diff --git a/databricks_cli/cluster_policies/api.py b/databricks_cli/cluster_policies/api.py
index ad87c77e..34638a11 100644
--- a/databricks_cli/cluster_policies/api.py
+++ b/databricks_cli/cluster_policies/api.py
@@ -20,6 +20,8 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 # See the License for the specific language governing permissions and
 # limitations under the License.
+from json import dumps as json_dumps
+
 from databricks_cli.sdk import PolicyService
 
 
@@ -27,11 +29,25 @@ class ClusterPolicyApi(object):
     def __init__(self, api_client):
         self.client = PolicyService(api_client)
 
+    @staticmethod
+    def format_policy_for_api(policy):
+        if isinstance(policy.get("definition"), dict):
+            policy["definition"] = json_dumps(policy["definition"])
+        return policy
+
     def create_cluster_policy(self, json):
-        return self.client.client.perform_query('POST', '/policies/clusters/create', data=json)
+        return self.client.client.perform_query(
+            "POST",
+            "/policies/clusters/create",
+            data=ClusterPolicyApi.format_policy_for_api(json),
+        )
 
     def edit_cluster_policy(self, json):
-        return self.client.client.perform_query('POST', '/policies/clusters/edit', data=json)
+        return self.client.client.perform_query(
+            "POST",
+            "/policies/clusters/edit",
+            data=ClusterPolicyApi.format_policy_for_api(json),
+        )
 
     def delete_cluster_policy(self, policy_id):
         return self.client.delete_policy(policy_id)
diff --git a/tests/cluster_policies/test_api.py b/tests/cluster_policies/test_api.py
new file mode 100644
index 00000000..ed5082fa
--- /dev/null
+++ b/tests/cluster_policies/test_api.py
@@ -0,0 +1,62 @@
+# Databricks CLI
+# Copyright 2017 Databricks, Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License"), except
+# that the use of services to which certain application programming
+# interfaces (each, an "API") connect requires that the user first obtain
+# a license for the use of the APIs from Databricks, Inc. ("Databricks"),
+# by creating an account at www.databricks.com and agreeing to either (a)
+# the Community Edition Terms of Service, (b) the Databricks Terms of
+# Service, or (c) another written agreement between Licensee and Databricks
+# for the use of the APIs.
+#
+# You may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#    http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import mock
+import pytest
+
+from databricks_cli.cluster_policies.api import ClusterPolicyApi
+
+
+@pytest.mark.parametrize(
+    "policy, expected",
+    [
+        ({"definition": "foo"}, {"definition": "foo"}),
+        ({"definition": {"foo": "bar"}}, {"definition": '{"foo": "bar"}'}),
+    ],
+)
+def test_format_policy_for_api(policy, expected):
+    result = ClusterPolicyApi.format_policy_for_api(policy)
+    assert result == expected
+
+
+@pytest.mark.parametrize(
+    "fct_name, method, action",
+    [
+        ("create_cluster_policy", "POST", "create"),
+        ("edit_cluster_policy", "POST", "edit"),
+    ],
+)
+@mock.patch(
+    "databricks_cli.cluster_policies.api.ClusterPolicyApi.format_policy_for_api"
+)
+def test_create_and_edit_cluster_policy(
+    mock_format_policy_for_api, fct_name, method, action, fixture_cluster_policies_api
+):
+    mock_policy = mock.Mock()
+    getattr(fixture_cluster_policies_api, fct_name)(mock_policy)
+    mock_format_policy_for_api.assert_called_once_with(mock_policy)
+    fixture_cluster_policies_api.client.client.perform_query.assert_called_once_with(
+        method,
+        "/policies/clusters/{}".format(action),
+        data=mock_format_policy_for_api.return_value,
+    )
diff --git a/tests/conftest.py b/tests/conftest.py
index 6d7fe245..523bc2e3 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -22,9 +22,12 @@
 # limitations under the License.
 import shutil
 import tempfile
+
+import mock
 import pytest
 
 import databricks_cli.configure.provider as provider
+from databricks_cli.cluster_policies.api import ClusterPolicyApi
 
 
 @pytest.fixture(autouse=True)
@@ -33,3 +36,12 @@ def mock_conf_dir():
     provider._home = path
     yield
     shutil.rmtree(path)
+
+
+@pytest.fixture()
+def fixture_cluster_policies_api():
+    with mock.patch(
+        "databricks_cli.cluster_policies.api.PolicyService"
+    ) as service_mock:
+        service_mock.return_value = mock.MagicMock()
+        yield ClusterPolicyApi(None)