diff --git a/localstack-core/localstack/services/stepfunctions/resource_providers/aws_stepfunctions_statemachine.py b/localstack-core/localstack/services/stepfunctions/resource_providers/aws_stepfunctions_statemachine.py
index c2a65a4bfe508..e550a43b2fd41 100644
--- a/localstack-core/localstack/services/stepfunctions/resource_providers/aws_stepfunctions_statemachine.py
+++ b/localstack-core/localstack/services/stepfunctions/resource_providers/aws_stepfunctions_statemachine.py
@@ -216,9 +216,10 @@ def update(
         if not model.get("Arn"):
             model["Arn"] = request.previous_state["Arn"]
 
+        definition_str = self._get_definition(model, request.aws_client_factory.s3)
         params = {
             "stateMachineArn": model["Arn"],
-            "definition": model["DefinitionString"],
+            "definition": definition_str,
         }
 
         step_function.update_state_machine(**params)
diff --git a/tests/aws/services/cloudformation/resources/test_stepfunctions.py b/tests/aws/services/cloudformation/resources/test_stepfunctions.py
index 86ceb6bfccc3d..0925c3aec449b 100644
--- a/tests/aws/services/cloudformation/resources/test_stepfunctions.py
+++ b/tests/aws/services/cloudformation/resources/test_stepfunctions.py
@@ -3,6 +3,7 @@
 import urllib.parse
 
 import pytest
+from localstack_snapshot.snapshots.transformer import JsonpathTransformer
 
 from localstack import config
 from localstack.testing.pytest import markers
@@ -281,3 +282,73 @@ def test_cfn_statemachine_with_dependencies(deploy_cfn_template, aws_client):
     statemachines = [sm for sm in rs["stateMachines"] if sm_name in sm["name"]]
 
