diff --git a/ballerina/Ballerina.toml b/ballerina/Ballerina.toml
index 8b11ed43..9cbf5158 100644
--- a/ballerina/Ballerina.toml
+++ b/ballerina/Ballerina.toml
@@ -1,8 +1,8 @@
 [package]
-distribution = "2201.8.0"
+distribution = "2201.10.0"
 org = "ballerinax"
 name = "twilio"
-version = "4.0.1"
+version = "5.0.0"
 authors = ["Ballerina"]
 repository = "https://github.com/ballerina-platform/module-ballerinax-twilio"
 keywords = ["Communication/Call & SMS", "Cost/Paid"]
@@ -10,4 +10,4 @@ icon = "icon.png"
 license = ["Apache-2.0"]
 
 [build-options]
-observabilityIncluded = false
+observabilityIncluded = true
diff --git a/ballerina/Dependencies.toml b/ballerina/Dependencies.toml
index 67d7de2f..b04de546 100644
--- a/ballerina/Dependencies.toml
+++ b/ballerina/Dependencies.toml
@@ -5,12 +5,12 @@
 
 [ballerina]
 dependencies-toml-version = "2"
-distribution-version = "2201.8.4"
+distribution-version = "2201.10.0"
 
 [[package]]
 org = "ballerina"
 name = "auth"
-version = "2.10.0"
+version = "2.12.0"
 dependencies = [
 	{org = "ballerina", name = "crypto"},
 	{org = "ballerina", name = "jballerina.java"},
@@ -22,7 +22,7 @@ dependencies = [
 [[package]]
 org = "ballerina"
 name = "cache"
-version = "3.7.1"
+version = "3.8.0"
 dependencies = [
 	{org = "ballerina", name = "constraint"},
 	{org = "ballerina", name = "jballerina.java"},
@@ -44,7 +44,7 @@ modules = [
 [[package]]
 org = "ballerina"
 name = "crypto"
-version = "2.5.0"
+version = "2.7.2"
 dependencies = [
 	{org = "ballerina", name = "jballerina.java"},
 	{org = "ballerina", name = "time"}
@@ -53,7 +53,7 @@ dependencies = [
 [[package]]
 org = "ballerina"
 name = "file"
-version = "1.9.0"
+version = "1.10.0"
 dependencies = [
 	{org = "ballerina", name = "io"},
 	{org = "ballerina", name = "jballerina.java"},
@@ -64,7 +64,7 @@ dependencies = [
 [[package]]
 org = "ballerina"
 name = "http"
-version = "2.10.7"
+version = "2.12.2"
 dependencies = [
 	{org = "ballerina", name = "auth"},
 	{org = "ballerina", name = "cache"},
@@ -96,7 +96,7 @@ modules = [
 [[package]]
 org = "ballerina"
 name = "io"
-version = "1.6.0"
+version = "1.6.1"
 dependencies = [
 	{org = "ballerina", name = "jballerina.java"},
 	{org = "ballerina", name = "lang.value"}
@@ -110,10 +110,11 @@ version = "0.0.0"
 [[package]]
 org = "ballerina"
 name = "jwt"
-version = "2.10.0"
+version = "2.13.0"
 dependencies = [
 	{org = "ballerina", name = "cache"},
 	{org = "ballerina", name = "crypto"},
+	{org = "ballerina", name = "io"},
 	{org = "ballerina", name = "jballerina.java"},
 	{org = "ballerina", name = "lang.int"},
 	{org = "ballerina", name = "lang.string"},
@@ -207,7 +208,7 @@ dependencies = [
 [[package]]
 org = "ballerina"
 name = "log"
-version = "2.9.0"
+version = "2.10.0"
 dependencies = [
 	{org = "ballerina", name = "io"},
 	{org = "ballerina", name = "jballerina.java"},
@@ -221,17 +222,18 @@ modules = [
 [[package]]
 org = "ballerina"
 name = "mime"
-version = "2.9.0"
+version = "2.10.1"
 dependencies = [
 	{org = "ballerina", name = "io"},
 	{org = "ballerina", name = "jballerina.java"},
-	{org = "ballerina", name = "lang.int"}
+	{org = "ballerina", name = "lang.int"},
+	{org = "ballerina", name = "log"}
 ]
 
