diff --git a/CHANGELOG.md b/CHANGELOG.md
index 35170f6e1dab0..de3203196851a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 ### Changed
 
 ### Dependencies
+- Bump `com.microsoft.azure:msal4j` from 1.18.0 to 1.20.0 ([#17925](https://github.com/opensearch-project/OpenSearch/pull/17925))
 
 ### Changed
 
diff --git a/plugins/repository-azure/build.gradle b/plugins/repository-azure/build.gradle
index b20fe0c39bf31..fcbc184a748ca 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:1.18.0'
+  api 'com.microsoft.azure:msal4j:1.20.0'
   api 'com.nimbusds:oauth2-oidc-sdk:11.23.1'
   api 'com.nimbusds:nimbus-jose-jwt:10.0.2'
   api 'com.nimbusds:content-type:2.3'
diff --git a/plugins/repository-azure/licenses/msal4j-1.18.0.jar.sha1 b/plugins/repository-azure/licenses/msal4j-1.18.0.jar.sha1
deleted file mode 100644
index 292259e9d862d..0000000000000
--- a/plugins/repository-azure/licenses/msal4j-1.18.0.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-a47e4e9257a5d9cdb8282c331278492968e06250
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/msal4j-1.20.0.jar.sha1 b/plugins/repository-azure/licenses/msal4j-1.20.0.jar.sha1
new file mode 100644
index 0000000000000..4a03ad2753a7a
--- /dev/null
+++ b/plugins/repository-azure/licenses/msal4j-1.20.0.jar.sha1
@@ -0,0 +1 @@
+0322a1635752fba8ee5acfbb0c83d20973aeab75
\ No newline at end of file
diff --git a/plugins/repository-azure/src/test/java/org/opensearch/repositories/azure/AzureStorageServiceTests.java b/plugins/repository-azure/src/test/java/org/opensearch/repositories/azure/AzureStorageServiceTests.java
index 3bb99d5051144..d17545962b939 100644
--- a/plugins/repository-azure/src/test/java/org/opensearch/repositories/azure/AzureStorageServiceTests.java
+++ b/plugins/repository-azure/src/test/java/org/opensearch/repositories/azure/AzureStorageServiceTests.java
@@ -205,7 +205,7 @@ public void testClientUsingManagedIdentity() throws IOException {
                 // Expect the client to use managed identity for authentication, and it should fail because managed identity environment is
                 // not setup in the test
                 final MsalServiceException e = expectThrows(MsalServiceException.class, () -> client1.getAccountInfo());
-                assertThat(e.getMessage(), containsString("HttpStatusCode: 401"));
+                assertThat(e.getMessage(), containsString("MSI returned 401"));
             }
         }
     }