diff --git a/changelog/61944.fixed b/changelog/61944.fixed
new file mode 100644
index 000000000000..d25536519fb4
--- /dev/null
+++ b/changelog/61944.fixed
@@ -0,0 +1 @@
+fixed error when using backslash literal in file.replace
diff --git a/salt/modules/file.py b/salt/modules/file.py
index 9cfc73e49591..818f0104df18 100644
--- a/salt/modules/file.py
+++ b/salt/modules/file.py
@@ -2563,7 +2563,7 @@ def replace(
             else:
                 result, nrepl = re.subn(
                     cpattern,
-                    repl.replace("\\", "\\\\") if backslash_literal else repl,
+                    repl.replace(b"\\", b"\\\\") if backslash_literal else repl,
                     r_data,
                     count,
                 )
@@ -2624,7 +2624,7 @@ def replace(
                         r_data = mmap.mmap(r_file.fileno(), 0, access=mmap.ACCESS_READ)
                         result, nrepl = re.subn(
                             cpattern,
-                            repl.replace("\\", "\\\\") if backslash_literal else repl,
+                            repl.replace(b"\\", b"\\\\") if backslash_literal else repl,
                             r_data,
                             count,
                         )
diff --git a/tests/pytests/functional/modules/file/test_replace.py b/tests/pytests/functional/modules/file/test_replace.py
index 962db6d59264..3be41d0661d3 100644
--- a/tests/pytests/functional/modules/file/test_replace.py
+++ b/tests/pytests/functional/modules/file/test_replace.py
@@ -205,3 +205,8 @@ def test_replace_no_modify_time_update_on_no_change(file, multiline_file):
     nmtime = os.stat(str(multiline_file)).st_mtime
 
     assert mtime == nmtime
+
+
+def test_backslash_literal(file, multiline_file):
+    file.replace(str(multiline_file), r"Etiam", "Emma", backslash_literal=True)
+    assert "Emma" in multiline_file.read_text()