diff --git a/src/CosmosDB/CosmosDB/ChangeLog.md b/src/CosmosDB/CosmosDB/ChangeLog.md
index 891a1072678d..adb00f14b1a6 100644
--- a/src/CosmosDB/CosmosDB/ChangeLog.md
+++ b/src/CosmosDB/CosmosDB/ChangeLog.md
@@ -19,6 +19,7 @@
 -->
 
 ## Upcoming Release
+* Added support for partition key and id paths to be part of client encryption policy.
 * Fixed bug related to Update-AzCosmosDBSqlContainer command on containers with Client Encryption Policy.
 
 ## Version 1.9.0
diff --git a/src/CosmosDB/CosmosDB/Models/PSClientEncryptionPolicy.cs b/src/CosmosDB/CosmosDB/Models/PSClientEncryptionPolicy.cs
index 2063716d1dd7..8b16c1531170 100644
--- a/src/CosmosDB/CosmosDB/Models/PSClientEncryptionPolicy.cs
+++ b/src/CosmosDB/CosmosDB/Models/PSClientEncryptionPolicy.cs
@@ -36,7 +36,7 @@ public PSClientEncryptionPolicy(ClientEncryptionPolicy clientEncryptionPolicy)
 
             if (ModelHelper.IsNotNullOrEmpty(clientEncryptionPolicy.IncludedPaths))
             {
-                PSClientEncryptionPolicy.ValidateIncludedPaths(clientEncryptionPolicy.IncludedPaths);
+                PSClientEncryptionPolicy.ValidateIncludedPaths(clientEncryptionPolicy.IncludedPaths, (int)clientEncryptionPolicy.PolicyFormatVersion);
 
                 IncludedPaths = new List<PSClientEncryptionIncludedPath>();
                 foreach (ClientEncryptionIncludedPath key in clientEncryptionPolicy.IncludedPaths)
@@ -87,9 +87,12 @@ public static ClientEncryptionPolicy ToSDKModel(PSClientEncryptionPolicy pSClien
                 }
             }
 
-            PSClientEncryptionPolicy.ValidatePartitionKeyPathsAreNotEncrypted(clientEncryptionPolicy.IncludedPaths, partitionKeyPathTokens);
+            PSClientEncryptionPolicy.ValidatePartitionKeyPathsAreNotEncrypted(
+                clientEncryptionPolicy.IncludedPaths,
+                partitionKeyPathTokens,
+                pSClientEncryptionPolicy.PolicyFormatVersion);
 
-            if(clientEncryptionPolicy.PolicyFormatVersion != 1)
+            if(clientEncryptionPolicy.PolicyFormatVersion < 1 || clientEncryptionPolicy.PolicyFormatVersion > 2)
             {
                 throw new InvalidOperationException($"Invalid PolicyFormatVersion:{clientEncryptionPolicy.PolicyFormatVersion} used in Client Encryption Policy. ");
             }
@@ -102,26 +105,44 @@ public static ClientEncryptionPolicy ToSDKModel(PSClientEncryptionPolicy pSClien
         /// </summary>
         /// <param name="clientEncryptionIncludedPath">Included paths of the client encryption policy.</param>
         /// <param name="partitionKeyPathTokens">Tokens corresponding to validated partition key.</param>
-        private static void ValidatePartitionKeyPathsAreNotEncrypted(IEnumerable<ClientEncryptionIncludedPath> clientEncryptionIncludedPath, List<string> partitionKeyPathTokens)
+        /// <param name="policyFormatVersion">Client encryption policy format version.</param>
+        private static void ValidatePartitionKeyPathsAreNotEncrypted(
+            IEnumerable<ClientEncryptionIncludedPath> clientEncryptionIncludedPath,
+            List<string> partitionKeyPathTokens,
+            int policyFormatVersion)
         {
             Debug.Assert(partitionKeyPathTokens != null);
-            IEnumerable<string> propertiesToEncrypt = clientEncryptionIncludedPath.Select(p => p.Path.Substring(1));
+
             foreach (string tokenInPath in partitionKeyPathTokens)
             {
-                Debug.Assert(String.IsNullOrEmpty(tokenInPath));                
-                if (propertiesToEncrypt.Contains(tokenInPath.Substring(1)))
+                Debug.Assert(String.IsNullOrEmpty(tokenInPath));
+
+                string topLevelPath = tokenInPath.Split('/')[1];
+                // paths in included paths start with "/". Get the ClientEncryptionIncludedPath and validate.
+                IEnumerable<ClientEncryptionIncludedPath> encryptedPartitionKeyPath = clientEncryptionIncludedPath.Where(p => p.Path.Substring(1).Equals(topLevelPath));
+
+                if (encryptedPartitionKeyPath.Any())
                 {
-                    throw new ArgumentException($"Paths which are part of the partition key({tokenInPath}) may not be included in the Client Encryption Policy. ");
+                    if (policyFormatVersion < 2)
+                    {
+                        throw new ArgumentException($"Path: {encryptedPartitionKeyPath.Select(et => et.Path).FirstOrDefault()} which is part of the partition key cannot be encrypted with PolicyFormatVersion: {policyFormatVersion}. Please use PolicyFormatVersion: 2. ");
+                    }
+
+                    // for the ClientEncryptionIncludedPath found check the encryption type.
+                    if (encryptedPartitionKeyPath.Select(et => et.EncryptionType).FirstOrDefault() != "Deterministic")
+                    {
+                        throw new ArgumentException($"Path: {encryptedPartitionKeyPath.Select(et => et.Path).FirstOrDefault()} which is part of the partition key has to be encrypted with Deterministic type Encryption.");
+                    }
                 }
             }
         }
 
