diff --git a/.github/workflows/integrate.yml b/.github/workflows/integrate.yml
index 2c73af0e43..feed28784a 100644
--- a/.github/workflows/integrate.yml
+++ b/.github/workflows/integrate.yml
@@ -69,8 +69,8 @@ jobs:
         env:
           SLS_AWS_SDK_V3: '1'
 
-  windowsNode16:
-    name: '[Windows] Node 16: Unit tests'
+  windowsNode18:
+    name: '[Windows] Node 18: Unit tests'
     runs-on: windows-latest
     steps:
       - name: Checkout repository
@@ -83,13 +83,13 @@ jobs:
           path: |
             ~/.npm
             node_modules
-          key: npm-v16-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
-          restore-keys: npm-v16-${{ runner.os }}-${{ github.ref }}-
+          key: npm-v18-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
+          restore-keys: npm-v18-${{ runner.os }}-${{ github.ref }}-
 
       - name: Install Node.js and npm
         uses: actions/setup-node@v4
         with:
-          node-version: 16.x
+          node-version: 18.x
 
       - name: Install dependencies
         if: steps.cacheNpm.outputs.cache-hit != 'true'
@@ -99,8 +99,8 @@ jobs:
       - name: Unit tests
         run: npm test -- -b
 
-  linuxNode16:
-    name: '[Linux] Node 16: Isolated unit tests'
+  linuxNode18:
+    name: '[Linux] Node 18: Isolated unit tests'
     runs-on: ubuntu-latest
     steps:
       - name: Checkout repository
@@ -113,13 +113,13 @@ jobs:
           path: |
             ~/.npm
             node_modules
-          key: npm-v16-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
-          restore-keys: npm-v16-${{ runner.os }}-${{ github.ref }}-
+          key: npm-v18-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
+          restore-keys: npm-v18-${{ runner.os }}-${{ github.ref }}-
 
       - name: Install Node.js and npm
         uses: actions/setup-node@v4
         with:
-          node-version: 16.x
+          node-version: 18.x
 
       - name: Install dependencies
         if: steps.cacheNpm.outputs.cache-hit != 'true'
@@ -134,7 +134,7 @@ jobs:
   integrate:
     name: Integrate
     runs-on: ubuntu-latest
-    needs: [linuxNode22, windowsNode16, linuxNode16]
+    needs: [linuxNode22, windowsNode18, linuxNode18]
     timeout-minutes: 30 # Default is 360
     env:
       AWS_ACCESS_KEY_ID: ${{ secrets.AWS_ACCESS_KEY_ID }}
diff --git a/.github/workflows/validate.yml b/.github/workflows/validate.yml
index 7729baf84a..deac612164 100644
--- a/.github/workflows/validate.yml
+++ b/.github/workflows/validate.yml
@@ -82,8 +82,8 @@ jobs:
         env:
           SLS_AWS_SDK_V3: '1'
 
-  windowsNode16:
-    name: '[Windows] Node 16: Unit tests'
+  windowsNode18:
+    name: '[Windows] Node 18: Unit tests'
     runs-on: windows-latest
     steps:
       - name: Checkout repository
@@ -96,15 +96,15 @@ jobs:
           path: |
             ~/.npm
             node_modules
-          key: npm-v16-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
+          key: npm-v18-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
           restore-keys: |
-            npm-v16-${{ runner.os }}-${{ github.ref }}-
-            npm-v16-${{ runner.os }}-refs/heads/main-
+            npm-v18-${{ runner.os }}-${{ github.ref }}-
+            npm-v18-${{ runner.os }}-refs/heads/main-
 
       - name: Install Node.js and npm
         uses: actions/setup-node@v4
         with:
-          node-version: 16.x
+          node-version: 18.x
 
       - name: Install dependencies
         if: steps.cacheNpm.outputs.cache-hit != 'true'
@@ -114,8 +114,8 @@ jobs:
       - name: Unit tests
         run: npm test -- -b
 
-  linuxNode16:
-    name: '[Linux] Node 16: Isolated unit tests'
+  linuxNode18:
+    name: '[Linux] Node 18: Isolated unit tests'
     runs-on: ubuntu-latest
     steps:
       - name: Checkout repository
@@ -128,15 +128,15 @@ jobs:
           path: |
             ~/.npm
             node_modules
-          key: npm-v16-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
+          key: npm-v18-${{ runner.os }}-${{ github.ref }}-${{ hashFiles('package.json') }}
           restore-keys: |
-            npm-v16-${{ runner.os }}-${{ github.ref }}-
-            npm-v16-${{ runner.os }}-refs/heads/main-
+            npm-v18-${{ runner.os }}-${{ github.ref }}-
+            npm-v18-${{ runner.os }}-refs/heads/main-
 
