diff --git a/Scripts/Helpers/Build-PolicyPlan.ps1 b/Scripts/Helpers/Build-PolicyPlan.ps1
index b528f8c9..48ff6295 100644
--- a/Scripts/Helpers/Build-PolicyPlan.ps1
+++ b/Scripts/Helpers/Build-PolicyPlan.ps1
@@ -49,12 +49,13 @@ function Build-PolicyPlan {
 
         $definitionProperties = Get-PolicyResourceProperties -PolicyResource $definitionObject
         $name = $definitionObject.name
-            
+
         $id = "$deploymentRootScope/providers/Microsoft.Authorization/policyDefinitions/$name"
         $displayName = $definitionProperties.displayName
         $description = $definitionProperties.description
         $metadata = Get-DeepCloneAsOrderedHashtable $definitionProperties.metadata
         $mode = $definitionProperties.mode
+        $version = $definitionProperties.version
         $parameters = $definitionProperties.parameters
         $policyRule = $definitionProperties.policyRule
         if ($null -ne $metadata) {
@@ -114,6 +115,7 @@ function Build-PolicyPlan {
             displayName = $displayName
             description = $description
             mode        = $mode
+            version     = $version
             metadata    = $metadata
             parameters  = $parameters
             policyRule  = $policyRule
@@ -193,7 +195,7 @@ function Build-PolicyPlan {
             Write-Information "New '$($displayName)'"
         }
     }
-       
+
 
     $strategy = $PacEnvironment.desiredState.strategy
     foreach ($id in $deleteCandidates.Keys) {
diff --git a/Scripts/Helpers/Build-PolicySetPlan.ps1 b/Scripts/Helpers/Build-PolicySetPlan.ps1
index 57e9e183..c9989287 100644
--- a/Scripts/Helpers/Build-PolicySetPlan.ps1
+++ b/Scripts/Helpers/Build-PolicySetPlan.ps1
@@ -49,6 +49,7 @@ function Build-PolicySetPlan {
         $displayName = $definitionProperties.displayName
         $description = $definitionProperties.description
         $metadata = Get-DeepCloneAsOrderedHashtable $definitionProperties.metadata
+        $version = $definitionProperties.version
         $parameters = $definitionProperties.parameters
         $policyDefinitions = $definitionProperties.policyDefinitions
         $policyDefinitionGroups = $definitionProperties.policyDefinitionGroups
@@ -182,6 +183,7 @@ function Build-PolicySetPlan {
             displayName            = $displayName
             description            = $description
             metadata               = $metadata
+            version                = $version
             parameters             = $parameters
             policyDefinitions      = $policyDefinitionsFinal
             policyDefinitionGroups = $policyDefinitionGroupsFinal
diff --git a/Scripts/Helpers/Confirm-PolicyDefinitionsInPolicySetMatch.ps1 b/Scripts/Helpers/Confirm-PolicyDefinitionsInPolicySetMatch.ps1
index 370c9b45..5c4be8ed 100644
--- a/Scripts/Helpers/Confirm-PolicyDefinitionsInPolicySetMatch.ps1
+++ b/Scripts/Helpers/Confirm-PolicyDefinitionsInPolicySetMatch.ps1
@@ -28,8 +28,8 @@ function Confirm-PolicyDefinitionsInPolicySetMatch {
         return $false
     }
     for ($i = 0; $i -le $Object1.Count; $i++) {
-        $item1 = $Object1[$i]
-        $item2 = $Object2[$i]
+        $item1 = $Object1[$i] # this is the Azure Policy definition set
+        $item2 = $Object2[$i] # this is the local policy definition set
         if ($item1 -ne $item2) {
             $policyDefinitionReferenceIdMatches = $item1.policyDefinitionReferenceId -eq $item2.policyDefinitionReferenceId
             if (!$policyDefinitionReferenceIdMatches) {
@@ -39,24 +39,15 @@ function Confirm-PolicyDefinitionsInPolicySetMatch {
             if (!$policyDefinitionIdMatches) {
                 return $false
             }
-            if ($null -ne $item2.definitionVersion) {
-                # ignore auto-generated definitionVersion, only compare if Policy definition entry has a definitionVersion
-                $deployedPolicyDefinitionVersion = $Definitions[$item1.policyDefinitionId].properties.version
-                if ($null -eq $deployedPolicyDefinitionVersion) {
-                    # Custom policy definition - version is in a different place
-                    $deployedPolicyDefinitionVersion = $Definitions[$item1.policyDefinitionId].metadata.version
-                }
-                # $definitionVersionMatches = $item1.definitionVersion -eq $item2.definitionVersion
-                # if (!$definitionVersionMatches) {
-                #     return $false
-                # }
-                $definitionVersionMatches = Compare-SemanticVersion -Version1 $deployedPolicyDefinitionVersion -Version2 $item2.definitionVersion
-                if ($definitionVersionMatches -ne 0) {
-                    Write-Verbose "Definition Id: $($item1.policyDefinitionId)"
-                    Write-Verbose "DefinitionVersion does not match: Azure: $deployedPolicyDefinitionVersion, Local: $($item2.definitionVersion)"
-                    return $false
-                }
+
+            # Validate the Azure definitionVersion with the local definitionVersion, if the local definitionVersion doesn't exist and the Azure definitionVersion is not equal to latest policy version then return false
+            $definitionVersionMatches = Compare-SemanticVersion -Version1 $($item1.definitionVersion ?? $Definitions[$item1.policyDefinitionId].properties.version ?? '1.*.*') -Version2 $($item2.definitionVersion ?? $Definitions[$item1.policyDefinitionId].properties.version ?? '1.*.*')
+            if ($definitionVersionMatches -ne 0) {
+                Write-Verbose "Definition Id: $($item1.policyDefinitionId)"
+                Write-Verbose "DefinitionVersion does not match: Azure: $($item1.definitionVersion), Local: $($item2.definitionVersion)"
+                return $false
             }
+
             $groupNames1 = $item1.groupNames
             $groupNames2 = $item2.groupNames
             if ($null -eq $groupNames1 -and $null -eq $groupNames2 -and $i -eq $Object1.Count) {
@@ -79,7 +70,7 @@ function Confirm-PolicyDefinitionsInPolicySetMatch {
                     return $false
                 }
             }
-            
+
             $parametersUsageMatches = Confirm-ParametersUsageMatches `
                 -ExistingParametersObj $item1.parameters `
                 -DefinedParametersObj $item2.parameters `