/policy.rst
@@ -16,6 +16,14 @@
 Senlin Sample Policy Configuration File
 =======================================
 
+.. warning::
+
+   JSON formatted policy file is deprecated since Senlin 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 access policies in Senlin.
 For a sample configuration file, refer to :doc:`sample-policy-yaml`.
 
diff --git a/doc/source/configuration/sample-policy-yaml.rst b/doc/source/configuration/sample-policy-yaml.rst
index cc2a6efcd..e397b81f7 100644
--- a/doc/source/configuration/sample-policy-yaml.rst
+++ b/doc/source/configuration/sample-policy-yaml.rst
@@ -16,7 +16,15 @@
 policy.yaml
 ===========
 
+.. warning::
+
+   JSON formatted policy file is deprecated since Senlin 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
+
 Use the ``policy.yaml`` file to define additional access controls that will be
 applied to Senlin:
 
-.. literalinclude:: ../_static/senlin.policy.yaml.sample
\ No newline at end of file
+.. literalinclude:: ../_static/senlin.policy.yaml.sample
diff --git a/lower-constraints.txt b/lower-constraints.txt
index 7fefb63f1..602549e22 100644
--- a/lower-constraints.txt
+++ b/lower-constraints.txt
@@ -57,19 +57,19 @@ os-client-config==1.29.0
 os-service-types==1.7.0
 oslo.cache==1.29.0
 oslo.concurrency==3.26.0
-oslo.config==5.2.0
+oslo.config==6.8.0
 oslo.context==2.22.0
 oslo.db==6.0.0
 oslo.i18n==3.20.0
 oslo.log==3.36.0
 oslo.messaging==5.29.0
 oslo.middleware==3.31.0
-oslo.policy==1.30.0
+oslo.policy==3.6.0
 oslo.reports==1.18.0
 oslo.serialization==2.25.0
 oslo.service==1.31.0
-oslo.upgradecheck==0.1.0
-oslo.utils==3.37.0
+oslo.upgradecheck==1.3.0
+oslo.utils==4.5.0
 oslo.versionedobjects==1.31.2
 oslotest==3.3.0
 osprofiler==2.3.0
@@ -97,11 +97,11 @@ python-keystoneclient==3.15.0
 python-mimeparse==1.6.0
 python-subunit==1.2.0
 pytz==2015.7
-PyYAML==3.13
+PyYAML==5.1
 repoze.lru==0.7
-requests==2.14.2
+requests==2.20.0
 requestsexceptions==1.4.0
-rfc3986==1.1.0
+rfc3986==1.2.0
 Routes==2.3.1
 smmap2==2.0.3
 sqlalchemy-migrate==0.13.0
diff --git a/releasenotes/notes/deprecate-json-formatted-policy-file-0c29555b3ea0c984.yaml b/releasenotes/notes/deprecate-json-formatted-policy-file-0c29555b3ea0c984.yaml
new file mode 100644
index 000000000..c9c530004
--- /dev/null
+++ b/releasenotes/notes/deprecate-json-formatted-policy-file-0c29555b3ea0c984.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 efa6e48b5..1d8f4c748 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -11,7 +11,7 @@ keystoneauth1>=3.18.0 # Apache-2.0
 keystonemiddleware>=4.17.0 # Apache-2.0
 microversion-parse>=0.2.1 # Apache-2.0
 openstacksdk>=0.42.0 # Apache-2.0
-oslo.config>=5.2.0 # Apache-2.0
+oslo.config>=6.8.0 # Apache-2.0
 oslo.context>=2.22.0 # Apache-2.0
 oslo.db>=6.0.0 # Apache-2.0
 oslo.i18n>=3.20.0 # Apache-2.0
@@ -19,17 +19,17 @@ oslo.log>=3.36.0 # Apache-2.0
 oslo.reports>=1.18.0 # Apache-2.0
 oslo.messaging>=5.29.0 # 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.service>=1.31.0 # Apache-2.0
-oslo.upgradecheck>=0.1.0 # Apache-2.0
-oslo.utils>=3.37.0 # Apache-2.0
+oslo.upgradecheck>=1.3.0 # Apache-2.0
+oslo.utils>=4.5.0 # Apache-2.0
 oslo.versionedobjects>=1.31.2 # Apache-2.0
 osprofiler>=2.3.0 # Apache-2.0
 PasteDeploy>=1.5.0 # MIT
 pytz>=2015.7 # MIT
-PyYAML>=3.13 # MIT
-requests>=2.14.2 # Apache-2.0
+PyYAML>=5.1 # MIT
+requests>=2.20.0 # Apache-2.0
 Routes>=2.3.1 # MIT
 SQLAlchemy!=1.1.5,!=1.1.6,!=1.1.7,!=1.1.8,>=1.0.10 # MIT
 sqlalchemy-migrate>=0.13.0 # Apache-2.0
diff --git a/senlin/cmd/status.py b/senlin/cmd/status.py
index 60910084a..1fd9097fd 100644
--- a/senlin/cmd/status.py
+++ b/senlin/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 senlin.common.i18n import _
@@ -71,6 +72,8 @@ class Checks(upgradecheck.UpgradeCommands):
     _upgrade_checks = (
         # In the future there should be some real checks added here
         (_('HealthPolicy'), _check_healthpolicy),
+        (_('Policy File JSON to YAML Migration'),
+         (common_checks.check_policy_json, {'conf': cfg.CONF})),
     )
 
 
diff --git a/senlin/common/config.py b/senlin/common/config.py
index 98c78702a..18ade8700 100755
--- a/senlin/common/config.py
+++ b/senlin/common/config.py
@@ -15,6 +15,7 @@ Routines for configuring Senlin
 """
 from oslo_log import log
 from oslo_middleware import cors
+from oslo_policy import opts
 from oslo_utils import importutils
 
 import senlin.conf
@@ -61,3 +62,8 @@ def set_config_defaults():
                        'POST',
                        'DELETE',
                        'PATCH'])
+
+    # 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')
diff --git a/senlin/common/policy.py b/senlin/common/policy.py
index bf2d1ec47..5f5a4b683 100644
--- a/senlin/common/policy.py
+++ b/senlin/common/policy.py
@@ -16,6 +16,7 @@ Policy Engine For Senlin
 
 # from oslo_concurrency import lockutils
 from oslo_config import cfg
+from oslo_policy import opts
 from oslo_policy import policy
 
 from senlin.common import exception
@@ -24,6 +25,12 @@ from senlin.common import policies
 POLICY_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)
+
 
 # @lockutils.synchronized('policy_enforcer', 'senlin-')
 def _get_enforcer(policy_file=None, rules=None, default_rule=None):