diff --git a/app/core/Encryptor/Encryptor.test.ts b/app/core/Encryptor/Encryptor.test.ts
index e4a2ae20ed8..a389648de5a 100644
--- a/app/core/Encryptor/Encryptor.test.ts
+++ b/app/core/Encryptor/Encryptor.test.ts
@@ -1,6 +1,11 @@
 import { NativeModules } from 'react-native';
 import { Encryptor } from './Encryptor';
-import { ENCRYPTION_LIBRARY, LEGACY_DERIVATION_OPTIONS } from './constants';
+import {
+  ShaAlgorithm,
+  CipherAlgorithm,
+  ENCRYPTION_LIBRARY,
+  LEGACY_DERIVATION_OPTIONS,
+} from './constants';
 
 const Aes = NativeModules.Aes;
 const AesForked = NativeModules.AesForked;
@@ -55,7 +60,13 @@ describe('Encryptor', () => {
         {
           lib: ENCRYPTION_LIBRARY.original,
           expectedKeyValue: 'mockedKey',
-          expectedPBKDF2Args: ['testPassword', 'mockedSalt', 5000, 256],
+          expectedPBKDF2Args: [
+            'testPassword',
+            'mockedSalt',
+            5000,
+            256,
+            ShaAlgorithm.Sha512,
+          ],
         },
       ],
       [
@@ -83,15 +94,21 @@ describe('Encryptor', () => {
         );
 
         expect(decryptedObject).toEqual(expect.any(Object));
+
+        const expectedDecryptionArgs =
+          lib === ENCRYPTION_LIBRARY.original
+            ? [
+                mockVault.cipher,
+                expectedKeyValue,
+                mockVault.iv,
+                CipherAlgorithm.cbc,
+              ]
+            : [mockVault.cipher, expectedKeyValue, mockVault.iv];
         expect(
           lib === ENCRYPTION_LIBRARY.original
             ? decryptAesSpy
             : decryptAesForkedSpy,
-        ).toHaveBeenCalledWith(
-          mockVault.cipher,
-          expectedKeyValue,
-          mockVault.iv,
-        );
+        ).toHaveBeenCalledWith(...expectedDecryptionArgs);
         expect(
           lib === ENCRYPTION_LIBRARY.original
             ? pbkdf2AesSpy
diff --git a/app/core/Encryptor/Encryptor.ts b/app/core/Encryptor/Encryptor.ts
index cf01f619ac1..c086f4e4055 100644
--- a/app/core/Encryptor/Encryptor.ts
+++ b/app/core/Encryptor/Encryptor.ts
@@ -150,7 +150,7 @@ class Encryptor implements WithKeyEncryptor<EncryptionKey, Json> {
     key: EncryptionKey,
     payload: EncryptionResult,
   ): Promise<unknown> => {
-    // TODO: Check for key and payload compatiblity?
+    // TODO: Check for key and payload compatibility?
 
     // We assume that both `payload.lib` and `key.lib` are the same here!
     const lib = getEncryptionLibrary(payload.lib);
diff --git a/app/core/Encryptor/constants.ts b/app/core/Encryptor/constants.ts
index fd80b770cbf..d823aa2b0af 100644
--- a/app/core/Encryptor/constants.ts
+++ b/app/core/Encryptor/constants.ts
@@ -17,10 +17,34 @@ export enum KeyDerivationIteration {
   OWASP2023Default = 900_000,
 }
 
+/**
+ * Supported SHA algorithms in react-native-aes v3.0.3
+ */
+export enum ShaAlgorithm {
+  Sha256 = 'sha256',
+  Sha512 = 'sha512',
+}
+
+/**
+ * Supported cipher algorithms in react-native-aes v3.0.3
+ *
+ * Important Note: Make sure to validate the compatibility of the algorithm with the underlying library.
+ * The react-native-aes-crypto does a string validation for the algorithm, so it's important to make sure
+ * we're using the correct string.
+ *
+ * References:
+ * - encrypt: https://github.com/MetaMask/metamask-mobile/pull/9947#:~:text=When-,encrypting,-and%20decypting%20the
+ * - decrypt: https://github.com/MetaMask/metamask-mobile/pull/9947#:~:text=When%20encrypting%20and-,decypting,-the%20library%20uses
+ */
+export enum CipherAlgorithm {
+  cbc = 'aes-cbc-pkcs7padding',
+  ctr = 'aes-ctr-pkcs5padding',
+}
+
 /**
  * Used as a "tag" to identify the underlying encryption library.
  *
- * When no tag is speficied, this means our "forked" encryption library has been used.
+ * When no tag is specified, this means our "forked" encryption library has been used.
  */
 export const ENCRYPTION_LIBRARY = {
   original: 'original',
diff --git a/app/core/Encryptor/lib.ts b/app/core/Encryptor/lib.ts
index 676578b0926..e26f3bbe940 100644
--- a/app/core/Encryptor/lib.ts
+++ b/app/core/Encryptor/lib.ts
@@ -1,9 +1,11 @@
 import { NativeModules } from 'react-native';
 import {
-  ENCRYPTION_LIBRARY,
   KDF_ALGORITHM,
-  LEGACY_DERIVATION_OPTIONS,
+  ShaAlgorithm,
+  CipherAlgorithm,
+  ENCRYPTION_LIBRARY,
   SHA256_DIGEST_LENGTH,
+  LEGACY_DERIVATION_OPTIONS,
 } from './constants';
 import { EncryptionLibrary, KeyDerivationOptions } from './types';
 
