diff --git a/airflow/providers/microsoft/azure/provider.yaml b/airflow/providers/microsoft/azure/provider.yaml
index df19d922df2a5..60bd1d7aa5fed 100644
--- a/airflow/providers/microsoft/azure/provider.yaml
+++ b/airflow/providers/microsoft/azure/provider.yaml
@@ -103,7 +103,9 @@ dependencies:
   - azure-mgmt-datafactory>=2.0.0
   - azure-mgmt-containerregistry>=8.0.0
   - azure-mgmt-containerinstance>=10.1.0
-  - msgraph-core>=1.0.0
+  # msgraph-core 1.1.8 has a bug which causes ABCMeta object is not subscriptable error
+  # See https://github.com/microsoftgraph/msgraph-sdk-python-core/issues/781
+  - msgraph-core>=1.0.0,!=1.1.8
   # microsoft-kiota-abstractions 1.4.0 breaks MyPy static checks on main
   # see https://github.com/apache/airflow/issues/43036
   - microsoft-kiota-abstractions<1.4.0
diff --git a/generated/provider_dependencies.json b/generated/provider_dependencies.json
index 111d6f0b7c905..1edf8dc5c136a 100644
--- a/generated/provider_dependencies.json
+++ b/generated/provider_dependencies.json
@@ -802,7 +802,7 @@
       "azure-synapse-artifacts>=0.17.0",
       "azure-synapse-spark>=0.2.0",
       "microsoft-kiota-abstractions<1.4.0",
-      "msgraph-core>=1.0.0"
+      "msgraph-core>=1.0.0,!=1.1.8"
     ],
     "devel-deps": [
       "pywinrm"