diff --git a/src/Resources/ResourceManager/RestClients/ResourceManagerRestClientBase.cs b/src/Resources/ResourceManager/RestClients/ResourceManagerRestClientBase.cs
index 5ef6a2df3568..5adcccc0eba5 100644
--- a/src/Resources/ResourceManager/RestClients/ResourceManagerRestClientBase.cs
+++ b/src/Resources/ResourceManager/RestClients/ResourceManagerRestClientBase.cs
@@ -18,7 +18,6 @@ namespace Microsoft.Azure.Commands.ResourceManager.Cmdlets.RestClients
     using System.Linq;
     using System.Net.Http;
     using System.Text;
-    using System.Text.RegularExpressions;
     using System.Threading;
     using System.Threading.Tasks;
     using Microsoft.Azure.Commands.ResourceManager.Cmdlets.Components;
@@ -165,7 +164,18 @@ protected async Task<HttpResponseMessage> SendRequestAsync(
         {
             var contentString = content == null ? string.Empty : content.ToString();
             // minify JOSN payload to avoid payload too large error
-            contentString = Regex.Replace(contentString, @"\r\n?|\n|\t| ", String.Empty);
+            if (!string.IsNullOrEmpty(contentString))
+            {
+                try
+                {
+                    var obj = JsonConvert.DeserializeObject(contentString);
+                    contentString = JsonConvert.SerializeObject(obj, Formatting.None);
+                }
+                catch
+                {
+                    // leave contentString as it is
+                }
+            }
             using (var httpContent = new StringContent(content: contentString, encoding: Encoding.UTF8, mediaType: "application/json"))
             using (var request = new HttpRequestMessage(method: httpMethod, requestUri: requestUri) { Content = httpContent })
             {
diff --git a/src/Resources/Resources/ChangeLog.md b/src/Resources/Resources/ChangeLog.md
index 507fb7b251ba..b9035fef1d65 100644
--- a/src/Resources/Resources/ChangeLog.md
+++ b/src/Resources/Resources/ChangeLog.md
@@ -19,6 +19,7 @@
 -->
 
 ## Upcoming Release
+* Fixed issue introduced in previous fix for `Set-AzPolicySetDefinition` InternalServerError when the initiative is too large [#20238], which will remove space in value.
 
 ## Version 6.5.0
 * Added cmdlet `Get-AzADOrganization`