diff --git a/CHANGELOG.md b/CHANGELOG.md
index e01dfed0e585e..5a52250906ff6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -25,6 +25,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 - Bump `com.gradle.develocity` from 3.17.4 to 3.17.5 ([#14397](https://github.com/opensearch-project/OpenSearch/pull/14397))
 - Bump `opentelemetry` from 1.36.0 to 1.39.0 ([#14457](https://github.com/opensearch-project/OpenSearch/pull/14457))
 - Bump `azure-identity` from 1.11.4 to 1.13.0, Bump `msal4j` from 1.14.3 to 1.15.1, Bump `msal4j-persistence-extension` from 1.2.0 to 1.3.0 ([#14506](https://github.com/opensearch-project/OpenSearch/pull/14506))
+- Bump `com.azure:azure-storage-common` from 12.21.2 to 12.25.1 ([#14517](https://github.com/opensearch-project/OpenSearch/pull/14517))
 
 ### Changed
 - [Tiered Caching] Move query recomputation logic outside write lock ([#14187](https://github.com/opensearch-project/OpenSearch/pull/14187))
diff --git a/plugins/repository-azure/build.gradle b/plugins/repository-azure/build.gradle
index f3aa64316b667..f88d291a8eb4a 100644
--- a/plugins/repository-azure/build.gradle
+++ b/plugins/repository-azure/build.gradle
@@ -47,7 +47,7 @@ dependencies {
   api 'com.azure:azure-core:1.49.1'
   api 'com.azure:azure-json:1.1.0'
   api 'com.azure:azure-xml:1.0.0'
-  api 'com.azure:azure-storage-common:12.21.2'
+  api 'com.azure:azure-storage-common:12.25.1'
   api 'com.azure:azure-core-http-netty:1.15.1'
   api "io.netty:netty-codec-dns:${versions.netty}"
   api "io.netty:netty-codec-socks:${versions.netty}"
diff --git a/plugins/repository-azure/licenses/azure-storage-common-12.21.2.jar.sha1 b/plugins/repository-azure/licenses/azure-storage-common-12.21.2.jar.sha1
deleted file mode 100644
index b3c73774764df..0000000000000
--- a/plugins/repository-azure/licenses/azure-storage-common-12.21.2.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-d2676d4fc40a501bd5d0437b8d2bfb9926022bea
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/azure-storage-common-12.25.1.jar.sha1 b/plugins/repository-azure/licenses/azure-storage-common-12.25.1.jar.sha1
new file mode 100644
index 0000000000000..822a60d81ca27
--- /dev/null
+++ b/plugins/repository-azure/licenses/azure-storage-common-12.25.1.jar.sha1
@@ -0,0 +1 @@
+96e2df76ce9a8fa084ae289bb59295d565f2b8d5
\ No newline at end of file
diff --git a/plugins/repository-azure/src/main/java/org/opensearch/repositories/azure/AzureStorageService.java b/plugins/repository-azure/src/main/java/org/opensearch/repositories/azure/AzureStorageService.java
index f39ed185d8b35..4f30247f0af08 100644
--- a/plugins/repository-azure/src/main/java/org/opensearch/repositories/azure/AzureStorageService.java
+++ b/plugins/repository-azure/src/main/java/org/opensearch/repositories/azure/AzureStorageService.java
@@ -141,6 +141,9 @@ public Void run() {
         // - https://github.com/Azure/azure-sdk-for-java/pull/25004
         // - https://github.com/Azure/azure-sdk-for-java/pull/24374
         Configuration.getGlobalConfiguration().put("AZURE_JACKSON_ADAPTER_USE_ACCESS_HELPER", "true");
+        // See please:
+        // - https://github.com/Azure/azure-sdk-for-java/issues/37464
+        Configuration.getGlobalConfiguration().put("AZURE_ENABLE_SHUTDOWN_HOOK_WITH_PRIVILEGE", "true");
     }
 
     public AzureStorageService(Settings settings) {
diff --git a/plugins/repository-azure/src/main/plugin-metadata/plugin-security.policy b/plugins/repository-azure/src/main/plugin-metadata/plugin-security.policy
index e8fbe35ebab1d..eedcfd98da150 100644
--- a/plugins/repository-azure/src/main/plugin-metadata/plugin-security.policy
+++ b/plugins/repository-azure/src/main/plugin-metadata/plugin-security.policy
@@ -38,6 +38,7 @@ grant {
   permission java.lang.RuntimePermission "accessDeclaredMembers";
   permission java.lang.reflect.ReflectPermission "suppressAccessChecks";
   permission java.lang.RuntimePermission "setContextClassLoader";
+  permission java.lang.RuntimePermission "shutdownHooks";
 
   // azure client set Authenticator for proxy username/password
   permission java.net.NetPermission "setDefaultAuthenticator";