diff --git a/src/components/avatar/__snapshots__/avatar.test.tsx.snap b/src/components/avatar/__snapshots__/avatar.test.tsx.snap
index 882d6ab0a55..193992e2117 100644
--- a/src/components/avatar/__snapshots__/avatar.test.tsx.snap
+++ b/src/components/avatar/__snapshots__/avatar.test.tsx.snap
@@ -179,7 +179,7 @@ exports[`EuiAvatar props initials is rendered 1`] = `
   <span
     aria-hidden="true"
   >
-    l
+    lo
   </span>
 </div>
 `;
diff --git a/src/services/string/to_initials.ts b/src/services/string/to_initials.ts
index 9d55f328088..fd0d77e57c2 100644
--- a/src/services/string/to_initials.ts
+++ b/src/services/string/to_initials.ts
@@ -29,7 +29,7 @@ export function toInitials(
 ): string | null {
   // Calculate the number of initials to show, maxing out at MAX_INITIALS
   let calculatedInitialsLength: number = initials
-    ? initials.split(' ').length
+    ? initials.split('').length
     : name.split(' ').length;
 
   calculatedInitialsLength =
diff --git a/upcoming_changelogs/6346.md b/upcoming_changelogs/6346.md
new file mode 100644
index 00000000000..fe8b1314480
--- /dev/null
+++ b/upcoming_changelogs/6346.md
@@ -0,0 +1,3 @@
+**Bug fixes**
+
+- Fixed bug in `to_initials` that truncates custom initials