diff --git a/rds-postgres-db/README.md b/rds-postgres-db/README.md
index 448a9f9..39bf16b 100644
--- a/rds-postgres-db/README.md
+++ b/rds-postgres-db/README.md
@@ -1,13 +1,13 @@
 # rds-postgres-db
 
-A nullplatform dependency service that provisions and manages a **PostgreSQL database** within an existing RDS instance managed by [`rds-postgres-server`](../rds-postgres-server). It handles database creation, app-level user management, and per-link fine-grained access control — without creating any AWS infrastructure itself.
+A nullplatform dependency service that provisions and manages a **PostgreSQL database** within an existing RDS instance managed by [`rds-postgres-server`](../rds-postgres-server). It handles database creation, app-level user management, and per-link fine-grained access control. Unlike `rds-postgres-server`, it does not provision any RDS/EC2 infrastructure — the one AWS resource it does create is the Secrets Manager secret holding the app-level PostgreSQL credentials.
 
 ## What It Does
 
 - Auto-discovers a compatible `rds-postgres-server` in the same nullplatform namespace using dimension matching
 - Creates a dedicated PostgreSQL database and application-level user within that server
 - Manages per-link permissions: each link to an application gets its own PostgreSQL user with scoped grants (`read`, `write`, or `read-write`)
-- Stores connection credentials in nullplatform service and link attributes for injection into applications
+- Stores connection credentials in nullplatform service and link attributes for injection into applications, and mirrors the app-level credentials into a Secrets Manager secret (same convention as the `rds-postgres-server` master secret)
 
 ## Architecture
 
@@ -25,7 +25,7 @@ nullplatform Application
              postgresql_grant.*
 ```
 
-Unlike `rds-postgres-server`, this service creates no AWS resources. It only manages PostgreSQL-level objects (databases, roles, grants) on the shared RDS instance.
+Unlike `rds-postgres-server`, this service creates no RDS/EC2 infrastructure — it only manages PostgreSQL-level objects (databases, roles, grants) on the shared RDS instance, plus one Secrets Manager secret for the app-level credentials it generates.
 
 ## Nullplatform Integration
 
@@ -43,7 +43,8 @@ Unlike `rds-postgres-server`, this service creates no AWS resources. It only man
 | `username` | exported | Service-level PostgreSQL user |
 | `password` | hidden | Service-level PostgreSQL password |
 | `database_name` | exported | PostgreSQL database name |
-| `master_secret_arn` | internal | Secrets Manager ARN (used for link operations) |
+| `master_secret_arn` | internal | Secrets Manager ARN for the `rds-postgres-server` master credentials (used for link operations) |
+| `app_secret_arn` | internal | Secrets Manager ARN for this service's own app-level credentials |
 
 ### Link Attributes (written per link)
 
@@ -52,6 +53,7 @@ Unlike `rds-postgres-server`, this service creates no AWS resources. It only man
 | `username` | Per-link PostgreSQL user (`np_<first 16 chars of link_id>`) |
 | `password` | Per-link PostgreSQL password |
 | `database_name` | Database name (same as service-level database) |
+| `app_secret_arn` | Secrets Manager ARN for the service-level app credentials (mirrored from the service attribute) |
 
 ## Link Parameters
 
@@ -73,9 +75,9 @@ All access levels include `DEFAULT PRIVILEGES` so future tables created after th
 
 | Workflow | Trigger | What It Does |
 |---|---|---|
-| `create` | Service created | Auto-discovers server, creates database + app user, writes service attributes |
+| `create` | Service created | Auto-discovers server, creates database + app user, stores app credentials in Secrets Manager, writes service attributes |
 | `update` | Service updated | No-op (no configurable parameters) |
-| `delete` | Service deleted | Reassigns owned objects to master, destroys app user; **database is preserved** |
+| `delete` | Service deleted | Reassigns owned objects to master, destroys app user and its Secrets Manager secret; **database is preserved** |
 | `link` | Application linked | Creates per-link PostgreSQL user with scoped grants |
 | `unlink` | Application unlinked | Revokes grants only; user and database are **preserved** |
 
@@ -97,6 +99,16 @@ username = "np_<first 16 hex chars of link_id>"
 
 This ensures usernames are stable and reproducible even if the service is recreated.
 
+## Infrastructure Resources Created
+
+| Resource | Description |
+|---|---|
+| `postgresql_database` | The application database (preserved on delete) |
+| `postgresql_role` | The service-level app user |
+| `aws_secretsmanager_secret` | Stores the app-level credentials (`nullplatform/rds/<service_id>/app`); destroyed alongside the app user on service delete |
+
+No RDS, EC2, or VPC resources are created — those belong to the auto-discovered `rds-postgres-server`.
