diff --git a/dvc/api.py b/dvc/api.py
index b1ac0a0f..238b7f56 100644
--- a/dvc/api.py
+++ b/dvc/api.py
@@ -28,8 +28,8 @@ def get_url(path, repo=None, rev=None, remote=None):
 
         cloud = info["repo"].cloud
         dvc_path = _repo.fs.path.relpath(fs_path, info["repo"].root_dir)
-        md5 = info["repo"].dvcfs.info(dvc_path)["md5"]
-        return cloud.get_url_for(remote, checksum=md5)
+        sha256 = info["repo"].dvcfs.info(dvc_path)["sha256"]
+        return cloud.get_url_for(remote, checksum=sha256)
 
 
 def open(  # noqa, pylint: disable=redefined-builtin
diff --git a/dvc/data/stage.py b/dvc/data/stage.py
index 4ab026dd..7151761a 100644
--- a/dvc/data/stage.py
+++ b/dvc/data/stage.py
@@ -10,7 +10,7 @@ from dvc.hash_info import HashInfo
 from dvc.ignore import DvcIgnore
 from dvc.objects.file import HashFile
 from dvc.progress import Tqdm
-from dvc.utils import file_md5, is_exec
+from dvc.utils import file_sha256, is_exec
 
 from .db.reference import ReferenceObjectDB
 from .meta import Meta
@@ -67,8 +67,8 @@ def _get_file_hash(fs_path, fs, name):
     elif hasattr(fs, name):
         func = getattr(fs, name)
         hash_value = func(fs_path)
-    elif name == "md5":
-        hash_value = file_md5(fs_path, fs)
+    elif name == "sha256":
+        hash_value = file_sha256(fs_path, fs)
     else:
         raise NotImplementedError
 
@@ -98,7 +98,7 @@ def _stage_file(fs_path, fs, name, odb=None, upload_odb=None, dry_run=False):
     state = odb.state if odb else None
     meta, hash_info = get_file_hash(fs_path, fs, name, state=state)
     if upload_odb and not dry_run:
-        assert odb and name == "md5"
+        assert odb and name == "sha256"
         return _upload_file(fs_path, fs, odb, upload_odb)
 
     if dry_run:
@@ -124,7 +124,7 @@ def _build_objects(
     else:
         walk_iterator = fs.find(fs_path)
     with Tqdm(
-        unit="md5",
+        unit="sha256",
         desc="Computing file/dir hashes (only done once)",
         disable=no_progress_bar,
     ) as pbar:
@@ -269,9 +269,9 @@ def _load_from_state(odb, staging, fs_path, fs, name):
 def _stage_external_tree_info(odb, tree, name):
     # NOTE: used only for external outputs. Initial reasoning was to be
     # able to validate .dir files right in the workspace (e.g. check s3
-    # etag), but could be dropped for manual validation with regular md5,
+    # etag), but could be dropped for manual validation with regular sha256,
     # that would be universal for all clouds.
-    assert odb and name != "md5"
+    assert odb and name != "sha256"
 
     odb.add(tree.fs_path, tree.fs, tree.hash_info)
     raw = odb.get(tree.hash_info)
@@ -330,7 +330,7 @@ def stage(
             **kwargs,
         )
         logger.debug("staged tree '%s'", obj)
-        if name != "md5":
+        if name != "sha256":
             obj = _stage_external_tree_info(odb, obj, name)
     else:
         _, meta, obj = _stage_file(
diff --git a/dvc/data/tree.py b/dvc/data/tree.py
index 25e29d81..9bbb64b4 100644
--- a/dvc/data/tree.py
+++ b/dvc/data/tree.py
@@ -65,7 +65,7 @@ class Tree(HashFile):
         if hash_info:
             self.hash_info = hash_info
         else:
-            _, self.hash_info = get_file_hash(fs_path, memfs, "md5")
+            _, self.hash_info = get_file_hash(fs_path, memfs, "sha256")
             assert self.hash_info.value
             self.hash_info.value += ".dir"
 
diff --git a/dvc/fs/dvc.py b/dvc/fs/dvc.py
index cbe45713..9dedc753 100644
--- a/dvc/fs/dvc.py
+++ b/dvc/fs/dvc.py
@@ -21,7 +21,7 @@ class DvcFileSystem(FileSystem):  # pylint:disable=abstract-method
     sep = os.sep
 
     scheme = "local"
-    PARAM_CHECKSUM = "md5"
+    PARAM_CHECKSUM = "sha256"
 
     def __init__(self, **kwargs):
         super().__init__(**kwargs)
@@ -56,7 +56,7 @@ class DvcFileSystem(FileSystem):  # pylint:disable=abstract-method
         if info["type"] == "directory":
             raise IsADirectoryError
 
-        value = info.get("md5")
+        value = info.get("sha256")
         if not value:
             raise FileNotFoundError
 
@@ -216,7 +216,7 @@ class DvcFileSystem(FileSystem):  # pylint:disable=abstract-method
 
     def checksum(self, path):
         info = self.info(path)
-        md5 = info.get("md5")
-        if md5:
-            return md5
+        sha256 = info.get("sha256")
+        if sha256:
+            return sha256
         raise NotImplementedError
diff --git a/dvc/fs/local.py b/dvc/fs/local.py
index 8bbfa212..bae885ee 100644
--- a/dvc/fs/local.py
+++ b/dvc/fs/local.py
@@ -16,7 +16,7 @@ class LocalFileSystem(FileSystem):
     sep = os.sep
 
     scheme = Schemes.LOCAL
-    PARAM_CHECKSUM = "md5"
+    PARAM_CHECKSUM = "sha256"
     PARAM_PATH = "path"
     TRAVERSE_PREFIX_LEN = 2
 
diff --git a/dvc/fs/memory.py b/dvc/fs/memory.py
index 32d4402a..6d44f520 100644
--- a/dvc/fs/memory.py
+++ b/dvc/fs/memory.py
@@ -9,7 +9,7 @@ from .fsspec_wrapper import FSSpecWrapper
 
 class MemoryFileSystem(FSSpecWrapper):  # pylint:disable=abstract-method
     scheme = Schemes.MEMORY
-    PARAM_CHECKSUM = "md5"
+    PARAM_CHECKSUM = "sha256"
     TRAVERSE_PREFIX_LEN = 2
     DEFAULT_BLOCKSIZE = 4096
 
diff --git a/dvc/fs/repo.py b/dvc/fs/repo.py
index ba4258a6..2454fa2b 100644
--- a/dvc/fs/repo.py
+++ b/dvc/fs/repo.py
@@ -36,7 +36,7 @@ class RepoFileSystem(FileSystem):  # pylint:disable=abstract-method
     sep = os.sep
 
     scheme = "local"
-    PARAM_CHECKSUM = "md5"
+    PARAM_CHECKSUM = "sha256"
     PARAM_REPO_URL = "repo_url"
     PARAM_REPO_ROOT = "repo_root"
     PARAM_REV = "rev"
diff --git a/dvc/fs/ssh.py b/dvc/fs/ssh.py
index ba069b1d..709753c2 100644
--- a/dvc/fs/ssh.py
+++ b/dvc/fs/ssh.py
@@ -32,7 +32,7 @@ class SSHFileSystem(FSSpecWrapper):
     REQUIRES = {"sshfs": "sshfs"}
 
     DEFAULT_PORT = 22
-    PARAM_CHECKSUM = "md5"
+    PARAM_CHECKSUM = "sha256"
 
     @classmethod
     def _strip_protocol(cls, path: str) -> str:
diff --git a/dvc/lock.py b/dvc/lock.py
index 3360001c..706a1f10 100644
--- a/dvc/lock.py
+++ b/dvc/lock.py
@@ -181,7 +181,7 @@ class HardlinkLock(flufl.lock.Lock, LockBase):
 
         if self._tmp_dir is not None:
             # Under Windows file path length is limited so we hash it
-            filename = hashlib.md5(self._claimfile.encode()).hexdigest()
+            filename = hashlib.sha256(self._claimfile.encode()).hexdigest()
             self._claimfile = os.path.join(self._tmp_dir, filename + ".lock")
 
 
diff --git a/dvc/objects/db.py b/dvc/objects/db.py
index a30c2c6f..56c84b41 100644
--- a/dvc/objects/db.py
+++ b/dvc/objects/db.py
@@ -288,7 +288,7 @@ class ObjectDB:
         returned.
 
         NOTE: For large remotes the list of hashes will be very
-        big(e.g. 100M entries, md5 for each is 32 bytes, so ~3200Mb list)
+        big(e.g. 100M entries, sha256 for each is 32 bytes, so ~3200Mb list)
         and we don't really need all of it at the same time, so it makes
         sense to use a generator to gradually iterate over it, without
         keeping all of it in memory.
diff --git a/dvc/output.py b/dvc/output.py
index 13fd8e73..429a17e1 100644
--- a/dvc/output.py
+++ b/dvc/output.py
@@ -54,7 +54,7 @@ CASE_SENSITIVE_CHECKSUM_SCHEMA = Any(
 
 # NOTE: currently there are only 3 possible checksum names:
 #
-#    1) md5 (LOCAL, SSH);
+#    1) sha256 (LOCAL, SSH);
 #    2) etag (S3, GS, OSS, AZURE, HTTP);
 #    3) checksum (HDFS);
 #
@@ -808,7 +808,7 @@ class Output:
             odb,
             from_info,
             from_fs,
-            "md5",
+            "sha256",
             upload=upload,
             jobs=jobs,
             no_progress_bar=no_progress_bar,
diff --git a/dvc/repo/__init__.py b/dvc/repo/__init__.py
index fba275f0..ed515b64 100644
--- a/dvc/repo/__init__.py
+++ b/dvc/repo/__init__.py
@@ -112,7 +112,7 @@ class Repo:
 
     def _get_database_dir(self, db_name):
         # NOTE: by default, store SQLite-based remote indexes and state's
-        # `links` and `md5s` caches in the repository itself to avoid any
+        # `links` and `sha256s` caches in the repository itself to avoid any
         # possible state corruption in 'shared cache dir' scenario, but allow
         # user to override this through config when, say, the repository is
         # located on a mounted volume — see
diff --git a/dvc/repo/diff.py b/dvc/repo/diff.py
index f6b6920f..26f4f4a4 100644
--- a/dvc/repo/diff.py
+++ b/dvc/repo/diff.py
@@ -140,7 +140,7 @@ def _output_paths(repo, targets):
                     repo.odb.local,
                     output.fs_path,
                     repo.odb.local.fs,
-                    "md5",
+                    "sha256",
                     dry_run=True,
                     dvcignore=output.dvcignore,
                 )
diff --git a/dvc/repo/imp_url.py b/dvc/repo/imp_url.py
index aa8ec83b..c92cfa7b 100644
--- a/dvc/repo/imp_url.py
+++ b/dvc/repo/imp_url.py
@@ -78,7 +78,7 @@ def imp_url(
         remote_odb = self.cloud.get_remote_odb(remote, "import-url")
         stage.outs[0].transfer(url, odb=remote_odb, jobs=jobs)
         stage.save_deps()
-        stage.md5 = stage.compute_md5()
+        stage.sha256 = stage.compute_sha256()
     else:
         stage.run(jobs=jobs)
 
diff --git a/dvc/repo/index.py b/dvc/repo/index.py
index ccf667b0..a781747e 100644
--- a/dvc/repo/index.py
+++ b/dvc/repo/index.py
@@ -13,7 +13,7 @@ from typing import (
 
 from funcy import cached_property, nullcontext
 
-from dvc.utils import dict_md5
+from dvc.utils import dict_sha256
 
 if TYPE_CHECKING:
     from networkx import DiGraph
@@ -287,7 +287,7 @@ class Index:
 
         Currently, it is unique to the platform (windows vs posix).
         """
-        return dict_md5(self.dumpd())
+        return dict_sha256(self.dumpd())
 
 
 if __name__ == "__main__":
diff --git a/dvc/stage/__init__.py b/dvc/stage/__init__.py
index c4a1e443..ed2568c5 100644
--- a/dvc/stage/__init__.py
+++ b/dvc/stage/__init__.py
@@ -28,7 +28,7 @@ from .utils import (
     check_missing_outputs,
     check_no_externals,
     check_stage_path,
-    compute_md5,
+    compute_sha256,
     fill_stage_dependencies,
     fill_stage_outputs,
     get_dump,
@@ -131,7 +131,7 @@ class Stage(params.StageParams):
         wdir=os.curdir,
         deps=None,
         outs=None,
-        md5=None,
+        sha256=None,
         locked=False,  # backward compatibility
         frozen=False,
         always_changed=False,
@@ -151,7 +151,7 @@ class Stage(params.StageParams):
         self.wdir = wdir
         self.outs = outs
         self.deps = deps
-        self.md5 = md5
+        self.sha256 = sha256
         self.frozen = locked or frozen
         self.always_changed = always_changed
         self._stage_text = stage_text
@@ -345,7 +345,7 @@ class Stage(params.StageParams):
         return False
 
     def changed_stage(self):
-        changed = self.md5 != self.compute_md5()
+        changed = self.sha256 != self.compute_sha256()
         if changed:
             logger.debug(self._changed_stage_entry())
         return changed
@@ -353,7 +353,7 @@ class Stage(params.StageParams):
     @rwlocked(read=["deps", "outs"])
     def changed(self):
         is_changed = (
-            # Short-circuit order: stage md5 is fast,
+            # Short-circuit order: stage sha256 is fast,
             # deps are expected to change
             self.changed_stage()
             or self.changed_deps()
@@ -443,19 +443,19 @@ class Stage(params.StageParams):
     def dumpd(self):
         return get_dump(self)
 
