diff --git a/gradle.properties b/gradle.properties
index eea91798f7a0..62c9a1c479ae 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -18,9 +18,6 @@ doFindbugs=false
 # Run animal sniffer to verify compatibility of API with actual Java version
 doAnimalSniffer=false
 
-# include ORC support inside default h2o.jar.
-doIncludeOrc=false
-
 # include MOJO Pipeline support inside default h2o.jar.
 doIncludeMojoPipeline=false
 
@@ -55,12 +52,9 @@ httpClientVersion=4.5.2
 defaultParquetVersion=1.12.3
 
 # Default Hadoop client version
-defaultHadoopVersion=2.8.4
+defaultHadoopVersion=3.3.5
 defaultHdfsDependency=hadoop-hdfs-client
 
-# Default Hive version
-defaultHiveExecVersion=1.1.0
-
 defaultWebserverModule=h2o-jetty-9
 # default module to be included in assemblies
 defaultExtWebserverModule=h2o-jetty-9-ext
diff --git a/h2o-assemblies/main/build.gradle b/h2o-assemblies/main/build.gradle
index 611f10dedd30..8351fde0fb65 100644
--- a/h2o-assemblies/main/build.gradle
+++ b/h2o-assemblies/main/build.gradle
@@ -17,12 +17,28 @@ dependencies {
     api project(":h2o-persist-http")
     api project(":h2o-persist-hdfs")
     api project(":h2o-ext-krbstandalone")
-    if (project.hasProperty("doIncludeOrc") && project.doIncludeOrc == "true") {
-        api project(":h2o-orc-parser")
-    }
     api project(":h2o-parquet-parser")
+    api("org.apache.hadoop:hadoop-mapreduce-client-core:${defaultHadoopVersion}") {
+        transitive = false
+    }
     api project(":h2o-k8s-int")
 