+
 ## Requirements
 
 ### nullplatform Prerequisites
@@ -113,9 +125,9 @@ This ensures usernames are stable and reproducible even if the service is recrea
 
 ### AWS IAM Permissions
 
-This service requires minimal AWS permissions compared to `rds-postgres-server`. The agent needs:
+This service requires fewer AWS permissions than `rds-postgres-server` (no RDS/EC2), but it does manage its own Secrets Manager secret. The agent needs:
 
-- **Secrets Manager**: `GetSecretValue` — to retrieve the master PostgreSQL password from the ARN stored in service attributes
+- **Secrets Manager**: `GetSecretValue` — to retrieve the master PostgreSQL password from the ARN stored in service attributes; plus `CreateSecret`, `PutSecretValue`, `UpdateSecret`, `DeleteSecret`, `DescribeSecret`, `TagResource`, `UntagResource`, `GetResourcePolicy`, `ListSecretVersionIds` — to create, update, and delete the app-level credentials secret this service owns
 - **S3**: full lifecycle on the `np-service-<SERVICE_ID>` bucket — `build_context` creates and manages its own per-service Terraform state bucket, same as `rds-postgres-server`
 
 No RDS or EC2 permissions are needed.
@@ -131,12 +143,15 @@ applying it. Granting the agent itself permission to assume this role is
 handled separately, outside this module.
 
 This role and its policy are shared per **cluster**, not per linked
-`rds-postgres-server` instance — the `GetSecretValue` grant is scoped to the
-`nullplatform/rds/*` secret-name prefix (every master secret in the cluster
-following that naming convention), not to the single secret this particular
-service instance's link actually uses. Anything that assumes this role can
-read the master password of any `rds-postgres-server` in the cluster, not
-just the linked one.
+`rds-postgres-server` instance — the Secrets Manager grant is scoped to the
+`nullplatform/rds/*` secret-name prefix (every master and app secret in the
+cluster following that naming convention), not to the single secrets this
+particular service instance actually owns. Anything that assumes this role
+can read, create, update, or delete any secret under that prefix — not just
+the master password of the linked server, and not just this instance's own
+app secret. This is a wider blast radius than a read-only grant would be;
+narrowing it to per-instance secret ARNs would require generating the policy
+per service instance instead of once per cluster.
 
 ### AssumeRole Setup Guide
 
diff --git a/rds-postgres-db/db_setup/main.tf b/rds-postgres-db/db_setup/main.tf
index fc4516c..0f16aa3 100644
--- a/rds-postgres-db/db_setup/main.tf
+++ b/rds-postgres-db/db_setup/main.tf
@@ -34,3 +34,30 @@ resource "postgresql_role" "app_user" {
   password = random_password.user.result
   login    = true
 }
+
+# ---------------------------------------------------------------------------
+# App credentials, mirrored into Secrets Manager (same convention as the
+# rds-postgres-server master secret) so they're not only reachable via
+# nullplatform service/link attributes.
+# ---------------------------------------------------------------------------
+
+resource "aws_secretsmanager_secret" "app" {
+  name                    = "nullplatform/rds/${var.service_id}/app"
+  recovery_window_in_days = 0
+
+  tags = {
+    "managed-by" = "nullplatform"
+    "service-id" = var.service_id
+  }
+}
+
+resource "aws_secretsmanager_secret_version" "app" {
+  secret_id = aws_secretsmanager_secret.app.id
+  secret_string = jsonencode({
+    username = postgresql_role.app_user.name
+    password = random_password.user.result
+    host     = var.db_host
+    port     = var.db_port
+    dbname   = postgresql_database.app.name
+  })
+}
diff --git a/rds-postgres-db/db_setup/outputs.tf b/rds-postgres-db/db_setup/outputs.tf
index 20b5ff5..0d9b824 100644
--- a/rds-postgres-db/db_setup/outputs.tf
+++ b/rds-postgres-db/db_setup/outputs.tf
@@ -28,3 +28,8 @@ output "database_name" {
   value       = postgresql_database.app.name
   description = "Database name"
 }
+
+output "app_secret_arn" {
+  value       = aws_secretsmanager_secret.app.arn