-        private static void ValidateIncludedPaths(IEnumerable<ClientEncryptionIncludedPath> clientEncryptionIncludedPath)
+        private static void ValidateIncludedPaths(IEnumerable<ClientEncryptionIncludedPath> clientEncryptionIncludedPath, int policyFormatVersion)
         {
             List<string> includedPathsList = new List<string>();
             foreach (ClientEncryptionIncludedPath path in clientEncryptionIncludedPath)
             {
-                PSClientEncryptionPolicy.ValidateClientEncryptionIncludedPath(path);
+                PSClientEncryptionPolicy.ValidateClientEncryptionIncludedPath(path, policyFormatVersion);
                 if (includedPathsList.Contains(path.Path))
                 {
                     throw new ArgumentException($"Duplicate Path({path.Path}) found.", nameof(clientEncryptionIncludedPath));
@@ -131,7 +152,7 @@ private static void ValidateIncludedPaths(IEnumerable<ClientEncryptionIncludedPa
             }
         }
 
-        private static void ValidateClientEncryptionIncludedPath(ClientEncryptionIncludedPath clientEncryptionIncludedPath)
+        private static void ValidateClientEncryptionIncludedPath(ClientEncryptionIncludedPath clientEncryptionIncludedPath, int policyFormatVersion)
         {
             if (clientEncryptionIncludedPath == null)
             {
@@ -144,8 +165,7 @@ private static void ValidateClientEncryptionIncludedPath(ClientEncryptionInclude
             }
 
             if (clientEncryptionIncludedPath.Path[0] != '/'
-                || clientEncryptionIncludedPath.Path.LastIndexOf('/') != 0
-                || string.Equals(clientEncryptionIncludedPath.Path.Substring(1), "id"))
+                || clientEncryptionIncludedPath.Path.LastIndexOf('/') != 0)
             {
                 throw new ArgumentException($"Invalid path '{clientEncryptionIncludedPath.Path ?? string.Empty}'.");
             }
@@ -160,6 +180,19 @@ private static void ValidateClientEncryptionIncludedPath(ClientEncryptionInclude
                 throw new ArgumentNullException(nameof(clientEncryptionIncludedPath.EncryptionType));
             }
 
+            if (string.Equals(clientEncryptionIncludedPath.Path.Substring(1), "id"))
+            {
+                if (policyFormatVersion < 2)
+                {
+                    throw new ArgumentException($"Path: {clientEncryptionIncludedPath.Path} cannot be encrypted with PolicyFormatVersion: {policyFormatVersion}. Please use PolicyFormatVersion: 2. ");
+                }
+
+                if (clientEncryptionIncludedPath.EncryptionType != "Deterministic")
+                {
+                    throw new ArgumentException($"Only Deterministic encryption type is supported for path: {clientEncryptionIncludedPath.Path}. ");
+                }
+            }
+
             if (!string.Equals(clientEncryptionIncludedPath.EncryptionType, "Deterministic") &&
                 !string.Equals(clientEncryptionIncludedPath.EncryptionType, "Randomized"))
             {
diff --git a/src/CosmosDB/CosmosDB/Models/Sql/PSSqlClientEncryptionPolicy.cs b/src/CosmosDB/CosmosDB/Models/Sql/PSSqlClientEncryptionPolicy.cs
index c7c9f263ae2d..eea2fea56478 100644
--- a/src/CosmosDB/CosmosDB/Models/Sql/PSSqlClientEncryptionPolicy.cs
+++ b/src/CosmosDB/CosmosDB/Models/Sql/PSSqlClientEncryptionPolicy.cs
@@ -12,6 +12,7 @@
 // limitations under the License.
 // ----------------------------------------------------------------------------------
 using Microsoft.Azure.Management.CosmosDB.Models;
+using System;
 
 namespace Microsoft.Azure.Commands.CosmosDB.Models
 {
@@ -20,15 +21,28 @@ public class PSSqlClientEncryptionPolicy : PSClientEncryptionPolicy
     {
         public PSSqlClientEncryptionPolicy() : base()
         {
-        }        
+        }
 