-    def compute_md5(self):
-        # `dvc add`ed files don't need stage md5
+    def compute_sha256(self):
+        # `dvc add`ed files don't need stage sha256
         if self.is_data_source and not (self.is_import or self.is_repo_import):
             m = None
         else:
-            m = compute_md5(self)
-        logger.debug(f"Computed {self} md5: '{m}'")
+            m = compute_sha256(self)
+        logger.debug(f"Computed {self} sha256: '{m}'")
         return m
 
     def save(self, allow_missing=False):
         self.save_deps(allow_missing=allow_missing)
         self.save_outs(allow_missing=allow_missing)
-        self.md5 = self.compute_md5()
+        self.sha256 = self.compute_sha256()
 
         self.repo.stage_cache.save(self)
 
@@ -488,7 +488,7 @@ class Stage(params.StageParams):
         return [str(entry) for entry in entries if entry.workspace_status()]
 
     def _changed_stage_entry(self):
-        return f"'md5' of {self} changed."
+        return f"'sha256' of {self} changed."
 
     def changed_entries(self):
         changed_deps = self._changed_entries(self.deps)
diff --git a/dvc/stage/params.py b/dvc/stage/params.py
index c43a75b1..961a8168 100644
--- a/dvc/stage/params.py
+++ b/dvc/stage/params.py
@@ -1,5 +1,5 @@
 class StageParams:
-    PARAM_MD5 = "md5"
+    PARAM_MD5 = "sha256"
     PARAM_CMD = "cmd"
     PARAM_WDIR = "wdir"
     PARAM_DEPS = "deps"
diff --git a/dvc/stage/utils.py b/dvc/stage/utils.py
index a48b8ef9..0c36d256 100644
--- a/dvc/stage/utils.py
+++ b/dvc/stage/utils.py
@@ -168,26 +168,26 @@ def check_missing_outputs(stage):
         raise MissingDataSource(paths)
 
 
-def compute_md5(stage):
+def compute_sha256(stage):
     from dvc.output import Output
 
-    from ..utils import dict_md5
+    from ..utils import dict_sha256
 
     d = stage.dumpd()
 
-    # Remove md5 and meta, these should not affect stage md5
+    # Remove sha256 and meta, these should not affect stage sha256
     d.pop(stage.PARAM_MD5, None)
     d.pop(stage.PARAM_META, None)
     d.pop(stage.PARAM_DESC, None)
 
     # Ignore the wdir default value. In this case DVC file w/o
-    # wdir has the same md5 as a file with the default value specified.
+    # wdir has the same sha256 as a file with the default value specified.
     # It's important for backward compatibility with pipelines that
     # didn't have WDIR in their DVC files.
     if d.get(stage.PARAM_WDIR) == ".":
         del d[stage.PARAM_WDIR]
 
-    return dict_md5(
+    return dict_sha256(
         d,
         exclude=[
             stage.PARAM_LOCKED,  # backward compatibility
@@ -222,7 +222,7 @@ def get_dump(stage):
         key: value
         for key, value in {
             stage.PARAM_DESC: stage.desc,
-            stage.PARAM_MD5: stage.md5,
+            stage.PARAM_MD5: stage.sha256,
             stage.PARAM_CMD: stage.cmd,
             stage.PARAM_WDIR: resolve_wdir(stage.wdir, stage.path),
             stage.PARAM_FROZEN: stage.frozen,
diff --git a/dvc/state.py b/dvc/state.py
index a1463a23..d2a78fa0 100644
--- a/dvc/state.py
+++ b/dvc/state.py
@@ -63,13 +63,13 @@ class State(StateBase):  # pylint: disable=too-many-instance-attributes
             "disk_pickle_protocol": 4,
         }
         self.links = Cache(directory=os.path.join(tmp_dir, "links"), **config)
-        self.md5s = Cache(directory=os.path.join(tmp_dir, "md5s"), **config)
+        self.sha256s = Cache(directory=os.path.join(tmp_dir, "sha256s"), **config)
 
     def close(self):
-        self.md5s.close()
+        self.sha256s.close()
         self.links.close()
 
-    @with_diskcache(name="md5s")
+    @with_diskcache(name="sha256s")
     def save(self, path, fs, hash_info):
         """Save hash for the specified path info.
 
@@ -92,9 +92,9 @@ class State(StateBase):  # pylint: disable=too-many-instance-attributes
             hash_info.value,
         )
 
-        self.md5s[inode] = (mtime, str(size), hash_info.value)
+        self.sha256s[inode] = (mtime, str(size), hash_info.value)
 
-    @with_diskcache(name="md5s")
+    @with_diskcache(name="sha256s")
     def get(self, path, fs):
         """Gets the hash for the specified path info. Hash will be
         retrieved from the state database if available.
@@ -118,12 +118,12 @@ class State(StateBase):  # pylint: disable=too-many-instance-attributes
 
         inode = get_inode(path)
 
-        value = self.md5s.get(inode)
+        value = self.sha256s.get(inode)
 
         if not value or value[0] != mtime or value[1] != str(size):
             return None, None
 
-        return Meta(size=size), HashInfo("md5", value[2])
+        return Meta(size=size), HashInfo("sha256", value[2])
 
     @with_diskcache(name="links")
     def save_link(self, path, fs):
diff --git a/dvc/testing/test_workspace.py b/dvc/testing/test_workspace.py
index f6225a2f..486442e7 100644
--- a/dvc/testing/test_workspace.py
+++ b/dvc/testing/test_workspace.py
@@ -12,14 +12,14 @@ class TestImport:
         assert dvc.status() == {}
 
     @pytest.fixture
-    def stage_md5(self):
+    def stage_sha256(self):
         pytest.skip()
 
     @pytest.fixture
-    def dir_md5(self):
+    def dir_sha256(self):
         pytest.skip()
 
-    def test_import_dir(self, tmp_dir, dvc, workspace, stage_md5, dir_md5):
+    def test_import_dir(self, tmp_dir, dvc, workspace, stage_sha256, dir_sha256):
         from dvc.data.db import ODBManager
 
         workspace.gen(
@@ -43,17 +43,17 @@ class TestImport:
 
         assert dvc.status() == {}
 
-        if stage_md5 is not None and dir_md5 is not None:
+        if stage_sha256 is not None and dir_sha256 is not None:
             assert (tmp_dir / "dir.dvc").read_text() == (
-                f"md5: {stage_md5}\n"
+                f"sha256: {stage_sha256}\n"
                 "frozen: true\n"
                 "deps:\n"
-                f"- md5: {dir_md5}\n"
+                f"- sha256: {dir_sha256}\n"
                 "  size: 11\n"
                 "  nfiles: 2\n"
                 "  path: remote://workspace/dir\n"
                 "outs:\n"
-                "- md5: b6dcab6ccd17ca0a8bf4a215a37d14cc.dir\n"
+                "- sha256: b6dcab6ccd17ca0a8bf4a215a37d14cc.dir\n"
                 "  size: 11\n"
                 "  nfiles: 2\n"
                 "  path: dir\n"
diff --git a/dvc/utils/__init__.py b/dvc/utils/__init__.py
index b2388287..d7062bde 100644
--- a/dvc/utils/__init__.py
+++ b/dvc/utils/__init__.py
@@ -25,7 +25,7 @@ def dos2unix(data):
     return data.replace(b"\r\n", b"\n")
 
 
-def _fobj_md5(fobj, hash_md5, binary, progress_func=None):
+def _fobj_sha256(fobj, hash_sha256, binary, progress_func=None):
     while True:
         data = fobj.read(LOCAL_CHUNK_SIZE)
         if not data:
@@ -36,24 +36,24 @@ def _fobj_md5(fobj, hash_md5, binary, progress_func=None):
         else:
             chunk = dos2unix(data)
 
-        hash_md5.update(chunk)
+        hash_sha256.update(chunk)
         if progress_func:
             progress_func(len(data))
 
 
-def file_md5(fname, fs):
-    """get the (md5 hexdigest, md5 digest) of a file"""
+def file_sha256(fname, fs):
+    """get the (sha256 hexdigest, sha256 digest) of a file"""
     from dvc.istextfile import istextfile
     from dvc.progress import Tqdm
 
-    hash_md5 = hashlib.md5()
+    hash_sha256 = hashlib.sha256()
     binary = not istextfile(fname, fs=fs)
     size = fs.getsize(fname) or 0
     no_progress_bar = True
     if size >= LARGE_FILE_SIZE:
         no_progress_bar = False
         msg = (
-            f"Computing md5 for a large file '{fname}'. "
+            f"Computing sha256 for a large file '{fname}'. "
             "This is only done once."
         )
         logger.info(msg)
@@ -66,9 +66,9 @@ def file_md5(fname, fs):
         leave=False,
     ) as pbar:
         with fs.open(fname, "rb") as fobj:
-            _fobj_md5(fobj, hash_md5, binary, pbar.update)
+            _fobj_sha256(fobj, hash_sha256, binary, pbar.update)
 
-    return hash_md5.hexdigest()
+    return hash_sha256.hexdigest()
 
 
 def bytes_hash(byts, typ):
@@ -98,8 +98,8 @@ def dict_hash(d, typ, exclude=()):
     return bytes_hash(byts, typ)
 
 
-def dict_md5(d, **kwargs):
-    return dict_hash(d, "md5", **kwargs)
+def dict_sha256(d, **kwargs):
+    return dict_hash(d, "sha256", **kwargs)
 
 
 def dict_sha256(d, **kwargs):
diff --git a/dvc/utils/fs.py b/dvc/utils/fs.py
index c12ce400..7d719177 100644
--- a/dvc/utils/fs.py
+++ b/dvc/utils/fs.py
@@ -9,7 +9,7 @@ from typing import TYPE_CHECKING
 
 from dvc.exceptions import DvcException
 from dvc.system import System
-from dvc.utils import dict_md5
+from dvc.utils import dict_sha256
 
 if TYPE_CHECKING:
     from dvc.types import StrPath
@@ -51,7 +51,7 @@ def get_mtime_and_size(path, fs, dvcignore=None):
 
         # We track file changes and moves, which cannot be detected with simply
         # max(mtime(f) for f in non_ignored_files)
-        mtime = dict_md5(files_mtimes)
+        mtime = dict_sha256(files_mtimes)
     else:
         base_stat = fs.info(path)
         size = base_stat["size"]
diff --git a/dvc/utils/stream.py b/dvc/utils/stream.py
index a0a7ac8f..7da46934 100644
--- a/dvc/utils/stream.py
+++ b/dvc/utils/stream.py
@@ -10,11 +10,11 @@ from dvc.utils import dos2unix
 
 class HashedStreamReader(io.IOBase):
 
-    PARAM_CHECKSUM = "md5"
+    PARAM_CHECKSUM = "sha256"
 
     def __init__(self, fobj):
         self.fobj = fobj
-        self.md5 = hashlib.md5()
+        self.sha256 = hashlib.sha256()
         self.total_read = 0
         self.is_text_file = None
         super().__init__()
@@ -40,11 +40,11 @@ class HashedStreamReader(io.IOBase):
             data = dos2unix(chunk)
         else:
             data = chunk
-        self.md5.update(data)
+        self.sha256.update(data)
         self.total_read += len(data)
 
         return chunk
 
     @property
     def hash_info(self):
-        return HashInfo(self.PARAM_CHECKSUM, self.md5.hexdigest())
+        return HashInfo(self.PARAM_CHECKSUM, self.sha256.hexdigest())
diff --git a/scripts/innosetup/dvc.ico.dvc b/scripts/innosetup/dvc.ico.dvc
index e8ca30f5..78b76603 100644
--- a/scripts/innosetup/dvc.ico.dvc
+++ b/scripts/innosetup/dvc.ico.dvc
@@ -1,3 +1,3 @@
 outs:
-- md5: 90104d9e83cfb825cf45507e90aadd27
+- sha256: 90104d9e83cfb825cf45507e90aadd27
   path: dvc.ico
diff --git a/scripts/innosetup/dvc_left.bmp.dvc b/scripts/innosetup/dvc_left.bmp.dvc
index be60334b..c97e16f8 100644
--- a/scripts/innosetup/dvc_left.bmp.dvc
+++ b/scripts/innosetup/dvc_left.bmp.dvc
@@ -1,3 +1,3 @@
 outs:
-- md5: 9106cda08aa427e73492389a0f17c72d
+- sha256: 9106cda08aa427e73492389a0f17c72d
   path: dvc_left.bmp
diff --git a/scripts/innosetup/dvc_up.bmp.dvc b/scripts/innosetup/dvc_up.bmp.dvc
index 7fb5ae55..59df4a87 100644
--- a/scripts/innosetup/dvc_up.bmp.dvc
+++ b/scripts/innosetup/dvc_up.bmp.dvc
@@ -1,3 +1,3 @@
 outs:
-- md5: 94614d6650e062655f9f77507dc9c1f2
+- sha256: 94614d6650e062655f9f77507dc9c1f2
   path: dvc_up.bmp
diff --git a/tests/func/test_add.py b/tests/func/test_add.py
index 43c2f3c0..33e6f368 100644
--- a/tests/func/test_add.py
+++ b/tests/func/test_add.py
@@ -35,7 +35,7 @@ from dvc.stage.exceptions import (
 )
 from dvc.system import System
 from dvc.testing.test_workspace import TestAdd
-from dvc.utils import LARGE_DIR_SIZE, file_md5, relpath
+from dvc.utils import LARGE_DIR_SIZE, file_sha256, relpath
 from dvc.utils.fs import path_isin
 from dvc.utils.serialize import YAMLFileCorruptedError, load_yaml
 from tests.basic_env import TestDvc
@@ -44,7 +44,7 @@ from tests.utils import get_gitignore_content
 
 def test_add(tmp_dir, dvc):
     (stage,) = tmp_dir.dvc_gen({"foo": "foo"})
-    md5 = file_md5("foo", dvc.fs)
+    sha256 = file_sha256("foo", dvc.fs)
 
     assert stage is not None
 
@@ -53,13 +53,13 @@ def test_add(tmp_dir, dvc):
     assert len(stage.outs) == 1
     assert len(stage.deps) == 0
     assert stage.cmd is None
-    assert stage.outs[0].hash_info == HashInfo("md5", md5)
-    assert stage.md5 is None
+    assert stage.outs[0].hash_info == HashInfo("sha256", sha256)
+    assert stage.sha256 is None
 
     assert (tmp_dir / "foo.dvc").parse() == {
         "outs": [
             {
-                "md5": "acbd18db4cc2f85cedef654fccc4a4d8",
+                "sha256": "acbd18db4cc2f85cedef654fccc4a4d8",
                 "path": "foo",
                 "size": 3,
             }
@@ -77,7 +77,7 @@ def test_add_executable(tmp_dir, dvc):
     assert (tmp_dir / "foo.dvc").parse() == {
         "outs": [
             {
-                "md5": "acbd18db4cc2f85cedef654fccc4a4d8",
+                "sha256": "acbd18db4cc2f85cedef654fccc4a4d8",
                 "path": "foo",
                 "size": 3,
                 "isexec": True,
@@ -295,7 +295,7 @@ def test_add_filtered_files_in_dir(
 class TestAddExternal(TestAdd):
     @pytest.fixture
     def hash_name(self):
-        return "md5"
+        return "sha256"
 