+    api "org.apache.hadoop:hadoop-hdfs-client:${defaultHadoopVersion}"
+    implementation("org.apache.hadoop:hadoop-mapreduce-client-core:${defaultHadoopVersion}") {
+        transitive = false
+    }
+    api("org.apache.hadoop:hadoop-common:${defaultHadoopVersion}") {
+        exclude group: "com.sun.jersey"
+        exclude group: "javax.servlet"
+        exclude group: "org.apache.avro"
+        exclude group: "org.apache.curator"
+        exclude group: "org.apache.zookeeper"
+        exclude group: "org.eclipse.jetty"
+    }
+    
+    // Need to a newer org.apache.hadoop.hive.shims.ShimLoader to make older hive JDBC drivers work on Hadoop 3.
+    implementation 'org.apache.hive.shims:hive-shims-common:2.3.9'
+
     constraints {
         api('com.fasterxml.jackson.core:jackson-databind:2.13.4.2') {
             because 'Fixes CVE-2022-42003'
@@ -50,6 +66,17 @@ shadowJar {
   exclude 'test.properties'
   exclude 'cockpitlite.properties'
   exclude 'devpay_products.properties'
+    
+  // Need to a newer org.apache.hadoop.hive.shims.ShimLoader to make older hive JDBC drivers work on Hadoop 3.
+  // Excluding other classes of org.apache.hive.shims:hive-shims-common.
+  exclude 'org/apache/hadoop/hive/thrift/**/*.*'
+  exclude 'org/apache/hadoop/hive/io/**/*.*'
+  exclude 'org/apache/hadoop/hive/upgrade/**/*.*'
+  exclude 'org/apache/hadoop/hive/shims/Utils.*'
+  exclude 'org/apache/hadoop/hive/shims/CombineHiveKey.*'
+  exclude 'org/apache/hadoop/hive/shims/*Shims*.*'
+  exclude 'org/apache/hadoop/hive/shims/HiveHarFileSystem.*'
+    
   manifest {
     attributes 'Main-Class': 'water.H2OApp'
     attributes 'Add-Opens': 'java.base/java.lang java.base/java.util java.base/java.lang.reflect'
diff --git a/h2o-assemblies/steam/build.gradle b/h2o-assemblies/steam/build.gradle
index 7de32060f6f4..210cb0d94e6c 100644
--- a/h2o-assemblies/steam/build.gradle
+++ b/h2o-assemblies/steam/build.gradle
@@ -25,15 +25,13 @@ dependencies {
     api(project(":h2o-persist-s3")) {
         exclude group: "org.apache.hadoop"
     }
-    api(project(":h2o-persist-hdfs")) {
-        exclude group: "org.apache.hadoop"
-    }
+    api(project(":h2o-persist-hdfs"))
     api(project(":h2o-parquet-parser")) {
         exclude group: "org.apache.hadoop"
     }
     // Force latest version Hadoop with unused components excluded - we need Hadoop for Parquet and S3A export 
-    api "org.apache.hadoop:hadoop-hdfs-client:3.3.5"
-    api("org.apache.hadoop:hadoop-common:3.3.5") {
+    api "org.apache.hadoop:hadoop-hdfs-client:${defaultHadoopVersion}"
+    api("org.apache.hadoop:hadoop-common:${defaultHadoopVersion}") {
         exclude group: "com.sun.jersey"
         exclude group: "javax.servlet"
         exclude group: "org.apache.avro"
@@ -42,18 +40,11 @@ dependencies {
         exclude group: "org.eclipse.jetty"
         exclude group: "org.apache.hadoop.thirdparty", module: "hadoop-shaded-protobuf_3_7"
     }
-    api("org.apache.hadoop:hadoop-aws:3.3.5") {
-        exclude group: "com.amazonaws", module: "aws-java-sdk-bundle"
-    }
-    // aws-java-sdk-dynamodb is required for S3A support, S3A import throws NoClassDefFoundError (AmazonDynamoDBException)
-    api("com.amazonaws:aws-java-sdk-dynamodb:${awsJavaSdkVersion}") {
-        transitive = false
-    }
     // Upgrade dependencies coming from Hadoop to address vulnerabilities 
     api "org.apache.commons:commons-compress:1.21"
     // Force specific Parquet version to avoid dependency on vulnerable FasterXML jackson-mapper-asl
     api "org.apache.parquet:parquet-hadoop:${defaultParquetVersion}"
-    api("org.apache.hadoop:hadoop-mapreduce-client-core:3.3.5") {
+    api("org.apache.hadoop:hadoop-mapreduce-client-core:${defaultHadoopVersion}") {
         transitive = false
     }
     // Google OAuth force version
diff --git a/h2o-extensions/krbstandalone/build.gradle b/h2o-extensions/krbstandalone/build.gradle
index 9ac573ace6cc..78f882606bfb 100644
--- a/h2o-extensions/krbstandalone/build.gradle
+++ b/h2o-extensions/krbstandalone/build.gradle
@@ -3,6 +3,7 @@ description = "H2O Kerberos Standalone support"
 dependencies {
     api project(":h2o-core")
     api project(":h2o-persist-hdfs")
+    compileOnly("org.apache.hadoop:hadoop-common:$defaultHadoopVersion")
     api("org.apache.hadoop:hadoop-auth:$defaultHadoopVersion") {
         // Pull all dependencies to allow run directly from IDE or command line
         transitive = true
diff --git a/h2o-parsers/h2o-orc-parser/build.gradle b/h2o-parsers/h2o-orc-parser/build.gradle
index dd992438cf72..09308d37da14 100644
--- a/h2o-parsers/h2o-orc-parser/build.gradle
+++ b/h2o-parsers/h2o-orc-parser/build.gradle
@@ -12,8 +12,10 @@ configurations{
 }
 
 dependencies {
-  hadoopCommonExclude("org.apache.hadoop:hadoop-common:${defaultHadoopVersion}")
-  hiveExecExclude("org.apache.hive:hive-exec:$defaultHiveExecVersion"){
+  def hadoopVersion="2.8.4"
+  def hiveExecVersion="1.1.0"
+  hadoopCommonExclude("org.apache.hadoop:hadoop-common:$hadoopVersion")
+  hiveExecExclude("org.apache.hive:hive-exec:$hiveExecVersion"){
       // this dependency need to be excluded manually as Gradle can't find it in maven central
       exclude group: 'org.pentaho', module: 'pentaho-aggdesigner-algorithm'
       exclude group: 'eigenbase', module: 'eigenbase-properties'
@@ -23,14 +25,13 @@ dependencies {
   api(project(":h2o-persist-hdfs")) {
       exclude group: 'ai.h2o', module: 'h2o-core'
       exclude group: 'net.java.dev.jets3t', module: 'jets3t'
-      exclude group: 'org.apache.hadoop', module: 'hadoop-client'
-      exclude group: 'org.apache.hadoop', module: 'hadoop-aws'
+      exclude group: 'org.apache.hadoop'
   }
 
