diff --git a/.github/renovate.json b/.github/renovate.json
index 4e49c43f03..6ee8e82a26 100644
--- a/.github/renovate.json
+++ b/.github/renovate.json
@@ -46,7 +46,6 @@
         "!/playwright/",
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         "!/vite/",
-        "!/yargs/",
         "!/zone.js/"
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diff --git a/change/@ni-xliff-to-json-converter-5fd8dba9-f517-4d05-a753-435eba883a1c.json b/change/@ni-xliff-to-json-converter-5fd8dba9-f517-4d05-a753-435eba883a1c.json
new file mode 100644
index 0000000000..de4249ee90
--- /dev/null
+++ b/change/@ni-xliff-to-json-converter-5fd8dba9-f517-4d05-a753-435eba883a1c.json
@@ -0,0 +1,7 @@
+{
+  "type": "patch",
+  "comment": "Update yargs dependency version",
+  "packageName": "@ni/xliff-to-json-converter",
+  "email": "jattasNI@users.noreply.github.com",
+  "dependentChangeType": "patch"
+}
diff --git a/package-lock.json b/package-lock.json
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@@ -35483,7 +35545,7 @@
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@@ -35491,11 +35553,97 @@
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         "@ni-private/eslint-config-nimble": "*",
         "@types/jasmine": "^5.1.4",
-        "@types/yargs": "^17.0.10",
+        "@types/yargs": "^17.0.35",
         "jasmine": "^5.1.0",
         "jasmine-core": "^5.1.2",
         "typescript": "~5.8.3"
       }
+    },
+    "packages/xliff-to-json-converter/node_modules/ansi-styles": {
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+      "license": "MIT",
+      "engines": {
+        "node": ">=12"
+      },
+      "funding": {
+        "url": "https://github.com/chalk/ansi-styles?sponsor=1"
+      }
+    },
+    "packages/xliff-to-json-converter/node_modules/cliui": {
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+      "license": "ISC",
+      "dependencies": {
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+        "strip-ansi": "^7.1.0",
+        "wrap-ansi": "^9.0.0"
+      },
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+      "license": "MIT",
+      "dependencies": {
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+        "get-east-asian-width": "^1.0.0",
+        "strip-ansi": "^7.1.0"
+      },
+      "engines": {
+        "node": ">=18"
+      },
+      "funding": {
+        "url": "https://github.com/sponsors/sindresorhus"
+      }
+    },
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+      },
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+        "node": ">=18"
+      },
+      "funding": {
+        "url": "https://github.com/chalk/wrap-ansi?sponsor=1"
+      }
+    },
+    "packages/xliff-to-json-converter/node_modules/yargs": {
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+      "license": "MIT",
+      "dependencies": {
+        "cliui": "^9.0.1",
+        "escalade": "^3.1.1",
+        "get-caller-file": "^2.0.5",
+        "string-width": "^7.2.0",
+        "y18n": "^5.0.5",
+        "yargs-parser": "^22.0.0"
+      },
+      "engines": {
+        "node": "^20.19.0 || ^22.12.0 || >=23"
+      }
+    },
+    "packages/xliff-to-json-converter/node_modules/yargs-parser": {
+      "version": "22.0.0",
+      "resolved": "https://registry.npmjs.org/yargs-parser/-/yargs-parser-22.0.0.tgz",
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+      "license": "ISC",
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+      }
     }
   }
 }
diff --git a/packages/xliff-to-json-converter/package.json b/packages/xliff-to-json-converter/package.json
index 2cde2222d9..93f15db0f0 100644
--- a/packages/xliff-to-json-converter/package.json
+++ b/packages/xliff-to-json-converter/package.json
@@ -45,12 +45,12 @@
   "license": "MIT",
   "dependencies": {
     "xliff": "^6.1.0",
-    "yargs": "^17.5.1"
+    "yargs": "^18.0.0"
   },
   "devDependencies": {
     "@ni-private/eslint-config-nimble": "*",
     "@types/jasmine": "^5.1.4",
-    "@types/yargs": "^17.0.10",
+    "@types/yargs": "^17.0.35",
     "jasmine": "^5.1.0",
     "jasmine-core": "^5.1.2",
     "typescript": "~5.8.3"
diff --git a/packages/xliff-to-json-converter/src/tests/index.spec.ts b/packages/xliff-to-json-converter/src/tests/index.spec.ts
new file mode 100644
index 0000000000..a345f690d4
--- /dev/null
+++ b/packages/xliff-to-json-converter/src/tests/index.spec.ts
@@ -0,0 +1,61 @@
+import { execFile as execFileCallback } from 'node:child_process';
+import { mkdtemp, readFile, rm, writeFile } from 'node:fs/promises';
+import { tmpdir } from 'node:os';
+import { join } from 'node:path';
+import { fileURLToPath } from 'node:url';
+import { promisify } from 'node:util';
+
+const execFile = promisify(execFileCallback);
+
+describe('xliff-to-json-converter cli', () => {
+    let tempDir: string;
+    let sourceFile: string;
+    let destinationFile: string;
+
+    beforeEach(async () => {
+        tempDir = await mkdtemp(join(tmpdir(), 'xliff-to-json-converter-'));
+        sourceFile = join(tempDir, 'messages.de.xlf');
+        destinationFile = join(tempDir, 'messages.de.json');
+    });
+
+    afterEach(async () => {
+        await rm(tempDir, { recursive: true, force: true });
+    });
+
+    it('converts an xliff file passed on the command line', async () => {
+        const cliPath = fileURLToPath(new URL('../index.js', import.meta.url));
+        const xliffContents = `
+          <?xml version="1.0" encoding="UTF-8"?>
+          <xliff version="1.2" xmlns="urn:oasis:names:tc:xliff:document:1.2">
+            <file source-language="en-US" datatype="plaintext" original="ng2.template" target-language="de-DE">
+              <body>
+                <trans-unit id="2821179408673282599" datatype="html">
+                  <source>Home</source><target state="final">Startseite</target>
+                </trans-unit>
+              </body>
+            </file>
+          </xliff>
+        `;
+
+        await writeFile(sourceFile, xliffContents);
+
+        const { stdout } = await execFile(process.execPath, [
+            cliPath,
+            '--source',
+            sourceFile,
+            '--destination',
+            destinationFile
+        ]);
+
+        const jsonContents = await readFile(destinationFile, 'utf-8');
+
+        expect(stdout).toContain(`Converting ${sourceFile} -> ${destinationFile}`);
+        expect(JSON.parse(jsonContents)).toEqual({
+            locale: 'de-DE',
+            translations: {
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                '2821179408673282599': 'Startseite'
+            }
+        });
+    });
+});
\ No newline at end of file