diff --git a/credentials/settings/base.py b/credentials/settings/base.py
index d95f88cad..f2ecf8b50 100644
--- a/credentials/settings/base.py
+++ b/credentials/settings/base.py
@@ -456,7 +456,14 @@
 FILE_STORAGE_BACKEND = {}
 EXTRA_APPS = []
 SESSION_EXPIRE_AT_BROWSER_CLOSE = False
-STATICFILES_STORAGE = "django.contrib.staticfiles.storage.ManifestStaticFilesStorage"
+STORAGES = {
+    "default": {
+        "BACKEND": "django.core.files.storage.FileSystemStorage",
+    },
+    "staticfiles": {
+        "BACKEND": "django.contrib.staticfiles.storage.ManifestStaticFilesStorage",
+    },
+}
 CACHES = {
     "default": {
         "BACKEND": "django.core.cache.backends.locmem.LocMemCache",
@@ -474,7 +481,7 @@
 }
 API_ROOT = None
 MEDIA_STORAGE_BACKEND = {
-    "DEFAULT_FILE_STORAGE": "django.core.files.storage.FileSystemStorage",
+    "STORAGES": STORAGES,
     "MEDIA_ROOT": MEDIA_ROOT,
     "MEDIA_URL": MEDIA_URL,
 }
diff --git a/credentials/settings/devstack.py b/credentials/settings/devstack.py
index a36b5939e..f9da5e589 100644
--- a/credentials/settings/devstack.py
+++ b/credentials/settings/devstack.py
@@ -43,10 +43,17 @@
 EMAIL_BACKEND = "django.core.mail.backends.filebased.EmailBackend"
 EMAIL_FILE_PATH = "/tmp/credentials-emails"
 
-DEFAULT_FILE_STORAGE = os.environ.get("DEFAULT_FILE_STORAGE", "django.core.files.storage.FileSystemStorage")
-MEDIA_URL = os.environ.get("MEDIA_URL", "/media/")
+defaultfile_storage = os.environ.get("DEFAULT_FILE_STORAGE")
+
+if defaultfile_storage:
+    STORAGES["default"]["BACKEND"] = defaultfile_storage
+
+staticfiles_storage = os.environ.get("STATICFILES_STORAGE")
 
-STATICFILES_STORAGE = os.environ.get("STATICFILES_STORAGE", "django.contrib.staticfiles.storage.StaticFilesStorage")
+if staticfiles_storage:
+    STORAGES["staticfiles"]["BACKEND"] = staticfiles_storage
+
+MEDIA_URL = os.environ.get("MEDIA_URL", "/media/")
 STATIC_URL = os.environ.get("STATIC_URL", "/static/")
 
 # OAuth2 variables specific to social-auth/SSO login use case.
diff --git a/credentials/settings/production.py b/credentials/settings/production.py
index 8b3ad8828..0cd258d99 100644
--- a/credentials/settings/production.py
+++ b/credentials/settings/production.py
@@ -44,9 +44,20 @@
 
     vars().update(config_from_yaml)
 
+    FILE_STORAGE_BACKEND = config_from_yaml.get("FILE_STORAGE_BACKEND", {})
+    default_backend = FILE_STORAGE_BACKEND.pop("DEFAULT_FILE_STORAGE", None)
+    static_backend = FILE_STORAGE_BACKEND.pop("STATICFILES_STORAGE", None)
+
     # Load the files storage backend settings for django storages
+    # In django==4.2.24 following line sets the DEFAULT_FILE_STORAGE and other AWS variables as per YAML.
     vars().update(FILE_STORAGE_BACKEND)
 
+    if default_backend:
+        STORAGES["default"]["BACKEND"] = default_backend
+
+    if static_backend:
+        STORAGES["staticfiles"]["BACKEND"] = static_backend
+
 # make sure this happens after the configuration file overrides so format string can be overridden
 LOGGING = get_logger_config(format_string=LOGGING_FORMAT_STRING)
 
diff --git a/credentials/settings/test.py b/credentials/settings/test.py
index a522fc77b..153917228 100644
--- a/credentials/settings/test.py
+++ b/credentials/settings/test.py
@@ -35,7 +35,7 @@
 
 # Local Directories
 TEST_ROOT = path("test_root")
-DEFAULT_FILE_STORAGE = "django.core.files.storage.FileSystemStorage"
+
 MEDIA_ROOT = str(TEST_ROOT / "uploads")
 MEDIA_URL = "/static/uploads/"
 
@@ -49,7 +49,6 @@
         "JWT_AUDIENCE": SOCIAL_AUTH_EDX_OAUTH2_KEY,
     }
 )
-STATICFILES_STORAGE = "django.contrib.staticfiles.storage.StaticFilesStorage"
 
 # Verifiable Credentials
 ENABLE_VERIFIABLE_CREDENTIALS = True