 [[package]]
 org = "ballerina"
 name = "oauth2"
-version = "2.10.0"
+version = "2.12.0"
 dependencies = [
 	{org = "ballerina", name = "cache"},
 	{org = "ballerina", name = "crypto"},
@@ -244,7 +246,7 @@ dependencies = [
 [[package]]
 org = "ballerina"
 name = "observe"
-version = "1.2.2"
+version = "1.3.0"
 dependencies = [
 	{org = "ballerina", name = "jballerina.java"}
 ]
@@ -277,6 +279,7 @@ version = "0.0.0"
 scope = "testOnly"
 dependencies = [
 	{org = "ballerina", name = "jballerina.java"},
+	{org = "ballerina", name = "lang.array"},
 	{org = "ballerina", name = "lang.error"}
 ]
 modules = [
@@ -286,7 +289,7 @@ modules = [
 [[package]]
 org = "ballerina"
 name = "time"
-version = "2.4.0"
+version = "2.5.0"
 dependencies = [
 	{org = "ballerina", name = "jballerina.java"}
 ]
@@ -317,7 +320,7 @@ modules = [
 [[package]]
 org = "ballerinax"
 name = "twilio"
-version = "4.0.1"
+version = "5.0.0"
 dependencies = [
 	{org = "ballerina", name = "constraint"},
 	{org = "ballerina", name = "http"},
diff --git a/ballerina/client.bal b/ballerina/client.bal
index 7984b00a..e3e4e04e 100644
--- a/ballerina/client.bal
+++ b/ballerina/client.bal
@@ -27,8 +27,9 @@ public isolated client class Client {
     # + serviceUrl - URL of the target service 
     # + return - An error if connector initialization failed 
     public isolated function init(ConnectionConfig config, string serviceUrl = "https://api.twilio.com") returns error? {
-        self.accountSid = config.auth.username;
-        self.generatedClient = check new (config, serviceUrl);
+        self.accountSid = config.auth.accountSid;
+        oas:ConnectionConfig oasConnectionConfig = getOasConnectionConfig(config);
+        self.generatedClient = check new (oasConnectionConfig, serviceUrl);
     }
     # Retrieves a collection of Accounts belonging to the account used to make the request
     #
@@ -2097,3 +2098,34 @@ public isolated client class Client {
         return self.generatedClient->deleteUserDefinedMessageSubscription(accountSid ?: self.accountSid, callSid, sid);
     }
 }
+
+isolated function getOasConnectionConfig(ConnectionConfig config) returns oas:ConnectionConfig => {
+    auth: getAuthConfig(config.auth),
+    httpVersion: config.httpVersion,
+    http1Settings: config.http1Settings,
+    http2Settings: config.http2Settings,
+    timeout: config.timeout,
+    forwarded: config.forwarded,
+    poolConfig: config.poolConfig,
+    cache: config.cache,
+    circuitBreaker: config.circuitBreaker,
+    compression: config.compression,
+    retryConfig: config.retryConfig,
+    responseLimits: config.responseLimits,
+    secureSocket: config.secureSocket,
+    proxy: config.proxy,
+    validation: config.validation
+};
+
+isolated function getAuthConfig(AuthTokenConfig|ApiKeyConfig config) returns http:CredentialsConfig {
+    if config is AuthTokenConfig {
+        return {
+            username: config.accountSid,
+            password: config.authToken
+        };
+    }
+    return {
+        username: config.apiKey,
+        password: config.apiSecret
+    };
+}
diff --git a/ballerina/tests/README.md b/ballerina/tests/README.md
index aa2813ce..656d074d 100644
--- a/ballerina/tests/README.md
+++ b/ballerina/tests/README.md
@@ -57,6 +57,8 @@ accountSid="<your-twilio-account-sid>"
 authToken="<your-twilio-auth-token>"
 toPhoneNumber="<your-test-phone-number>"
 fromPhoneNumber="<your-twilio-phone-number>"
+apiKey="<your-twilio-api-key>"
+apiSecret="<your-twilio-api-secret>"
 ```
 
 #### Using Environment Variables
@@ -68,6 +70,8 @@ export ACCOUNT_SID="<your-twilio-account-sid>"
 export AUTH_TOKEN="<your-twilio-auth-token>"
 export TO_PHONE="<your-test-phone-number>"
 export TWILIO_PHONE="<your-twilio-phone-number>"
+export API_KEY="<your-twilio-api-key>"
+export API_SECRET="<your-twilio-api-secret>"
 ```
 
