diff --git a/dvc/utils/_benedict.py b/dvc/utils/_benedict.py
new file mode 100644
index 0000000000..219c96e674
--- /dev/null
+++ b/dvc/utils/_benedict.py
@@ -0,0 +1,26 @@
+"""
+Rollbacks monkeypatching of `json.encoder` by benedict.
+
+It monkeypatches json to use Python-based encoder instead of C-based
+during import.
+
+We rollback that monkeypatch by keeping reference to that C-based
+encoder and reinstate them after importing benedict.
+See: https://github.com/iterative/dvc/issues/6423
+     https://github.com/fabiocaccamo/python-benedict/issues/62
+and the source of truth:
+https://github.com/fabiocaccamo/python-benedict/blob/c98c471065/benedict/dicts/__init__.py#L282-L285
+"""
+from json import encoder
+
+try:
+    c_make_encoder = encoder.c_make_encoder  # type: ignore[attr-defined]
+except AttributeError:
+    c_make_encoder = None
+
+
+from benedict import benedict  # noqa: E402
+
+encoder.c_make_encoder = c_make_encoder  # type: ignore[attr-defined]
+# Please import benedict from here lazily
+__all__ = ["benedict"]
diff --git a/dvc/utils/collections.py b/dvc/utils/collections.py
index 71bbde03b5..f05cdb8f52 100644
--- a/dvc/utils/collections.py
+++ b/dvc/utils/collections.py
@@ -82,19 +82,10 @@ def chunk_dict(d: Dict[_KT, _VT], size: int = 1) -> List[Dict[_KT, _VT]]:
 
 def merge_params(src: Dict, to_update: Dict) -> Dict:
     """Recursively merges params with benedict's syntax support in-place."""
-    from benedict import benedict
+    from ._benedict import benedict
 
     data = benedict(src)
-    if src:
-        data.merge(to_update, overwrite=True)
-    else:
-        # NOTE: the following line may seem like an unnecessary duplication
-        # data.merge might affect the `src` if it's not empty, so we cannot
-        # check `if src` later, as it may have been mutated already.
-        data.merge(to_update, overwrite=True)
-        # benedict has issues keeping references to an empty dictionary
-        # see: https://github.com/iterative/dvc/issues/6374.
-        src.update(data)
+    data.merge(to_update, overwrite=True)
     return src
 
 
diff --git a/requirements/default.txt b/requirements/default.txt
index b5805bbaa7..86c819ca25 100644
--- a/requirements/default.txt
+++ b/requirements/default.txt
@@ -37,7 +37,7 @@ dpath>=2.0.2,<3
 shtab>=1.3.4,<2
 rich>=10.9.0
 dictdiffer>=0.8.1
-python-benedict>=0.21.1
+python-benedict>=0.24.2
 pyparsing==2.4.7
 typing_extensions>=3.10.0.2
 fsspec[http]>=2021.8.1
diff --git a/tests/unit/utils/test_collections.py b/tests/unit/utils/test_collections.py
index 1d032c3b55..50dcbcc518 100644
--- a/tests/unit/utils/test_collections.py
+++ b/tests/unit/utils/test_collections.py
@@ -1,4 +1,7 @@
 # pylint: disable=unidiomatic-typecheck
+import json
+from json import encoder
+
 import pytest
 from mock import create_autospec
 
@@ -8,6 +11,7 @@
     merge_params,
     validate,
 )
+from dvc.utils.serialize import dumps_yaml
 
 
 class MyDict(dict):
@@ -143,6 +147,12 @@ def none_filter(result):
     assert result == [1, 2]
 
 
+def is_serializable(d):
+    json.dumps(d)
+    dumps_yaml(d)
+    return True
+
+
 @pytest.mark.parametrize(
     "changes, expected",
     [
@@ -195,6 +205,8 @@ def test_merge_params(changes, expected):
     merged = merge_params(params, changes)
     assert merged == expected == params
     assert params is merged  # references should be preserved
+    assert encoder.c_make_encoder
+    assert is_serializable(params)
 
 
 @pytest.mark.parametrize(
@@ -203,6 +215,7 @@ def test_merge_params(changes, expected):
         [{"foo": "baz"}, {"foo": "baz"}],
         [{"foo": "baz", "goo": "bar"}, {"foo": "baz", "goo": "bar"}],
         [{"foo[1]": ["baz", "goo"]}, {"foo": [None, ["baz", "goo"]]}],
+        [{"foo.bar": "baz"}, {"foo": {"bar": "baz"}}],
     ],
 )
 def test_merge_params_on_empty_src(changes, expected):
@@ -210,3 +223,12 @@ def test_merge_params_on_empty_src(changes, expected):
     merged = merge_params(params, changes)
     assert merged == expected == params
     assert params is merged  # references should be preserved
+    assert encoder.c_make_encoder
+    assert is_serializable(params)
+
+
+def test_benedict_rollback_its_monkeypatch():
+    from dvc.utils._benedict import benedict
+
+    assert benedict({"foo": "foo"}) == {"foo": "foo"}
+    assert encoder.c_make_encoder