diff --git a/SPECS/python-daemon/python-daemon-3.0.1-fix-ptest-deprecated-assertEquals-with-assertEqual.patch b/SPECS/python-daemon/python-daemon-3.0.1-fix-ptest-deprecated-assertEquals-with-assertEqual.patch
new file mode 100644
index 00000000000..073573b4e00
--- /dev/null
+++ b/SPECS/python-daemon/python-daemon-3.0.1-fix-ptest-deprecated-assertEquals-with-assertEqual.patch
@@ -0,0 +1,27 @@
+From f5ed6cdd0a9fa3c0ce6d5b862d10da253945e791 Mon Sep 17 00:00:00 2001
+From: Ben Finney <ben+python@benfinney.id.au>
+Date: Oct 12 2023 22:25:06 +0000
+Subject: Migrate TestCase method to current name ‘assertEqual’.
+
+Upstream Patch Reference:
+https://pagure.io/python-daemon/c/f5ed6cdd0a9fa3c0ce6d5b862d10da253945e791.patch
+---
+ test/test_daemon.py | 2 +-
+ 1 file changed, 1 insertion(+), 1 deletion(-)
+
+diff --git a/test/test_daemon.py b/test/test_daemon.py
+index 16df21e..77a0c08 100644
+--- a/test/test_daemon.py
++++ b/test/test_daemon.py
+@@ -2247,7 +2247,7 @@ class set_signal_handlers_TestCase(scaffold.TestCase):
+                 unittest.mock.call(signal_number, handler)
+                 for (signal_number, handler) in signal_handler_map.items()]
+         daemon.daemon.set_signal_handlers(signal_handler_map)
+-        self.assertEquals(expected_calls, mock_func_signal_signal.mock_calls)
++        self.assertEqual(expected_calls, mock_func_signal_signal.mock_calls)
+ 
+ 
+ @unittest.mock.patch.object(daemon.daemon.atexit, "register")
+-- 
+2.45.4
+
diff --git a/SPECS/python-daemon/python-daemon.spec b/SPECS/python-daemon/python-daemon.spec
index 8df66840d3f..a446789cab0 100644
--- a/SPECS/python-daemon/python-daemon.spec
+++ b/SPECS/python-daemon/python-daemon.spec
@@ -1,13 +1,14 @@
 Summary:        Library to implement a well-behaved Unix daemon process.
 Name:           python-daemon
 Version:        3.0.1
-Release:        1%{?dist}
+Release:        2%{?dist}
 License:        ASL 2.0
 Vendor:         Microsoft Corporation
 Distribution:   Azure Linux
 Group:          Development/Languages/Python
 URL:            https://pypi.python.org/pypi/python-daemon/
 Source0:        https://files.pythonhosted.org/packages/source/p/python-daemon/%{name}-%{version}.tar.gz
+Patch0:         python-daemon-3.0.1-fix-ptest-deprecated-assertEquals-with-assertEqual.patch
 BuildArch:      noarch
 
 %description
@@ -35,7 +36,7 @@ daemon program. A DaemonContext instance holds the behaviour and configured proc
 use the instance as a context manager to enter a daemon state.
 
 %prep
-%autosetup
+%autosetup -p1
 
 %build
 %py3_build
@@ -52,6 +53,10 @@ pip3 install mock testscenarios testtools
 %{python3_sitelib}/*
 
 %changelog
+* Mon Feb 23 2026 Ratiranjan Behera <v-ratbehera@microsoft.com> - 3.0.1-2
+- Fix ptest regression on Azure Linux 3.0 by replacing deprecated unittest
+  assertEquals() with assertEqual() in python-daemon tests (TASK 16234)
+
 * Wed May 08 2024 Sam Meluch <sammeluch@microsoft.com> - 3.0.1-1
 - Upgrade package to latest version