diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2cc1b4a363050..a9588c7eabfb3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -40,6 +40,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 - Bump `org.apache.logging.log4j:log4j-core` from 2.24.1 to 2.24.2 ([#16718](https://github.com/opensearch-project/OpenSearch/pull/16718))
 - Bump `jackson` from 2.17.2 to 2.18.2 ([#16733](https://github.com/opensearch-project/OpenSearch/pull/16733))
 - Bump `ch.qos.logback:logback-classic` from 1.2.13 to 1.5.12 ([#16716](https://github.com/opensearch-project/OpenSearch/pull/16716))
+- Bump `com.azure:azure-identity` from 1.13.2 to 1.14.2 ([#16778](https://github.com/opensearch-project/OpenSearch/pull/16778))
 
 ### 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 efcd01d2bad5e..74f199820262e 100644
--- a/plugins/repository-azure/build.gradle
+++ b/plugins/repository-azure/build.gradle
@@ -57,7 +57,7 @@ dependencies {
   api "io.netty:netty-transport-native-unix-common:${versions.netty}"
   implementation project(':modules:transport-netty4')
   api 'com.azure:azure-storage-blob:12.28.1'
-  api 'com.azure:azure-identity:1.13.2'
+  api 'com.azure:azure-identity:1.14.2'
   // Start of transitive dependencies for azure-identity
   api 'com.microsoft.azure:msal4j-persistence-extension:1.3.0'
   api "net.java.dev.jna:jna-platform:${versions.jna}"
@@ -108,6 +108,7 @@ 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-identity-1.13.2.jar.sha1 b/plugins/repository-azure/licenses/azure-identity-1.13.2.jar.sha1
deleted file mode 100644
index 7c98a9ccba592..0000000000000
--- a/plugins/repository-azure/licenses/azure-identity-1.13.2.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-50a1daef3eb5c6ab2e1351a3e3f5a7649a8fe464
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/azure-identity-1.14.2.jar.sha1 b/plugins/repository-azure/licenses/azure-identity-1.14.2.jar.sha1
new file mode 100644
index 0000000000000..7ffc775aea847
--- /dev/null
+++ b/plugins/repository-azure/licenses/azure-identity-1.14.2.jar.sha1
@@ -0,0 +1 @@
+85c45e2add38742009a9c5070d2a9d8f192cf8db
\ 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 ea74a49e593cf..9cff5bc2c30f1 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
@@ -43,6 +43,7 @@
 import org.opensearch.common.unit.TimeValue;
 import org.opensearch.core.common.Strings;
 import org.opensearch.test.OpenSearchTestCase;
+import org.junit.After;
 import org.junit.AfterClass;
 
 import java.io.IOException;
@@ -58,6 +59,7 @@
 import java.util.Map;
 
 import reactor.core.scheduler.Schedulers;
+import reactor.netty.http.HttpResources;
 
 import static org.hamcrest.Matchers.containsInAnyOrder;
 import static org.hamcrest.Matchers.emptyString;
@@ -72,6 +74,16 @@ public static void shutdownSchedulers() {
         Schedulers.shutdownNow();
     }
 
+    @After
+    public void tearDown() throws Exception {
+        try {
+            // Properly shut down resources
+            HttpResources.disposeLoopsAndConnectionsLater().block();
+        } finally {
+            super.tearDown();
+        }
+    }
+
     public void testReadSecuredSettings() {
         final Settings settings = Settings.builder()
             .setSecureSettings(buildSecureSettings())