   // Note: What is connection between hive-exec version and hadoop-version and orc version?
   // Note: In this case we are using hive version which is compatible with $defaultHadoopVersion
   // Note: for newest version it should be replaces by hive-orc
-  api("org.apache.hive:hive-exec:$defaultHiveExecVersion") {
+  api("org.apache.hive:hive-exec:$hiveExecVersion") {
       // we can't use transitive=false so we need to exclude the dependencies manually
       configurations.hiveExecExclude.getResolvedConfiguration().getResolvedArtifacts().each {
           if (it.moduleVersion.id.group != "org.apache.hive" && it.moduleVersion.id.module.name != "hive-exec") {
@@ -40,7 +41,7 @@ dependencies {
       exclude group: 'org.pentaho', module: 'pentaho-aggdesigner-algorithm'
   }
   // For compilation we need common
-  api("org.apache.hadoop:hadoop-common:$defaultHadoopVersion") {
+  api("org.apache.hadoop:hadoop-common:$hadoopVersion") {
       // we can't use transitive=false so we need to exclude the dependencies manually
       configurations.hadoopCommonExclude.getResolvedConfiguration().getResolvedArtifacts().each {
           if (it.moduleVersion.id.group != "org.apache.hadoop" && it.moduleVersion.id.module.name != "hadoop-common") {
@@ -52,7 +53,7 @@ dependencies {
   testImplementation project(":h2o-test-support")
   testRuntimeOnly project(":${defaultWebserverModule}")
   // We need correct version of MapRe Hadoop to run JUnits
-  testRuntimeOnly("org.apache.hadoop:hadoop-client:$defaultHadoopVersion") {
+  testRuntimeOnly("org.apache.hadoop:hadoop-client:$hadoopVersion") {
       exclude module: "jasper-runtime"
       exclude module: "jasper-compiler"
       exclude module: "curator-client"
diff --git a/h2o-parsers/h2o-parquet-compat/h2o-parquet-v17-compat/build.gradle b/h2o-parsers/h2o-parquet-compat/h2o-parquet-v17-compat/build.gradle
index 1b3b333ef1db..77905c235cd2 100644
--- a/h2o-parsers/h2o-parquet-compat/h2o-parquet-v17-compat/build.gradle
+++ b/h2o-parsers/h2o-parquet-compat/h2o-parquet-v17-compat/build.gradle
@@ -16,9 +16,7 @@ dependencies {
   }
   // Parquet support
   api("org.apache.parquet:parquet-hadoop:1.7.0")
-  api("org.apache.hadoop:hadoop-common:${parquetHadoopVersion}") {
-    transitive = false
-  }
+  compileOnly("org.apache.hadoop:hadoop-common:${parquetHadoopVersion}")
 
   testImplementation project(":h2o-test-support")
   testImplementation project(":h2o-parquet-parser-tests")
@@ -28,6 +26,7 @@ dependencies {
   testImplementation("org.apache.hadoop:hadoop-client:${parquetHadoopVersion}") {
     exclude module: "servlet-api"
   }
+  testImplementation("org.apache.hadoop:hadoop-common:${parquetHadoopVersion}")
 }
 
 apply from: "${rootDir}/gradle/dataCheck.gradle"
diff --git a/h2o-parsers/h2o-parquet-parser/build.gradle b/h2o-parsers/h2o-parquet-parser/build.gradle
index 79d171bd5b5a..00a41816fd15 100644
--- a/h2o-parsers/h2o-parquet-parser/build.gradle
+++ b/h2o-parsers/h2o-parquet-parser/build.gradle
@@ -6,6 +6,9 @@ description = "H2O Parquet Parser"
 dependencies {
   testImplementation project(":h2o-test-support")
   testImplementation project(":h2o-parquet-parser-tests")
+  testImplementation("org.apache.hadoop:hadoop-mapreduce-client-core:${defaultHadoopVersion}") {
+    transitive = false
+  }
   testRuntimeOnly project(":${defaultWebserverModule}")
 }
 