+  description = "ARN of the Secrets Manager secret holding the app-level credentials"
+}
diff --git a/rds-postgres-db/db_setup/providers.tf b/rds-postgres-db/db_setup/providers.tf
index 976a2bf..0d6cd3f 100644
--- a/rds-postgres-db/db_setup/providers.tf
+++ b/rds-postgres-db/db_setup/providers.tf
@@ -8,9 +8,17 @@ terraform {
       source  = "hashicorp/random"
       version = "~> 3.0"
     }
+    aws = {
+      source  = "hashicorp/aws"
+      version = "~> 6.0"
+    }
   }
 }
 
+provider "aws" {
+  region = var.region
+}
+
 provider "postgresql" {
   host      = var.db_host
   port      = var.db_port
diff --git a/rds-postgres-db/db_setup/variables.tf b/rds-postgres-db/db_setup/variables.tf
index 06f00c3..8d1527c 100644
--- a/rds-postgres-db/db_setup/variables.tf
+++ b/rds-postgres-db/db_setup/variables.tf
@@ -3,6 +3,12 @@ variable "service_id" {
   description = "Nullplatform service ID (used as keeper to stabilize password across re-applies)"
 }
 
+variable "region" {
+  type        = string
+  default     = "us-east-1"
+  description = "AWS region (used to create the app credentials secret in Secrets Manager)"
+}
+
 variable "db_host" {
   type        = string
   description = "RDS endpoint hostname"
diff --git a/rds-postgres-db/deployment/main.tf b/rds-postgres-db/deployment/main.tf
index 24f05dc..92c716c 100644
--- a/rds-postgres-db/deployment/main.tf
+++ b/rds-postgres-db/deployment/main.tf
@@ -39,6 +39,7 @@ resource "random_password" "master" {
 resource "aws_secretsmanager_secret" "master" {
   name                    = "nullplatform/rds/${var.instance_name}/master"
   recovery_window_in_days = 0
+  kms_key_id              = var.secret_kms_key_id
 
   tags = {
     "managed-by"   = "nullplatform"
diff --git a/rds-postgres-db/deployment/variables.tf b/rds-postgres-db/deployment/variables.tf
index 673ba42..315c639 100644
--- a/rds-postgres-db/deployment/variables.tf
+++ b/rds-postgres-db/deployment/variables.tf
@@ -60,3 +60,9 @@ variable "maintenance_window" {
   default     = "Mon:04:00-Mon:05:00"
   description = "Weekly time range for maintenance operations (UTC, ddd:hh:mm-ddd:hh:mm)"
 }
+
+variable "secret_kms_key_id" {
+  type        = string
+  default     = null
+  description = "KMS key ID or ARN used to encrypt the RDS master secret in Secrets Manager. If not set, AWS encrypts it with the default aws/secretsmanager managed key."
+}
diff --git a/rds-postgres-db/scripts/aws/build_db_setup_context b/rds-postgres-db/scripts/aws/build_db_setup_context
index c323457..aea0221 100644
--- a/rds-postgres-db/scripts/aws/build_db_setup_context
+++ b/rds-postgres-db/scripts/aws/build_db_setup_context
@@ -132,4 +132,4 @@ export TOFU_IMPORT_DB_NAME="$DB_NAME_VAL"
 
 export TOFU_INIT_VARIABLES="-backend-config=bucket=${TFSTATE_BUCKET} -backend-config=key=db_setup.tfstate -backend-config=region=${REGION}"
 
-export TOFU_VARIABLES="-var=service_id=${SERVICE_ID} -var=db_host=${DB_HOST} -var=db_port=${DB_PORT} -var=db_name=${DB_NAME_VAL} -var=db_username=${DB_USERNAME_VAL} -var=master_username=${MASTER_USER} -var=master_secret_arn=${MASTER_SECRET_ARN}"
+export TOFU_VARIABLES="-var=service_id=${SERVICE_ID} -var=region=${REGION} -var=db_host=${DB_HOST} -var=db_port=${DB_PORT} -var=db_name=${DB_NAME_VAL} -var=db_username=${DB_USERNAME_VAL} -var=master_username=${MASTER_USER} -var=master_secret_arn=${MASTER_SECRET_ARN}"
diff --git a/rds-postgres-db/scripts/aws/write_link_outputs b/rds-postgres-db/scripts/aws/write_link_outputs
index 4495670..b54c907 100755
--- a/rds-postgres-db/scripts/aws/write_link_outputs
+++ b/rds-postgres-db/scripts/aws/write_link_outputs
@@ -25,6 +25,7 @@ USERNAME=$(echo "$SERVICE_JSON"         | jq -r '.attributes.username          /
 PASSWORD=$(echo "$SERVICE_JSON"         | jq -r '.attributes.password          // ""')
 DATABASE_NAME=$(echo "$SERVICE_JSON"    | jq -r '.attributes.database_name     // ""')
 MASTER_SECRET_ARN=$(echo "$SERVICE_JSON"| jq -r '.attributes.master_secret_arn // ""')
+APP_SECRET_ARN=$(echo "$SERVICE_JSON"   | jq -r '.attributes.app_secret_arn    // ""')
 
 if [ -z "$USERNAME" ]; then
   echo "WARNING: No username found in service attributes. Skipping link attribute update."
