diff --git a/integration/mediation-tests/tests-mediator-1/src/test/java/org/wso2/carbon/esb/mediator/test/payload/factory/PayloadFactorySynapseExpressionTestCase.java b/integration/mediation-tests/tests-mediator-1/src/test/java/org/wso2/carbon/esb/mediator/test/payload/factory/PayloadFactorySynapseExpressionTestCase.java
index 24955ad91a..f8f1b5bf9b 100644
--- a/integration/mediation-tests/tests-mediator-1/src/test/java/org/wso2/carbon/esb/mediator/test/payload/factory/PayloadFactorySynapseExpressionTestCase.java
+++ b/integration/mediation-tests/tests-mediator-1/src/test/java/org/wso2/carbon/esb/mediator/test/payload/factory/PayloadFactorySynapseExpressionTestCase.java
@@ -147,6 +147,7 @@ public void testPayloadFactoryXMLToJson() throws IOException {
         String expectedResponse = "{\n" +
                 "    \"string\": \"John<\",\n" +
                 "    \"escapedObject\": \"<pet><type>cat</type><name>emily\\\\ntini</name></pet>\",\n" +
+                "    \"escapedObject2\": \"<pet2>\\n        <type>dog&lt;</type>\\n        <name>John\\\\nWayne</name>\\n    </pet2>\",\n" +
                 "    \"object\": {\n" +
                 "        \"pet\": {\n" +
                 "            \"type\": \"cat\",\n" +
@@ -160,6 +161,10 @@ public void testPayloadFactoryXMLToJson() throws IOException {
         String requestPayload = "<root>\n" +
                 "    <customer_name>John&lt;</customer_name>\n" +
                 "    <pet><type>cat</type><name>emily\\\\ntini</name></pet>\n" +
+                "    <pet2>\n" +
+                "        <type>dog&lt;</type>\n" +
+                "        <name>John\\\\nWayne</name>\n" +
+                "    </pet2>\n" +
                 "    <path>true</path>\n" +
                 "</root>";
 
diff --git a/integration/mediation-tests/tests-mediator-1/src/test/resources/artifacts/ESB/server/repository/deployment/server/synapse-configs/default/api/synapse_expressions_payload_factory.xml b/integration/mediation-tests/tests-mediator-1/src/test/resources/artifacts/ESB/server/repository/deployment/server/synapse-configs/default/api/synapse_expressions_payload_factory.xml
index a2e05362a4..75529ee6d2 100644
--- a/integration/mediation-tests/tests-mediator-1/src/test/resources/artifacts/ESB/server/repository/deployment/server/synapse-configs/default/api/synapse_expressions_payload_factory.xml
+++ b/integration/mediation-tests/tests-mediator-1/src/test/resources/artifacts/ESB/server/repository/deployment/server/synapse-configs/default/api/synapse_expressions_payload_factory.xml
@@ -86,6 +86,7 @@
                 <format>{
                     "string": "${xpath('//root/customer_name/text()')}",
                     "escapedObject": "${xpath('//root/pet')}",
+                    "escapedObject2": "${xpath('//root/pet2')}",
                     "object": ${xpath('//root/pet')},
                     "xml": "${var.id}",
                     "json": "${var.special_json}"
diff --git a/pom.xml b/pom.xml
index 44133dd90c..0e55413bd0 100644
--- a/pom.xml
+++ b/pom.xml
@@ -1606,7 +1606,7 @@
         <version.jaxb.api>2.4.0-b180830.0359</version.jaxb.api>
         <com.sun.jaxb.version>2.3.0</com.sun.jaxb.version>
         <com.sun.jaxb.impl.version>2.3.1</com.sun.jaxb.impl.version>
-        <synapse.version>4.0.0-wso2v151</synapse.version>
+        <synapse.version>4.0.0-wso2v154</synapse.version>
         <imp.pkg.version.synapse>[4.0.0, 4.0.1)</imp.pkg.version.synapse>
         <carbon.mediation.version>4.7.215</carbon.mediation.version>
         <carbon.crypto.version>1.1.3</carbon.crypto.version>