diff --git a/applicationset/controllers/applicationset_controller_test.go b/applicationset/controllers/applicationset_controller_test.go
index 7c3721e2ee6ed9..cc563c3e987d89 100644
--- a/applicationset/controllers/applicationset_controller_test.go
+++ b/applicationset/controllers/applicationset_controller_test.go
@@ -2445,17 +2445,24 @@ func TestGenerateAppsUsingPullRequestGenerator(t *testing.T) {
 		{
 			name: "Generate an application from a go template application set manifest using a pull request generator",
 			params: []map[string]interface{}{{
-				"number":         "1",
-				"branch":         "branch1",
-				"branch_slug":    "branchSlug1",
-				"head_sha":       "089d92cbf9ff857a39e6feccd32798ca700fb958",
-				"head_short_sha": "089d92cb",
-				"labels":         []string{"label1"}}},
+				"number":                                "1",
+				"branch":                                "branch1",
+				"branch_slug":                           "branchSlug1",
+				"head_sha":                              "089d92cbf9ff857a39e6feccd32798ca700fb958",
+				"head_short_sha":                        "089d92cb",
+				"branch_slugify_default":                "feat/a_really+long_pull_request_name_to_test_argo_slugification_and_branch_name_shortening_feature",
+				"branch_slugify_smarttruncate_disabled": "feat/areallylongpullrequestnametotestargoslugificationandbranchnameshorteningfeature",
+				"branch_slugify_smarttruncate_enabled":  "feat/testwithsmarttruncateenabledramdomlonglistofcharacters",
+				"labels":                                []string{"label1"}},
+			},
 			template: v1alpha1.ApplicationSetTemplate{
 				ApplicationSetTemplateMeta: v1alpha1.ApplicationSetTemplateMeta{
 					Name: "AppSet-{{.branch}}-{{.number}}",
 					Labels: map[string]string{
-						"app1": "{{index .labels 0}}",
+						"app1":         "{{index .labels 0}}",
+						"branch-test1": "AppSet-{{.branch_slugify_default | slugify }}",
+						"branch-test2": "AppSet-{{.branch_slugify_smarttruncate_disabled | slugify 49 false }}",
+						"branch-test3": "AppSet-{{.branch_slugify_smarttruncate_enabled | slugify 50 true }}",
 					},
 				},
 				Spec: v1alpha1.ApplicationSpec{
@@ -2474,7 +2481,10 @@ func TestGenerateAppsUsingPullRequestGenerator(t *testing.T) {
 					ObjectMeta: metav1.ObjectMeta{
 						Name: "AppSet-branch1-1",
 						Labels: map[string]string{
-							"app1": "label1",
+							"app1":         "label1",
+							"branch-test1": "AppSet-feat-a-really-long-pull-request-name-to-test-argo",
+							"branch-test2": "AppSet-feat-areallylongpullrequestnametotestargoslugific",
+							"branch-test3": "AppSet-feat",
 						},
 					},
 					Spec: v1alpha1.ApplicationSpec{
diff --git a/applicationset/utils/utils.go b/applicationset/utils/utils.go
index 089a6ff1031004..52599a147cd85f 100644
--- a/applicationset/utils/utils.go
+++ b/applicationset/utils/utils.go
@@ -16,6 +16,7 @@ import (
 	"unsafe"
 
 	"github.com/Masterminds/sprig/v3"
+	"github.com/gosimple/slug"
 	"github.com/valyala/fasttemplate"
 	"sigs.k8s.io/yaml"
 
@@ -32,6 +33,7 @@ func init() {
 	delete(sprigFuncMap, "expandenv")
 	delete(sprigFuncMap, "getHostByName")
 	sprigFuncMap["normalize"] = SanitizeName
+	sprigFuncMap["slugify"] = SlugifyName
 	sprigFuncMap["toYaml"] = toYAML
 	sprigFuncMap["fromYaml"] = fromYAML
 	sprigFuncMap["fromYamlArray"] = fromYAMLArray
@@ -434,6 +436,23 @@ func NormalizeBitbucketBasePath(basePath string) string {
 	return basePath
 }
 
