diff --git a/src/wix/WixToolset.Core/ExtensibilityServices/BackendHelper.cs b/src/wix/WixToolset.Core/ExtensibilityServices/BackendHelper.cs
index 43f7aa016..988ad60a3 100644
--- a/src/wix/WixToolset.Core/ExtensibilityServices/BackendHelper.cs
+++ b/src/wix/WixToolset.Core/ExtensibilityServices/BackendHelper.cs
@@ -120,16 +120,13 @@ public bool TryParseMsiProductVersion(string version, bool strict, out string pa
         {
             if (WixVersion.TryParse(version, out var wixVersion) && wixVersion.HasMajor && wixVersion.Major < 256 && wixVersion.Minor < 256 && wixVersion.Patch < 65536 && wixVersion.Labels == null && String.IsNullOrEmpty(wixVersion.Metadata))
             {
-                parsedVersion = $"{wixVersion.Major}.{wixVersion.Minor}";
-
-                if (strict || wixVersion.HasPatch)
+                if (strict)
                 {
-                    parsedVersion += $".{wixVersion.Patch}";
+                    parsedVersion = $"{wixVersion.Major}.{wixVersion.Minor}.{wixVersion.Patch}";
                 }
-
-                if (!strict && wixVersion.HasRevision)
+                else
                 {
-                    parsedVersion += $".{wixVersion.Revision}";
+                    parsedVersion = wixVersion.Prefix.HasValue ? version.Substring(1) : version;
                 }
 
                 return true;
diff --git a/src/wix/test/WixToolsetTest.CoreIntegration/VersionFixture.cs b/src/wix/test/WixToolsetTest.CoreIntegration/VersionFixture.cs
index cf8466aa1..4934933fa 100644
--- a/src/wix/test/WixToolsetTest.CoreIntegration/VersionFixture.cs
+++ b/src/wix/test/WixToolsetTest.CoreIntegration/VersionFixture.cs
@@ -40,6 +40,62 @@ public void CanBuildMsiWithPrefixedVersion()
             }
         }
 
+        [Fact]
+        public void CanBuildMsiWithInsignificantZeroesVersion()
+        {
+            var folder = TestData.Get(@"TestData");
+
+            using (var fs = new DisposableFileSystem())
+            {
+                var baseFolder = fs.GetFolder();
+                var intermediateFolder = Path.Combine(baseFolder, "obj");
+                var msiPath = Path.Combine(baseFolder, "bin", "test1.msi");
+
+                var result = WixRunner.Execute(new[]
+                {
+                    "build",
+                    Path.Combine(folder, "Version", "PackageWithReplaceableVersion.wxs"),
+                    "-bindpath", Path.Combine(folder, "SingleFile", "data"),
+                    "-intermediateFolder", intermediateFolder,
+                    "-d", "Version=0001.002.0003.04",
+                    "-o", msiPath
+                });
+
+                result.AssertSuccess();
+
+                var productVersion = GetProductVersionFromMsi(msiPath);
+                Assert.Equal("0001.002.0003.04", productVersion);
+            }
+        }
+
+        [Fact]
+        public void CanBuildMsiWithPrefixedInsignificantZeroesVersion()
+        {
+            var folder = TestData.Get(@"TestData");
+
+            using (var fs = new DisposableFileSystem())
+            {
+                var baseFolder = fs.GetFolder();
+                var intermediateFolder = Path.Combine(baseFolder, "obj");
+                var msiPath = Path.Combine(baseFolder, "bin", "test1.msi");
+
+                var result = WixRunner.Execute(new[]
+                {
+                    "build",
+                    Path.Combine(folder, "Version", "PackageWithReplaceableVersion.wxs"),
+                    "-bindpath", Path.Combine(folder, "SingleFile", "data"),
+                    "-intermediateFolder", intermediateFolder,
+                    "-d", "Version=v01.002.0003.000004",
+                    "-o", msiPath
+                });
+
+                result.AssertSuccess();
+
+                var productVersion = GetProductVersionFromMsi(msiPath);
+                Assert.Equal("01.002.0003.000004", productVersion);
+            }
+        }
+
         [Fact]
         public void CanBuildMsiWithPrefixedVersionBindVariable()
         {