     @pytest.fixture
     def hash_value(self):
@@ -316,7 +316,7 @@ def test_add_external_relpath(tmp_dir, dvc, local_cloud):
     dvc.add(rel, external=True)
     assert (tmp_dir / "file.dvc").read_text() == (
         "outs:\n"
-        "- md5: 8c7dd922ad47494fc02c388e12c00eac\n"
+        "- sha256: 8c7dd922ad47494fc02c388e12c00eac\n"
         "  size: 4\n"
         f"  path: {rel}\n"
     )
@@ -378,7 +378,7 @@ class TestDoubleAddUnchanged(TestDvc):
 
 
 def test_should_update_state_entry_for_file_after_add(mocker, dvc, tmp_dir):
-    file_md5_counter = mocker.spy(dvc_module.data.stage, "file_md5")
+    file_sha256_counter = mocker.spy(dvc_module.data.stage, "file_sha256")
     tmp_dir.gen("foo", "foo")
 
     ret = main(["config", "cache.type", "copy"])
@@ -386,30 +386,30 @@ def test_should_update_state_entry_for_file_after_add(mocker, dvc, tmp_dir):
 
     ret = main(["add", "foo"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 1
+    assert file_sha256_counter.mock.call_count == 1
 
     ret = main(["status"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 1
+    assert file_sha256_counter.mock.call_count == 1
 
     ret = main(["run", "--single-stage", "-d", "foo", "echo foo"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 1
+    assert file_sha256_counter.mock.call_count == 1
 
     os.rename("foo", "foo.back")
     ret = main(["checkout"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 1
+    assert file_sha256_counter.mock.call_count == 1
 
     ret = main(["status"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 1
+    assert file_sha256_counter.mock.call_count == 1
 
 
 def test_should_update_state_entry_for_directory_after_add(
     mocker, dvc, tmp_dir
 ):
-    file_md5_counter = mocker.spy(dvc_module.data.stage, "file_md5")
+    file_sha256_counter = mocker.spy(dvc_module.data.stage, "file_sha256")
 
     tmp_dir.gen({"data/data": "foo", "data/data_sub/sub_data": "foo"})
 
@@ -418,27 +418,27 @@ def test_should_update_state_entry_for_directory_after_add(
 
     ret = main(["add", "data"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 3
+    assert file_sha256_counter.mock.call_count == 3
 
     ret = main(["status"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 3
+    assert file_sha256_counter.mock.call_count == 3
 
     ls = "dir" if os.name == "nt" else "ls"
     ret = main(
         ["run", "--single-stage", "-d", "data", "{} {}".format(ls, "data")]
     )
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 3
+    assert file_sha256_counter.mock.call_count == 3
 
     os.rename("data", "data" + ".back")
     ret = main(["checkout"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 3
+    assert file_sha256_counter.mock.call_count == 3
 
     ret = main(["status"])
     assert ret == 0
-    assert file_md5_counter.mock.call_count == 3
+    assert file_sha256_counter.mock.call_count == 3
 
 
 class TestAddCommit(TestDvc):
@@ -915,7 +915,7 @@ def test_add_preserve_meta(tmp_dir, dvc):
         outs:
         - path: foo # out comment
           desc: out desc
-          md5: acbd18db4cc2f85cedef654fccc4a4d8
+          sha256: acbd18db4cc2f85cedef654fccc4a4d8
           size: 3
         meta: some metadata
     """
diff --git a/tests/func/test_checkout.py b/tests/func/test_checkout.py
index 865e8d2e..12620ec9 100644
--- a/tests/func/test_checkout.py
+++ b/tests/func/test_checkout.py
@@ -986,7 +986,7 @@ def test_checkout_dir_compat(tmp_dir, dvc):
         textwrap.dedent(
             f"""\
         outs:
-        - md5: {stage.outs[0].hash_info.value}
+        - sha256: {stage.outs[0].hash_info.value}
           path: data
         """
         ),
diff --git a/tests/func/test_commit.py b/tests/func/test_commit.py
index afa7bec2..808c0f3d 100644
--- a/tests/func/test_commit.py
+++ b/tests/func/test_commit.py
@@ -60,12 +60,12 @@ def test_commit_with_deps(tmp_dir, dvc, run_copy, run_kw):
     assert not stage.outs[0].changed_cache()
 
 
-def test_commit_changed_md5(tmp_dir, dvc):
+def test_commit_changed_sha256(tmp_dir, dvc):
     tmp_dir.gen({"file": "file content"})
     (stage,) = dvc.add("file", no_commit=True)
 
     stage_file_content = (tmp_dir / stage.path).parse()
-    stage_file_content["md5"] = "1111111111"
+    stage_file_content["sha256"] = "1111111111"
     (tmp_dir / stage.path).dump(stage_file_content)
 
     clean_staging()
@@ -74,7 +74,7 @@ def test_commit_changed_md5(tmp_dir, dvc):
         dvc.commit(stage.path)
 
     dvc.commit(stage.path, force=True)
-    assert "md5" not in (tmp_dir / stage.path).parse()
+    assert "sha256" not in (tmp_dir / stage.path).parse()
 
 
 def test_commit_no_exec(tmp_dir, dvc):
diff --git a/tests/func/test_data_cloud.py b/tests/func/test_data_cloud.py
index eea0e549..d9a6de16 100644
--- a/tests/func/test_data_cloud.py
+++ b/tests/func/test_data_cloud.py
@@ -132,7 +132,7 @@ def test_warn_on_outdated_stage(tmp_dir, dvc, local_remote, caplog):
 
     stage_file_path = stage.relpath
     content = (tmp_dir / stage_file_path).parse()
-    del content["outs"][0]["md5"]
+    del content["outs"][0]["sha256"]
     (tmp_dir / stage_file_path).dump(content)
 
     with caplog.at_level(logging.WARNING, logger="dvc"):
@@ -149,7 +149,7 @@ def test_warn_on_outdated_stage(tmp_dir, dvc, local_remote, caplog):
 
 def test_hash_recalculation(mocker, dvc, tmp_dir, local_remote):
     tmp_dir.gen({"foo": "foo"})
-    test_file_md5 = mocker.spy(dvc_module.data.stage, "file_md5")
+    test_file_sha256 = mocker.spy(dvc_module.data.stage, "file_sha256")
     ret = main(["config", "cache.type", "hardlink"])
     assert ret == 0
     ret = main(["add", "foo"])
@@ -158,7 +158,7 @@ def test_hash_recalculation(mocker, dvc, tmp_dir, local_remote):
     assert ret == 0
     ret = main(["run", "--single-stage", "-d", "foo", "echo foo"])
     assert ret == 0
-    assert test_file_md5.mock.call_count == 1
+    assert test_file_sha256.mock.call_count == 1
 
 
 def test_missing_cache(tmp_dir, dvc, local_remote, caplog):
@@ -174,8 +174,8 @@ def test_missing_cache(tmp_dir, dvc, local_remote, caplog):
         "Some of the cache files do not exist "
         "neither locally nor on remote. Missing cache files:\n"
     )
-    foo = "name: bar, md5: 37b51d194a7513e45b56f6524f2d51f2\n"
-    bar = "name: foo, md5: acbd18db4cc2f85cedef654fccc4a4d8\n"
+    foo = "name: bar, sha256: 37b51d194a7513e45b56f6524f2d51f2\n"
+    bar = "name: foo, sha256: acbd18db4cc2f85cedef654fccc4a4d8\n"
 
     caplog.clear()
     dvc.push()
@@ -211,7 +211,7 @@ def test_verify_hashes(
     remove("dir")
     remove(dvc.odb.local.cache_dir)
 
-    hash_spy = mocker.spy(dvc_module.data.stage, "file_md5")
+    hash_spy = mocker.spy(dvc_module.data.stage, "file_sha256")
 
     dvc.pull()
     assert hash_spy.call_count == 0
diff --git a/tests/func/test_diff.py b/tests/func/test_diff.py
index 976facc4..c5a794a1 100644
--- a/tests/func/test_diff.py
+++ b/tests/func/test_diff.py
@@ -9,7 +9,7 @@ from dvc.utils.fs import remove
 
 
 def digest(text):
-    return hashlib.md5(bytes(text, "utf-8")).hexdigest()
+    return hashlib.sha256(bytes(text, "utf-8")).hexdigest()
 
 
 def test_no_scm(tmp_dir, dvc):
diff --git a/tests/func/test_external_repo.py b/tests/func/test_external_repo.py
index 068a20c1..1b6ae70d 100644
--- a/tests/func/test_external_repo.py
+++ b/tests/func/test_external_repo.py
@@ -212,7 +212,7 @@ def test_subrepos_are_ignored(tmp_dir, erepo_dir):
             repo.odb.local,
             os.path.join(repo.root_dir, "dir"),
             repo.repo_fs,
-            "md5",
+            "sha256",
             dvcignore=repo.dvcignore,
         )
         transfer(
diff --git a/tests/func/test_gc.py b/tests/func/test_gc.py
index c2c33046..d74d41c6 100644
--- a/tests/func/test_gc.py
+++ b/tests/func/test_gc.py
@@ -22,8 +22,8 @@ class TestGC(TestDvcGit):
         self.dvc.add(self.FOO)
         self.dvc.add(self.DATA_DIR)
         self.good_cache = [
-            self.dvc.odb.local.hash_to_path(md5)
-            for md5 in self.dvc.odb.local.all()
+            self.dvc.odb.local.hash_to_path(sha256)
+            for sha256 in self.dvc.odb.local.all()
         ]
 
         self.bad_cache = []
diff --git a/tests/func/test_import_url.py b/tests/func/test_import_url.py
index 5868716b..309bf74e 100644
--- a/tests/func/test_import_url.py
+++ b/tests/func/test_import_url.py
@@ -120,11 +120,11 @@ def test_import_url_with_no_exec(tmp_dir, dvc, erepo_dir):
 
 class TestImport(_TestImport):
     @pytest.fixture
-    def stage_md5(self):
+    def stage_sha256(self):
         return "dc24e1271084ee317ac3c2656fb8812b"
 
     @pytest.fixture
-    def dir_md5(self):
+    def dir_sha256(self):
         return "b6dcab6ccd17ca0a8bf4a215a37d14cc.dir"
 
     @pytest.fixture
@@ -155,15 +155,15 @@ def test_import_url_preserve_meta(tmp_dir, dvc):
         desc: top desc
         deps:
         - path: foo # dep comment
-          md5: acbd18db4cc2f85cedef654fccc4a4d8
+          sha256: acbd18db4cc2f85cedef654fccc4a4d8
           size: 3
         outs:
         - path: bar # out comment
           desc: out desc
-          md5: acbd18db4cc2f85cedef654fccc4a4d8
+          sha256: acbd18db4cc2f85cedef654fccc4a4d8
           size: 3
         meta: some metadata
-        md5: be7ade0aa89cc8d56e320867a9de9740
+        sha256: be7ade0aa89cc8d56e320867a9de9740
         frozen: true
     """
     )
@@ -229,7 +229,7 @@ def test_import_url_to_remote_directory(tmp_dir, dvc, workspace, local_remote):
 
     for file_part in file_parts:
         with open(
-            local_remote.hash_to_path(file_part["md5"]), encoding="utf-8"
+            local_remote.hash_to_path(file_part["sha256"]), encoding="utf-8"
         ) as fobj:
             assert fobj.read() == file_part["relpath"]
 