diff --git a/h2o-parsers/h2o-parquet-parser/parquet_dependencies.gradle b/h2o-parsers/h2o-parquet-parser/parquet_dependencies.gradle
index 4abb69601464..dbfe5b30a52b 100644
--- a/h2o-parsers/h2o-parquet-parser/parquet_dependencies.gradle
+++ b/h2o-parsers/h2o-parquet-parser/parquet_dependencies.gradle
@@ -1,14 +1,7 @@
 def parquetHadoopVersion = binding.variables.get("hadoopVersion") ?
         binding.variables.get("hadoopVersion") : defaultHadoopVersion
 
-configurations{
-    // Configuration used to get all transitive dependencies for org.apache.hadoop:hadoop-common
-    hadoopCommonExclude
-}
-
 dependencies {
-    hadoopCommonExclude("org.apache.hadoop:hadoop-common:${parquetHadoopVersion}")
-
     api project(":h2o-core")
     api(project(":h2o-persist-hdfs")) {
         exclude group: 'ai.h2o', module: 'h2o-core'
@@ -21,15 +14,6 @@ dependencies {
     api("org.apache.parquet:parquet-hadoop:${defaultParquetVersion}")
 
 
-    api("org.apache.hadoop:hadoop-common:${parquetHadoopVersion}") {
-        // we can't use transitive=false so we need to exclude the dependencies manually
-        configurations.hadoopCommonExclude.getResolvedConfiguration().getResolvedArtifacts().each {
-            if (it.moduleVersion.id.group != "org.apache.hadoop" && it.moduleVersion.id.module.name != "hadoop-common") {
-                exclude group: it.moduleVersion.id.group, module: it.moduleVersion.id.module.name
-            }
-        }
-    }
-    implementation("org.apache.hadoop:hadoop-mapreduce-client-core:${parquetHadoopVersion}") {
-        transitive = false
-    }
+    compileOnly("org.apache.hadoop:hadoop-common:${parquetHadoopVersion}")
+    testImplementation("org.apache.hadoop:hadoop-common:${parquetHadoopVersion}")
 }
diff --git a/h2o-persist-hdfs/build.gradle b/h2o-persist-hdfs/build.gradle
index 1822c9b6a69e..6420975e036c 100644
--- a/h2o-persist-hdfs/build.gradle
+++ b/h2o-persist-hdfs/build.gradle
@@ -8,15 +8,25 @@ configurations {
 
 dependencies {
     api project(":h2o-core")
+    compileOnly("org.apache.hadoop:hadoop-common:$defaultHadoopVersion")
     api("org.apache.hadoop:$defaultHdfsDependency:$defaultHadoopVersion") {
         // Pull all dependencies to allow run directly from IDE or command line
         transitive = true
     }
-    api("org.apache.hadoop:hadoop-aws:$defaultHadoopVersion")
+    api("org.apache.hadoop:hadoop-aws:${defaultHadoopVersion}") {
+        exclude group: "com.amazonaws", module: "aws-java-sdk-bundle"
+    }
+    // aws-java-sdk-dynamodb is required for S3A support, S3A import throws NoClassDefFoundError (AmazonDynamoDBException)
+    api("com.amazonaws:aws-java-sdk-dynamodb:${awsJavaSdkVersion}") {
+        transitive = false
+    }
+    
     api("com.nimbusds:nimbus-jose-jwt:9.11.3")
 
     testImplementation project(":h2o-test-support")
+    testImplementation "org.apache.hadoop:hadoop-common:$defaultHadoopVersion"
     testImplementation "com.amazonaws:aws-java-sdk-s3:${awsJavaSdkVersion}"
+    testImplementation "org.jets3t:jets3t:0.9.7"
     testRuntimeOnly project(":${defaultWebserverModule}")
     testRuntimeOnly project(":h2o-persist-s3")
 }
diff --git a/h2o-persist-hdfs/src/test/java/water/persist/PersistHdfsTest.java b/h2o-persist-hdfs/src/test/java/water/persist/PersistHdfsTest.java
index 4e6e2153f09b..53fa98fbc67b 100644
--- a/h2o-persist-hdfs/src/test/java/water/persist/PersistHdfsTest.java
+++ b/h2o-persist-hdfs/src/test/java/water/persist/PersistHdfsTest.java
@@ -23,8 +23,10 @@
 public class PersistHdfsTest extends TestUtil {
 