     assert not statemachines
+
+
+@markers.aws.validated
+@markers.snapshot.skip_snapshot_verify(
+    paths=["$..encryptionConfiguration", "$..tracingConfiguration"]
+)
+def test_cfn_statemachine_default_s3_location(
+    s3_create_bucket, deploy_cfn_template, aws_client, sfn_snapshot
+):
+    sfn_snapshot.add_transformers_list(
+        [
+            JsonpathTransformer("$..roleArn", "role-arn"),
+            JsonpathTransformer("$..stateMachineArn", "state-machine-arn"),
+            JsonpathTransformer("$..name", "state-machine-name"),
+        ]
+    )
+    cfn_template_path = os.path.join(
+        os.path.dirname(__file__),
+        "../../../templates/statemachine_machine_default_s3_location.yml",
+    )
+
+    stack_name = f"test-cfn-statemachine-default-s3-location-{short_uid()}"
+
+    file_key = f"file-key-{short_uid()}.json"
+    bucket_name = s3_create_bucket()
+    state_machine_template = {
+        "Comment": "step: on create",
+        "StartAt": "S0",
+        "States": {"S0": {"Type": "Succeed"}},
+    }
+
+    aws_client.s3.put_object(
+        Bucket=bucket_name, Key=file_key, Body=json.dumps(state_machine_template)
+    )
+
+    stack = deploy_cfn_template(
+        stack_name=stack_name,
+        template_path=cfn_template_path,
+        max_wait=150,
+        parameters={"BucketName": bucket_name, "ObjectKey": file_key},
+    )
+
+    stack_outputs = stack.outputs
+    statemachine_arn = stack_outputs["StateMachineArnOutput"]
+
+    describe_state_machine_output_on_create = aws_client.stepfunctions.describe_state_machine(
+        stateMachineArn=statemachine_arn
+    )
+    sfn_snapshot.match(
+        "describe_state_machine_output_on_create", describe_state_machine_output_on_create
+    )
+
+    file_key = f"2-{file_key}"
+    state_machine_template["Comment"] = "step: on update"
+    aws_client.s3.put_object(
+        Bucket=bucket_name, Key=file_key, Body=json.dumps(state_machine_template)
+    )
+    deploy_cfn_template(
+        stack_name=stack_name,
+        template_path=cfn_template_path,
+        is_update=True,
+        parameters={"BucketName": bucket_name, "ObjectKey": file_key},
+    )
+
+    describe_state_machine_output_on_update = aws_client.stepfunctions.describe_state_machine(
+        stateMachineArn=statemachine_arn
+    )
+    sfn_snapshot.match(
+        "describe_state_machine_output_on_update", describe_state_machine_output_on_update
+    )
diff --git a/tests/aws/services/cloudformation/resources/test_stepfunctions.snapshot.json b/tests/aws/services/cloudformation/resources/test_stepfunctions.snapshot.json
new file mode 100644
index 0000000000000..df07ef28a658a
--- /dev/null
+++ b/tests/aws/services/cloudformation/resources/test_stepfunctions.snapshot.json
@@ -0,0 +1,70 @@
+{
+  "tests/aws/services/cloudformation/resources/test_stepfunctions.py::test_cfn_statemachine_default_s3_location": {
+    "recorded-date": "17-12-2024, 16:06:46",
+    "recorded-content": {
+      "describe_state_machine_output_on_create": {
+        "creationDate": "datetime",
+        "definition": {
+          "Comment": "step: on create",
+          "StartAt": "S0",
+          "States": {
+            "S0": {
+              "Type": "Succeed"
+            }
+          }
+        },
+        "encryptionConfiguration": {
+          "type": "AWS_OWNED_KEY"
+        },
+        "loggingConfiguration": {
+          "includeExecutionData": false,
+          "level": "OFF"
+        },
+        "name": "<state-machine-name:1>",
+        "roleArn": "<role-arn:1>",
+        "stateMachineArn": "<state-machine-arn:1>",
+        "status": "ACTIVE",
+        "tracingConfiguration": {
+          "enabled": false
+        },
+        "type": "STANDARD",
+        "ResponseMetadata": {
+          "HTTPHeaders": {},
+          "HTTPStatusCode": 200
+        }
+      },
+      "describe_state_machine_output_on_update": {
+        "creationDate": "datetime",
+        "definition": {
+          "Comment": "step: on update",
+          "StartAt": "S0",
+          "States": {
+            "S0": {
+              "Type": "Succeed"
+            }
+          }
+        },
+        "encryptionConfiguration": {
+          "type": "AWS_OWNED_KEY"
+        },
+        "loggingConfiguration": {
+          "includeExecutionData": false,
+          "level": "OFF"
+        },
+        "name": "<state-machine-name:1>",
+        "revisionId": "<uuid:1>",
+        "roleArn": "<role-arn:1>",
+        "stateMachineArn": "<state-machine-arn:1>",
+        "status": "ACTIVE",
+        "tracingConfiguration": {
+          "enabled": false
+        },
+        "type": "STANDARD",
+        "ResponseMetadata": {
+          "HTTPHeaders": {},
+          "HTTPStatusCode": 200
+        }
+      }
+    }
+  }
+}
diff --git a/tests/aws/services/cloudformation/resources/test_stepfunctions.validation.json b/tests/aws/services/cloudformation/resources/test_stepfunctions.validation.json
new file mode 100644
index 0000000000000..bfd2fc0768091
--- /dev/null
+++ b/tests/aws/services/cloudformation/resources/test_stepfunctions.validation.json
@@ -0,0 +1,5 @@
+{
+  "tests/aws/services/cloudformation/resources/test_stepfunctions.py::test_cfn_statemachine_default_s3_location": {
+    "last_validated_date": "2024-12-17T16:06:46+00:00"
+  }
+}
diff --git a/tests/aws/templates/statemachine_machine_default_s3_location.yml b/tests/aws/templates/statemachine_machine_default_s3_location.yml
new file mode 100644
index 0000000000000..cf89842900637
--- /dev/null
+++ b/tests/aws/templates/statemachine_machine_default_s3_location.yml
@@ -0,0 +1,33 @@
+AWSTemplateFormatVersion: '2010-09-09'
+
+Parameters:
+  BucketName:
+    Type: String
+
+  ObjectKey:
+    Type: String
+
+Resources:
+  StateMachineRole:
+    Type: AWS::IAM::Role
+    Properties:
+      AssumeRolePolicyDocument:
+        Version: '2012-10-17'
+        Statement:
+          - Effect: Allow
+            Principal:
+              Service: states.amazonaws.com
+            Action: sts:AssumeRole
+
+  StateMachine:
+    Type: AWS::StepFunctions::StateMachine
+    Properties:
+      StateMachineType: STANDARD
+      RoleArn: !GetAtt StateMachineRole.Arn
+      DefinitionS3Location:
+        Bucket: !Ref BucketName
+        Key: !Ref ObjectKey
+
+Outputs:
+  StateMachineArnOutput:
+    Value: !Ref StateMachine