       - name: Install Node.js and npm
         uses: actions/setup-node@v4
         with:
-          node-version: 16.x
+          node-version: 18.x
 
       - name: Install dependencies
         if: steps.cacheNpm.outputs.cache-hit != 'true'
diff --git a/lib/classes/yaml-parser.js b/lib/classes/yaml-parser.js
index 4f66ca40b1..e95e21c829 100644
--- a/lib/classes/yaml-parser.js
+++ b/lib/classes/yaml-parser.js
@@ -1,7 +1,8 @@
 'use strict';
 
+const $RefParser = require('@apidevtools/json-schema-ref-parser');
 const yaml = require('js-yaml');
-const resolve = require('json-refs').resolveRefs;
+const cloudformationSchema = require('@serverless/utils/cloudformation-schema');
 
 class YamlParser {
   constructor(serverless) {
@@ -9,17 +10,23 @@ class YamlParser {
   }
 
   async parse(yamlFilePath) {
-    const root = this.serverless.utils.readFileSync(yamlFilePath);
-    const options = {
-      filter: ['relative', 'remote'],
-      loaderOptions: {
-        processContent: (res, callback) => {
-          callback(null, yaml.load(res.text));
+    return $RefParser.dereference(yamlFilePath, {
+      parse: {
+        yaml: {
+          parse(file) {
+            const contents = file.data.toString();
+            try {
+              return yaml.load(contents, {
+                filename: file.url,
+                schema: cloudformationSchema,
+              });
+            } catch (err) {
+              return yaml.load(contents, { filename: file.url });
+            }
+          },
         },
       },
-      location: yamlFilePath,
-    };
-    return resolve(root, options).then((res) => res.resolved);
+    });
   }
 }
 
diff --git a/package.json b/package.json
index 732e70976f..838bb9d87d 100644
--- a/package.json
+++ b/package.json
@@ -22,6 +22,7 @@
     "osls": "./bin/serverless.js"
   },
   "dependencies": {
+    "@apidevtools/json-schema-ref-parser": "^14.2.1",
     "@aws-sdk/client-api-gateway": "^3.588.0",
     "@aws-sdk/client-apigatewayv2": "^3.588.0",
     "@aws-sdk/client-cloudformation": "^3.588.0",
@@ -41,9 +42,9 @@
     "@aws-sdk/client-sqs": "^3.588.0",
     "@aws-sdk/client-ssm": "^3.588.0",
     "@aws-sdk/client-sts": "^3.588.0",
+    "@aws-sdk/credential-providers": "^3.588.0",
     "@aws-sdk/lib-dynamodb": "^3.588.0",
     "@aws-sdk/lib-storage": "^3.588.0",
-    "@aws-sdk/credential-providers": "^3.588.0",
     "@serverless/utils": "^6.13.1",
     "ajv": "^8.12.0",
     "ajv-formats": "^2.1.1",
@@ -72,7 +73,6 @@
     "is-docker": "^2.2.1",
     "js-yaml": "^4.1.0",
     "json-cycle": "^1.5.0",
-    "json-refs": "^3.0.15",
     "lodash": "^4.17.21",
     "memoizee": "^0.4.15",
     "micromatch": "^4.0.5",
@@ -206,7 +206,7 @@
     "test:isolated": "mocha-isolated \"test/unit/**/*.test.js\""
   },
   "engines": {
-    "node": ">=12.0"
+    "node": ">=18.0"
   },
   "license": "MIT"
 }
diff --git a/scripts/pkg/build.js b/scripts/pkg/build.js
index 91fa85ff76..008b9da703 100755
--- a/scripts/pkg/build.js
+++ b/scripts/pkg/build.js
@@ -31,7 +31,7 @@ const spawnOptions = { cwd: serverlessPath, stdio: 'inherit' };
         '-c',
         'scripts/pkg/config.js',
         '--targets',
-        'node16-linux-x64,node16-mac-x64,node16-win-x64',
+        'node18-linux-x64,node18-mac-x64,node18-win-x64',
         '--out-path',
         'dist',
         'bin/serverless.js',