diff --git a/changelog/22363.txt b/changelog/22363.txt
new file mode 100644
index 0000000000..faa5a24462
--- /dev/null
+++ b/changelog/22363.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+license: Add autoloaded license path to the cache exempt list. This is to ensure the license changes on the active node is observed on the perfStandby node.
+```
diff --git a/sdk/physical/cache.go b/sdk/physical/cache.go
index 1471a8916c..874d6c529d 100644
--- a/sdk/physical/cache.go
+++ b/sdk/physical/cache.go
@@ -37,6 +37,11 @@ var cacheExceptionsPaths = []string{
 	// exceptions to avoid unseal errors. See VAULT-17227
 	"core/seal-config",
 	"core/recovery-config",
+
+	// we need to make sure the persisted license is read from the storage
+	// to ensure the changes to the autoloaded license on the active node
+	// is observed on the perfStandby nodes
+	"core/autoloaded-license",
 }
 
 // CacheRefreshContext returns a context with an added value denoting if the