diff --git a/nsxt/policy_common.go b/nsxt/policy_common.go
index cae89697b..94eed9e11 100644
--- a/nsxt/policy_common.go
+++ b/nsxt/policy_common.go
@@ -440,6 +440,7 @@ func validatePolicyRuleSequence(d *schema.ResourceData) error {
 func getPolicyRulesFromSchema(d *schema.ResourceData) []model.Rule {
 	rules := d.Get("rule").([]interface{})
 	var ruleList []model.Rule
+	lastSequence := int64(0)
 	for _, rule := range rules {
 		data := rule.(map[string]interface{})
 		displayName := data["display_name"].(string)
@@ -469,6 +470,11 @@ func getPolicyRulesFromSchema(d *schema.ResourceData) []model.Rule {
 		}
 
 		resourceType := "Rule"
+		if sequenceNumber == 0 {
+			sequenceNumber = lastSequence + 1
+		}
+		lastSequence = sequenceNumber
+
 		elem := model.Rule{
 			ResourceType:         &resourceType,
 			Id:                   &id,
@@ -489,10 +495,7 @@ func getPolicyRulesFromSchema(d *schema.ResourceData) []model.Rule {
 			Services:             getPathListFromMap(data, "services"),
 			Scope:                getPathListFromMap(data, "scope"),
 			Profiles:             getPathListFromMap(data, "profiles"),
-		}
-
-		if sequenceNumber > 0 {
-			elem.SequenceNumber = &sequenceNumber
+			SequenceNumber:       &sequenceNumber,
 		}
 
 		ruleList = append(ruleList, elem)
diff --git a/nsxt/resource_nsxt_policy_gateway_policy.go b/nsxt/resource_nsxt_policy_gateway_policy.go
index 9b9adfee2..454f09480 100644
--- a/nsxt/resource_nsxt_policy_gateway_policy.go
+++ b/nsxt/resource_nsxt_policy_gateway_policy.go
@@ -64,16 +64,19 @@ func getUpdatedRuleChildren(d *schema.ResourceData) ([]*data.StructValue, error)
 	}
 
 	oldRules, newRules := d.GetChange("rule")
-	err1 := validatePolicyRuleSequence(d)
-	if err1 != nil {
-		return policyChildren, err1
-	}
 	rules := getPolicyRulesFromSchema(d)
 	newRulesCount := len(newRules.([]interface{}))
 	oldRulesCount := len(oldRules.([]interface{}))
 	for ruleNo := 0; ruleNo < newRulesCount; ruleNo++ {
 		ruleIndicator := fmt.Sprintf("rule.%d", ruleNo)
-		if d.HasChange(ruleIndicator) {
+		autoAssignedSequence := false
+		originalSequence := d.Get(fmt.Sprintf("%s.sequence_number", ruleIndicator)).(int)
+		if originalSequence == 0 {
+			autoAssignedSequence = true
+		}
+		if d.HasChange(ruleIndicator) || autoAssignedSequence {
+			// If the provider assigned sequence number to this rule, we need to update it even
+			// though terraform sees no diff
 			rule := rules[ruleNo]
 			// New or updated rule
 			ruleID := newUUID()
diff --git a/nsxt/resource_nsxt_policy_security_policy.go b/nsxt/resource_nsxt_policy_security_policy.go
index bb969f3fc..b88a145e2 100644
--- a/nsxt/resource_nsxt_policy_security_policy.go
+++ b/nsxt/resource_nsxt_policy_security_policy.go
@@ -55,7 +55,7 @@ func resourceNsxtPolicySecurityPolicyExistsPartial(domainName string) func(sessi
 	}
 }
 
-func policySecurityPolicyBuildAndPatch(d *schema.ResourceData, m interface{}, connector client.Connector, isGlobalManager bool, id string) error {
+func policySecurityPolicyBuildAndPatch(d *schema.ResourceData, m interface{}, connector client.Connector, isGlobalManager bool, id string, createFlow bool) error {
 
 	domain := d.Get("domain").(string)
 	displayName := d.Get("display_name").(string)
@@ -87,11 +87,16 @@ func policySecurityPolicyBuildAndPatch(d *schema.ResourceData, m interface{}, co
 	}
 	log.Printf("[INFO] Creating Security Policy with ID %s", id)
 
