diff --git a/src/KeyVault/KeyVault.Test/UnitTests/NewAzureKeyVaultSoftDeleteTests.cs b/src/KeyVault/KeyVault.Test/UnitTests/NewAzureKeyVaultSoftDeleteTests.cs
new file mode 100644
index 000000000000..20cc76d9f1bd
--- /dev/null
+++ b/src/KeyVault/KeyVault.Test/UnitTests/NewAzureKeyVaultSoftDeleteTests.cs
@@ -0,0 +1,180 @@
+// ----------------------------------------------------------------------------------
+//
+// Copyright Microsoft Corporation
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+// http://www.apache.org/licenses/LICENSE-2.0
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+// ----------------------------------------------------------------------------------
+
+using Microsoft.Azure.Commands.KeyVault.Models;
+using Microsoft.Azure.Management.Internal.Resources;
+using Microsoft.Azure.Management.KeyVault;
+using Microsoft.Azure.Management.KeyVault.Models;
+using Microsoft.Rest.Azure;
+using Microsoft.WindowsAzure.Commands.ScenarioTest;
+using Moq;
+using System;
+using System.Collections.Generic;
+using System.Management.Automation;
+using System.Net;
+using System.Net.Http;
+using System.Reflection;
+using System.Threading;
+using System.Threading.Tasks;
+using Xunit;
+using KVSku = Microsoft.Azure.Management.KeyVault.Models.Sku;
+
+namespace Microsoft.Azure.Commands.KeyVault.Test.UnitTests
+{
+    /// <summary>
+    /// Verify that New-AzKeyVault explicitly sets EnableSoftDelete=true in the request body
+    /// so that Azure Policy checks requiring the property to be present are satisfied.
+    /// </summary>
+    public class NewAzureKeyVaultSoftDeleteTests : KeyVaultUnitTestBase
+    {
+        private VaultCreateOrUpdateParameters _capturedSdkParameters;
+        private VaultManagementClient _vaultManagementClient;
+
+        /// <summary>
+        /// A fake HTTP handler that returns an empty resource list for any GET (FilterResources)
+        /// and prevents real network calls during unit tests.
+        /// </summary>
+        private class FakeHttpHandler : HttpClientHandler
+        {
+            protected override Task<HttpResponseMessage> SendAsync(HttpRequestMessage request, CancellationToken cancellationToken)
+            {
+                var response = new HttpResponseMessage(HttpStatusCode.OK)
+                {
+                    Content = new StringContent("{\"value\":[]}")
+                };
+                response.Content.Headers.ContentType = new System.Net.Http.Headers.MediaTypeHeaderValue("application/json");
+                return Task.FromResult(response);
+            }
+        }
+
+        private void SetupVaultManagementClient()
+        {
+            _capturedSdkParameters = null;
+
+            var mockVaultsOps = new Mock<IVaultsOperations>();
+            mockVaultsOps
+                .Setup(v => v.CreateOrUpdateWithHttpMessagesAsync(
+                    It.IsAny<string>(),
+                    It.IsAny<string>(),
+                    It.IsAny<VaultCreateOrUpdateParameters>(),
+                    It.IsAny<Dictionary<string, List<string>>>(),
+                    It.IsAny<CancellationToken>()))
+                .Callback<string, string, VaultCreateOrUpdateParameters, Dictionary<string, List<string>>, CancellationToken>(
+                    (rg, name, parameters, headers, ct) => _capturedSdkParameters = parameters)
+                .Returns(Task.FromResult(new AzureOperationResponse<Vault>
+                {
+                    Body = new Vault(
+                        properties: new VaultProperties
+                        {
+                            TenantId = Guid.NewGuid(),
+                            Sku = new KVSku(SkuName.Standard),
+                            AccessPolicies = new AccessPolicyEntry[] { },
+                            VaultUri = "https://testvault.vault.azure.net"
+                        },
+                        name: "testvault",
+                        location: "eastus")
+                }));
+
+            var mockKvMgmtClient = new Mock<IKeyVaultManagementClient>();
+            mockKvMgmtClient.Setup(c => c.Vaults).Returns(mockVaultsOps.Object);
+
+            _vaultManagementClient = new VaultManagementClient();
+            typeof(VaultManagementClient)
+                .GetProperty("KeyVaultManagementClient", BindingFlags.NonPublic | BindingFlags.Instance)
+                .SetValue(_vaultManagementClient, mockKvMgmtClient.Object);
+        }
+
+        private ResourceManagementClient CreateFakeResourceClient()
+        {
+            var client = new ResourceManagementClient(
+                new Microsoft.Rest.TokenCredentials("fake-token"),
+                new FakeHttpHandler());
+            client.SubscriptionId = "00000000-0000-0000-0000-000000000000";
+            return client;
+        }
+
+        /// <summary>
+        /// Exercises NewAzureKeyVault.ExecuteCmdlet() end-to-end and verifies that
+        /// the cmdlet hardcodes EnableSoftDelete=true in the outgoing request.
+        /// This test would FAIL if the assignment at NewAzureKeyVault.cs line 171
+        /// were removed, because VaultManagementClient is a pure pass-through
+        /// (as proved by VaultManagementClient_Does_Not_Default_EnableSoftDelete).