@@ -38,13 +39,15 @@ ATTRS=$(jq -n \
   --arg password          "$PASSWORD" \
   --arg database_name     "$DATABASE_NAME" \
   --arg master_secret_arn "$MASTER_SECRET_ARN" \
+  --arg app_secret_arn    "$APP_SECRET_ARN" \
   '{
     hostname:          $hostname,
     port:              ($port | tonumber),
     username:          $username,
     password:          $password,
     database_name:     $database_name,
-    master_secret_arn: $master_secret_arn
+    master_secret_arn: $master_secret_arn,
+    app_secret_arn:    $app_secret_arn
   }')
 
 echo "Updating link ${LINK_ID_VAL} attributes:"
diff --git a/rds-postgres-db/scripts/aws/write_service_outputs b/rds-postgres-db/scripts/aws/write_service_outputs
index c7814c2..d2dfe61 100755
--- a/rds-postgres-db/scripts/aws/write_service_outputs
+++ b/rds-postgres-db/scripts/aws/write_service_outputs
@@ -23,6 +23,7 @@ USERNAME=$(echo "$ALL_OUTPUTS"         | jq -r '.db_username.value       // ""')
 PASSWORD=$(echo "$ALL_OUTPUTS"         | jq -r '.db_password.value       // ""')
 DATABASE_NAME=$(echo "$ALL_OUTPUTS"    | jq -r '.database_name.value     // ""')
 MASTER_SECRET_ARN=$(echo "$ALL_OUTPUTS"| jq -r '.master_secret_arn.value // ""')
+APP_SECRET_ARN=$(echo "$ALL_OUTPUTS"   | jq -r '.app_secret_arn.value    // ""')
 
 if [ -z "$HOSTNAME" ]; then
   echo "WARNING: No hostname output found. Skipping service attribute update."
@@ -36,21 +37,24 @@ ATTRS=$(jq -n \
   --arg password          "$PASSWORD" \
   --arg database_name     "$DATABASE_NAME" \
   --arg master_secret_arn "$MASTER_SECRET_ARN" \
+  --arg app_secret_arn    "$APP_SECRET_ARN" \
   '{
     hostname:          $hostname,
     port:              ($port | tonumber),
     username:          $username,
     password:          $password,
     database_name:     $database_name,
-    master_secret_arn: $master_secret_arn
+    master_secret_arn: $master_secret_arn,
+    app_secret_arn:    $app_secret_arn
   }')
 
 echo "Updating service ${SERVICE_ID} attributes:"
-echo "  hostname:      $HOSTNAME"
-echo "  port:          $PORT"
-echo "  username:      $USERNAME"
-echo "  database_name: $DATABASE_NAME"
-echo "  password:      ****"
+echo "  hostname:       $HOSTNAME"
+echo "  port:           $PORT"
+echo "  username:       $USERNAME"
+echo "  database_name:  $DATABASE_NAME"
+echo "  app_secret_arn: $APP_SECRET_ARN"
+echo "  password:       ****"
 
 np service patch --id "$SERVICE_ID" --body "{\"attributes\": $ATTRS}"
 echo "Service attributes updated successfully."
