diff --git a/changelogs/fragments/fix_820.yaml b/changelogs/fragments/fix_820.yaml
new file mode 100644
index 000000000..b2f1b674c
--- /dev/null
+++ b/changelogs/fragments/fix_820.yaml
@@ -0,0 +1,3 @@
+---
+bugfixes:
+  - "nxos_snmp_server - correctly render entity traps (https://github.com/ansible-collections/cisco.nxos/issues/820)."
diff --git a/plugins/module_utils/network/nxos/rm_templates/snmp_server.py b/plugins/module_utils/network/nxos/rm_templates/snmp_server.py
index 35451a47b..4661a0dc1 100644
--- a/plugins/module_utils/network/nxos/rm_templates/snmp_server.py
+++ b/plugins/module_utils/network/nxos/rm_templates/snmp_server.py
@@ -78,7 +78,11 @@ def _tmplt_users_auth(data):
 
 class Snmp_serverTemplate(NetworkTemplate):
     def __init__(self, lines=None, module=None):
-        super(Snmp_serverTemplate, self).__init__(lines=lines, tmplt=self, module=module)
+        super(Snmp_serverTemplate, self).__init__(
+            lines=lines,
+            tmplt=self,
+            module=module,
+        )
 
     # fmt: off
     PARSERS = [
@@ -415,10 +419,10 @@ def __init__(self, lines=None, module=None):
                 r"""
                 ^snmp-server\senable
                 \straps
-                \sentity\s(?P<entity_fan_status_change>entity-fan-status-change)
+                \sentity\s(?P<entity_fan_status_change>entity_fan_status_change)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-fan-status-change",
+            "setval": "snmp-server enable traps entity entity_fan_status_change",
             "result": {
                 "traps": {
                     "entity": {
@@ -433,10 +437,10 @@ def __init__(self, lines=None, module=None):
                 r"""
                 ^snmp-server\senable
                 \straps
-                \sentity\s(?P<entity_mib_change>entity-mib-change)
+                \sentity\s(?P<entity_mib_change>entity_mib_change)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-mib-change",
+            "setval": "snmp-server enable traps entity entity_mib_change",
             "result": {
                 "traps": {
                     "entity": {
@@ -451,10 +455,10 @@ def __init__(self, lines=None, module=None):
                 r"""
                 ^snmp-server\senable
                 \straps
-                \sentity\s(?P<entity_module_inserted>entity-module-inserted)
+                \sentity\s(?P<entity_module_inserted>entity_module_inserted)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-module-inserted",
+            "setval": "snmp-server enable traps entity entity_module_inserted",
             "result": {
                 "traps": {
                     "entity": {
@@ -469,10 +473,10 @@ def __init__(self, lines=None, module=None):
                 r"""
                 ^snmp-server\senable
                 \straps
-                \sentity\s(?P<entity_module_status_change>entity-module-status-change)
+                \sentity\s(?P<entity_module_status_change>entity_module_status_change)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-module-status-change",
+            "setval": "snmp-server enable traps entity entity_module_status_change",
             "result": {
                 "traps": {
                     "entity": {
@@ -487,10 +491,10 @@ def __init__(self, lines=None, module=None):
                 r"""
                 ^snmp-server\senable
                 \straps
-                \sentity\s(?P<entity_power_out_change>entity-power-out-change)
+                \sentity\s(?P<entity_power_out_change>entity_power_out_change)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-power-out-change",
+            "setval": "snmp-server enable traps entity entity_power_out_change",
             "result": {
                 "traps": {
                     "entity": {
@@ -508,7 +512,7 @@ def __init__(self, lines=None, module=None):
                 \sentity\s(?P<entity_power_status_change>entity_power_status_change)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-power-status-change",
+            "setval": "snmp-server enable traps entity entity_power_status_change",
             "result": {
                 "traps": {
                     "entity": {
@@ -523,10 +527,10 @@ def __init__(self, lines=None, module=None):
                 r"""
                 ^snmp-server\senable
                 \straps
-                \sentity\s(?P<entity_sensor>entity-sensor)
+                \sentity\s(?P<entity_sensor>entity_sensor)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-sensor",
+            "setval": "snmp-server enable traps entity entity_sensor",
             "result": {
                 "traps": {
                     "entity": {
@@ -541,10 +545,10 @@ def __init__(self, lines=None, module=None):
                 r"""
                 ^snmp-server\senable
                 \straps
-                \sentity\s(?P<entity_unrecognised_module>entity-unrecognised-module)
+                \sentity\s(?P<entity_unrecognised_module>entity_unrecognised_module)
                 $""", re.VERBOSE,
             ),
-            "setval": "snmp-server enable traps entity entity-unrecognised-module",
+            "setval": "snmp-server enable traps entity entity_unrecognised_module",
             "result": {
                 "traps": {
                     "entity": {
diff --git a/tests/unit/modules/network/nxos/test_nxos_snmp_server.py b/tests/unit/modules/network/nxos/test_nxos_snmp_server.py
index a15562b10..93aad2c9e 100644
--- a/tests/unit/modules/network/nxos/test_nxos_snmp_server.py
+++ b/tests/unit/modules/network/nxos/test_nxos_snmp_server.py
@@ -1033,3 +1033,43 @@ def test_nxos_snmp_server_gathered_empty(self):
         gathered = {}
         result = self.execute_module(changed=False)
         self.assertEqual(result["gathered"], gathered)
+
+    def test_nxos_snmp_server_traps_merged_820(self):
+        # test merged for traps, related to #820
+        self.get_config.return_value = dedent(
+            """\
+            """,
+        )
+        set_module_args(
+            dict(
+                config=dict(
+                    traps=dict(
+                        entity=dict(
+                            entity_fan_status_change=True,
+                            entity_mib_change=True,
+                            entity_module_inserted=True,
+                            entity_module_removed=True,
+                            entity_module_status_change=True,
+                            entity_power_out_change=True,
+                            entity_power_status_change=True,
+                            entity_unrecognised_module=True,
+                            entity_sensor=True,
+                        ),
+                    ),
+                ),
+                state="merged",
+            ),
+            ignore_provider_arg,
+        )
+        commands = [
+            "snmp-server enable traps entity entity_fan_status_change",
+            "snmp-server enable traps entity entity_mib_change",
+            "snmp-server enable traps entity entity_module_inserted",
+            "snmp-server enable traps entity entity_module_status_change",
+            "snmp-server enable traps entity entity_power_out_change",
+            "snmp-server enable traps entity entity_power_status_change",
+            "snmp-server enable traps entity entity_sensor",
+            "snmp-server enable traps entity entity_unrecognised_module",
+        ]
+        result = self.execute_module(changed=True)
+        self.assertEqual(set(result["commands"]), set(commands))