diff --git a/pkg/engine/jmespath/functions.go b/pkg/engine/jmespath/functions.go
index 07ba8459b8..1f73a314b4 100644
--- a/pkg/engine/jmespath/functions.go
+++ b/pkg/engine/jmespath/functions.go
@@ -16,6 +16,7 @@ import (
 	"github.com/blang/semver/v4"
 	gojmespath "github.com/jmespath/go-jmespath"
 	"github.com/minio/pkg/wildcard"
+	"sigs.k8s.io/yaml"
 )
 
 var (
@@ -59,6 +60,7 @@ var (
 	truncate               = "truncate"
 	semverCompare          = "semver_compare"
 	parseJson              = "parse_json"
+	parseYAML              = "parse_yaml"
 )
 
 const errorPrefix = "JMESPath function '%s': "
@@ -271,6 +273,13 @@ func getFunctions() []*gojmespath.FunctionEntry {
 			},
 			Handler: jpParseJson,
 		},
+		{
+			Name: parseYAML,
+			Arguments: []ArgSpec{
+				{Types: []JpType{JpString}},
+			},
+			Handler: jpParseYAML,
+		},
 	}
 
 }
@@ -684,6 +693,20 @@ func jpParseJson(arguments []interface{}) (interface{}, error) {
 	return output, err
 }
 
+func jpParseYAML(arguments []interface{}) (interface{}, error) {
+	input, err := validateArg(parseYAML, arguments, 0, reflect.String)
+	if err != nil {
+		return nil, err
+	}
+	jsonData, err := yaml.YAMLToJSON([]byte(input.String()))
+	if err != nil {
+		return nil, err
+	}
+	var output interface{}
+	err = json.Unmarshal(jsonData, &output)
+	return output, err
+}
+
 // InterfaceToString casts an interface to a string type
 func ifaceToString(iface interface{}) (string, error) {
 	switch i := iface.(type) {
diff --git a/pkg/engine/jmespath/functions_test.go b/pkg/engine/jmespath/functions_test.go
index e9786259b5..ec26422411 100644
--- a/pkg/engine/jmespath/functions_test.go
+++ b/pkg/engine/jmespath/functions_test.go
@@ -101,6 +101,82 @@ func Test_ParseJsonComplex(t *testing.T) {
 	}
 }
 
+func Test_ParseYAML(t *testing.T) {
+	testCases := []struct {
+		input  string
+		output interface{}
+	}{
+		{
+			input: `a: b`,
+			output: map[string]interface{}{
+				"a": "b",
+			},
+		},
+		{
+			input: `
+- 1
+- 2
+- 3
+- a: b`,
+			output: []interface{}{
+				1.0,
+				2.0,
+				3.0,
+				map[string]interface{}{
+					"a": "b",
+				},
+			},
+		},
+		{
+			input: `
+spec:
+  test: 1
+  test2:
+    - 2
+    - 3
+`,
+			output: map[string]interface{}{
+				"spec": map[string]interface{}{
+					"test":  1.0,
+					"test2": []interface{}{2.0, 3.0},
+				},
+			},
+		},
+		{
+			input: `
+bar: >
+  this is not a normal string it
+  spans more than
+  one line
+  see?`,
+			output: map[string]interface{}{
+				"bar": "this is not a normal string it spans more than one line see?",
+			},
+		},
+		{
+			input: `
+---
+foo: ~
+bar: null
+`,
+			output: map[string]interface{}{
+				"bar": nil,
+				"foo": nil,
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.input, func(t *testing.T) {
+			jp, err := New(fmt.Sprintf(`parse_yaml('%s')`, tc.input))
+			assert.NilError(t, err)
+			result, err := jp.Search("")
+			assert.NilError(t, err)
+			assert.DeepEqual(t, result, tc.output)
+		})
+	}
+}
+
 func Test_EqualFold(t *testing.T) {
 	testCases := []struct {
 		jmesPath       string
diff --git a/test/cli/test/custom-functions/kyverno-test.yaml b/test/cli/test/custom-functions/kyverno-test.yaml
index 173dd91d84..bfd29bdafa 100644
--- a/test/cli/test/custom-functions/kyverno-test.yaml
+++ b/test/cli/test/custom-functions/kyverno-test.yaml
@@ -39,3 +39,23 @@ results:
     resource: invalid-test
     kind: ConfigMap
     result: fail
+  - policy: test-parse-yaml
+    rule: test-yaml-parsing-jmespath
+    resource: valid-yaml-test
+    kind: ConfigMap
+    result: pass
+  - policy: test-parse-yaml
+    rule: test-yaml-parsing-jmespath
+    resource: invalid-yaml-test
+    kind: ConfigMap
+    result: fail
+  - policy: test-parse-yaml-array
+    rule: test-yaml-parsing-jmespath
+    resource: valid-yaml-test
+    kind: ConfigMap
+    result: pass
+  - policy: test-parse-yaml-array
+    rule: test-yaml-parsing-jmespath
+    resource: invalid-yaml-test
+    kind: ConfigMap
+    result: fail
diff --git a/test/cli/test/custom-functions/policy.yaml b/test/cli/test/custom-functions/policy.yaml
index cb4cb30cf3..cf4fe99b2b 100644
--- a/test/cli/test/custom-functions/policy.yaml
+++ b/test/cli/test/custom-functions/policy.yaml
@@ -95,3 +95,45 @@ spec:
         - key: "{{request.object.metadata.annotations.test | parse_json(@).a }}"
           operator: NotEquals
           value: b
+---
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: test-parse-yaml
+spec:
+  validationFailureAction: enforce
+  background: false
+  rules:
+  - name: test-yaml-parsing-jmespath
+    match:
+      resources:
+        kinds:
+         - ConfigMap
+    validate:
+      message: "Test JMESPath"
+      deny:
+        conditions:
+        - key: "{{request.object.metadata.annotations.test | parse_yaml(@).value }}"
+          operator: NotEquals
+          value: "a"
+---
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: test-parse-yaml-array
+spec:
+  validationFailureAction: enforce
+  background: false
+  rules:
+  - name: test-yaml-parsing-jmespath
+    match:
+      resources:
+        kinds:
+         - ConfigMap
+    validate:
+      message: "Test JMESPath"
+      deny:
+        conditions:
+        - key: a
+          operator: NotIn
+          value: "{{request.object.metadata.annotations.test | parse_yaml(@).array }}"
diff --git a/test/cli/test/custom-functions/resources.yaml b/test/cli/test/custom-functions/resources.yaml
index f9bddf3824..347dab8835 100644
--- a/test/cli/test/custom-functions/resources.yaml
+++ b/test/cli/test/custom-functions/resources.yaml
@@ -67,3 +67,28 @@ metadata:
   annotations:
     test: |
       {"a": "not-b"}
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: valid-yaml-test
+  annotations:
+    test: |
+      value: a
+      array:
+        - a
+        - b
+        - c 
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: invalid-yaml-test
+  annotations:
+    test: |
+      value: b
+      array:
+        - d
+        - e
+        - f
+