diff --git a/.github/actions/rosa-create-cluster/action.yml b/.github/actions/rosa-create-cluster/action.yml
index 584636dc..f9c7fc70 100644
--- a/.github/actions/rosa-create-cluster/action.yml
+++ b/.github/actions/rosa-create-cluster/action.yml
@@ -115,7 +115,12 @@ runs:
           aws s3api create-bucket --bucket ${{ inputs.s3-backend-bucket }} --region ${{ inputs.aws-region }} --create-bucket-configuration LocationConstraint=${{ inputs.aws-region }}
         fi
 
-        aws s3api put-bucket-policy --bucket ${{ inputs.s3-backend-bucket }} --region ${{ inputs.aws-region }} --policy file://.github/actions/rosa-create-cluster/bucket-policy.json
+        # Define the path to the bucket policy file
+        bucket_policy_path=".github/actions/rosa-create-cluster/bucket-policy.json"
+
+        # Replace placeholders in the bucket policy file and apply the policy
+        sed -i "s|\${{ inputs.s3-backend-bucket }}|${{ inputs.s3-backend-bucket }}|g" "$bucket_policy_path"
+        aws s3api put-bucket-policy --bucket ${{ inputs.s3-backend-bucket }} --region ${{ inputs.aws-region }} --policy file://$bucket_policy_path
 
     - name: Terraform Init
       shell: bash