diff --git a/scripts/components/OpenSearch/install.sh b/scripts/components/OpenSearch/install.sh
index 7b384c939d..201a9edf35 100755
--- a/scripts/components/OpenSearch/install.sh
+++ b/scripts/components/OpenSearch/install.sh
@@ -84,6 +84,9 @@ if [ "$DISTRIBUTION" = "tar" ]; then
 elif [ "$DISTRIBUTION" = "deb" -o "$DISTRIBUTION" = "rpm" ]; then
     cp -va ../../../scripts/pkg/service_templates/opensearch/* "$OUTPUT/../"
     cp -va ../../../scripts/pkg/build_templates/opensearch/$DISTRIBUTION/* "$OUTPUT/../"
+    if [ "$DISTRIBUTION" = "deb" ]; then
+      sed -i "s/CHANGE_VERSION/${VERSION}/g" "$OUTPUT/../debian/preinst"
+    fi
 elif [ "$DISTRIBUTION" = "zip" ] && [ "$PLATFORM" = "windows" ]; then
     cp -v ../../../scripts/startup/zip/windows/opensearch-windows-install.bat "$OUTPUT/"
 fi
diff --git a/scripts/pkg/build_templates/opensearch/deb/debian/postinst b/scripts/pkg/build_templates/opensearch/deb/debian/postinst
index 515a0e5419..aa1fe82319 100755
--- a/scripts/pkg/build_templates/opensearch/deb/debian/postinst
+++ b/scripts/pkg/build_templates/opensearch/deb/debian/postinst
@@ -21,9 +21,8 @@ pid_dir=/var/run/opensearch
 
 # Apply Security Settings
 if [ -d ${product_dir}/plugins/opensearch-security ]; then
-    bash ${product_dir}/plugins/opensearch-security/tools/install_demo_configuration.sh -y -i -s > ${log_dir}/install_demo_configuration.log 2>&1
+    bash ${product_dir}/plugins/opensearch-security/tools/install_demo_configuration.sh -y -i -s > ${log_dir}/install_demo_configuration.log 2>&1 || (echo "ERROR: Something went wrong during demo configuration installation. Please see the logs in ${log_dir}/install_demo_configuration.log" && exit 1)
 fi
-
 # Apply PerformanceAnalyzer Settings
 chmod a+rw /tmp
 if ! grep -q '## OpenSearch Performance Analyzer' ${config_dir}/jvm.options; then
diff --git a/scripts/pkg/build_templates/opensearch/deb/debian/preinst b/scripts/pkg/build_templates/opensearch/deb/debian/preinst
index 1a02cc06c1..0d53bc7cba 100755
--- a/scripts/pkg/build_templates/opensearch/deb/debian/preinst
+++ b/scripts/pkg/build_templates/opensearch/deb/debian/preinst
@@ -11,6 +11,8 @@
 
 set -e
 
+OPENSEARCH_VERSION=CHANGE_VERSION
+
 echo "Running OpenSearch Pre-Installation Script"
 
 # Stop existing service
@@ -23,6 +25,29 @@ if command -v systemctl >/dev/null && systemctl is-active opensearch-performance
     systemctl --no-reload stop opensearch-performance-analyzer.service
 fi
 