+// SanitizeName sanitizes the name in accordance with the below rules
+// 1. contain no more than 253 characters
+// 2. contain only lowercase alphanumeric characters, '-' or '.'
+// 3. start and end with an alphanumeric character
+func SanitizeName(name string) string {
+	invalidDNSNameChars := regexp.MustCompile("[^-a-z0-9.]")
+	maxDNSNameLength := 253
+
+	name = strings.ToLower(name)
+	name = invalidDNSNameChars.ReplaceAllString(name, "-")
+	if len(name) > maxDNSNameLength {
+		name = name[:maxDNSNameLength]
+	}
+
+	return strings.Trim(name, "-.")
+}
+
 func getTlsConfigWithCACert(scmRootCAPath string) *tls.Config {
 
 	tlsConfig := &tls.Config{}
diff --git a/applicationset/utils/utils_test.go b/applicationset/utils/utils_test.go
index a1c58769160cc5..3b4702bc35c3fc 100644
--- a/applicationset/utils/utils_test.go
+++ b/applicationset/utils/utils_test.go
@@ -1243,6 +1243,43 @@ func TestNormalizeBitbucketBasePath(t *testing.T) {
 	}
 }
 
+func TestSlugify(t *testing.T) {
+	for _, c := range []struct {
+		branch           string
+		smartTruncate    bool
+		length           int
+		expectedBasePath string
+	}{
+		{
+			branch:           "feat/a_really+long_pull_request_name_to_test_argo_slugification_and_branch_name_shortening_feature",
+			smartTruncate:    false,
+			length:           50,
+			expectedBasePath: "feat-a-really-long-pull-request-name-to-test-argo",
+		},
+		{
+			branch:           "feat/a_really+long_pull_request_name_to_test_argo_slugification_and_branch_name_shortening_feature",
+			smartTruncate:    true,
+			length:           53,
+			expectedBasePath: "feat-a-really-long-pull-request-name-to-test-argo",
+		},
+		{
+			branch:           "feat/areallylongpullrequestnametotestargoslugificationandbranchnameshorteningfeature",
+			smartTruncate:    true,
+			length:           50,
+			expectedBasePath: "feat",
+		},
+		{
+			branch:           "feat/areallylongpullrequestnametotestargoslugificationandbranchnameshorteningfeature",
+			smartTruncate:    false,
+			length:           50,
+			expectedBasePath: "feat-areallylongpullrequestnametotestargoslugifica",
+		},
+	} {
+		result := SlugifyName(c.length, c.smartTruncate, c.branch)
+		assert.Equal(t, c.expectedBasePath, result, c.branch)
+	}
+}
+
 func TestGetTLSConfig(t *testing.T) {
 	// certParsed, err := tls.X509KeyPair(test.Cert, test.PrivateKey)
 	// require.NoError(t, err)
diff --git a/docs/operator-manual/applicationset/GoTemplate.md b/docs/operator-manual/applicationset/GoTemplate.md
index 08c1f3feb035a3..4a2b6cf55140b9 100644
--- a/docs/operator-manual/applicationset/GoTemplate.md
+++ b/docs/operator-manual/applicationset/GoTemplate.md
@@ -12,6 +12,29 @@ An additional `normalize` function makes any string parameter usable as a valid
 with hyphens and truncating at 253 characters. This is useful when making parameters safe for things like Application
 names.
 
+Another function has `slugify` function has been added which, by default, sanitizes and smart truncate (means doesn't cut a word into 2). This function accepts a couple of arguments:
+- The first argument (if provided) is an integer specifying the maximum length of the slug.
+- The second argument (if provided) is a boolean indicating whether smart truncation is enabled.
+- The last argument (if provided) is the input name that needs to be slugified.
+
+#### Usage example
+
+```
+apiVersion: argoproj.io/v1alpha1
+kind: ApplicationSet
+metadata:
+  name: test-appset
+spec:
+  ... 
+  template:
+    metadata:
+      name: 'hellos3-{{.name}}-{{ cat .branch | slugify 23 }}'
+      annotations:
+        label-1: '{{ cat .branch | slugify }}'
+        label-2: '{{ cat .branch | slugify 23 }}'
+        label-3: '{{ cat .branch | slugify 50 false }}'
+```
+
 If you want to customize [options defined by text/template](https://pkg.go.dev/text/template#Template.Option), you can
 add the `goTemplateOptions: ["opt1", "opt2", ...]` key to your ApplicationSet next to `goTemplate: true`. Note that at
 the time of writing, there is only one useful option defined, which is `missingkey=error`.