@@ -263,7 +263,7 @@ def test_import_url_to_remote_status(tmp_dir, dvc, local_cloud, local_remote):
     local_cloud.gen("foo", "foo")
 
     stage = dvc.imp_url(str(local_cloud / "foo"), to_remote=True)
-    assert stage.md5 is not None
+    assert stage.sha256 is not None
 
     status = dvc.status()
     assert status["foo.dvc"] == [{"changed outs": {"foo": "not in cache"}}]
diff --git a/tests/func/test_install.py b/tests/func/test_install.py
index ee6fde29..e7f4d6d8 100644
--- a/tests/func/test_install.py
+++ b/tests/func/test_install.py
@@ -6,7 +6,7 @@ import pytest
 from git import GitCommandError
 
 from dvc.exceptions import DvcException
-from dvc.utils import file_md5
+from dvc.utils import file_sha256
 from tests.func.parsing.test_errors import escape_ansi
 
 
@@ -76,7 +76,7 @@ class TestInstall:
             conf["core"]["remote"] = "store"
         tmp_dir.dvc_gen("file", "file_content", "commit message")
 
-        file_checksum = file_md5("file", dvc.fs)
+        file_checksum = file_sha256("file", dvc.fs)
         expected_storage_path = (
             storage_path / file_checksum[:2] / file_checksum[2:]
         )
@@ -117,7 +117,7 @@ def test_merge_driver_no_ancestor(tmp_dir, scm, dvc):
     assert (tmp_dir / "data").read_text() == {"bar": "bar"}
     assert (tmp_dir / "data.dvc").read_text() == (
         "outs:\n"
-        "- md5: 5ea40360f5b4ec688df672a4db9c17d1.dir\n"
+        "- sha256: 5ea40360f5b4ec688df672a4db9c17d1.dir\n"
         "  size: 6\n"
         "  nfiles: 2\n"
         "  path: data\n"
@@ -154,7 +154,7 @@ def test_merge_driver(tmp_dir, scm, dvc):
     assert (tmp_dir / "data").read_text() == {"master": "master", "two": "two"}
     assert (tmp_dir / "data.dvc").read_text() == (
         "outs:\n"
-        "- md5: 839ef9371606817569c1ee0e5f4ed233.dir\n"
+        "- sha256: 839ef9371606817569c1ee0e5f4ed233.dir\n"
         "  size: 12\n"
         "  nfiles: 3\n"
         "  path: data\n"
diff --git a/tests/func/test_lockfile.py b/tests/func/test_lockfile.py
index eefeb210..4e1f1fcb 100644
--- a/tests/func/test_lockfile.py
+++ b/tests/func/test_lockfile.py
@@ -48,12 +48,12 @@ def test_deps_outs_are_sorted_by_path(tmp_dir, dvc, run_head):
     # lock stage key order:
     assert list(lock.keys()) == ["cmd", "deps", "outs"]
 
-    # `path` key appear first and then the `md5`
+    # `path` key appear first and then the `sha256`
     assert all(
-        list(dep.keys()) == ["path", "md5", "size"] for dep in lock["deps"]
+        list(dep.keys()) == ["path", "sha256", "size"] for dep in lock["deps"]
     )
     assert all(
-        list(out.keys()) == ["path", "md5", "size"] for out in lock["outs"]
+        list(out.keys()) == ["path", "sha256", "size"] for out in lock["outs"]
     )
 
     # deps are always sorted by the file path naming
@@ -167,7 +167,7 @@ def test_params_dump(tmp_dir, dvc, run_head):
 def v1_repo_lock(tmp_dir, dvc):
     """Generates a repo having v1 format lockfile"""
     size = 5 if os.name == "nt" else 4
-    hi = HashInfo(name="md5", value="c157a79031e1c40f85931829bc5fc552")
+    hi = HashInfo(name="sha256", value="c157a79031e1c40f85931829bc5fc552")
     v1_lockdata = {
         "foo": {"cmd": "echo foo"},
         "bar": {
diff --git a/tests/func/test_merge_driver.py b/tests/func/test_merge_driver.py
index 113984f9..218e524a 100644
--- a/tests/func/test_merge_driver.py
+++ b/tests/func/test_merge_driver.py
@@ -118,11 +118,11 @@ def test_merge_different_output_options(tmp_dir, dvc, caplog):
     (tmp_dir / "ancestor").touch()
 
     (tmp_dir / "our").write_text(
-        "outs:\n- md5: f123456789.dir\n  path: path\n"
+        "outs:\n- sha256: f123456789.dir\n  path: path\n"
     )
 
     (tmp_dir / "their").write_text(
-        "outs:\n- md5: f987654321.dir\n  path: path\n  cache: false\n"
+        "outs:\n- sha256: f987654321.dir\n  path: path\n  cache: false\n"
     )
 
     assert (
@@ -149,10 +149,10 @@ def test_merge_file(tmp_dir, dvc, caplog):
     (tmp_dir / "ancestor").touch()
 
     (tmp_dir / "our").write_text(
-        "outs:\n- md5: f123456789.dir\n  path: path\n"
+        "outs:\n- sha256: f123456789.dir\n  path: path\n"
     )
 
-    (tmp_dir / "their").write_text("outs:\n- md5: f987654321\n  path: path\n")
+    (tmp_dir / "their").write_text("outs:\n- sha256: f987654321\n  path: path\n")
 
     assert (
         main(
@@ -179,13 +179,13 @@ def test_merge_non_dvc_add(tmp_dir, dvc, caplog):
 
     (tmp_dir / "our").write_text(
         "outs:\n"
-        "- md5: f123456789.dir\n"
+        "- sha256: f123456789.dir\n"
         "  path: path\n"
-        "- md5: ff123456789.dir\n"
+        "- sha256: ff123456789.dir\n"
         "  path: another\n"
     )
 
-    (tmp_dir / "their").write_text("outs:\n- md5: f987654321\n  path: path\n")
+    (tmp_dir / "their").write_text("outs:\n- sha256: f987654321\n  path: path\n")
 
     assert (
         main(
diff --git a/tests/func/test_move.py b/tests/func/test_move.py
index aad2003a..3e28e628 100644
--- a/tests/func/test_move.py
+++ b/tests/func/test_move.py
@@ -261,7 +261,7 @@ def test_move_meta(tmp_dir, dvc):
     assert res == textwrap.dedent(
         """\
         outs:
-        - md5: acbd18db4cc2f85cedef654fccc4a4d8
+        - sha256: acbd18db4cc2f85cedef654fccc4a4d8
           size: 3
           path: bar
         meta:
diff --git a/tests/func/test_odb.py b/tests/func/test_odb.py
index ea548e00..2a85d4b4 100644
--- a/tests/func/test_odb.py
+++ b/tests/func/test_odb.py
@@ -12,17 +12,17 @@ from dvc.utils import relpath
 
 
 def test_cache(tmp_dir, dvc):
-    cache1_md5 = "123"
-    cache2_md5 = "234"
+    cache1_sha256 = "123"
+    cache2_sha256 = "234"
     cache1 = os.path.join(
         dvc.odb.local.cache_dir,
-        cache1_md5[0:2],
-        cache1_md5[2:],
+        cache1_sha256[0:2],
+        cache1_sha256[2:],
     )
     cache2 = os.path.join(
         dvc.odb.local.cache_dir,
-        cache2_md5[0:2],
-        cache2_md5[2:],
+        cache2_sha256[0:2],
+        cache2_sha256[2:],
     )
     tmp_dir.gen({cache1: "1", cache2: "2"})
 
@@ -31,13 +31,13 @@ def test_cache(tmp_dir, dvc):
 
     odb = ODBManager(dvc)
 
-    md5_list = list(odb.local.all())
-    assert len(md5_list) == 2
-    assert cache1_md5 in md5_list
-    assert cache2_md5 in md5_list
+    sha256_list = list(odb.local.all())
+    assert len(sha256_list) == 2
+    assert cache1_sha256 in sha256_list
+    assert cache2_sha256 in sha256_list
 
-    odb_cache1 = odb.local.hash_to_path(cache1_md5)
-    odb_cache2 = odb.local.hash_to_path(cache2_md5)
+    odb_cache1 = odb.local.hash_to_path(cache1_sha256)
+    odb_cache2 = odb.local.hash_to_path(cache2_sha256)
     assert os.fspath(odb_cache1) == cache1
     assert os.fspath(odb_cache2) == cache2
 
@@ -49,13 +49,13 @@ def test_cache_load_bad_dir_cache(tmp_dir, dvc):
     fname = os.fspath(dvc.odb.local.hash_to_path(dir_hash))
     tmp_dir.gen({fname: "<clearly>not,json"})
     with pytest.raises(ObjectFormatError):
-        load(dvc.odb.local, HashInfo("md5", dir_hash))
+        load(dvc.odb.local, HashInfo("sha256", dir_hash))
 
     dir_hash = "234.dir"
     fname = os.fspath(dvc.odb.local.hash_to_path(dir_hash))
     tmp_dir.gen({fname: '{"a": "b"}'})
     with pytest.raises(ObjectFormatError):
-        load(dvc.odb.local, HashInfo("md5", dir_hash))
+        load(dvc.odb.local, HashInfo("sha256", dir_hash))
 
 
 def test_external_cache_dir(tmp_dir, dvc, make_tmp_dir):
diff --git a/tests/func/test_remote.py b/tests/func/test_remote.py
index ff844ed7..5cbb8fe9 100644
--- a/tests/func/test_remote.py
+++ b/tests/func/test_remote.py
@@ -147,19 +147,19 @@ def test_dir_hash_should_be_key_order_agnostic(tmp_dir, dvc):
     path = (tmp_dir / "data").fs_path
 
     tree = Tree.from_list(
-        [{"relpath": "1", "md5": "1"}, {"relpath": "2", "md5": "2"}]
+        [{"relpath": "1", "sha256": "1"}, {"relpath": "2", "sha256": "2"}]
     )
     tree.digest()
     with patch("dvc.data.stage._stage_tree", return_value=(None, tree)):
-        _, _, obj = stage(dvc.odb.local, path, dvc.odb.local.fs, "md5")
+        _, _, obj = stage(dvc.odb.local, path, dvc.odb.local.fs, "sha256")
         hash1 = obj.hash_info
 
     tree = Tree.from_list(
-        [{"md5": "1", "relpath": "1"}, {"md5": "2", "relpath": "2"}]
+        [{"sha256": "1", "relpath": "1"}, {"sha256": "2", "relpath": "2"}]
     )
     tree.digest()
     with patch("dvc.data.stage._stage_tree", return_value=(None, tree)):
-        _, _, obj = stage(dvc.odb.local, path, dvc.odb.local.fs, "md5")
+        _, _, obj = stage(dvc.odb.local, path, dvc.odb.local.fs, "sha256")
         hash2 = obj.hash_info
 
     assert hash1 == hash2
@@ -245,7 +245,7 @@ def test_remote_modify_local_on_repo_config(tmp_dir, dvc):
 
 def test_external_dir_resource_on_no_cache(tmp_dir, dvc, tmp_path_factory):
     # https://github.com/iterative/dvc/issues/2647, is some situations
-    # (external dir dependency) cache is required to calculate dir md5
+    # (external dir dependency) cache is required to calculate dir sha256
     external_dir = tmp_path_factory.mktemp("external_dir")
     file = external_dir / "file"
 
diff --git a/tests/func/test_repo_index.py b/tests/func/test_repo_index.py
index 22826a78..875a1a7f 100644
--- a/tests/func/test_repo_index.py
+++ b/tests/func/test_repo_index.py
@@ -269,17 +269,17 @@ def test_used_objs(tmp_dir, scm, dvc, run_copy, rev):
 
     expected_objs = [
         HashInfo(
-            name="md5",
+            name="sha256",
             value="acbd18db4cc2f85cedef654fccc4a4d8",
             obj_name="bar",
         ),
         HashInfo(
-            name="md5",
+            name="sha256",
             value="8c7dd922ad47494fc02c388e12c00eac",
             obj_name="dir/subdir/file",
         ),
         HashInfo(
-            name="md5",
+            name="sha256",
             value="d28c9e28591aeb7e303dc6772ffa6f6b.dir",
             obj_name="dir",
         ),
diff --git a/tests/func/test_repro.py b/tests/func/test_repro.py
index 4426e9aa..d0a62183 100644
--- a/tests/func/test_repro.py
+++ b/tests/func/test_repro.py
@@ -19,7 +19,7 @@ from dvc.output import Output
 from dvc.stage import Stage
 from dvc.stage.exceptions import StageFileDoesNotExistError
 from dvc.system import System
-from dvc.utils import file_md5, relpath
+from dvc.utils import file_sha256, relpath
 from dvc.utils.fs import remove
 from dvc.utils.serialize import dump_yaml, load_yaml
 from tests.basic_env import TestDvc
@@ -654,7 +654,7 @@ class TestReproDataSource(TestReproChangedData):
 
         self.assertTrue(filecmp.cmp(self.FOO, self.BAR, shallow=False))
         self.assertEqual(
-            stages[0].outs[0].hash_info.value, file_md5(self.BAR, self.dvc.fs)
+            stages[0].outs[0].hash_info.value, file_sha256(self.BAR, self.dvc.fs)
         )
 
 
@@ -1127,21 +1127,21 @@ def test_dvc_formatting_retained(tmp_dir, dvc, run_copy):
     (tmp_dir / "foo").write_text("new foo")
     dvc.reproduce("foo_copy.dvc", force=True)
 
