diff --git a/CHANGELOG.md b/CHANGELOG.md
index a77833468ab57..9f439e48ecab7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -47,6 +47,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 - Bump Apache Lucene from 9.12.0 to 9.12.1 ([#16846](https://github.com/opensearch-project/OpenSearch/pull/16846))
 - Bump `com.gradle.develocity` from 3.18.2 to 3.19 ([#16855](https://github.com/opensearch-project/OpenSearch/pull/16855))
 - Bump `org.jline:jline` from 3.27.1 to 3.28.0 ([#16857](https://github.com/opensearch-project/OpenSearch/pull/16857))
+- Bump `com.azure:azure-core` from 1.51.0 to 1.54.1 ([#16856](https://github.com/opensearch-project/OpenSearch/pull/16856))
 
 ### Changed
 - Indexed IP field supports `terms_query` with more than 1025 IP masks [#16391](https://github.com/opensearch-project/OpenSearch/pull/16391)
diff --git a/plugins/repository-azure/build.gradle b/plugins/repository-azure/build.gradle
index d419f6fafeb30..aebdd3e3b7f63 100644
--- a/plugins/repository-azure/build.gradle
+++ b/plugins/repository-azure/build.gradle
@@ -44,7 +44,7 @@ opensearchplugin {
 }
 
 dependencies {
-  api 'com.azure:azure-core:1.51.0'
+  api 'com.azure:azure-core:1.54.1'
   api 'com.azure:azure-json:1.3.0'
   api 'com.azure:azure-xml:1.1.0'
   api 'com.azure:azure-storage-common:12.28.0'
@@ -108,7 +108,6 @@ thirdPartyAudit {
     // Optional and not enabled by Elasticsearch
     'com.google.common.util.concurrent.internal.InternalFutureFailureAccess',
     'com.google.common.util.concurrent.internal.InternalFutures',
-    'com.azure.core.credential.ProofOfPossessionOptions',
     'com.azure.storage.internal.avro.implementation.AvroObject',
     'com.azure.storage.internal.avro.implementation.AvroReader',
     'com.azure.storage.internal.avro.implementation.AvroReaderFactory',
diff --git a/plugins/repository-azure/licenses/azure-core-1.51.0.jar.sha1 b/plugins/repository-azure/licenses/azure-core-1.51.0.jar.sha1
deleted file mode 100644
index 7200f59af2f9a..0000000000000
--- a/plugins/repository-azure/licenses/azure-core-1.51.0.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-ff5d0aedf75ca45ec0ace24673f790d2f7a57096
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/azure-core-1.54.1.jar.sha1 b/plugins/repository-azure/licenses/azure-core-1.54.1.jar.sha1
new file mode 100644
index 0000000000000..9246d0dd8443a
--- /dev/null
+++ b/plugins/repository-azure/licenses/azure-core-1.54.1.jar.sha1
@@ -0,0 +1 @@
+9ae0cc4a8ff02a0146510ec9e1c06ab48950a66b
\ No newline at end of file