-        public PSSqlClientEncryptionPolicy(ClientEncryptionPolicy clientEncryptionPolicy) : base(PSSqlClientEncryptionPolicy.SetSupportedPolicyVersionOnClientEncryptionPolicy(clientEncryptionPolicy))
+        public PSSqlClientEncryptionPolicy(ClientEncryptionPolicy clientEncryptionPolicy) : base(PSSqlClientEncryptionPolicy.SetSupportedPolicyVersionOnClientEncryptionPolicy(clientEncryptionPolicy, clientEncryptionPolicy.PolicyFormatVersion))
         {
         }
 
-        private static ClientEncryptionPolicy SetSupportedPolicyVersionOnClientEncryptionPolicy(ClientEncryptionPolicy clientEncryptionPolicy)
+        private static ClientEncryptionPolicy SetSupportedPolicyVersionOnClientEncryptionPolicy(ClientEncryptionPolicy clientEncryptionPolicy, int? policyFormatVersion = null)
         {
-            clientEncryptionPolicy.PolicyFormatVersion = 1;
+            if (policyFormatVersion == null)
+            {
+                clientEncryptionPolicy.PolicyFormatVersion = 1;
+            }
+            else
+            {
+                if(policyFormatVersion > 2 || policyFormatVersion < 1)
+                {
+                    throw new ArgumentException($"Supported versions of client encryption policy are 1 and 2. ");
+                }
+
+                clientEncryptionPolicy.PolicyFormatVersion = policyFormatVersion;
+            }
+
             return clientEncryptionPolicy;
         }
     }
diff --git a/src/CosmosDB/CosmosDB/help/New-AzCosmosDBSqlContainer.md b/src/CosmosDB/CosmosDB/help/New-AzCosmosDBSqlContainer.md
index 27205b3b4d9c..69bbbd9cce5c 100644
--- a/src/CosmosDB/CosmosDB/help/New-AzCosmosDBSqlContainer.md
+++ b/src/CosmosDB/CosmosDB/help/New-AzCosmosDBSqlContainer.md
@@ -57,15 +57,14 @@ Resource : Microsoft.Azure.Commands.CosmosDB.Models.PSSqlContainerGetPropertiesR
 
 ### Example 2: Create a new CosmosDB Sql Container with Client Encryption Policy
 ```powershell
-$includedPath1 = [Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionIncludedPath]::new("/path1","key1","Deterministic","AEAD_AES_256_CBC_HMAC_SHA256");
-$includedPath2 = [Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionIncludedPath]::new("/path2","key2","Randomized","AEAD_AES_256_CBC_HMAC_SHA256");
-$listofIncludedPaths = New-Object Collections.Generic.List[Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionIncludedPath]
-$listofIncludedPaths.Add($includedPath1)
-$listofIncludedPaths.Add($includedPath2)
-$newClientEncryptionPolicy = New-Object Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionPolicy
-$newClientEncryptionPolicy.IncludedPaths = $listofIncludedPaths
-$newPSSqlClientEncryptionPolicy = [Microsoft.Azure.Commands.CosmosDB.Models.PSSqlClientEncryptionPolicy]::new($newClientEncryptionPolicy)
-New-AzCosmosDBSqlContainer -AccountName myAccountName -DatabaseName myDatabaseName -ResourceGroupName myRgName -Name myContainerName -PartitionKeyPath /a/b/c -PartitionKeyKind Hash -ClientEncryptionPolicy $newPSSqlClientEncryptionPolicy
+PS C:\> $includedPath1 = [Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionIncludedPath]::new("/path1","key1","Deterministic","AEAD_AES_256_CBC_HMAC_SHA256");
+PS C:\> $includedPath2 = [Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionIncludedPath]::new("/path2","key2","Randomized","AEAD_AES_256_CBC_HMAC_SHA256");
+PS C:\> $listofIncludedPaths = New-Object Collections.Generic.List[Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionIncludedPath]
+PS C:\> $listofIncludedPaths.Add($includedPath1)
+PS C:\> $listofIncludedPaths.Add($includedPath2)
+PS C:\> $newClientEncryptionPolicy =  [Microsoft.Azure.Management.CosmosDB.Models.ClientEncryptionPolicy]::new($listofIncludedPaths, 2)
+PS C:\> $newPSSqlClientEncryptionPolicy = [Microsoft.Azure.Commands.CosmosDB.Models.PSSqlClientEncryptionPolicy]::new($newClientEncryptionPolicy)
+PS C:\> New-AzCosmosDBSqlContainer -AccountName myAccountName -DatabaseName myDatabaseName -ResourceGroupName myRgName -Name myContainerName -PartitionKeyPath /a/b/c -PartitionKeyKind Hash -ClientEncryptionPolicy $newPSSqlClientEncryptionPolicy
 ```
 
 ```output