 Then, run the following command to run the tests:
diff --git a/ballerina/tests/tests.bal b/ballerina/tests/tests.bal
index 8250702f..8a7d1f01 100644
--- a/ballerina/tests/tests.bal
+++ b/ballerina/tests/tests.bal
@@ -73,10 +73,10 @@ CreateMessageRequest msgReq = {
 function initializeClientsForTwilioServer () returns error? {
     if (isTestOnLiveServer) {
         log:printInfo("Running tests on actual server");
-        twilio = check new ({auth: {username: accountSid, password: authToken}});
+        twilio = check new ({auth: {accountSid: accountSid, authToken: authToken}});
     } else {
         log:printInfo("Running tests on mock server");
-        twilio = check new ({auth: {username: accountSid, password: authToken}}, serviceUrl = "http://localhost:9090/");
+        twilio = check new ({auth: {accountSid: accountSid, authToken: authToken}}, serviceUrl = "http://localhost:9090/");
     }
 }
 @test:Config {
diff --git a/ballerina/types.bal b/ballerina/types.bal
index 669fb71e..1b94a029 100644
--- a/ballerina/types.bal
+++ b/ballerina/types.bal
@@ -24,7 +24,7 @@ import ballerina/http;
 @display {label: "Connection Config"}
 public type ConnectionConfig record {|
     # Configurations related to client authentication
-    http:CredentialsConfig auth;
+    AuthTokenConfig|ApiKeyConfig auth;
     # The HTTP version understood by the client
     http:HttpVersion httpVersion = http:HTTP_2_0;
     # Configurations related to HTTP/1.x protocol
@@ -55,6 +55,28 @@ public type ConnectionConfig record {|
     boolean validation = true;
 |};
 
