diff --git a/CHANGELOG.md b/CHANGELOG.md
index 15ee81c912729..d149eab01fc46 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -64,7 +64,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 - Update Apache Lucene from 10.1.0 to 10.2.1 ([#17961](https://github.com/opensearch-project/OpenSearch/pull/17961))
 - Bump `com.google.code.gson:gson` from 2.12.1 to 2.13.1 ([#17923](https://github.com/opensearch-project/OpenSearch/pull/17923), [#18266](https://github.com/opensearch-project/OpenSearch/pull/18266))
 - Bump `com.github.spotbugs:spotbugs-annotations` from 4.9.0 to 4.9.3 ([#17922](https://github.com/opensearch-project/OpenSearch/pull/17922))
-- Bump `com.microsoft.azure:msal4j` from 1.18.0 to 1.20.0 ([#17925](https://github.com/opensearch-project/OpenSearch/pull/17925))
+- Bump `com.microsoft.azure:msal4j` from 1.18.0 to 1.21.0 ([#17925](https://github.com/opensearch-project/OpenSearch/pull/17925), [#18526](https://github.com/opensearch-project/OpenSearch/pull/18526))
 - Update Apache HttpClient5 and HttpCore5 (CVE-2025-27820) ([#18152](https://github.com/opensearch-project/OpenSearch/pull/18152))
 - Bump `org.apache.commons:commons-collections4` from 4.4 to 4.5.0 ([#18101](https://github.com/opensearch-project/OpenSearch/pull/18101))
 - Bump `netty` from 4.1.118.Final to 4.1.121.Final ([#18192](https://github.com/opensearch-project/OpenSearch/pull/18192))
diff --git a/plugins/repository-azure/build.gradle b/plugins/repository-azure/build.gradle
index 2f4e562dcff61..4d74cf8cb4eb5 100644
--- a/plugins/repository-azure/build.gradle
+++ b/plugins/repository-azure/build.gradle
@@ -61,7 +61,7 @@ dependencies {
   // Start of transitive dependencies for azure-identity
   api 'com.microsoft.azure:msal4j-persistence-extension:1.3.0'
   api "net.java.dev.jna:jna-platform:${versions.jna}"
-  api 'com.microsoft.azure:msal4j:1.20.1'
+  api 'com.microsoft.azure:msal4j:1.21.0'
   api 'com.nimbusds:oauth2-oidc-sdk:11.25'
   api 'com.nimbusds:nimbus-jose-jwt:10.2'
   api 'com.nimbusds:content-type:2.3'
diff --git a/plugins/repository-azure/licenses/msal4j-1.20.1.jar.sha1 b/plugins/repository-azure/licenses/msal4j-1.20.1.jar.sha1
deleted file mode 100644
index 0fcd5d9989392..0000000000000
--- a/plugins/repository-azure/licenses/msal4j-1.20.1.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-c163b6348f04a2ddf0a7655e6ed0dc1ebe9d26bc
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/msal4j-1.21.0.jar.sha1 b/plugins/repository-azure/licenses/msal4j-1.21.0.jar.sha1
new file mode 100644
index 0000000000000..b2250fba89689
--- /dev/null
+++ b/plugins/repository-azure/licenses/msal4j-1.21.0.jar.sha1
@@ -0,0 +1 @@
+bd8d171fc456302e5c1833b97c9e47c74e6e740f
\ No newline at end of file