A pressure regulating valve assembly includes a housing. Also included is a valve sleeve mounted within a bore of the housing, the valve sleeve having a first portion and a second portion, the second portion having a diameter less than the first portion and received in a sense piston bore of the housing. Further included is a valve spool mounted within the valve sleeve. Yet further included is a sense piston disposed within the second portion of the valve sleeve. Also included is a damping orifice extending through an end portion of the second portion of the valve sleeve.