diff --git a/releasenotes/notes/remove-allow_tenant_isolation-option-03f0d998eb498d44.yaml b/releasenotes/notes/remove-allow_tenant_isolation-option-03f0d998eb498d44.yaml
new file mode 100644
index 0000000..4f4516b
--- /dev/null
+++ b/releasenotes/notes/remove-allow_tenant_isolation-option-03f0d998eb498d44.yaml
@@ -0,0 +1,6 @@
+---
+upgrade:
+  - |
+    Remove deprecated config option ``allow_tenant_isolation`` from
+    ``auth`` and ``compute`` groups. Use ``use_dynamic_credentials`` directly
+    instead of the removed option.
diff --git a/tempest/api/identity/v2/test_users.py b/tempest/api/identity/v2/test_users.py
index 9c77fff..158dfb3 100644
--- a/tempest/api/identity/v2/test_users.py
+++ b/tempest/api/identity/v2/test_users.py
@@ -84,7 +84,7 @@
         new_pass = data_utils.rand_password()
         user_id = self.creds.user_id
 
-        # to change password back. important for allow_tenant_isolation = false
+        # to change password back. important for use_dynamic_credentials=false
         self.addCleanup(self._restore_password, user_id, old_pass, new_pass)
 
         # user updates own password
diff --git a/tempest/api/identity/v3/test_users.py b/tempest/api/identity/v3/test_users.py
index 1f099df..6d6baca 100644
--- a/tempest/api/identity/v3/test_users.py
+++ b/tempest/api/identity/v3/test_users.py
@@ -82,7 +82,7 @@
         old_token = self.non_admin_client.token
         new_pass = data_utils.rand_password()
 
-        # to change password back. important for allow_tenant_isolation = false
+        # to change password back. important for use_dynamic_credentials=false
         self.addCleanup(self._restore_password, old_pass, new_pass)
 
         # user updates own password
diff --git a/tempest/config.py b/tempest/config.py
index 1fb5c8e..cc0ba34 100644
--- a/tempest/config.py
+++ b/tempest/config.py
@@ -61,11 +61,7 @@
                      "users. This option requires that OpenStack Identity "
                      "API admin credentials are known. If false, isolated "
                      "test cases and parallel execution, can still be "
-                     "achieved configuring a list of test accounts",
-                deprecated_opts=[cfg.DeprecatedOpt('allow_tenant_isolation',
-                                                   group='auth'),
-                                 cfg.DeprecatedOpt('allow_tenant_isolation',
-                                                   group='compute')]),
+                     "achieved configuring a list of test accounts"),
     cfg.ListOpt('tempest_roles',
                 help="Roles to assign to all users created by tempest",
                 default=[]),