-    def _hide_md5(text):
-        return re.sub(r"\b[a-f0-9]{32}\b", "<md5>", text)
+    def _hide_sha256(text):
+        return re.sub(r"\b[a-f0-9]{32}\b", "<sha256>", text)
 
     def _hide_size(text):
         return re.sub(r"size: [0-9]*\b", "size: <size>", text)
 
     def _mask(text):
-        return _hide_size(_hide_md5(text))
+        return _hide_size(_hide_sha256(text))
 
     assert _mask(stage_text) == _mask(stage_path.read_text())
 
 
 def _format_dvc_line(line):
-    # Add line comment for all cache and md5 keys
-    if "cache:" in line or "md5:" in line:
+    # Add line comment for all cache and sha256 keys
+    if "cache:" in line or "sha256:" in line:
         return line + " # line comment"
     # Format command as one word per line
     if line.startswith("cmd: "):
diff --git a/tests/func/test_run_multistage.py b/tests/func/test_run_multistage.py
index f83b7e18..569a86de 100644
--- a/tests/func/test_run_multistage.py
+++ b/tests/func/test_run_multistage.py
@@ -355,7 +355,7 @@ def test_run_external_outputs(
     dvc,
     local_workspace,
 ):
-    hash_name = "md5"
+    hash_name = "sha256"
     foo_hash = "acbd18db4cc2f85cedef654fccc4a4d8"
     bar_hash = "37b51d194a7513e45b56f6524f2d51f2"
 
diff --git a/tests/func/test_run_single_stage.py b/tests/func/test_run_single_stage.py
index a4db9b13..62ea01f3 100644
--- a/tests/func/test_run_single_stage.py
+++ b/tests/func/test_run_single_stage.py
@@ -30,7 +30,7 @@ from dvc.stage.exceptions import (
     StagePathOutsideError,
 )
 from dvc.system import System
-from dvc.utils import file_md5
+from dvc.utils import file_sha256
 from dvc.utils.serialize import load_yaml
 from tests.basic_env import TestDvc, TestDvcGit
 
@@ -60,7 +60,7 @@ class TestRun(TestDvc):
         self.assertEqual(len(stage.outs), len(outs + outs_no_cache))
         self.assertEqual(stage.outs[0].fspath, outs[0])
         self.assertEqual(
-            stage.outs[0].hash_info.value, file_md5(self.FOO, self.dvc.fs)
+            stage.outs[0].hash_info.value, file_sha256(self.FOO, self.dvc.fs)
         )
         self.assertTrue(stage.path, fname)
 
@@ -990,20 +990,20 @@ def test_run_force_preserves_comments_and_meta(tmp_dir, dvc, run_copy):
         cmd: python copy.py foo bar
         deps:
         - path: copy.py
-          md5: 90c27dd80b698fe766f0c3ee0b6b9729
+          sha256: 90c27dd80b698fe766f0c3ee0b6b9729
           size: {code_size}
         - path: foo
-          md5: acbd18db4cc2f85cedef654fccc4a4d8
+          sha256: acbd18db4cc2f85cedef654fccc4a4d8
           size: 3
         outs:
         # comment preserved
         - path: bar
           desc: out desc
-          md5: acbd18db4cc2f85cedef654fccc4a4d8
+          sha256: acbd18db4cc2f85cedef654fccc4a4d8
           size: 3
         meta:
           name: copy-foo-bar
-        md5: be659ce4a33cebb85d4e8e1335d394ad
+        sha256: be659ce4a33cebb85d4e8e1335d394ad
     """
     )
 
@@ -1014,18 +1014,18 @@ def test_run_force_preserves_comments_and_meta(tmp_dir, dvc, run_copy):
         cmd: python copy.py foo1 bar1
         deps:
         - path: foo1
-          md5: 299a0be4a5a79e6a59fdd251b19d78bb
+          sha256: 299a0be4a5a79e6a59fdd251b19d78bb
           size: 4
         - path: copy.py
-          md5: 90c27dd80b698fe766f0c3ee0b6b9729
+          sha256: 90c27dd80b698fe766f0c3ee0b6b9729
           size: {code_size}
         outs:
         # comment preserved
         - path: bar1
-          md5: 299a0be4a5a79e6a59fdd251b19d78bb
+          sha256: 299a0be4a5a79e6a59fdd251b19d78bb
           size: 4
         meta:
           name: copy-foo-bar
-        md5: 9e725b11cb393e6a7468369fa50328b7
+        sha256: 9e725b11cb393e6a7468369fa50328b7
     """
     )
diff --git a/tests/func/test_stage.py b/tests/func/test_stage.py
index 99908d8b..4c2a7bc9 100644
--- a/tests/func/test_stage.py
+++ b/tests/func/test_stage.py
@@ -78,8 +78,8 @@ class TestReload(TestDvc):
         d = load_yaml(stage.relpath)
 
         # NOTE: checking that reloaded stage didn't change its checksum
-        md5 = "11111111111111111111111111111111"
-        d[stage.PARAM_MD5] = md5
+        sha256 = "11111111111111111111111111111111"
+        d[stage.PARAM_MD5] = sha256
         dump_yaml(stage.relpath, d)
 
         dvcfile = SingleStageFile(self.dvc, stage.relpath)
@@ -89,7 +89,7 @@ class TestReload(TestDvc):
         dvcfile.dump(stage)
 
         d = load_yaml(stage.relpath)
-        self.assertEqual(d[stage.PARAM_MD5], md5)
+        self.assertEqual(d[stage.PARAM_MD5], sha256)
 
 
 class TestDefaultWorkingDirectory(TestDvc):
@@ -154,7 +154,7 @@ class TestExternalRemoteResolution(TestDvc):
         assert os.path.exists("movie.txt")
 
 
-def test_md5_ignores_comments(tmp_dir, dvc):
+def test_sha256_ignores_comments(tmp_dir, dvc):
     (stage,) = tmp_dir.dvc_gen("foo", "foo content")
 
     with open(stage.path, "a", encoding="utf-8") as f:
diff --git a/tests/func/test_state.py b/tests/func/test_state.py
index 173821a6..d7eab49e 100644
--- a/tests/func/test_state.py
+++ b/tests/func/test_state.py
@@ -4,13 +4,13 @@ import re
 from dvc.hash_info import HashInfo
 from dvc.repo import Repo
 from dvc.state import State
-from dvc.utils import file_md5
+from dvc.utils import file_sha256
 
 
 def test_state(tmp_dir, dvc):
     tmp_dir.gen("foo", "foo content")
     path = tmp_dir / "foo"
-    hash_info = HashInfo("md5", file_md5(path, dvc.fs))
+    hash_info = HashInfo("sha256", file_sha256(path, dvc.fs))
 
     state = State(dvc.root_dir, dvc.tmp_dir, dvc.dvcignore)
 
@@ -22,7 +22,7 @@ def test_state(tmp_dir, dvc):
 
     assert state.get(path, dvc.fs) == (None, None)
 
-    hash_info = HashInfo("md5", file_md5(path, dvc.fs))
+    hash_info = HashInfo("sha256", file_sha256(path, dvc.fs))
     state.save(path, dvc.fs, hash_info)
 
     assert state.get(path, dvc.fs)[1] == hash_info
diff --git a/tests/func/test_utils.py b/tests/func/test_utils.py
index 026357af..eaa0abfb 100644
--- a/tests/func/test_utils.py
+++ b/tests/func/test_utils.py
@@ -2,14 +2,14 @@ from dvc import utils
 from dvc.fs.local import LocalFileSystem
 
 
-def test_file_md5_crlf(tmp_dir):
+def test_file_sha256_crlf(tmp_dir):
     fs = LocalFileSystem()
     tmp_dir.gen("cr", b"a\nb\nc")
     tmp_dir.gen("crlf", b"a\r\nb\r\nc")
-    assert utils.file_md5("cr", fs) == utils.file_md5("crlf", fs)
+    assert utils.file_sha256("cr", fs) == utils.file_sha256("crlf", fs)
 
 
-def test_dict_md5():
+def test_dict_sha256():
     d = {
         "cmd": "python code.py foo file1",
         "locked": "true",
@@ -18,18 +18,18 @@ def test_dict_md5():
                 "path": "file1",
                 "metric": {"type": "raw"},
                 "cache": False,
-                "md5": "acbd18db4cc2f85cedef654fccc4a4d8",
+                "sha256": "acbd18db4cc2f85cedef654fccc4a4d8",
             }
         ],
         "deps": [
-            {"path": "foo", "md5": "acbd18db4cc2f85cedef654fccc4a4d8"},
-            {"path": "code.py", "md5": "d05447644b89960913c7eee5fd776adb"},
+            {"path": "foo", "sha256": "acbd18db4cc2f85cedef654fccc4a4d8"},
+            {"path": "code.py", "sha256": "d05447644b89960913c7eee5fd776adb"},
         ],
     }
 
-    md5 = "8b263fa05ede6c3145c164829be694b4"
+    sha256 = "8b263fa05ede6c3145c164829be694b4"
 
-    assert md5 == utils.dict_md5(d, exclude=["metric", "locked"])
+    assert sha256 == utils.dict_sha256(d, exclude=["metric", "locked"])
 
 
 def test_boxify():
diff --git a/tests/unit/fs/test_dvc.py b/tests/unit/fs/test_dvc.py
index 4dd7a9c0..fb94bc63 100644
--- a/tests/unit/fs/test_dvc.py
+++ b/tests/unit/fs/test_dvc.py
@@ -221,7 +221,7 @@ def test_isdvc(tmp_dir, dvc):
 def test_get_hash_file(tmp_dir, dvc):
     tmp_dir.dvc_gen({"foo": "foo"})
     fs = DvcFileSystem(repo=dvc)
-    assert fs.info("foo")["md5"] == "acbd18db4cc2f85cedef654fccc4a4d8"
+    assert fs.info("foo")["sha256"] == "acbd18db4cc2f85cedef654fccc4a4d8"
 
 
 def test_get_hash_dir(tmp_dir, dvc, mocker):
@@ -232,7 +232,7 @@ def test_get_hash_dir(tmp_dir, dvc, mocker):
     )
     fs = DvcFileSystem(repo=dvc)
     get_file_hash_spy = mocker.spy(dvc_module.data.stage, "get_file_hash")
-    assert fs.info("dir")["md5"] == "8761c4e9acad696bee718615e23e22db.dir"
+    assert fs.info("dir")["sha256"] == "8761c4e9acad696bee718615e23e22db.dir"
     assert not get_file_hash_spy.called
 
 
@@ -242,15 +242,15 @@ def test_get_hash_granular(tmp_dir, dvc):
     )
     fs = DvcFileSystem(repo=dvc)
     subdir = os.path.join("dir", "subdir")
-    assert fs.info(subdir).get("md5") is None
-    _, _, obj = stage(dvc.odb.local, subdir, fs, "md5", dry_run=True)
+    assert fs.info(subdir).get("sha256") is None
+    _, _, obj = stage(dvc.odb.local, subdir, fs, "sha256", dry_run=True)
     assert obj.hash_info == HashInfo(
-        "md5", "af314506f1622d107e0ed3f14ec1a3b5.dir"
+        "sha256", "af314506f1622d107e0ed3f14ec1a3b5.dir"
     )
     data = os.path.join(subdir, "data")
-    assert fs.info(data)["md5"] == "8d777f385d3dfec8815d20f7496026dc"
-    _, _, obj = stage(dvc.odb.local, data, fs, "md5", dry_run=True)
-    assert obj.hash_info == HashInfo("md5", "8d777f385d3dfec8815d20f7496026dc")
+    assert fs.info(data)["sha256"] == "8d777f385d3dfec8815d20f7496026dc"
+    _, _, obj = stage(dvc.odb.local, data, fs, "sha256", dry_run=True)
+    assert obj.hash_info == HashInfo("sha256", "8d777f385d3dfec8815d20f7496026dc")
 
 
 def test_get_hash_dirty_file(tmp_dir, dvc):
@@ -259,9 +259,9 @@ def test_get_hash_dirty_file(tmp_dir, dvc):
 
     fs = DvcFileSystem(repo=dvc)
     expected = "8c7dd922ad47494fc02c388e12c00eac"
-    assert fs.info("file").get("md5") == expected
-    _, _, obj = stage(dvc.odb.local, "file", fs, "md5", dry_run=True)
-    assert obj.hash_info == HashInfo("md5", expected)
+    assert fs.info("file").get("sha256") == expected
+    _, _, obj = stage(dvc.odb.local, "file", fs, "sha256", dry_run=True)
+    assert obj.hash_info == HashInfo("sha256", expected)
 
 
 def test_get_hash_dirty_dir(tmp_dir, dvc):
@@ -270,6 +270,6 @@ def test_get_hash_dirty_dir(tmp_dir, dvc):
 
     fs = DvcFileSystem(repo=dvc)
     expected = "5ea40360f5b4ec688df672a4db9c17d1.dir"
-    assert fs.info("dir").get("md5") == expected
-    _, _, obj = stage(dvc.odb.local, "dir", fs, "md5", dry_run=True)
-    assert obj.hash_info == HashInfo("md5", expected)
+    assert fs.info("dir").get("sha256") == expected
+    _, _, obj = stage(dvc.odb.local, "dir", fs, "sha256", dry_run=True)
+    assert obj.hash_info == HashInfo("sha256", expected)
diff --git a/tests/unit/fs/test_repo.py b/tests/unit/fs/test_repo.py
index 24b241fc..40b7ee89 100644
--- a/tests/unit/fs/test_repo.py
+++ b/tests/unit/fs/test_repo.py
@@ -508,11 +508,11 @@ def test_get_hash_cached_file(tmp_dir, dvc, mocker):
     tmp_dir.dvc_gen({"foo": "foo"})
     fs = RepoFileSystem(repo=dvc)
     expected = "acbd18db4cc2f85cedef654fccc4a4d8"
-    assert fs.info((tmp_dir / "foo").fs_path).get("md5") is None
-    _, _, obj = stage(dvc.odb.local, (tmp_dir / "foo").fs_path, fs, "md5")
-    assert obj.hash_info == HashInfo("md5", expected)
+    assert fs.info((tmp_dir / "foo").fs_path).get("sha256") is None
+    _, _, obj = stage(dvc.odb.local, (tmp_dir / "foo").fs_path, fs, "sha256")
+    assert obj.hash_info == HashInfo("sha256", expected)
     (tmp_dir / "foo").unlink()
-    assert fs.info((tmp_dir / "foo").fs_path)["md5"] == expected
+    assert fs.info((tmp_dir / "foo").fs_path)["sha256"] == expected
 
 
 def test_get_hash_cached_dir(tmp_dir, dvc, mocker):
@@ -521,17 +521,17 @@ def test_get_hash_cached_dir(tmp_dir, dvc, mocker):
     )
     fs = RepoFileSystem(repo=dvc)
     expected = "8761c4e9acad696bee718615e23e22db.dir"
-    assert fs.info((tmp_dir / "dir").fs_path).get("md5") is None
-    _, _, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "md5")
+    assert fs.info((tmp_dir / "dir").fs_path).get("sha256") is None
+    _, _, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "sha256")
     assert obj.hash_info == HashInfo(
-        "md5", "8761c4e9acad696bee718615e23e22db.dir"
+        "sha256", "8761c4e9acad696bee718615e23e22db.dir"
     )
 
     shutil.rmtree(tmp_dir / "dir")
-    assert fs.info((tmp_dir / "dir").fs_path)["md5"] == expected
-    _, _, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "md5")
+    assert fs.info((tmp_dir / "dir").fs_path)["sha256"] == expected
+    _, _, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "sha256")
     assert obj.hash_info == HashInfo(
-        "md5", "8761c4e9acad696bee718615e23e22db.dir"
+        "sha256", "8761c4e9acad696bee718615e23e22db.dir"
     )
 
