diff --git a/CHANGELOG.md b/CHANGELOG.md
index d83ee41339b2f..3e6b2181c0738 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -41,6 +41,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 - Bump `com.nimbusds:oauth2-oidc-sdk` from 11.21 to 11.23.1 ([#17729](https://github.com/opensearch-project/OpenSearch/pull/17729))
 - Bump `com.google.api.grpc:proto-google-common-protos` from 2.52.0 to 2.54.1 ([#17733](https://github.com/opensearch-project/OpenSearch/pull/17733))
 - Bump `ch.qos.logback:logback-classic` from 1.5.17 to 1.5.18 ([#17730](https://github.com/opensearch-project/OpenSearch/pull/17730))
+- Bump `reactor_netty` from 1.1.26 to 1.2.3 ([#17322](https://github.com/opensearch-project/OpenSearch/pull/17322), [#17377](https://github.com/opensearch-project/OpenSearch/pull/17377))
 
 ### Changed
 
diff --git a/gradle/libs.versions.toml b/gradle/libs.versions.toml
index 4d3aebf83eecc..53b616e2329d6 100644
--- a/gradle/libs.versions.toml
+++ b/gradle/libs.versions.toml
@@ -38,7 +38,7 @@ joda              = "2.12.7"
 roaringbitmap     = "1.3.0"
 
 # project reactor
-reactor_netty     = "1.1.27"
+reactor_netty     = "1.2.4"
 reactor           = "3.5.20"
 
 # client dependencies
diff --git a/plugins/repository-azure/build.gradle b/plugins/repository-azure/build.gradle
index b8a674c6d8a6c..0bf07695745d3 100644
--- a/plugins/repository-azure/build.gradle
+++ b/plugins/repository-azure/build.gradle
@@ -261,6 +261,23 @@ thirdPartyAudit {
     'org.opensaml.xmlsec.signature.support.SignatureValidator',
     'org.opensaml.xmlsec.signature.support.Signer',
     // End of the list of classes from the optional compile/provided dependencies used in "com.nimbusds:oauth2-oidc-sdk".
+
+    // from reactor_netty
+    'io.netty.incubator.codec.http3.Http3',
+    'io.netty.incubator.codec.http3.Http3ClientConnectionHandler',
+    'io.netty.incubator.codec.http3.Http3DataFrame',
+    'io.netty.incubator.codec.http3.Http3Headers',
+    'io.netty.incubator.codec.http3.Http3HeadersFrame',
+    'io.netty.incubator.codec.quic.QuicChannel',
+    'io.netty.incubator.codec.quic.QuicChannelBootstrap',
+    'io.netty.incubator.codec.quic.QuicClientCodecBuilder',
+    'io.netty.incubator.codec.quic.QuicServerCodecBuilder',
+    'io.netty.incubator.codec.quic.QuicSslContext',
+    'io.netty.incubator.codec.quic.QuicSslContextBuilder',
+    'io.netty.incubator.codec.quic.QuicSslEngine',
+    'io.netty.incubator.codec.quic.QuicStreamChannel',
+    'io.netty.incubator.codec.quic.QuicStreamChannelBootstrap',
+    'io.netty.incubator.codec.quic.QuicTokenHandler',
   )
 