@@ -29,7 +31,14 @@ class AesEncryptionLibrary implements EncryptionLibrary {
       password,
       salt,
       opts.params.iterations,
+      // We're using SHA512 but returning a key with length 256 bits.
+      // Truncating the output to 256 bits is intentional and considered safe.
+      //
+      // References:
+      // - https://nvlpubs.nist.gov/nistpubs/FIPS/NIST.FIPS.180-4.pdf
+      // - https://eprint.iacr.org/2010/548.pdf
       SHA256_DIGEST_LENGTH,
+      ShaAlgorithm.Sha512,
     );
   };
 
@@ -39,10 +48,10 @@ class AesEncryptionLibrary implements EncryptionLibrary {
     await Aes.randomKey(size);
 
   encrypt = async (data: string, key: string, iv: unknown): Promise<string> =>
-    await Aes.encrypt(data, key, iv);
+    await Aes.encrypt(data, key, iv, CipherAlgorithm.cbc);
 
   decrypt = async (data: string, key: string, iv: unknown): Promise<string> =>
-    await Aes.decrypt(data, key, iv);
+    await Aes.decrypt(data, key, iv, CipherAlgorithm.cbc);
 }
 
 class AesForkedEncryptionLibrary implements EncryptionLibrary {
diff --git a/ios/Podfile.lock b/ios/Podfile.lock
index e13b075ea46..f8c5129c5de 100644
--- a/ios/Podfile.lock
+++ b/ios/Podfile.lock
@@ -500,8 +500,8 @@ PODS:
   - React-jsinspector (0.72.15)
   - React-logger (0.72.15):
     - glog
-  - react-native-aes (1.3.9):
-    - React
+  - react-native-aes (3.0.3):
+    - React-Core
   - react-native-background-timer (2.1.1):
     - React
   - react-native-ble-plx (3.1.2):
@@ -1199,7 +1199,7 @@ SPEC CHECKSUMS:
   React-jsiexecutor: ce8ecfcd3b7dbc9cb65a661110be17f5afd18aa3
   React-jsinspector: b86a8abae760c28d69366bbc1d991561e51341ed
   React-logger: ed7c9e01e58529065e7da6bf8318baf15024283e
-  react-native-aes: ff31f0dd4c791eb423a631ee04570fcf3c618924
+  react-native-aes: 0143040f4e0cb19296b69b4acc7ddd8d3df9d62d
   react-native-background-timer: 1b6e6b4e10f1b74c367a1fdc3c72b67c619b222b
   react-native-ble-plx: f0557dbb6bd1f26cca75a67b5f33cfc7f7f9abed
   react-native-blob-jsi-helper: 13c10135af4614dbc0712afba5960784cd44f043
diff --git a/package.json b/package.json
index 00fd01bc3b3..a8fe59991eb 100644
--- a/package.json
+++ b/package.json
@@ -275,7 +275,7 @@
     "randomfill": "^1.0.4",
     "react": "18.2.0",
     "react-native": "0.72.15",
-    "react-native-aes-crypto": "1.3.9",
+    "react-native-aes-crypto": "3.0.3",
     "react-native-aes-crypto-forked": "git+https://github.com/MetaMask/react-native-aes-crypto-forked.git#397d5db5250e8e7408294807965b5b9fd4ca6a25",
     "react-native-animatable": "^1.3.3",
     "react-native-background-timer": "2.1.1",
diff --git a/patches/react-native-aes-crypto+1.3.9.patch b/patches/react-native-aes-crypto+1.3.9.patch
deleted file mode 100644
index f20d70f5905..00000000000
--- a/patches/react-native-aes-crypto+1.3.9.patch
+++ /dev/null
@@ -1,49 +0,0 @@
-diff --git a/node_modules/react-native-aes-crypto/android/build.gradle b/node_modules/react-native-aes-crypto/android/build.gradle
-index a68c5b7..2cb6ef1 100644
---- a/node_modules/react-native-aes-crypto/android/build.gradle
