diff --git a/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.test.ts b/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.test.ts
index 3ecaaac4079..ddbe6ea875d 100644
--- a/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.test.ts
+++ b/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.test.ts
@@ -40,4 +40,50 @@ describe('getSanitizeContent', () => {
 
     expect(result).toBe(`<p>abc</p>`);
   });
+
+  describe('HTML Encoding Prevention', () => {
+    it('should NOT encode entity links with HTML entities', () => {
+      const input = '<#E::team::Accounting|@Accounting>';
+      const result = getSanitizeContent(input);
+
+      // Should NOT contain HTML encoded entities
+      expect(result).not.toContain('&lt;');
+      expect(result).not.toContain('&gt;');
+      expect(result).not.toContain('&amp;');
+
+      // Should contain the original entity link format
+      expect(result).toBe('<#E::team::Accounting|@Accounting>');
+    });
+
+    it('should NOT encode multiple entity links with HTML entities', () => {
+      const input =
+        'Hello <#E::team::Accounting|@Accounting> and <#E::user::john.doe|@john.doe>';
+      const result = getSanitizeContent(input);
+
+      // Should NOT contain HTML encoded entities
+      expect(result).not.toContain('&lt;');
+      expect(result).not.toContain('&gt;');
+      expect(result).not.toContain('&amp;');
+
+      // Should contain the original entity link format
+      expect(result).toBe(
+        'Hello <#E::team::Accounting|@Accounting> and <#E::user::john.doe|@john.doe>'
+      );
+    });
+
+    it('should NOT encode entity links even when mixed with HTML content', () => {
+      const input =
+        '<div>Hello</div><#E::team::Accounting|@Accounting><span>World</span>';
+      const result = getSanitizeContent(input);
+
+      // Should NOT contain HTML encoded entities for the entity link
+      expect(result).not.toContain('&lt;#E::team::Accounting|@Accounting&gt;');
+      expect(result).not.toContain(
+        '&amp;lt;#E::team::Accounting|@Accounting&amp;gt;'
+      );
+
+      // Should contain the original entity link format
+      expect(result).toContain('<#E::team::Accounting|@Accounting>');
+    });
+  });
 });
diff --git a/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.ts b/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.ts
index d974e32d232..8ed37475d90 100644
--- a/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.ts
+++ b/openmetadata-ui/src/main/resources/ui/src/utils/sanitize.utils.ts
@@ -13,5 +13,25 @@
 import DOMPurify from 'dompurify';
 
 export const getSanitizeContent = (html: string): string => {
-  return DOMPurify.sanitize(html);
+  // First, temporarily replace entity links to protect them from encoding
+  const entityLinkRegex = /<#E::[^>]+>/g;
+  const entityLinks: string[] = [];
+  let entityLinkIndex = 0;
+
+  const protectedHtml = html.replace(entityLinkRegex, (match) => {
+    entityLinks.push(match);
+
+    return `__ENTITY_LINK_${entityLinkIndex++}__`;
+  });
+
+  // Sanitize the content with standard DOMPurify settings
+  const sanitizedContent = DOMPurify.sanitize(protectedHtml);
+
+  // Restore entity links
+  let restoredContent = sanitizedContent;
+  entityLinks.forEach((link, index) => {
+    restoredContent = restoredContent.replace(`__ENTITY_LINK_${index}__`, link);
+  });
+
+  return restoredContent;
 };