+# Twilio Auth token Based Authentication configuration.
+# 
+# + accountSid - Twilio account SID
+# + authToken - Twilio authentication token of the account
+@display{label: "Auth token based authentication config"}
+public type AuthTokenConfig record {|
+    string accountSid;
+    string authToken;
+|};
+
+# Twilio API Key Based Authentication configurations.
+#
+# + apiKey - Twilio API key SID 
+# + apiSecret - Twilio API key Secret
+# + accountSid - Twilio account SID  
+@display{label: "API Key Based authentication config"}
+public type ApiKeyConfig record {|
+    string apiKey;
+    string apiSecret;
+    string accountSid;
+|};
+
 # Provides settings related to HTTP/1.x protocol.
 public type ClientHttp1Settings record {|
     # Specifies whether to reuse a connection for multiple requests
diff --git a/build-config/resources/Ballerina.toml b/build-config/resources/Ballerina.toml
index f5355539..98ad863d 100644
--- a/build-config/resources/Ballerina.toml
+++ b/build-config/resources/Ballerina.toml
@@ -1,5 +1,5 @@
 [package]
-distribution = "2201.8.0"
+distribution = "2201.10.0"
 org = "ballerinax"
 name = "twilio"
 version = "@toml.version@"
diff --git a/examples/accounts/create-sub-account/main.bal b/examples/accounts/create-sub-account/main.bal
index 0f3fd07b..b0a4da7a 100644
--- a/examples/accounts/create-sub-account/main.bal
+++ b/examples/accounts/create-sub-account/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/accounts/fetch-account/main.bal b/examples/accounts/fetch-account/main.bal
index 30a89d10..de3e0d0c 100644
--- a/examples/accounts/fetch-account/main.bal
+++ b/examples/accounts/fetch-account/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/accounts/fetch-balance/main.bal b/examples/accounts/fetch-balance/main.bal
index d001525b..bdc64cd7 100644
--- a/examples/accounts/fetch-balance/main.bal
+++ b/examples/accounts/fetch-balance/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/accounts/list-accounts/main.bal b/examples/accounts/list-accounts/main.bal
index dd3b9642..12209b38 100644
--- a/examples/accounts/list-accounts/main.bal
+++ b/examples/accounts/list-accounts/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/accounts/update-account/main.bal b/examples/accounts/update-account/main.bal
index 41ff96da..70943a5e 100644
--- a/examples/accounts/update-account/main.bal
+++ b/examples/accounts/update-account/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/authentication/api-key-auth/API key authentication.md b/examples/authentication/api-key-auth/API key authentication.md
new file mode 100644
index 00000000..c5cf4dfe
--- /dev/null
+++ b/examples/authentication/api-key-auth/API key authentication.md	
@@ -0,0 +1,26 @@
+# API Key Based Authentication in Ballerina Twilio Connector
+
+This example demonstrates how to authenticate your requests to Twilio Account using API Key based authentication in Ballerina Twilio Connector.
+
+## Prerequisites
+
+### 1. Set up
+Refer to the setup guide in [ReadMe](../../../README.md) for necessary credentials.
+
+### 2. Configuration
+
+Configure Twilio API credentials in `Config.toml` in the example directory:
+
+```toml
+API_KEY="<API Key>"
+API_SECRET="<API Secret>"
+ACCOUNT_SID="<Account Sid>"
+```
+
+## Run the Example
+
+Execute the following command to run the example:
+
+```bash
+bal run
+```
\ No newline at end of file
diff --git a/examples/authentication/api-key-auth/Ballerina.toml b/examples/authentication/api-key-auth/Ballerina.toml
new file mode 100644
index 00000000..3a99d3d5
--- /dev/null
+++ b/examples/authentication/api-key-auth/Ballerina.toml
@@ -0,0 +1,8 @@
+[package]
+org = "twilio_samples"
+name = "api_key_auth"
+version = "0.1.0"
+distribution = "2201.10.1"
+
+[build-options]
+observabilityIncluded = true
diff --git a/examples/authentication/api-key-auth/main.bal b/examples/authentication/api-key-auth/main.bal
new file mode 100644
index 00000000..da388b7b
--- /dev/null
+++ b/examples/authentication/api-key-auth/main.bal
@@ -0,0 +1,46 @@
+// Copyright (c) 2024 WSO2 LLC. (http://www.wso2.org).
+//
+// WSO2 LLC. licenses this file to you under the Apache License,
+// Version 2.0 (the "License"); you may not use this file except
+// in compliance with the License.
+// You may obtain a copy of the License at
+//
+// http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing,
+// software distributed under the License is distributed on an
+// "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+// KIND, either express or implied.  See the License for the
+// specific language governing permissions and limitations
+// under the License.
+
+import ballerina/io;
+import ballerina/os;
+import ballerinax/twilio;
+
+configurable string accountSid = os:getEnv("ACCOUNT_SID");
+configurable string apiKey = os:getEnv("API_KEY");
+configurable string apiSecret = os:getEnv("API_SECRET");
+
+// Twilio API Key based authentication configurations
+twilio:ConnectionConfig twilioConfig = {
+    auth: {
+        apiKey,
+        apiSecret,
+        accountSid
+    }
+};
+
+// This sample demonstrates a scenario where Twilio connector is used to send a text message to a number.
+public function main() returns error? {
+    twilio:Client twilio = check new (twilioConfig);
+
+    twilio:CreateMessageRequest messageRequest = {
+        To: "+00123456789",
+        From: "+00123456789",
+        Body: "Hello from Ballerina"
+    };
+
+    twilio:Message response = check twilio->createMessage(messageRequest);
+    io:print("Message Status: ",response?.status);
+}
diff --git a/examples/calls/create-call/main.bal b/examples/calls/create-call/main.bal
index 15d2f078..50c6e396 100644
--- a/examples/calls/create-call/main.bal
+++ b/examples/calls/create-call/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/calls/delete-call-log/main.bal b/examples/calls/delete-call-log/main.bal
index dbfd1860..6401b16a 100644
--- a/examples/calls/delete-call-log/main.bal
+++ b/examples/calls/delete-call-log/main.bal
@@ -25,8 +25,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/calls/fetch-call-log/main.bal b/examples/calls/fetch-call-log/main.bal
index b750b315..8dd52b5f 100644
--- a/examples/calls/fetch-call-log/main.bal
+++ b/examples/calls/fetch-call-log/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/calls/list-call-logs/main.bal b/examples/calls/list-call-logs/main.bal
index eb1d82fe..c4ca82d3 100644
--- a/examples/calls/list-call-logs/main.bal
+++ b/examples/calls/list-call-logs/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/messages/create-sms-message/main.bal b/examples/messages/create-sms-message/main.bal
index 6f5364ce..5e3a1531 100644
--- a/examples/messages/create-sms-message/main.bal
+++ b/examples/messages/create-sms-message/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/messages/create-whatsapp-message/main.bal b/examples/messages/create-whatsapp-message/main.bal
index 0dc0093c..01014b2b 100644
--- a/examples/messages/create-whatsapp-message/main.bal
+++ b/examples/messages/create-whatsapp-message/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/messages/delete-message-log/main.bal b/examples/messages/delete-message-log/main.bal
index a38552f2..2472775e 100644
--- a/examples/messages/delete-message-log/main.bal
+++ b/examples/messages/delete-message-log/main.bal
@@ -25,8 +25,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/messages/fetch-message-log/main.bal b/examples/messages/fetch-message-log/main.bal
index c045e209..a5174532 100644
--- a/examples/messages/fetch-message-log/main.bal
+++ b/examples/messages/fetch-message-log/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/examples/messages/list-message-logs/main.bal b/examples/messages/list-message-logs/main.bal
index 5d282b42..ae0e1776 100644
--- a/examples/messages/list-message-logs/main.bal
+++ b/examples/messages/list-message-logs/main.bal
@@ -24,8 +24,8 @@ configurable string authToken = os:getEnv("AUTH_TOKEN");
 // Twilio configurations
 twilio:ConnectionConfig twilioConfig = {
     auth: {
-        username: accountSid,
-        password: authToken
+        accountSid,
+        authToken
     }
 };
 
diff --git a/gradle.properties b/gradle.properties
index 0465ac50..922f1bff 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -1,7 +1,7 @@
 org.gradle.caching=true
 group=io.ballerina.stdlib
-version=4.0.2-SNAPSHOT
-ballerinaLangVersion=2201.8.4
+version=5.0.0-SNAPSHOT
+ballerinaLangVersion=2201.10.0
 
 checkstylePluginVersion=10.12.0
 spotbugsPluginVersion=5.0.14