diff --git a/changelog/66126.fixed.md b/changelog/66126.fixed.md
new file mode 100644
index 000000000000..9879189e6446
--- /dev/null
+++ b/changelog/66126.fixed.md
@@ -0,0 +1,2 @@
+Fixed a issue with server channel where a minion's public key
+would be rejected if it contained a final newline character.
diff --git a/salt/channel/server.py b/salt/channel/server.py
index e4eabd400760..47b8f96c0d8f 100644
--- a/salt/channel/server.py
+++ b/salt/channel/server.py
@@ -52,6 +52,16 @@ def factory(cls, opts, **kwargs):
         transport = salt.transport.request_server(opts, **kwargs)
         return cls(opts, transport)
 
+    @classmethod
+    def compare_keys(cls, key1, key2):
+        """
+        Normalize and compare two keys
+
+        Returns:
+            bool: ``True`` if the keys match, otherwise ``False``
+        """
+        return salt.crypt.clean_key(key1) == salt.crypt.clean_key(key2)
+
     def __init__(self, opts, transport):
         self.opts = opts
         self.transport = transport
@@ -371,7 +381,7 @@ def _auth(self, load, sign_messages=False):
         elif os.path.isfile(pubfn):
             # The key has been accepted, check it
             with salt.utils.files.fopen(pubfn, "r") as pubfn_handle:
-                if salt.crypt.clean_key(pubfn_handle.read()) != load["pub"]:
+                if not self.compare_keys(pubfn_handle.read(), load["pub"]):
                     log.error(
                         "Authentication attempt from %s failed, the public "
                         "keys did not match. This may be an attempt to compromise "
@@ -480,7 +490,7 @@ def _auth(self, load, sign_messages=False):
                 # case. Otherwise log the fact that the minion is still
                 # pending.
                 with salt.utils.files.fopen(pubfn_pend, "r") as pubfn_handle:
-                    if salt.crypt.clean_key(pubfn_handle.read()) != load["pub"]:
+                    if not self.compare_keys(pubfn_handle.read(), load["pub"]):
                         log.error(
                             "Authentication attempt from %s failed, the public "
                             "key in pending did not match. This may be an "
@@ -536,7 +546,7 @@ def _auth(self, load, sign_messages=False):
                 # so, pass on doing anything here, and let it get automatically
                 # accepted below.
                 with salt.utils.files.fopen(pubfn_pend, "r") as pubfn_handle:
-                    if salt.crypt.clean_key(pubfn_handle.read()) != load["pub"]:
+                    if not self.compare_keys(pubfn_handle.read(), load["pub"]):
                         log.error(
                             "Authentication attempt from %s failed, the public "
                             "keys in pending did not match. This may be an "
diff --git a/tests/pytests/unit/channel/__init__.py b/tests/pytests/unit/channel/__init__.py
new file mode 100644
index 000000000000..e69de29bb2d1
diff --git a/tests/pytests/unit/channel/test_server.py b/tests/pytests/unit/channel/test_server.py
new file mode 100644
index 000000000000..7e72f2f03d0c
--- /dev/null
+++ b/tests/pytests/unit/channel/test_server.py
@@ -0,0 +1,43 @@
+import pytest
+
+import salt.channel.server as server
+
+
+@pytest.fixture
+def key_data():
+    return [
+        "-----BEGIN PUBLIC KEY-----",
+        "MIIBIjANBgkqhkiG9w0BAQEFAAOCAQ8AMIIBCgKCAQEAoe5QSDYRWKyknbVyRrIj",
+        "rm1ht5HgKzAVUber0x54+b/UgxTd1cqI6I+eDlx53LqZSH3G8Rd5cUh8LHoGedSa",
+        "E62vEiLAjgXa+RdgcGiQpYS8+Z2RvQJ8oIcZgO+2AzgBRHboNWHTYRRmJXCd3dKs",
+        "9tcwK6wxChR06HzGqaOTixAuQlegWbOTU+X4dXIbW7AnuQBt9MCib7SxHlscrqcS",
+        "cBrRvq51YP6cxPm/rZJdBqZhVrlghBvIpa45NApP5PherGi4AbEGYte4l+gC+fOA",
+        "osEBis1V27djPpIyQS4qk3XAPQg6CYQMDltHqA4Fdo0Nt7SMScxJhfH0r6zmBFAe",
+        "BQIDAQAB",
+        "-----END PUBLIC KEY-----",
+    ]
+
+
+@pytest.mark.parametrize("linesep", ["\r\n", "\r", "\n"])
+def test_compare_keys(key_data, linesep):
+    src_key = linesep.join(key_data)
+    tgt_key = "\n".join(key_data)
+    assert server.ReqServerChannel.compare_keys(src_key, tgt_key) is True
+
+
+@pytest.mark.parametrize("linesep", ["\r\n", "\r", "\n"])
+def test_compare_keys_newline_src(key_data, linesep):
+    src_key = linesep.join(key_data) + linesep
+    tgt_key = "\n".join(key_data)
+    assert src_key.endswith(linesep)
+    assert not tgt_key.endswith("\n")
+    assert server.ReqServerChannel.compare_keys(src_key, tgt_key) is True
+
+
+@pytest.mark.parametrize("linesep", ["\r\n", "\r", "\n"])
+def test_compare_keys_newline_tgt(key_data, linesep):
+    src_key = linesep.join(key_data)
+    tgt_key = "\n".join(key_data) + "\n"
+    assert not src_key.endswith(linesep)
+    assert tgt_key.endswith("\n")
+    assert server.ReqServerChannel.compare_keys(src_key, tgt_key) is True