diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0266669bdf..190756613d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -36,6 +36,7 @@ For experimental package changes, see the [experimental CHANGELOG](experimental/
 * fix(sdk-metrics): Update default Histogram's boundary to match OTEL's spec [#3893](https://github.com/open-telemetry/opentelemetry-js/pull/3893/) @chigia001
 * fix(sdk-metrics): preserve startTime for cumulative ExponentialHistograms [#3934](https://github.com/open-telemetry/opentelemetry-js/pull/3934/) @aabmass
 * fix(sdk-trace-web): add secureConnectionStart to https only [#3879](https://github.com/open-telemetry/opentelemetry-js/pull/3879) @Abinet18
+* fix(core): add baggage support for values containing an equals sign [#3975](https://github.com/open-telemetry/opentelemetry-js/pull/3975) @krosenk729
 
 ### :house: (Internal)
 
diff --git a/packages/opentelemetry-core/src/baggage/utils.ts b/packages/opentelemetry-core/src/baggage/utils.ts
index 991b8a89a6..bb8b4b0155 100644
--- a/packages/opentelemetry-core/src/baggage/utils.ts
+++ b/packages/opentelemetry-core/src/baggage/utils.ts
@@ -61,10 +61,14 @@ export function parsePairKeyValue(
   if (valueProps.length <= 0) return;
   const keyPairPart = valueProps.shift();
   if (!keyPairPart) return;
-  const keyPair = keyPairPart.split(BAGGAGE_KEY_PAIR_SEPARATOR);
-  if (keyPair.length !== 2) return;
-  const key = decodeURIComponent(keyPair[0].trim());
-  const value = decodeURIComponent(keyPair[1].trim());
+  const separatorIndex = keyPairPart.indexOf(BAGGAGE_KEY_PAIR_SEPARATOR);
+  if (separatorIndex <= 0) return;
+  const key = decodeURIComponent(
+    keyPairPart.substring(0, separatorIndex).trim()
+  );
+  const value = decodeURIComponent(
+    keyPairPart.substring(separatorIndex + 1).trim()
+  );
   let metadata;
   if (valueProps.length > 0) {
     metadata = baggageEntryMetadataFromString(
diff --git a/packages/opentelemetry-core/test/baggage/W3CBaggagePropagator.test.ts b/packages/opentelemetry-core/test/baggage/W3CBaggagePropagator.test.ts
index c30bfb3014..801496513f 100644
--- a/packages/opentelemetry-core/test/baggage/W3CBaggagePropagator.test.ts
+++ b/packages/opentelemetry-core/test/baggage/W3CBaggagePropagator.test.ts
@@ -181,9 +181,9 @@ describe('W3CBaggagePropagator', () => {
 
   describe('.extract()', () => {
     const baggageValue =
-      'key1=d4cda95b,key3=c88815a7, keyn   = valn, keym =valm';
+      'key1=d4cda95b==,key3=c88815a7, keyn   = valn, keym =valm';
     const expected = propagation.createBaggage({
-      key1: { value: 'd4cda95b' },
+      key1: { value: 'd4cda95b==' },
       key3: { value: 'c88815a7' },
       keyn: { value: 'valn' },
       keym: { value: 'valm' },
@@ -217,7 +217,7 @@ describe('W3CBaggagePropagator', () => {
 
     it('should extract context of a sampled span when the headerValue comes as array with multiple items', () => {
       carrier[BAGGAGE_HEADER] = [
-        'key1=d4cda95b,key3=c88815a7, keyn   = valn',
+        'key1=d4cda95b==,key3=c88815a7, keyn   = valn',
         'keym =valm',
       ];
       const extractedBaggage = propagation.getBaggage(
@@ -282,10 +282,6 @@ describe('W3CBaggagePropagator', () => {
         header: '289371298nekjh2939299283jbk2b',
         baggage: undefined,
       },
-      invalidDoubleEqual: {
-        header: 'key1==value;key2=value2',
-        baggage: undefined,
-      },
       invalidWrongKeyValueFormat: {
         header: 'key1:value;key2=value2',
         baggage: undefined,
@@ -295,7 +291,7 @@ describe('W3CBaggagePropagator', () => {
         baggage: undefined,
       },
       mixInvalidAndValidKeys: {
-        header: 'key1==value,key2=value2',
+        header: 'key1:value,key2=value2',
         baggage: propagation.createBaggage({
           key2: {
             value: 'value2',