diff --git a/src/core/src/package_managers/YumPackageManager.py b/src/core/src/package_managers/YumPackageManager.py
index 1fa7b025..a6ccceae 100644
--- a/src/core/src/package_managers/YumPackageManager.py
+++ b/src/core/src/package_managers/YumPackageManager.py
@@ -202,6 +202,10 @@ def is_package(chunk):
         lines = output.strip().split('\n')
 
         for line_index in range(0, len(lines)):
+            # Do not install Obsoleting Packages. The obsoleting packages list comes towards end in the output.
+            if lines[line_index].strip().startswith("Obsoleting Packages"):
+                break
+
             line = re.split(r'\s+', lines[line_index].strip())
             next_line = []
 
diff --git a/src/core/tests/Test_YumPackageManager.py b/src/core/tests/Test_YumPackageManager.py
index 6a185261..e8c2c13f 100644
--- a/src/core/tests/Test_YumPackageManager.py
+++ b/src/core/tests/Test_YumPackageManager.py
@@ -609,6 +609,15 @@ def test_is_reboot_pending_return_true_when_exception_raised(self):
 
         package_manager.do_processes_require_restart = backup_do_process_require_restart
 
+    def test_obsolete_packages_should_not_considered_in_available_updates(self):
+        self.runtime.set_legacy_test_type('ObsoletePackages')
+        package_manager = self.container.get('package_manager')
+        package_filter = self.container.get('package_filter')
+        available_updates, package_versions = package_manager.get_available_updates(package_filter)
+        self.assertEqual(len(available_updates), 1)
+        self.assertEqual(len(package_versions), 1)
+        self.assertTrue(available_updates[0] == "grub2-tools.x86_64")
+        self.assertTrue(package_versions[0] == "1:2.02-142.el8")
 
 if __name__ == '__main__':
     unittest.main()
diff --git a/src/core/tests/library/LegacyEnvLayerExtensions.py b/src/core/tests/library/LegacyEnvLayerExtensions.py
index 56635906..d0316722 100644
--- a/src/core/tests/library/LegacyEnvLayerExtensions.py
+++ b/src/core/tests/library/LegacyEnvLayerExtensions.py
@@ -1144,6 +1144,21 @@ def run_command_output(self, cmd, no_output=False, chk_err=True):
                             entry = template.replace('<PACKAGE>', package)
                             entry = entry.replace('<VERSION>', version)
                             output += entry
+            elif self.legacy_test_type == 'ObsoletePackages':
+                if self.legacy_package_manager_name is Constants.YUM:
+                    if cmd.find("check-update") > -1:
+                        code = 100
+                        output = "\n" + \
+                                 "grub2-tools.x86_64                                              " + \
+                                 "1:2.02-142.el8                                      " + \
+                                 "rhel-8-baseos-rhui-rpms\n" + \
+                                 "Obsoleting Packages\n" + \
+                                 "grub2-tools.x86_64                                     " + \
+                                 "1:2.02-123.el8_6.8                                      " + \
+                                 "rhel-8-baseos-rhui-rpms\n" + \
+                                 "    grub2-tools.x86_64                                      " + \
+                                 "1:2.02-123.el8                                      " + \
+                                 "@System\n"
 
             major_version = self.get_python_major_version()
             if major_version == 2: