diff --git a/.changelog/35677.txt b/.changelog/35677.txt
new file mode 100644
index 00000000000..12cd6f9fc70
--- /dev/null
+++ b/.changelog/35677.txt
@@ -0,0 +1,3 @@
+```release-note:enhancement
+data-source/aws_iam_policy_document: Add `minified_json` attribute
+```
diff --git a/internal/service/iam/policy_document_data_source.go b/internal/service/iam/policy_document_data_source.go
index 1740aa0c034..4a3e8defbc9 100644
--- a/internal/service/iam/policy_document_data_source.go
+++ b/internal/service/iam/policy_document_data_source.go
@@ -64,6 +64,10 @@ func dataSourcePolicyDocument() *schema.Resource {
 					Type:     schema.TypeString,
 					Computed: true,
 				},
+				"minified_json": {
+					Type:     schema.TypeString,
+					Computed: true,
+				},
 				// https://github.com/hashicorp/terraform-provider-aws/issues/31637.
 				"override_json": {
 					Type:         schema.TypeString,
@@ -309,6 +313,16 @@ func dataSourcePolicyDocumentRead(ctx context.Context, d *schema.ResourceData, m
 	jsonString := string(jsonDoc)
 
 	d.Set("json", jsonString)
+
+	jsonMinDoc, err := json.Marshal(mergedDoc)
+	if err != nil {
+		// should never happen if the above code is correct
+		return sdkdiag.AppendErrorf(diags, "writing IAM Policy Document: formatting JSON: %s", err)
+	}
+	jsonMinString := string(jsonMinDoc)
+
+	d.Set("minified_json", jsonMinString)
+
 	d.SetId(strconv.Itoa(create.StringHashcode(jsonString)))
 
 	return diags
diff --git a/internal/service/iam/policy_document_data_source_test.go b/internal/service/iam/policy_document_data_source_test.go
index 11a8c71c253..a25b698ea90 100644
--- a/internal/service/iam/policy_document_data_source_test.go
+++ b/internal/service/iam/policy_document_data_source_test.go
@@ -29,6 +29,9 @@ func TestAccIAMPolicyDocumentDataSource_basic(t *testing.T) {
 					resource.TestCheckResourceAttr("data.aws_iam_policy_document.test", "json",
 						testAccPolicyDocumentExpectedJSON(),
 					),
+					resource.TestCheckResourceAttr("data.aws_iam_policy_document.test", "minified_json",
+						testAccPolicyDocumentExpectedJSONMinified(),
+					),
 				),
 			},
 		},
@@ -589,6 +592,10 @@ func testAccPolicyDocumentExpectedJSON() string {
 }`, acctest.Partition())
 }
 
+func testAccPolicyDocumentExpectedJSONMinified() string {
+	return fmt.Sprintf(`{"Version":"2012-10-17","Id":"policy_id","Statement":[{"Sid":"1","Effect":"Allow","Action":["s3:ListAllMyBuckets","s3:GetBucketLocation"],"Resource":"arn:%[1]s:s3:::*"},{"Effect":"Allow","Action":"s3:ListBucket","Resource":"arn:%[1]s:s3:::foo","NotPrincipal":{"AWS":"arn:blahblah:example"},"Condition":{"StringLike":{"s3:prefix":["home/","","home/${aws:username}/"]}}},{"Effect":"Allow","Action":"s3:*","Resource":["arn:%[1]s:s3:::foo/home/${aws:username}/*","arn:%[1]s:s3:::foo/home/${aws:username}"],"Principal":{"AWS":"arn:blahblah:example"}},{"Effect":"Deny","NotAction":"s3:*","NotResource":"arn:%[1]s:s3:::*"},{"Effect":"Allow","Action":"kinesis:*","Principal":{"AWS":"*"}},{"Effect":"Allow","Action":"firehose:*","Principal":"*"}]}`, acctest.Partition())
+}
+
 const testAccPolicyDocumentDataSourceConfig_singleConditionValue = `
 data "aws_iam_policy_document" "test" {
   statement {
diff --git a/website/docs/d/iam_policy_document.html.markdown b/website/docs/d/iam_policy_document.html.markdown
index 30cf2852ab2..6290c94f7b6 100644
--- a/website/docs/d/iam_policy_document.html.markdown
+++ b/website/docs/d/iam_policy_document.html.markdown
@@ -536,3 +536,4 @@ The following arguments are required:
 This data source exports the following attributes in addition to the arguments above:
 
 * `json` - Standard JSON policy document rendered based on the arguments above.
+* `minified_json` - Minified JSON policy document rendered based on the arguments above.