diff --git a/changelog/15055.txt b/changelog/15055.txt
new file mode 100644
index 000000000..648aa2998
--- /dev/null
+++ b/changelog/15055.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+identity: deduplicate policies when creating/updating identity groups
+```
\ No newline at end of file
diff --git a/vault/identity_store_groups_test.go b/vault/identity_store_groups_test.go
index e3f1486f7..8e1d38038 100644
--- a/vault/identity_store_groups_test.go
+++ b/vault/identity_store_groups_test.go
@@ -774,6 +774,94 @@ func TestIdentityStore_GroupsCreateUpdate(t *testing.T) {
 	}
 }
 
+func TestIdentityStore_GroupsCreateUpdateDuplicatePolicy(t *testing.T) {
+	var resp *logical.Response
+	var err error
+
+	ctx := namespace.RootContext(nil)
+	is, _, _ := testIdentityStoreWithGithubAuth(ctx, t)
+
+	// Create a group with the above created 2 entities as its members
+	groupData := map[string]interface{}{
+		"policies": []string{"testpolicy1", "testpolicy2"},
+		"metadata": []string{"testkey1=testvalue1", "testkey2=testvalue2"},
+	}
+
+	// Create a group and get its ID
+	groupReq := &logical.Request{
+		Operation: logical.UpdateOperation,
+		Path:      "group",
+		Data:      groupData,
+	}
+
+	// Create a group with the above 2 groups as its members
+	resp, err = is.HandleRequest(ctx, groupReq)
+	if err != nil || (resp != nil && resp.IsError()) {
+		t.Fatalf("bad: resp: %#v, err: %v", resp, err)
+	}
+	groupID := resp.Data["id"].(string)
+
+	// Read the group using its iD and check if all the fields are properly
+	// set
+	groupReq = &logical.Request{
+		Operation: logical.ReadOperation,
+		Path:      "group/id/" + groupID,
+	}
+	resp, err = is.HandleRequest(ctx, groupReq)
+	if err != nil || (resp != nil && resp.IsError()) {
+		t.Fatalf("bad: resp: %#v, err: %v", resp, err)
+	}
+
+	expectedData := map[string]interface{}{
+		"policies": []string{"testpolicy1", "testpolicy2"},
+		"metadata": map[string]string{
+			"testkey1": "testvalue1",
+			"testkey2": "testvalue2",
+		},
+		"parent_group_ids": []string(nil),
+	}
+	expectedData["id"] = resp.Data["id"]
+	expectedData["type"] = resp.Data["type"]
+	expectedData["name"] = resp.Data["name"]
+	expectedData["creation_time"] = resp.Data["creation_time"]
+	expectedData["last_update_time"] = resp.Data["last_update_time"]
+	expectedData["modify_index"] = resp.Data["modify_index"]
+	expectedData["alias"] = resp.Data["alias"]
+	expectedData["namespace_id"] = "root"
+	expectedData["member_group_ids"] = resp.Data["member_group_ids"]
+	expectedData["member_entity_ids"] = resp.Data["member_entity_ids"]
+
+	if diff := deep.Equal(expectedData, resp.Data); diff != nil {
+		t.Fatal(diff)
+	}
+
+	// Update the policies and metadata in the group
+	groupReq.Operation = logical.UpdateOperation
+	groupReq.Data = groupData
+
+	// Update by setting ID in the param
+	groupData["id"] = groupID
+	groupData["policies"] = []string{"updatedpolicy1", "updatedpolicy2", "updatedpolicy2"}
+	resp, err = is.HandleRequest(ctx, groupReq)
+	if err != nil || (resp != nil && resp.IsError()) {
+		t.Fatalf("bad: resp: %#v, err: %v", resp, err)
+	}
+
+	// Check if updates are reflected
+	groupReq.Operation = logical.ReadOperation
+	resp, err = is.HandleRequest(ctx, groupReq)
+	if err != nil || (resp != nil && resp.IsError()) {
+		t.Fatalf("bad: resp: %#v, err: %v", resp, err)
+	}
+
+	expectedData["policies"] = []string{"updatedpolicy1", "updatedpolicy2"}
+	expectedData["last_update_time"] = resp.Data["last_update_time"]
+	expectedData["modify_index"] = resp.Data["modify_index"]
+	if !reflect.DeepEqual(expectedData, resp.Data) {
+		t.Fatalf("bad: group data; expected: %#v\n actual: %#v\n", expectedData, resp.Data)
+	}
+}
+
 func TestIdentityStore_GroupsCRUD_ByID(t *testing.T) {
 	var resp *logical.Response
 	var err error
diff --git a/vault/identity_store_util.go b/vault/identity_store_util.go
index 5f9e891e7..b6baea019 100644
--- a/vault/identity_store_util.go
+++ b/vault/identity_store_util.go
@@ -1483,6 +1483,9 @@ func (i *IdentityStore) sanitizeAndUpsertGroup(ctx context.Context, group *ident
 		}
 	}
 
+	// Remove duplicate policies
+	group.Policies = strutil.RemoveDuplicates(group.Policies, false)
+
 	txn := i.db.Txn(true)
 	defer txn.Abort()