-+++ b/node_modules/react-native-aes-crypto/android/build.gradle
-@@ -20,7 +20,7 @@ buildscript {
- }
- 
- apply plugin: 'com.android.library'
--apply plugin: 'maven'
-+apply plugin: 'maven-publish'
- 
- // Matches values in recent template from React Native 0.59 / 0.60
- // https://github.com/facebook/react-native/blob/0.59-stable/template/android/build.gradle#L5-L9
-diff --git a/node_modules/react-native-aes-crypto/android/src/main/java/com/tectiv3/aes/RCTAes.java b/node_modules/react-native-aes-crypto/android/src/main/java/com/tectiv3/aes/RCTAes.java
-index 6843507..a13ec93 100755
---- a/node_modules/react-native-aes-crypto/android/src/main/java/com/tectiv3/aes/RCTAes.java
-+++ b/node_modules/react-native-aes-crypto/android/src/main/java/com/tectiv3/aes/RCTAes.java
-@@ -83,6 +83,14 @@ public class RCTAes extends ReactContextBaseJavaModule {
-         }
-     }
- 
-+	@ReactMethod(isBlockingSynchronousMethod = true)
-+	public String pbkdf2Sync(String pwd, String salt, Integer cost, Integer length)
-+	throws NoSuchAlgorithmException, InvalidKeySpecException, UnsupportedEncodingException
-+	{
-+      String strs = pbkdf2(pwd, salt, cost, length);
-+			return strs;
-+   }
-+
-     @ReactMethod
-     public void hmac256(String data, String pwd, Promise promise) {
-         try {
-diff --git a/node_modules/react-native-aes-crypto/ios/RCTAes/RCTAes.m b/node_modules/react-native-aes-crypto/ios/RCTAes/RCTAes.m
-index ded93b6..c3a6461 100755
---- a/node_modules/react-native-aes-crypto/ios/RCTAes/RCTAes.m
-+++ b/node_modules/react-native-aes-crypto/ios/RCTAes/RCTAes.m
-@@ -51,6 +51,12 @@ @implementation RCTAes
-     }
- }
- 
-+RCT_EXPORT_BLOCKING_SYNCHRONOUS_METHOD(pbkdf2Sync:(NSString *)password salt:(NSString *)salt
-+                  cost:(NSInteger)cost length:(NSInteger)length){
-+	
-+	return [AesCrypt pbkdf2:password salt:salt cost:cost length:length];
-+}
-+
- RCT_EXPORT_METHOD(hmac256:(NSString *)base64 key:(NSString *)key
-                   resolver:(RCTPromiseResolveBlock)resolve
-                   rejecter:(RCTPromiseRejectBlock)reject) {
diff --git a/yarn.lock b/yarn.lock
index eca9fede68e..b19b1d4002f 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -25444,10 +25444,10 @@ react-mixin@^3.0.5:
   version "1.2.1"
   resolved "git+https://github.com/MetaMask/react-native-aes-crypto-forked.git#397d5db5250e8e7408294807965b5b9fd4ca6a25"
 
-react-native-aes-crypto@1.3.9:
-  version "1.3.9"
-  resolved "https://registry.yarnpkg.com/react-native-aes-crypto/-/react-native-aes-crypto-1.3.9.tgz#6f068535462c1b7d7d70a4152d519ae9911c3e69"
-  integrity sha512-xMl/VCWC9riSyidFsCjXQbR+BIxCZyQtRfVR4dLZbHsk3AMZnVw8VojKVIXRmQtSm3uEMdTUvcLm9HaB3Xf+Cw==
+react-native-aes-crypto@3.0.3:
+  version "3.0.3"
+  resolved "https://registry.yarnpkg.com/react-native-aes-crypto/-/react-native-aes-crypto-3.0.3.tgz#147a8240c92719ddb925ec6c3e46dcfb69f9f7db"
+  integrity sha512-6yJjAix83xMDMCDUQLVpoHQMkTfeWoKrDXWP2Yrl68o2053aHPk3hTW6sCTYLj5HmftZ9S9DQ3DelP7WVlIDtw==
 
 react-native-animatable@1.3.3, react-native-animatable@^1.3.3:
   version "1.3.3"