 
@@ -541,17 +541,17 @@ def test_get_hash_cached_granular(tmp_dir, dvc, mocker):
     )
     fs = RepoFileSystem(repo=dvc)
     subdir = tmp_dir / "dir" / "subdir"
-    assert fs.info(subdir.fs_path).get("md5") is None
-    _, _, obj = stage(dvc.odb.local, subdir.fs_path, fs, "md5")
+    assert fs.info(subdir.fs_path).get("sha256") is None
+    _, _, obj = stage(dvc.odb.local, subdir.fs_path, fs, "sha256")
     assert obj.hash_info == HashInfo(
-        "md5", "af314506f1622d107e0ed3f14ec1a3b5.dir"
+        "sha256", "af314506f1622d107e0ed3f14ec1a3b5.dir"
     )
-    assert fs.info((subdir / "data").fs_path).get("md5") is None
-    _, _, obj = stage(dvc.odb.local, (subdir / "data").fs_path, fs, "md5")
-    assert obj.hash_info == HashInfo("md5", "8d777f385d3dfec8815d20f7496026dc")
+    assert fs.info((subdir / "data").fs_path).get("sha256") is None
+    _, _, obj = stage(dvc.odb.local, (subdir / "data").fs_path, fs, "sha256")
+    assert obj.hash_info == HashInfo("sha256", "8d777f385d3dfec8815d20f7496026dc")
     (tmp_dir / "dir" / "subdir" / "data").unlink()
     assert (
-        fs.info((subdir / "data").fs_path)["md5"]
+        fs.info((subdir / "data").fs_path)["sha256"]
         == "8d777f385d3dfec8815d20f7496026dc"
     )
 
@@ -570,9 +570,9 @@ def test_get_hash_mixed_dir(tmp_dir, scm, dvc):
     clean_staging()
 
     fs = RepoFileSystem(repo=dvc)
-    _, _, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "md5")
+    _, _, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "sha256")
     assert obj.hash_info == HashInfo(
-        "md5", "e1d9e8eae5374860ae025ec84cfd85c7.dir"
+        "sha256", "e1d9e8eae5374860ae025ec84cfd85c7.dir"
     )
 
 
@@ -582,19 +582,19 @@ def test_get_hash_dirty_file(tmp_dir, dvc):
     from dvc.objects.errors import ObjectFormatError
 
     tmp_dir.dvc_gen("file", "file")
-    file_hash_info = HashInfo("md5", "8c7dd922ad47494fc02c388e12c00eac")
+    file_hash_info = HashInfo("sha256", "8c7dd922ad47494fc02c388e12c00eac")
 
     (tmp_dir / "file").write_text("something")
-    something_hash_info = HashInfo("md5", "437b930db84b8079c2dd804a71936b5f")
+    something_hash_info = HashInfo("sha256", "437b930db84b8079c2dd804a71936b5f")
 
     clean_staging()
 
     # file is modified in workspace
     # get_file_hash(file) should return workspace hash, not DVC cached hash
     fs = RepoFileSystem(repo=dvc)
-    assert fs.info((tmp_dir / "file").fs_path).get("md5") is None
+    assert fs.info((tmp_dir / "file").fs_path).get("sha256") is None
     staging, _, obj = stage(
-        dvc.odb.local, (tmp_dir / "file").fs_path, fs, "md5"
+        dvc.odb.local, (tmp_dir / "file").fs_path, fs, "sha256"
     )
     assert obj.hash_info == something_hash_info
     check(staging, obj)
@@ -606,15 +606,15 @@ def test_get_hash_dirty_file(tmp_dir, dvc):
         check(staging, obj)
 
     # get_file_hash(file) should return DVC cached hash
-    assert fs.info((tmp_dir / "file").fs_path)["md5"] == file_hash_info.value
+    assert fs.info((tmp_dir / "file").fs_path)["sha256"] == file_hash_info.value
     _, hash_info = get_file_hash(
-        (tmp_dir / "file").fs_path, fs, "md5", state=dvc.state
+        (tmp_dir / "file").fs_path, fs, "sha256", state=dvc.state
     )
     assert hash_info == file_hash_info
 
     # tmp_dir/file can be staged even though it is missing in workspace since
     # repofs will use the DVC cached hash (and refer to the local cache object)
-    _, _, obj = stage(dvc.odb.local, (tmp_dir / "file").fs_path, fs, "md5")
+    _, _, obj = stage(dvc.odb.local, (tmp_dir / "file").fs_path, fs, "sha256")
     assert obj.hash_info == file_hash_info
 
 
@@ -624,9 +624,9 @@ def test_get_hash_dirty_dir(tmp_dir, dvc):
     clean_staging()
 
     fs = RepoFileSystem(repo=dvc)
-    _, meta, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "md5")
+    _, meta, obj = stage(dvc.odb.local, (tmp_dir / "dir").fs_path, fs, "sha256")
     assert obj.hash_info == HashInfo(
-        "md5", "ba75a2162ca9c29acecb7957105a0bc2.dir"
+        "sha256", "ba75a2162ca9c29acecb7957105a0bc2.dir"
     )
     assert meta.nfiles == 3
 
diff --git a/tests/unit/objects/db/test_local.py b/tests/unit/objects/db/test_local.py
index 57b452bc..2f46ff53 100644
--- a/tests/unit/objects/db/test_local.py
+++ b/tests/unit/objects/db/test_local.py
@@ -17,8 +17,8 @@ def test_status_download_optimization(mocker, dvc):
 
     odb = LocalObjectDB(LocalFileSystem(), os.getcwd())
     obj_ids = {
-        HashInfo("md5", "acbd18db4cc2f85cedef654fccc4a4d8"),
-        HashInfo("md5", "37b51d194a7513e45b56f6524f2d51f2"),
+        HashInfo("sha256", "acbd18db4cc2f85cedef654fccc4a4d8"),
+        HashInfo("sha256", "37b51d194a7513e45b56f6524f2d51f2"),
     }
 
     local_exists = [hash_info.value for hash_info in obj_ids]
@@ -94,7 +94,7 @@ def test_staging_file(tmp_dir, dvc):
 
     local_odb = dvc.odb.local
     staging_odb, _, obj = stage(
-        local_odb, (tmp_dir / "foo").fs_path, fs, "md5"
+        local_odb, (tmp_dir / "foo").fs_path, fs, "sha256"
     )
 
     assert not local_odb.exists(obj.hash_info)
@@ -122,7 +122,7 @@ def test_staging_dir(tmp_dir, dvc):
     local_odb = dvc.odb.local
 
     staging_odb, _, obj = stage(
-        local_odb, (tmp_dir / "dir").fs_path, fs, "md5"
+        local_odb, (tmp_dir / "dir").fs_path, fs, "sha256"
     )
 