-	if len(d.Id()) > 0 {
+	if !createFlow {
 		// This is update flow
 		obj.Revision = &revision
 	}
 
+	err := validatePolicyRuleSequence(d)
+	if err != nil {
+		return err
+	}
+
 	policyChildren, err := getUpdatedRuleChildren(d)
 	if err != nil {
 		return err
@@ -100,6 +105,7 @@ func policySecurityPolicyBuildAndPatch(d *schema.ResourceData, m interface{}, co
 		obj.Children = policyChildren
 	}
 
+	log.Printf("[INFO] Using selective H-API for policy with ID %s", id)
 	return securityPolicyInfraPatch(getSessionContext(d, m), obj, domain, m)
 }
 
@@ -112,7 +118,7 @@ func resourceNsxtPolicySecurityPolicyCreate(d *schema.ResourceData, m interface{
 		return err
 	}
 
-	err = policySecurityPolicyBuildAndPatch(d, m, connector, isPolicyGlobalManager(m), id)
+	err = policySecurityPolicyBuildAndPatch(d, m, connector, isPolicyGlobalManager(m), id, true)
 
 	if err != nil {
 		return handleCreateError("Security Policy", id, err)
@@ -164,7 +170,7 @@ func resourceNsxtPolicySecurityPolicyUpdate(d *schema.ResourceData, m interface{
 	if id == "" {
 		return fmt.Errorf("Error obtaining Security Policy id")
 	}
-	err := policySecurityPolicyBuildAndPatch(d, m, connector, isPolicyGlobalManager(m), id)
+	err := policySecurityPolicyBuildAndPatch(d, m, connector, isPolicyGlobalManager(m), id, false)
 	if err != nil {
 		return handleUpdateError("Security Policy", id, err)
 	}
diff --git a/nsxt/resource_nsxt_policy_security_policy_test.go b/nsxt/resource_nsxt_policy_security_policy_test.go
index 445ac0f10..f756cff22 100644
--- a/nsxt/resource_nsxt_policy_security_policy_test.go
+++ b/nsxt/resource_nsxt_policy_security_policy_test.go
@@ -952,38 +952,40 @@ func testAccNsxtPolicySecurityPolicyWithIPCidrRange(name string, destIP string,
 			destination_groups    = ["%s"]
 			services              = [nsxt_policy_service.icmp.path]
 			action                = "ALLOW"
-		  }
+		}
 
-		  rule {
+		rule {
 			display_name          = "rule3"
 			source_groups         = [nsxt_policy_group.group1.path]
 			destination_groups    = ["%s"]
 			services              = [nsxt_policy_service.icmp.path]
 			action                = "ALLOW"
-		  }
-		  rule {
+			sequence_number       = 50
+		}
+		rule {
 			display_name          = "rule4"
 			source_groups         = ["%s"]
 			destination_groups    = [nsxt_policy_group.group2.path]
 			services              = [nsxt_policy_service.icmp.path]
 			action                = "ALLOW"
-		  }
+		}
   
-		  rule {
+		rule {
 			  display_name          = "rule5"
 			  source_groups         = ["%s"]			
 			  destination_groups    = [nsxt_policy_group.group2.path]
 			  services              = [nsxt_policy_service.icmp.path]
 			  action                = "ALLOW"
-			}
+			  sequence_number       = 105
+                }
   
-			rule {
+		rule {
 			  display_name          = "rule6"
 			  source_groups         = ["%s"]
 			  destination_groups    = [nsxt_policy_group.group2.path]
 			  services              = [nsxt_policy_service.icmp.path]
 			  action                = "ALLOW"
-			}
+		}
 }`, name, destIP, destCidr, destIPRange, sourceIP, sourceCidr, sourceIPRange)
 }