   @Parameterized.Parameters(name = "{index}: scheme={0}")
-  public static Object[] schemes() {
-    return new Object[] { "s3n", "s3a" };
+  public static Object[] schemes() { 
+    return new Object[] { 
+      // "s3n", - s3n is not supported by hadoop-aws 3.0+
+      "s3a" };
   }
 
   @Parameterized.Parameter
diff --git a/h2o-persist-hdfs/src/test/java/water/persist/PersistS3HdfsTest.java b/h2o-persist-hdfs/src/test/java/water/persist/PersistS3HdfsTest.java
index ce44b634defe..b6a746339d81 100644
--- a/h2o-persist-hdfs/src/test/java/water/persist/PersistS3HdfsTest.java
+++ b/h2o-persist-hdfs/src/test/java/water/persist/PersistS3HdfsTest.java
@@ -2,11 +2,9 @@
 
 import org.apache.hadoop.fs.FileSystem;
 import org.apache.hadoop.fs.Path;
-import org.apache.hadoop.fs.s3.S3FileSystem;
-import org.jets3t.service.S3Service;
-import org.jets3t.service.model.S3Object;
+import org.apache.hadoop.fs.s3a.S3AFileSystem;
+import com.amazonaws.services.s3.model.S3Object;
 import org.junit.BeforeClass;
-import org.junit.Ignore;
 import org.junit.Rule;
 import org.junit.Test;
 import org.junit.rules.ExpectedException;
@@ -37,29 +35,14 @@ public void testPubDev5663() throws Exception { // Demonstrates that S3FileSyste
 
     PersistHdfs hdfsPersist = (PersistHdfs) H2O.getPM().getPersistForURI(URI.create("hdfs://localhost/"));
 
-    String existing = "s3://" + bucket + "/" + key;
+    String existing = "s3a://" + bucket + "/" + key;
     Path p = new Path(existing);
 
-    S3FileSystem fs = (S3FileSystem) FileSystem.get(p.toUri(), PersistHdfs.CONF);
-    // use crazy reflection to get to the actual S3 Service instance
-    S3Service s3Service = (S3Service) getValue(fs, "store", "h", "proxyDescriptor", "fpp", "proxy", "s3Service");
-
-    S3Object s3Object = s3Service.getObject(bucket, key);
+    S3AFileSystem fs = (S3AFileSystem) FileSystem.get(p.toUri(), PersistHdfs.CONF);
+    S3Object s3Object = fs.getAmazonS3ClientForTesting("testPubDev5663").getObject(bucket, key);
+    
     assertNotNull(s3Object); // The object exists
-    assertFalse(fs.exists(p)); // But FS says it doesn't => S3 is broken in Hadoop
-    assertFalse(hdfsPersist.exists(existing)); // Our persist gives the same result
-  }
-
-  private Object getValue(Object o, String... fieldNames) {
-    StringBuilder path = new StringBuilder(o.getClass().getName());
-    for (String f : fieldNames) {
-      path.append('.').append(f);
-      Object no = ReflectionUtils.getFieldValue(o, f);
-      if (no == null)
-        throw new IllegalStateException("Invalid path: " + path.toString() + ", object is instance of " + o.getClass());
-      o = no;
-    }
-    return o;
+    assert(fs.exists(p)); // But FS says it exists as well.
+    assert(hdfsPersist.exists(existing)); // Our persist gives the same result
   }
-
 }
diff --git a/h2o-persist-s3/build.gradle b/h2o-persist-s3/build.gradle
index 4fe10af31c97..cdec1d6441ce 100644
--- a/h2o-persist-s3/build.gradle
+++ b/h2o-persist-s3/build.gradle
@@ -7,6 +7,7 @@ configurations {
 