+        /// </summary>
+        [Fact]
+        [Trait(Category.AcceptanceType, Category.CheckIn)]
+        public void ExecuteCmdlet_Sets_EnableSoftDelete_True_In_Request()
+        {
+            // Arrange
+            SetupVaultManagementClient();
+
+            var cmdRuntimeMock = new Mock<ICommandRuntime>();
+            cmdRuntimeMock.Setup(cr => cr.ShouldProcess(It.IsAny<string>(), It.IsAny<string>())).Returns(true);
+
+            var cmdlet = new NewAzureKeyVault
+            {
+                CommandRuntime = cmdRuntimeMock.Object,
+                Name = "test-vault",
+                ResourceGroupName = "test-rg",
+                Location = "eastus"
+            };
+            cmdlet.KeyVaultManagementClient = _vaultManagementClient;
+            cmdlet.ResourceClient = CreateFakeResourceClient();
+
+            // Act
+            cmdlet.ExecuteCmdlet();
+
+            // Assert
+            Assert.NotNull(_capturedSdkParameters);
+            Assert.True(_capturedSdkParameters.Properties.EnableSoftDelete,
+                "NewAzureKeyVault.ExecuteCmdlet() must set EnableSoftDelete=true in the request body " +
+                "so that Azure Policy checks requiring the property to be present are satisfied.");
+        }
+
+        /// <summary>
+        /// Proves VaultManagementClient.CreateNewVault is a pure pass-through:
+        /// it does NOT inject a default for EnableSoftDelete.
+        /// Combined with ExecuteCmdlet_Sets_EnableSoftDelete_True_In_Request, this proves
+        /// that only the cmdlet's hardcoded assignment provides the value.
+        /// If someone removes EnableSoftDelete=true from NewAzureKeyVault.cs,
+        /// the request would go out with EnableSoftDelete=null and Azure Policy would reject it.
+        /// </summary>
+        [Fact]
+        [Trait(Category.AcceptanceType, Category.CheckIn)]
+        public void VaultManagementClient_Does_Not_Default_EnableSoftDelete()
+        {
+            // Arrange
+            SetupVaultManagementClient();
+
+            var createParameters = new VaultCreationOrUpdateParameters
+            {
+                Name = "testvault",
+                ResourceGroupName = "testrg",
+                Location = "eastus",
+                SkuFamilyName = "A",
+                SkuName = "Standard",
+                TenantId = Guid.NewGuid(),
+                EnableSoftDelete = null, // Deliberately not set
+                SoftDeleteRetentionInDays = 90,
+                NetworkAcls = new NetworkRuleSet()
+            };
+
+            // Act
+            _vaultManagementClient.CreateNewVault(createParameters);
+
+            // Assert - null in means null out; client does NOT inject a default
+            Assert.NotNull(_capturedSdkParameters);
+            Assert.Null(_capturedSdkParameters.Properties.EnableSoftDelete);
+        }
+    }
+}
diff --git a/src/KeyVault/KeyVault/ChangeLog.md b/src/KeyVault/KeyVault/ChangeLog.md
index 3411677ed0f7..3abf98eb6a97 100644
--- a/src/KeyVault/KeyVault/ChangeLog.md
+++ b/src/KeyVault/KeyVault/ChangeLog.md
@@ -18,6 +18,7 @@
         - Additional information about change #1
 -->
 ## Upcoming Release
+* Fixed `New-AzKeyVault` `RequestDisallowedByPolicy` error by explicitly setting `enableSoftDelete` in the request body to satisfy Azure Policy checks
 
 ## Version 6.4.3
 * Added upcoming breaking change warning messages to `Get-AzKeyVaultKey` and `Get-AzKeyVaultSecret` for filtering certificate-backed keys and secrets.
diff --git a/src/KeyVault/KeyVault/Commands/KeyVault/NewAzureKeyVault.cs b/src/KeyVault/KeyVault/Commands/KeyVault/NewAzureKeyVault.cs
index e6c80edabe6a..ae27d84f1c21 100644
--- a/src/KeyVault/KeyVault/Commands/KeyVault/NewAzureKeyVault.cs
+++ b/src/KeyVault/KeyVault/Commands/KeyVault/NewAzureKeyVault.cs
@@ -166,7 +166,9 @@ public override void ExecuteCmdlet()
                     EnabledForDeployment = this.EnabledForDeployment.IsPresent ? true : null as bool?,
                     EnabledForTemplateDeployment = EnabledForTemplateDeployment.IsPresent ? true : null as bool?,
                     EnabledForDiskEncryption = EnabledForDiskEncryption.IsPresent ? true : null as bool?,
-                    EnableSoftDelete = null,
+                    // Explicitly set to satisfy Azure Policy checks that require
+                    // enableSoftDelete to be present in the request body.
+                    EnableSoftDelete = true,
                     EnablePurgeProtection = EnablePurgeProtection.IsPresent ? true : (bool?)null, // false is not accepted
                     EnableRbacAuthorization = DisableRbacAuthorization.IsPresent ? false : true,
                     /*