diff --git a/packages/core-components/src/components/Avatar/util.test.ts b/packages/core-components/src/components/Avatar/util.test.ts
index 70ed360bc3..98d0bd2550 100644
--- a/packages/core-components/src/components/Avatar/util.test.ts
+++ b/packages/core-components/src/components/Avatar/util.test.ts
@@ -17,25 +17,29 @@
 import { extractInitials, stringToColor } from './utils';
 
 describe('stringToColor', () => {
-  it('extract color', async () => {
+  it('extract color', () => {
     expect(stringToColor('Jenny Doe')).toEqual('#7809fa');
   });
 });
 
 describe('extractInitials', () => {
-  it('extract initials', async () => {
+  it('extract initials', () => {
     expect(extractInitials('Jenny Doe')).toEqual('JD');
   });
 
-  it('extract unicode initials', async () => {
+  it('extract unicode initials', () => {
     expect(extractInitials('Petr Čech')).toEqual('PČ');
   });
 
-  it('extract single letter for short name', async () => {
+  it('extract single letter for short name', () => {
     expect(extractInitials('Doe')).toEqual('D');
   });
 
-  it('limit the initials to two letters', async () => {
+  it('limit the initials to two letters', () => {
     expect(extractInitials('John Jonathan Doe')).toEqual('JD');
   });
+
+  it('removes spaces from beginning or the end', () => {
+    expect(extractInitials(' John Jonathan Doe ')).toEqual('JD');
+  });
 });
diff --git a/packages/core-components/src/components/Avatar/utils.ts b/packages/core-components/src/components/Avatar/utils.ts
index ad587e0e8e..65e2be6afa 100644
--- a/packages/core-components/src/components/Avatar/utils.ts
+++ b/packages/core-components/src/components/Avatar/utils.ts
@@ -28,7 +28,7 @@ export function stringToColor(str: string) {
 }
 
 export function extractInitials(name: string) {
-  const names = name.split(' ');
+  const names = name.trim().split(' ');
   const firstName = names[0] ?? '';
   const lastName = names.length > 1 ? names[names.length - 1] : '';
   return firstName && lastName