diff --git a/changelog/69405.fixed.md b/changelog/69405.fixed.md
new file mode 100644
index 000000000000..21a0e1dbf75e
--- /dev/null
+++ b/changelog/69405.fixed.md
@@ -0,0 +1 @@
+Decode binary pillars for salt-ssh to align the behaviour with salt-minion.
diff --git a/salt/client/ssh/state.py b/salt/client/ssh/state.py
index 516b2432e0f5..588d157d4882 100644
--- a/salt/client/ssh/state.py
+++ b/salt/client/ssh/state.py
@@ -15,6 +15,7 @@
 import salt.minion
 import salt.roster
 import salt.state
+import salt.utils.data
 import salt.utils.files
 import salt.utils.json
 import salt.utils.path
@@ -220,6 +221,7 @@ def prep_trans_tar(
         salt.utils.json.dump(chunks, fp_)
     if pillar:
         with salt.utils.files.fopen(pillarfn, "w+") as fp_:
+            pillar = salt.utils.data.decode_dict(pillar)
             salt.utils.json.dump(pillar, fp_)
     if roster_grains:
         with salt.utils.files.fopen(roster_grainsfn, "w+") as fp_:
diff --git a/tests/pytests/unit/client/ssh/test_state.py b/tests/pytests/unit/client/ssh/test_state.py
new file mode 100644
index 000000000000..3f1424f3ddb4
--- /dev/null
+++ b/tests/pytests/unit/client/ssh/test_state.py
@@ -0,0 +1,56 @@
+import pytest
+
+from salt.client.ssh.state import prep_trans_tar
+from tests.support.mock import patch
+
+
+@pytest.mark.parametrize(
+    "inpt,expected",
+    [
+        (
+            {
+                "pillar_data_n1": 1,
+                "pillar_data_t2": "text2",
+                "pillar_data_d3": {
+                    "text1": "text1",
+                    "text2": "text2",
+                },
+            },
+            {
+                "pillar_data_n1": 1,
+                "pillar_data_t2": "text2",
+                "pillar_data_d3": {
+                    "text1": "text1",
+                    "text2": "text2",
+                },
+            },
+        ),
+        (
+            {
+                "pillar_data_n1": 1,
+                "pillar_data_t2": "text2",
+                "pillar_data_b3": b"text3",
+                "pillar_data_d4": {
+                    "bin1": b"bin1",
+                    "bin2": b"bin2",
+                },
+            },
+            {
+                "pillar_data_n1": 1,
+                "pillar_data_t2": "text2",
+                "pillar_data_b3": "text3",
+                "pillar_data_d4": {
+                    "bin1": "bin1",
+                    "bin2": "bin2",
+                },
+            },
+        ),
+    ],
+)
+def test_prep_trans_tar_with_binary_pillar(inpt, expected):
+    """
+    Test binary pillar serialization
+    """
+    with patch("salt.utils.json.dump", return_value="") as json_dump_mock:
+        trans_tar = prep_trans_tar(None, [], [], pillar=inpt)
+        assert expected == json_dump_mock.call_args[0][0]