     assert not local_odb.exists(obj.hash_info)
diff --git a/tests/unit/objects/test_tree.py b/tests/unit/objects/test_tree.py
index f765a663..9dd53ae0 100644
--- a/tests/unit/objects/test_tree.py
+++ b/tests/unit/objects/test_tree.py
@@ -13,57 +13,57 @@ from dvc.hash_info import HashInfo
         ([], {}),
         (
             [
-                {"md5": "def", "relpath": "zzz"},
-                {"md5": "123", "relpath": "foo"},
-                {"md5": "abc", "relpath": "aaa"},
-                {"md5": "456", "relpath": "bar"},
+                {"sha256": "def", "relpath": "zzz"},
+                {"sha256": "123", "relpath": "foo"},
+                {"sha256": "abc", "relpath": "aaa"},
+                {"sha256": "456", "relpath": "bar"},
             ],
             {
-                ("zzz",): (None, HashInfo("md5", "def")),
-                ("foo",): (None, HashInfo("md5", "123")),
-                ("bar",): (None, HashInfo("md5", "456")),
-                ("aaa",): (None, HashInfo("md5", "abc")),
+                ("zzz",): (None, HashInfo("sha256", "def")),
+                ("foo",): (None, HashInfo("sha256", "123")),
+                ("bar",): (None, HashInfo("sha256", "456")),
+                ("aaa",): (None, HashInfo("sha256", "abc")),
             },
         ),
         (
             [
-                {"md5": "123", "relpath": "dir/b"},
-                {"md5": "456", "relpath": "dir/z"},
-                {"md5": "789", "relpath": "dir/a"},
-                {"md5": "abc", "relpath": "b"},
-                {"md5": "def", "relpath": "a"},
-                {"md5": "ghi", "relpath": "z"},
-                {"md5": "jkl", "relpath": "dir/subdir/b"},
-                {"md5": "mno", "relpath": "dir/subdir/z"},
-                {"md5": "pqr", "relpath": "dir/subdir/a"},
+                {"sha256": "123", "relpath": "dir/b"},
+                {"sha256": "456", "relpath": "dir/z"},
+                {"sha256": "789", "relpath": "dir/a"},
+                {"sha256": "abc", "relpath": "b"},
+                {"sha256": "def", "relpath": "a"},
+                {"sha256": "ghi", "relpath": "z"},
+                {"sha256": "jkl", "relpath": "dir/subdir/b"},
+                {"sha256": "mno", "relpath": "dir/subdir/z"},
+                {"sha256": "pqr", "relpath": "dir/subdir/a"},
             ],
             {
                 ("dir", "b"): (
                     None,
-                    HashInfo("md5", "123"),
+                    HashInfo("sha256", "123"),
                 ),
                 ("dir", "z"): (
                     None,
-                    HashInfo("md5", "456"),
+                    HashInfo("sha256", "456"),
                 ),
                 ("dir", "a"): (
                     None,
-                    HashInfo("md5", "789"),
+                    HashInfo("sha256", "789"),
                 ),
-                ("b",): (None, HashInfo("md5", "abc")),
-                ("a",): (None, HashInfo("md5", "def")),
-                ("z",): (None, HashInfo("md5", "ghi")),
+                ("b",): (None, HashInfo("sha256", "abc")),
+                ("a",): (None, HashInfo("sha256", "def")),
+                ("z",): (None, HashInfo("sha256", "ghi")),
                 ("dir", "subdir", "b"): (
                     None,
-                    HashInfo("md5", "jkl"),
+                    HashInfo("sha256", "jkl"),
                 ),
                 ("dir", "subdir", "z"): (
                     None,
-                    HashInfo("md5", "mno"),
+                    HashInfo("sha256", "mno"),
                 ),
                 ("dir", "subdir", "a"): (
                     None,
-                    HashInfo("md5", "pqr"),
+                    HashInfo("sha256", "pqr"),
                 ),
             },
         ),
@@ -81,19 +81,19 @@ def test_list(lst, trie_dict):
         ({}, 0),
         (
             {
-                ("a",): (Meta(size=1), HashInfo("md5", "abc")),
-                ("b",): (Meta(size=2), HashInfo("md5", "def")),
-                ("c",): (Meta(size=3), HashInfo("md5", "ghi")),
-                ("dir", "foo"): (Meta(size=4), HashInfo("md5", "jkl")),
-                ("dir", "bar"): (Meta(size=5), HashInfo("md5", "mno")),
-                ("dir", "baz"): (Meta(size=6), HashInfo("md5", "pqr")),
+                ("a",): (Meta(size=1), HashInfo("sha256", "abc")),
+                ("b",): (Meta(size=2), HashInfo("sha256", "def")),
+                ("c",): (Meta(size=3), HashInfo("sha256", "ghi")),
+                ("dir", "foo"): (Meta(size=4), HashInfo("sha256", "jkl")),
+                ("dir", "bar"): (Meta(size=5), HashInfo("sha256", "mno")),
+                ("dir", "baz"): (Meta(size=6), HashInfo("sha256", "pqr")),
             },
             6,
         ),
         (
             {
-                ("a",): (Meta(size=1), HashInfo("md5", "abc")),
-                ("b",): (Meta(), HashInfo("md5", "def")),
+                ("a",): (Meta(size=1), HashInfo("sha256", "abc")),
+                ("b",): (Meta(), HashInfo("sha256", "def")),
             },
             2,
         ),
@@ -110,15 +110,15 @@ def test_nfiles(trie_dict, nfiles):
     [
         {},
         {
-            ("a",): (None, HashInfo("md5", "abc")),
-            ("b",): (None, HashInfo("md5", "def")),
-            ("c",): (None, HashInfo("md5", "ghi")),
-            ("dir", "foo"): (None, HashInfo("md5", "jkl")),
-            ("dir", "bar"): (None, HashInfo("md5", "mno")),
-            ("dir", "baz"): (None, HashInfo("md5", "pqr")),
-            ("dir", "subdir", "1"): (None, HashInfo("md5", "stu")),
-            ("dir", "subdir", "2"): (None, HashInfo("md5", "vwx")),
-            ("dir", "subdir", "3"): (None, HashInfo("md5", "yz")),
+            ("a",): (None, HashInfo("sha256", "abc")),
+            ("b",): (None, HashInfo("sha256", "def")),
+            ("c",): (None, HashInfo("sha256", "ghi")),
+            ("dir", "foo"): (None, HashInfo("sha256", "jkl")),
+            ("dir", "bar"): (None, HashInfo("sha256", "mno")),
+            ("dir", "baz"): (None, HashInfo("sha256", "pqr")),
+            ("dir", "subdir", "1"): (None, HashInfo("sha256", "stu")),
+            ("dir", "subdir", "2"): (None, HashInfo("sha256", "vwx")),
+            ("dir", "subdir", "3"): (None, HashInfo("sha256", "yz")),
         },
     ],
 )
@@ -135,63 +135,63 @@ def test_items(trie_dict):
     [
         ({}, {}, {}, {}),
         (
-            {("foo",): HashInfo("md5", "123")},
+            {("foo",): HashInfo("sha256", "123")},
             {
-                ("foo",): HashInfo("md5", "123"),
-                ("bar",): HashInfo("md5", "345"),
+                ("foo",): HashInfo("sha256", "123"),
+                ("bar",): HashInfo("sha256", "345"),
             },
             {
-                ("foo",): HashInfo("md5", "123"),
-                ("baz",): HashInfo("md5", "678"),
+                ("foo",): HashInfo("sha256", "123"),
+                ("baz",): HashInfo("sha256", "678"),
             },
             {
-                ("foo",): HashInfo("md5", "123"),
-                ("bar",): HashInfo("md5", "345"),
-                ("baz",): HashInfo("md5", "678"),
+                ("foo",): HashInfo("sha256", "123"),
+                ("bar",): HashInfo("sha256", "345"),
+                ("baz",): HashInfo("sha256", "678"),
             },
         ),
         (
             {
-                ("common",): HashInfo("md5", "123"),
-                ("subdir", "foo"): HashInfo("md5", "345"),
+                ("common",): HashInfo("sha256", "123"),
+                ("subdir", "foo"): HashInfo("sha256", "345"),
             },
             {
-                ("common",): HashInfo("md5", "123"),
-                ("subdir", "foo"): HashInfo("md5", "345"),
-                ("subdir", "bar"): HashInfo("md5", "678"),
+                ("common",): HashInfo("sha256", "123"),
+                ("subdir", "foo"): HashInfo("sha256", "345"),
+                ("subdir", "bar"): HashInfo("sha256", "678"),
             },
             {
-                ("common",): HashInfo("md5", "123"),
-                ("subdir", "foo"): HashInfo("md5", "345"),
-                ("subdir", "baz"): HashInfo("md5", "91011"),
+                ("common",): HashInfo("sha256", "123"),
+                ("subdir", "foo"): HashInfo("sha256", "345"),
+                ("subdir", "baz"): HashInfo("sha256", "91011"),
             },
             {
-                ("common",): HashInfo("md5", "123"),
-                ("subdir", "foo"): HashInfo("md5", "345"),
-                ("subdir", "bar"): HashInfo("md5", "678"),
-                ("subdir", "baz"): HashInfo("md5", "91011"),
+                ("common",): HashInfo("sha256", "123"),
+                ("subdir", "foo"): HashInfo("sha256", "345"),
+                ("subdir", "bar"): HashInfo("sha256", "678"),
+                ("subdir", "baz"): HashInfo("sha256", "91011"),
             },
         ),
         (
             {},
-            {("foo",): HashInfo("md5", "123")},
-            {("bar",): HashInfo("md5", "456")},
+            {("foo",): HashInfo("sha256", "123")},
+            {("bar",): HashInfo("sha256", "456")},
             {
-                ("foo",): HashInfo("md5", "123"),
-                ("bar",): HashInfo("md5", "456"),
+                ("foo",): HashInfo("sha256", "123"),
+                ("bar",): HashInfo("sha256", "456"),
             },
         ),
         (
             {},
             {},
-            {("bar",): HashInfo("md5", "123")},
-            {("bar",): HashInfo("md5", "123")},
+            {("bar",): HashInfo("sha256", "123")},
+            {("bar",): HashInfo("sha256", "123")},
         ),
         (
             {},
-            {("bar",): HashInfo("md5", "123")},
+            {("bar",): HashInfo("sha256", "123")},
             {},
-            {("bar",): HashInfo("md5", "123")},
+            {("bar",): HashInfo("sha256", "123")},
         ),
     ],
 )
diff --git a/tests/unit/output/test_local.py b/tests/unit/output/test_local.py
index 2cb3ce14..ee8f961d 100644
--- a/tests/unit/output/test_local.py
+++ b/tests/unit/output/test_local.py
@@ -64,12 +64,12 @@ class TestGetFilesNumber(TestDvc):
 
     def test_return_multiple_for_dir(self):
         o = self._get_output()
-        o.hash_info = HashInfo("md5", "12345678.dir")
+        o.hash_info = HashInfo("sha256", "12345678.dir")
         o.meta = Meta(nfiles=2)
         self.assertEqual(2, o.get_files_number())
 
     @patch.object(Output, "is_dir_checksum", False)
     def test_return_1_on_single_file_cache(self):
         o = self._get_output()
-        o.hash_info = HashInfo("md5", "12345678")
+        o.hash_info = HashInfo("sha256", "12345678")
         self.assertEqual(1, o.get_files_number())
diff --git a/tests/unit/output/test_output.py b/tests/unit/output/test_output.py
index 46e892b1..0bdcd3fd 100644
--- a/tests/unit/output/test_output.py
+++ b/tests/unit/output/test_output.py
@@ -29,7 +29,7 @@ def test_save_missing(dvc, mocker):
         (
             "3cc286c534a71504476da009ed174423",
             "3cc286c534a71504476da009ed174423",
-        ),  # md5
+        ),  # sha256
         (
             "d41d8cd98f00b204e9800998ecf8427e-38",
             "d41d8cd98f00b204e9800998ecf8427e-38",
diff --git a/tests/unit/repo/test_repo.py b/tests/unit/repo/test_repo.py
index 1528ca6b..93e094c9 100644
--- a/tests/unit/repo/test_repo.py
+++ b/tests/unit/repo/test_repo.py
@@ -48,8 +48,8 @@ def test_used_objs(tmp_dir, dvc, path):
     tmp_dir.dvc_gen({"dir": {"subdir": {"file": "file"}, "other": "other"}})
 
     expected = {
-        HashInfo("md5", "70922d6bf66eb073053a82f77d58c536.dir"),
-        HashInfo("md5", "8c7dd922ad47494fc02c388e12c00eac"),
+        HashInfo("sha256", "70922d6bf66eb073053a82f77d58c536.dir"),
+        HashInfo("sha256", "8c7dd922ad47494fc02c388e12c00eac"),
     }
 
     used = set()
diff --git a/tests/unit/stage/test_loader_pipeline_file.py b/tests/unit/stage/test_loader_pipeline_file.py
index 84847ed2..696b3302 100644
--- a/tests/unit/stage/test_loader_pipeline_file.py
+++ b/tests/unit/stage/test_loader_pipeline_file.py
@@ -20,8 +20,8 @@ def stage_data():
 def lock_data():
     return {
         "cmd": "command",
-        "deps": [{"path": "foo", "md5": "foo_checksum"}],
-        "outs": [{"path": "bar", "md5": "bar_checksum"}],
+        "deps": [{"path": "foo", "sha256": "foo_checksum"}],
+        "outs": [{"path": "bar", "sha256": "bar_checksum"}],
     }
 
 
@@ -35,8 +35,8 @@ def test_fill_from_lock_deps_outs(dvc, lock_data):
 
     StageLoader.fill_from_lock(stage, lock_data)
 
-    assert stage.deps[0].hash_info == HashInfo("md5", "foo_checksum")
-    assert stage.outs[0].hash_info == HashInfo("md5", "bar_checksum")
+    assert stage.deps[0].hash_info == HashInfo("sha256", "foo_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "bar_checksum")
 
 
 def test_fill_from_lock_outs_isexec(dvc):
@@ -48,12 +48,12 @@ def test_fill_from_lock_outs_isexec(dvc):
         stage,
         {
             "cmd": "command",
-            "outs": [{"path": "foo", "md5": "foo_checksum", "isexec": True}],
+            "outs": [{"path": "foo", "sha256": "foo_checksum", "isexec": True}],
         },
     )
 
     assert stage.outs[0].def_path == "foo"
-    assert stage.outs[0].hash_info == HashInfo("md5", "foo_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "foo_checksum")
     assert stage.outs[0].meta.isexec
 
 
@@ -118,8 +118,8 @@ def test_fill_from_lock_missing_checksums(dvc, lock_data):
 
     StageLoader.fill_from_lock(stage, lock_data)
 
-    assert stage.deps[0].hash_info == HashInfo("md5", "foo_checksum")
-    assert stage.outs[0].hash_info == HashInfo("md5", "bar_checksum")
+    assert stage.deps[0].hash_info == HashInfo("sha256", "foo_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "bar_checksum")
     assert not stage.deps[1].hash_info and not stage.outs[1].hash_info
 
 
@@ -134,7 +134,7 @@ def test_fill_from_lock_use_appropriate_checksum(dvc, lock_data):
     lock_data["deps"] = [{"path": "s3://dvc-temp/foo", "etag": "e-tag"}]
     StageLoader.fill_from_lock(stage, lock_data)
     assert stage.deps[0].hash_info == HashInfo("etag", "e-tag")
-    assert stage.outs[0].hash_info == HashInfo("md5", "bar_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "bar_checksum")
 
 
 def test_fill_from_lock_with_missing_sections(dvc, lock_data):
@@ -145,12 +145,12 @@ def test_fill_from_lock_with_missing_sections(dvc, lock_data):
     del lock["deps"]
     StageLoader.fill_from_lock(stage, lock)
     assert not stage.deps[0].hash_info
-    assert stage.outs[0].hash_info == HashInfo("md5", "bar_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "bar_checksum")
 
     lock = deepcopy(lock_data)
     del lock["outs"]
     StageLoader.fill_from_lock(stage, lock)
-    assert stage.deps[0].hash_info == HashInfo("md5", "foo_checksum")
+    assert stage.deps[0].hash_info == HashInfo("sha256", "foo_checksum")
     assert not stage.outs[0].hash_info
 
 
@@ -173,9 +173,9 @@ def test_load_stage(dvc, stage_data, lock_data):
     assert stage.cmd == "command"
     assert stage.path == os.path.abspath(PIPELINE_FILE)
     assert stage.deps[0].def_path == "foo"
-    assert stage.deps[0].hash_info == HashInfo("md5", "foo_checksum")
+    assert stage.deps[0].hash_info == HashInfo("sha256", "foo_checksum")
     assert stage.outs[0].def_path == "bar"
-    assert stage.outs[0].hash_info == HashInfo("md5", "bar_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "bar_checksum")
 
 
 def test_load_stage_cmd_with_list(dvc, stage_data, lock_data):
@@ -210,8 +210,8 @@ def test_load_stage_with_params(dvc, stage_data, lock_data):
     assert deps[0].def_path == "foo" and stage.outs[0].def_path == "bar"
     assert params[0].def_path == "params.yaml"
     assert params[0].hash_info == HashInfo("params", {"lorem": "ipsum"})
-    assert deps[0].hash_info == HashInfo("md5", "foo_checksum")
-    assert stage.outs[0].hash_info == HashInfo("md5", "bar_checksum")
+    assert deps[0].hash_info == HashInfo("sha256", "foo_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "bar_checksum")
 
 
 @pytest.mark.parametrize("typ", ["metrics", "plots"])
@@ -221,7 +221,7 @@ def test_load_stage_with_metrics_and_plots(dvc, stage_data, lock_data, typ):
     stage = StageLoader.load_stage(dvcfile, "stage-1", stage_data, lock_data)
 
     assert stage.outs[0].def_path == "bar"
-    assert stage.outs[0].hash_info == HashInfo("md5", "bar_checksum")
+    assert stage.outs[0].hash_info == HashInfo("sha256", "bar_checksum")
 
 
 def test_load_changed_command(dvc, stage_data, lock_data):
diff --git a/tests/unit/stage/test_serialize_pipeline_lock.py b/tests/unit/stage/test_serialize_pipeline_lock.py
index 968b3183..846c2c62 100644
--- a/tests/unit/stage/test_serialize_pipeline_lock.py
+++ b/tests/unit/stage/test_serialize_pipeline_lock.py
@@ -31,11 +31,11 @@ def test_lock(dvc):
 
 def test_lock_deps(dvc):
     stage = create_stage(PipelineStage, dvc, deps=["input"], **kwargs)
-    stage.deps[0].hash_info = HashInfo("md5", "md-five")
+    stage.deps[0].hash_info = HashInfo("sha256", "md-five")
     assert to_single_stage_lockfile(stage) == OrderedDict(
         [
             ("cmd", "command"),
-            ("deps", [OrderedDict([("path", "input"), ("md5", "md-five")])]),
+            ("deps", [OrderedDict([("path", "input"), ("sha256", "md-five")])]),
         ]
     )
 