 dependencies {
   api project(":h2o-core")
+  compileOnly("org.apache.hadoop:hadoop-common:$defaultHadoopVersion")
   api "com.amazonaws:aws-java-sdk-s3:${awsJavaSdkVersion}"
   api "com.amazonaws:aws-java-sdk-sts:${awsJavaSdkVersion}" // Required by WebIdentityTokenCredentialsProvider from AWS SDK
   api "org.apache.httpcomponents:httpclient:${httpClientVersion}"
@@ -19,6 +20,10 @@ dependencies {
   testRuntimeOnly project(":${defaultWebserverModule}")
   testRuntimeOnly project(":h2o-parquet-parser")
   testImplementation project(":h2o-persist-hdfs")
+  testImplementation "org.apache.hadoop:hadoop-common:$defaultHadoopVersion"
+  testImplementation("org.apache.hadoop:hadoop-mapreduce-client-core:$defaultHadoopVersion") {
+    transitive = false
+  }
 }
 
 apply from: "${rootDir}/gradle/dataCheck.gradle"
diff --git a/scripts/jenkins/groovy/defineTestStages.groovy b/scripts/jenkins/groovy/defineTestStages.groovy
index e34c0057fe38..5792dab4123c 100644
--- a/scripts/jenkins/groovy/defineTestStages.groovy
+++ b/scripts/jenkins/groovy/defineTestStages.groovy
@@ -589,7 +589,8 @@ def call(final pipelineContext) {
         version: distribution.version,
         commandFactory: 'h2o-3/scripts/jenkins/groovy/hadoopCommands.groovy',
         ldapConfigPath: ldapConfigPath,
-        ldapConfigPathStandalone: 'scripts/jenkins/config/ldap-jetty-9.txt'
+        ldapConfigPathStandalone: 'scripts/jenkins/config/ldap-jetty-9.txt',
+        bundledS3FileSystems: 's3a,s3n'
       ], 
       pythonVersion: '3.6',
       customDockerArgs: [ '--privileged' ],
@@ -599,6 +600,7 @@ def call(final pipelineContext) {
     def standaloneStage = evaluate(stageTemplate.inspect())
     standaloneStage.stageName = "${distribution.name.toUpperCase()} ${distribution.version} - STANDALONE"
     standaloneStage.customData.mode = 'STANDALONE'
+    standaloneStage.customData.bundledS3FileSystems = 's3a'
 
     def onHadoopStage = evaluate(stageTemplate.inspect())
     onHadoopStage.stageName = "${distribution.name.toUpperCase()} ${distribution.version} - HADOOP"
@@ -672,10 +674,12 @@ def call(final pipelineContext) {
     def standaloneStage = evaluate(stageTemplate.inspect())
     standaloneStage.stageName = "${distribution.name.toUpperCase()} ${distribution.version} - STANDALONE"
     standaloneStage.customData.mode = 'STANDALONE'
+    standaloneStage.customData.bundledS3FileSystems = 's3a'
 
     def standaloneKeytabStage = evaluate(stageTemplate.inspect())
     standaloneKeytabStage.stageName = "${distribution.name.toUpperCase()} ${distribution.version} - STANDALONE KEYTAB"
     standaloneKeytabStage.customData.mode = 'STANDALONE_KEYTAB'
+    standaloneKeytabStage.customData.bundledS3FileSystems = 's3a'
 
     def standaloneDriverKeytabStage = evaluate(stageTemplate.inspect())
     standaloneDriverKeytabStage.stageName = "${distribution.name.toUpperCase()} ${distribution.version} - DRIVER KEYTAB"
diff --git a/scripts/jenkins/groovy/hadoopCommands.groovy b/scripts/jenkins/groovy/hadoopCommands.groovy
index 34e440d37fe8..44e175491745 100644
--- a/scripts/jenkins/groovy/hadoopCommands.groovy
+++ b/scripts/jenkins/groovy/hadoopCommands.groovy
@@ -81,6 +81,7 @@ private GString getCommandStandalone(final stageConfig) {
             fi
             export CLOUD_IP=\$(hostname --ip-address)
             export CLOUD_PORT=${defaultPort}
+            export HADOOP_S3_FILESYSTEMS=${stageConfig.customData.bundledS3FileSystems}
             """
 }