   ignoreViolations(
diff --git a/plugins/repository-azure/licenses/reactor-netty-core-1.1.27.jar.sha1 b/plugins/repository-azure/licenses/reactor-netty-core-1.1.27.jar.sha1
deleted file mode 100644
index 3eac15e74ad19..0000000000000
--- a/plugins/repository-azure/licenses/reactor-netty-core-1.1.27.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-094428d25b65a0bdb89d639934d39b7ba7f169ee
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/reactor-netty-core-1.2.4.jar.sha1 b/plugins/repository-azure/licenses/reactor-netty-core-1.2.4.jar.sha1
new file mode 100644
index 0000000000000..7bf9a31f0c7ca
--- /dev/null
+++ b/plugins/repository-azure/licenses/reactor-netty-core-1.2.4.jar.sha1
@@ -0,0 +1 @@
+5e51a8633d5ece1081216edb5455605d24570d9b
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/reactor-netty-http-1.1.27.jar.sha1 b/plugins/repository-azure/licenses/reactor-netty-http-1.1.27.jar.sha1
deleted file mode 100644
index 7236917a621c7..0000000000000
--- a/plugins/repository-azure/licenses/reactor-netty-http-1.1.27.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-56dab8976b8d79e37597e736d62bb4111cc28e9c
\ No newline at end of file
diff --git a/plugins/repository-azure/licenses/reactor-netty-http-1.2.4.jar.sha1 b/plugins/repository-azure/licenses/reactor-netty-http-1.2.4.jar.sha1
new file mode 100644
index 0000000000000..89b8fe9f06dbc
--- /dev/null
+++ b/plugins/repository-azure/licenses/reactor-netty-http-1.2.4.jar.sha1
@@ -0,0 +1 @@
+f155caf727991cddcd2ff134783ff5451e5f7dea
\ No newline at end of file
diff --git a/plugins/transport-reactor-netty4/build.gradle b/plugins/transport-reactor-netty4/build.gradle
index ba8b17c5877a7..1fe8862e2eab7 100644
--- a/plugins/transport-reactor-netty4/build.gradle
+++ b/plugins/transport-reactor-netty4/build.gradle
@@ -226,7 +226,23 @@ thirdPartyAudit {
     'io.micrometer.tracing.handler.DefaultTracingObservationHandler',
     'io.micrometer.tracing.handler.PropagatingReceiverTracingObservationHandler',
     'io.micrometer.tracing.handler.PropagatingSenderTracingObservationHandler',
-    'io.micrometer.tracing.propagation.Propagator'
+    'io.micrometer.tracing.propagation.Propagator',
+    // from reactor_netty
+    'io.netty.incubator.codec.http3.Http3',
+    'io.netty.incubator.codec.http3.Http3ClientConnectionHandler',
+    'io.netty.incubator.codec.http3.Http3DataFrame',
+    'io.netty.incubator.codec.http3.Http3Headers',
+    'io.netty.incubator.codec.http3.Http3HeadersFrame',
+    'io.netty.incubator.codec.quic.QuicChannel',
+    'io.netty.incubator.codec.quic.QuicChannelBootstrap',
+    'io.netty.incubator.codec.quic.QuicClientCodecBuilder',
+    'io.netty.incubator.codec.quic.QuicServerCodecBuilder',
+    'io.netty.incubator.codec.quic.QuicSslContext',
+    'io.netty.incubator.codec.quic.QuicSslContextBuilder',
+    'io.netty.incubator.codec.quic.QuicSslEngine',
+    'io.netty.incubator.codec.quic.QuicStreamChannel',
+    'io.netty.incubator.codec.quic.QuicStreamChannelBootstrap',
+    'io.netty.incubator.codec.quic.QuicTokenHandler',
   )
 
   ignoreViolations(
diff --git a/plugins/transport-reactor-netty4/licenses/reactor-netty-core-1.1.27.jar.sha1 b/plugins/transport-reactor-netty4/licenses/reactor-netty-core-1.1.27.jar.sha1
deleted file mode 100644
index 3eac15e74ad19..0000000000000
--- a/plugins/transport-reactor-netty4/licenses/reactor-netty-core-1.1.27.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-094428d25b65a0bdb89d639934d39b7ba7f169ee
\ No newline at end of file
diff --git a/plugins/transport-reactor-netty4/licenses/reactor-netty-core-1.2.4.jar.sha1 b/plugins/transport-reactor-netty4/licenses/reactor-netty-core-1.2.4.jar.sha1
new file mode 100644
index 0000000000000..7bf9a31f0c7ca
--- /dev/null
+++ b/plugins/transport-reactor-netty4/licenses/reactor-netty-core-1.2.4.jar.sha1
@@ -0,0 +1 @@
+5e51a8633d5ece1081216edb5455605d24570d9b
\ No newline at end of file
diff --git a/plugins/transport-reactor-netty4/licenses/reactor-netty-http-1.1.27.jar.sha1 b/plugins/transport-reactor-netty4/licenses/reactor-netty-http-1.1.27.jar.sha1
deleted file mode 100644
index 7236917a621c7..0000000000000
--- a/plugins/transport-reactor-netty4/licenses/reactor-netty-http-1.1.27.jar.sha1
+++ /dev/null
@@ -1 +0,0 @@
-56dab8976b8d79e37597e736d62bb4111cc28e9c
\ No newline at end of file
diff --git a/plugins/transport-reactor-netty4/licenses/reactor-netty-http-1.2.4.jar.sha1 b/plugins/transport-reactor-netty4/licenses/reactor-netty-http-1.2.4.jar.sha1
new file mode 100644
index 0000000000000..89b8fe9f06dbc
--- /dev/null
+++ b/plugins/transport-reactor-netty4/licenses/reactor-netty-http-1.2.4.jar.sha1
@@ -0,0 +1 @@
+f155caf727991cddcd2ff134783ff5451e5f7dea
\ No newline at end of file