@@ -44,16 +44,16 @@ def test_lock_deps_order(dvc):
     stage = create_stage(
         PipelineStage, dvc, deps=["input1", "input0"], **kwargs
     )
-    stage.deps[0].hash_info = HashInfo("md5", "md-one1")
-    stage.deps[1].hash_info = HashInfo("md5", "md-zer0")
+    stage.deps[0].hash_info = HashInfo("sha256", "md-one1")
+    stage.deps[1].hash_info = HashInfo("sha256", "md-zer0")
     assert to_single_stage_lockfile(stage) == OrderedDict(
         [
             ("cmd", "command"),
             (
                 "deps",
                 [
-                    OrderedDict([("path", "input0"), ("md5", "md-zer0")]),
-                    OrderedDict([("path", "input1"), ("md5", "md-one1")]),
+                    OrderedDict([("path", "input0"), ("sha256", "md-zer0")]),
+                    OrderedDict([("path", "input1"), ("sha256", "md-one1")]),
                 ],
             ),
         ]
@@ -123,11 +123,11 @@ def test_lock_params_no_values_filled(dvc):
 @pytest.mark.parametrize("typ", ["plots", "metrics", "outs"])
 def test_lock_outs(dvc, typ):
     stage = create_stage(PipelineStage, dvc, **{typ: ["input"]}, **kwargs)
-    stage.outs[0].hash_info = HashInfo("md5", "md-five")
+    stage.outs[0].hash_info = HashInfo("sha256", "md-five")
     assert to_single_stage_lockfile(stage) == OrderedDict(
         [
             ("cmd", "command"),
-            ("outs", [OrderedDict([("path", "input"), ("md5", "md-five")])]),
+            ("outs", [OrderedDict([("path", "input"), ("sha256", "md-five")])]),
         ]
     )
 
@@ -135,7 +135,7 @@ def test_lock_outs(dvc, typ):
 @pytest.mark.parametrize("typ", ["plots", "metrics", "outs"])
 def test_lock_outs_isexec(dvc, typ):
     stage = create_stage(PipelineStage, dvc, **{typ: ["input"]}, **kwargs)
-    stage.outs[0].hash_info = HashInfo("md5", "md-five")
+    stage.outs[0].hash_info = HashInfo("sha256", "md-five")
     stage.outs[0].meta.isexec = True
     assert to_single_stage_lockfile(stage) == OrderedDict(
         [
@@ -146,7 +146,7 @@ def test_lock_outs_isexec(dvc, typ):
                     OrderedDict(
                         [
                             ("path", "input"),
-                            ("md5", "md-five"),
+                            ("sha256", "md-five"),
                             ("isexec", True),
                         ]
                     )
@@ -161,16 +161,16 @@ def test_lock_outs_order(dvc, typ):
     stage = create_stage(
         PipelineStage, dvc, **{typ: ["input1", "input0"]}, **kwargs
     )
-    stage.outs[0].hash_info = HashInfo("md5", "md-one1")
-    stage.outs[1].hash_info = HashInfo("md5", "md-zer0")
+    stage.outs[0].hash_info = HashInfo("sha256", "md-one1")
+    stage.outs[1].hash_info = HashInfo("sha256", "md-zer0")
     assert to_single_stage_lockfile(stage) == OrderedDict(
         [
             ("cmd", "command"),
             (
                 "outs",
                 [
-                    OrderedDict([("path", "input0"), ("md5", "md-zer0")]),
-                    OrderedDict([("path", "input1"), ("md5", "md-one1")]),
+                    OrderedDict([("path", "input0"), ("sha256", "md-zer0")]),
+                    OrderedDict([("path", "input1"), ("sha256", "md-one1")]),
                 ],
             ),
         ]
@@ -181,7 +181,7 @@ def test_dump_nondefault_hash(dvc):
     stage = create_stage(
         PipelineStage, dvc, deps=["s3://dvc-temp/file"], **kwargs
     )
-    stage.deps[0].hash_info = HashInfo("md5", "value")
+    stage.deps[0].hash_info = HashInfo("sha256", "value")
     assert to_single_stage_lockfile(stage) == OrderedDict(
         [
             ("cmd", "command"),
@@ -189,7 +189,7 @@ def test_dump_nondefault_hash(dvc):
                 "deps",
                 [
                     OrderedDict(
-                        [("path", "s3://dvc-temp/file"), ("md5", "value")]
+                        [("path", "s3://dvc-temp/file"), ("sha256", "value")]
                     )
                 ],
             ),
@@ -208,23 +208,23 @@ def test_order(dvc):
     )
     params, deps = split_params_deps(stage)
 
-    deps[0].hash_info = HashInfo("md5", "md-five")
+    deps[0].hash_info = HashInfo("sha256", "md-five")
     params[0].hash_info = HashInfo("params", {"foo-param": "value"})
-    stage.outs[0].hash_info = HashInfo("md5", "md5-output")
+    stage.outs[0].hash_info = HashInfo("sha256", "sha256-output")
 
     assert to_single_stage_lockfile(stage) == OrderedDict(
         [
             ("cmd", "command"),
-            ("deps", [{"path": "input", "md5": "md-five"}]),
+            ("deps", [{"path": "input", "sha256": "md-five"}]),
             ("params", {"params.yaml": {"foo-param": "value"}}),
-            ("outs", [{"path": "output", "md5": "md5-output"}]),
+            ("outs", [{"path": "output", "sha256": "sha256-output"}]),
         ]
     )
 
 
 def test_to_lockfile(dvc):
     stage = create_stage(PipelineStage, dvc, deps=["input"], **kwargs)
-    stage.deps[0].hash_info = HashInfo("md5", "md-five")
+    stage.deps[0].hash_info = HashInfo("sha256", "md-five")
     entry = to_lockfile(stage)
     assert len(entry) == 1
     _Schema(LOCKFILE_STAGES_SCHEMA)(entry)
@@ -232,7 +232,7 @@ def test_to_lockfile(dvc):
         "something": OrderedDict(
             [
                 ("cmd", "command"),
-                ("deps", [{"path": "input", "md5": "md-five"}]),
+                ("deps", [{"path": "input", "sha256": "md-five"}]),
             ]
         )
     }
diff --git a/tests/unit/stage/test_stage.py b/tests/unit/stage/test_stage.py
index f564448a..fb6ac3d2 100644
--- a/tests/unit/stage/test_stage.py
+++ b/tests/unit/stage/test_stage.py
@@ -10,10 +10,10 @@ from dvc.stage import Stage
 from dvc.stage.exceptions import StageUpdateError
 
 TEST_STAGE_DICT = {
-    "md5": "123456",
+    "sha256": "123456",
     "cmd": "mycmd",
-    "outs": [{"path": "a", "md5": "123456789"}],
-    "deps": [{"path": "b", "md5": "987654321"}],
+    "outs": [{"path": "a", "sha256": "123456789"}],
+    "deps": [{"path": "b", "sha256": "987654321"}],
 }
 
 
@@ -21,7 +21,7 @@ def test_stage_checksum(mocker):
     stage = Stage(None, "path", cmd="mycmd")
 
     mocker.patch.object(stage, "dumpd", return_value=TEST_STAGE_DICT)
-    assert stage.compute_md5() == "e9521a22111493406ea64a88cda63e0b"
+    assert stage.compute_sha256() == "e9521a22111493406ea64a88cda63e0b"
 
 
 def test_wdir_default_ignored(mocker):
@@ -29,7 +29,7 @@ def test_wdir_default_ignored(mocker):
     d = dict(TEST_STAGE_DICT, wdir=".")
 
     mocker.patch.object(stage, "dumpd", return_value=d)
-    assert stage.compute_md5() == "e9521a22111493406ea64a88cda63e0b"
+    assert stage.compute_sha256() == "e9521a22111493406ea64a88cda63e0b"
 
 
 def test_wdir_non_default_is_not_ignored(mocker):
@@ -37,7 +37,7 @@ def test_wdir_non_default_is_not_ignored(mocker):
     d = dict(TEST_STAGE_DICT, wdir="..")
 
     mocker.patch.object(stage, "dumpd", return_value=d)
-    assert stage.compute_md5() == "2ceba15e87f6848aa756502c1e6d24e9"
+    assert stage.compute_sha256() == "2ceba15e87f6848aa756502c1e6d24e9"
 
 
 def test_meta_ignored(mocker):
@@ -45,7 +45,7 @@ def test_meta_ignored(mocker):
     d = dict(TEST_STAGE_DICT, meta={"author": "Suor"})
 
     mocker.patch.object(stage, "dumpd", return_value=d)
-    assert stage.compute_md5() == "e9521a22111493406ea64a88cda63e0b"
+    assert stage.compute_sha256() == "e9521a22111493406ea64a88cda63e0b"
 
 
 def test_path_conversion(dvc):
diff --git a/tests/unit/test_lockfile.py b/tests/unit/test_lockfile.py
index ff42a775..831f9c45 100644
--- a/tests/unit/test_lockfile.py
+++ b/tests/unit/test_lockfile.py
@@ -31,8 +31,8 @@ def test_stage_dump_with_deps_and_outs(tmp_dir, dvc):
     data = {
         "s1": {
             "cmd": "command",
-            "deps": [{"md5": "1.txt", "path": "checksum"}],
-            "outs": [{"md5": "2.txt", "path": "checksum"}],
+            "deps": [{"sha256": "1.txt", "path": "checksum"}],
+            "outs": [{"sha256": "2.txt", "path": "checksum"}],
         }
     }
     (tmp_dir / "path.lock").dump(data)
@@ -70,11 +70,11 @@ def test_load_when_lockfile_does_not_exist(tmp_dir, dvc):
             "s1": {
                 "cmd": "command",
                 "outs": [
-                    {"md5": "checksum", "path": "path", "random": "value"}
+                    {"sha256": "checksum", "path": "path", "random": "value"}
                 ],
             }
         },
-        {"s1": {"cmd": "command", "deps": [{"md5": "checksum"}]}},
+        {"s1": {"cmd": "command", "deps": [{"sha256": "checksum"}]}},
     ],
 )
 def test_load_when_lockfile_is_corrupted(tmp_dir, dvc, corrupt_data):
diff --git a/tests/unit/utils/test_stream.py b/tests/unit/utils/test_stream.py
index 2a80c3f0..ce454733 100644
--- a/tests/unit/utils/test_stream.py
+++ b/tests/unit/utils/test_stream.py
@@ -2,7 +2,7 @@ import pytest
 
 from dvc.fs.local import LocalFileSystem
 from dvc.istextfile import DEFAULT_CHUNK_SIZE, istextfile
-from dvc.utils import file_md5
+from dvc.utils import file_sha256
 from dvc.utils.stream import HashedStreamReader
 
 
@@ -22,7 +22,7 @@ def test_hashed_stream_reader(tmp_dir):
         assert stream_reader.read(1) == b"o"
         assert stream_reader.tell() == 3
 
-    hex_digest = file_md5(foo, LocalFileSystem())
+    hex_digest = file_sha256(foo, LocalFileSystem())
     assert stream_reader.is_text_file
     assert hex_digest == stream_reader.hash_info.value
 
@@ -46,7 +46,7 @@ def test_hashed_stream_reader_as_chunks(tmp_dir):
 
         assert stream_reader.tell() == actual_size == total_read
 
-    hex_digest = file_md5(foo, LocalFileSystem())
+    hex_digest = file_sha256(foo, LocalFileSystem())
     assert not stream_reader.is_text_file
     assert hex_digest == stream_reader.hash_info.value
 
@@ -68,7 +68,7 @@ def test_hashed_stream_reader_compatibility(tmp_dir, contents):
         stream_reader.read(chunk_size)
 
     local_fs = LocalFileSystem()
-    hex_digest = file_md5(data, local_fs)
+    hex_digest = file_sha256(data, local_fs)
 
     assert stream_reader.is_text_file is istextfile(data, local_fs)
     assert stream_reader.hash_info.value == hex_digest
diff --git a/tests/unit/utils/test_utils.py b/tests/unit/utils/test_utils.py
index a4800b46..7066b63c 100644
--- a/tests/unit/utils/test_utils.py
+++ b/tests/unit/utils/test_utils.py
@@ -6,7 +6,7 @@ import pytest
 from dvc.fs.local import LocalFileSystem
 from dvc.utils import (
     dict_sha256,
-    file_md5,
+    file_sha256,
     fix_env,
     parse_target,
     relpath,
@@ -83,11 +83,11 @@ def test_fix_env_pyenv(path, orig):
     assert fix_env(env)["PATH"] == orig
 
 
-def test_file_md5(tmp_dir):
+def test_file_sha256(tmp_dir):
     tmp_dir.gen("foo", "foo content")
 
     fs = LocalFileSystem()
-    assert file_md5("foo", fs) == file_md5("foo", fs)
+    assert file_sha256("foo", fs) == file_sha256("foo", fs)
 
 
 def test_tmp_fname():