+# Check if OPENSEARCH_INITIAL_ADMIN_PASSWORD is defined
+# TODO:
+# 1. This check will need to be modified if there will be a min dist for deb in future (currently there is none)
+# 2. Currently, the demo config setup is defined to run, in postinst, if `opensearch-security` is present. Cannot apply the same check here since the plugins folder is not available yet.
+
+# Check if this is an upgrade by checking whether opensearch already exists
+if dpkg-query -W opensearch >/dev/null 2>&1; then
+    OPENSEARCH_ALREADY_INSTALLED=yes
+else
+    OPENSEARCH_ALREADY_INSTALLED=no
+fi
+
+OPENSEARCH_REQUIRED_VERSION="2.12.0"
+MINIMUM_OF_TWO_VERSIONS=`echo $OPENSEARCH_REQUIRED_VERSION $OPENSEARCH_VERSION | tr ' ' '\n' | sort -V | uniq | head -n 1`
+
+if [ $OPENSEARCH_ALREADY_INSTALLED = no ]; then
+  if [ $MINIMUM_OF_TWO_VERSIONS = $OPENSEARCH_REQUIRED_VERSION ] && [ -z "$OPENSEARCH_INITIAL_ADMIN_PASSWORD" ]; then
+    echo "ERROR: Opensearch 2.12 and later requires the env variable OPENSEARCH_INITIAL_ADMIN_PASSWORD to be defined to setup the opensearch-security demo configuration"
+    exit 1
+  fi
+fi
+
+
 # Create user and group if they do not already exist.
 getent group opensearch > /dev/null 2>&1 || groupadd -r opensearch
 getent passwd opensearch > /dev/null 2>&1 || \
diff --git a/scripts/pkg/build_templates/opensearch/rpm/opensearch.rpm.spec b/scripts/pkg/build_templates/opensearch/rpm/opensearch.rpm.spec
index 6d9eec3bab..179a246bde 100644
--- a/scripts/pkg/build_templates/opensearch/rpm/opensearch.rpm.spec
+++ b/scripts/pkg/build_templates/opensearch/rpm/opensearch.rpm.spec
@@ -89,6 +89,30 @@ if command -v systemctl >/dev/null && systemctl is-active opensearch-performance
     echo "Stop existing opensearch-performance-analyzer.service"
     systemctl --no-reload stop opensearch-performance-analyzer.service
 fi
+
+# Check if OPENSEARCH_INITIAL_ADMIN_PASSWORD is defined
+# TODO:
+# 1. This check will need to be modified if there will be a min dist for deb in future (currently there is none)
+# 2. Currently, the demo config setup is defined to run, in postinst, if `opensearch-security` is present. Cannot apply the same check here since the plugins folder is not available yet.
+
+# Check if this is an upgrade by checking whether opensearch already exists
+if rpm -q opensearch >/dev/null 2>&1 || yum list installed opensearch >/dev/null 2>&1; then
+    OPENSEARCH_ALREADY_INSTALLED=yes
+else
+    OPENSEARCH_ALREADY_INSTALLED=no
+fi
+
+OPENSEARCH_REQUIRED_VERSION="2.12.0"
+OPENSEARCH_VERSION=%{_version}
+MINIMUM_OF_TWO_VERSIONS=`echo $OPENSEARCH_REQUIRED_VERSION $OPENSEARCH_VERSION | tr ' ' '\n' | sort -V | uniq | head -n 1`
+
+if [ $OPENSEARCH_ALREADY_INSTALLED = no ]; then
+  if [ $MINIMUM_OF_TWO_VERSIONS = $OPENSEARCH_REQUIRED_VERSION ] && [ -z "$OPENSEARCH_INITIAL_ADMIN_PASSWORD" ]; then
+    echo "ERROR: Opensearch 2.12 and later requires the env variable OPENSEARCH_INITIAL_ADMIN_PASSWORD to be defined to setup the opensearch-security demo configuration"
+    exit 1
+  fi
+fi
+
 # Create user and group if they do not already exist.
 getent group %{name} > /dev/null 2>&1 || groupadd -r %{name}
 getent passwd %{name} > /dev/null 2>&1 || \
@@ -100,7 +124,7 @@ exit 0
 set -e
 # Apply Security Settings
 if [ -d %{product_dir}/plugins/opensearch-security ]; then
-    sh %{product_dir}/plugins/opensearch-security/tools/install_demo_configuration.sh -y -i -s > %{log_dir}/install_demo_configuration.log 2>&1
+    sh %{product_dir}/plugins/opensearch-security/tools/install_demo_configuration.sh -y -i -s > %{log_dir}/install_demo_configuration.log 2>&1 || (echo "ERROR: Something went wrong during demo configuration installation. Please see the logs in %{log_dir}/install_demo_configuration.log" && exit 1)
 fi
 chown -R %{name}.%{name} %{config_dir}
 chown -R %{name}.%{name} %{log_dir}