diff --git a/rds-postgres-db/specs/links/connect.json.tpl b/rds-postgres-db/specs/links/connect.json.tpl
index 8bab9c7..9713a75 100644
--- a/rds-postgres-db/specs/links/connect.json.tpl
+++ b/rds-postgres-db/specs/links/connect.json.tpl
@@ -76,6 +76,13 @@
           "visibleOn": [],
           "editableOn": [],
           "description": "ARN of the Secrets Manager secret for master credentials (internal use)"
+        },
+        "app_secret_arn": {
+          "type": "string",
+          "export": false,
+          "visibleOn": [],
+          "editableOn": [],
+          "description": "ARN of the Secrets Manager secret holding the app-level credentials (internal use)"
         }
       }
     },
diff --git a/rds-postgres-db/specs/requirements/aws/main.tf b/rds-postgres-db/specs/requirements/aws/main.tf
index 879a052..67b40b2 100644
--- a/rds-postgres-db/specs/requirements/aws/main.tf
+++ b/rds-postgres-db/specs/requirements/aws/main.tf
@@ -21,20 +21,32 @@ resource "aws_iam_role" "nullplatform_rds_postgres_db" {
 }
 
 ################################################################################
-# Secrets Manager IAM policy — read-only access to the RDS master password
+# Secrets Manager IAM policy — read the RDS master password, manage the
+# app-level credentials secret this service creates in db_setup/
 ################################################################################
 
 resource "aws_iam_policy" "nullplatform_rds_postgres_db_secretsmanager_policy" {
   count = local.iam_create ? 1 : 0
 
   name        = "${local.policies_name_prefix}-rds-postgres-db-secretsmanager-policy"
-  description = "Policy for reading the RDS master password from Secrets Manager"
+  description = "Policy for reading the RDS master password and managing the app-level credentials secret in Secrets Manager"
 
   policy = jsonencode({
     Version = "2012-10-17"
     Statement = [{
-      Effect   = "Allow"
-      Action   = "secretsmanager:GetSecretValue"
+      Effect = "Allow"
+      Action = [
+        "secretsmanager:CreateSecret",
+        "secretsmanager:DeleteSecret",
+        "secretsmanager:DescribeSecret",
+        "secretsmanager:GetSecretValue",
+        "secretsmanager:PutSecretValue",
+        "secretsmanager:UpdateSecret",
+        "secretsmanager:TagResource",
+        "secretsmanager:UntagResource",
+        "secretsmanager:GetResourcePolicy",
+        "secretsmanager:ListSecretVersionIds"
+      ]
       Resource = "arn:aws:secretsmanager:*:${data.aws_caller_identity.current.account_id}:secret:nullplatform/rds/*"
     }]
   })
diff --git a/rds-postgres-db/specs/requirements/aws/output.tf b/rds-postgres-db/specs/requirements/aws/output.tf
index 3c192b9..7847b3f 100644
--- a/rds-postgres-db/specs/requirements/aws/output.tf
+++ b/rds-postgres-db/specs/requirements/aws/output.tf
@@ -14,7 +14,7 @@ output "permissions_role_id" {
 }
 
 output "secretsmanager_policy_arn" {
-  description = "ARN of the Secrets Manager read policy"
+  description = "ARN of the Secrets Manager policy (read master secret, manage app credentials secret)"
   value       = local.iam_create ? aws_iam_policy.nullplatform_rds_postgres_db_secretsmanager_policy[0].arn : ""
 }
 
diff --git a/rds-postgres-db/specs/service-spec.json.tpl b/rds-postgres-db/specs/service-spec.json.tpl
index 09aca5e..8f26c72 100644
--- a/rds-postgres-db/specs/service-spec.json.tpl
+++ b/rds-postgres-db/specs/service-spec.json.tpl
@@ -64,6 +64,13 @@
           "editableOn": [],
           "description": "ARN of the Secrets Manager secret for master credentials (internal use)",
           "order": 6
+        },
+        "app_secret_arn": {
+          "type": "string",
+          "visibleOn": [],
+          "editableOn": [],
+          "description": "ARN of the Secrets Manager secret holding the app-level credentials (internal use)",
+          "order": 7
         }
       }
     },
diff --git a/rds-postgres-db/workflows/aws/delete.yaml b/rds-postgres-db/workflows/aws/delete.yaml
index 9c8b2a8..61f73f0 100644
--- a/rds-postgres-db/workflows/aws/delete.yaml
+++ b/rds-postgres-db/workflows/aws/delete.yaml
@@ -55,9 +55,10 @@ steps:
     file: $SERVICE_PATH/scripts/aws/do_tofu
     configuration:
       TOFU_ACTION: destroy
-      # Destroy only the user. The database is preserved with master as owner
-      # so data remains available for potential future use.
-      TOFU_TARGETS: "postgresql_role.app_user,random_password.user"
+      # Destroy only the user and its Secrets Manager secret. The database is
+      # preserved with master as owner so data remains available for
+      # potential future use.
+      TOFU_TARGETS: "postgresql_role.app_user,random_password.user,aws_secretsmanager_secret_version.app,aws_secretsmanager_secret.app"
 
   - name: cleanup tfstate bucket
     type: script
diff --git a/rds-postgres-server/README.md b/rds-postgres-server/README.md
index a2124c7..49fa50f 100644
--- a/rds-postgres-server/README.md
+++ b/rds-postgres-server/README.md
@@ -65,9 +65,12 @@ Exposed in the nullplatform UI when creating or updating the service:
 | `instance_class` | string | `db.t3.micro` | `db.t3.micro`, `db.t3.small`, `db.t3.medium`, `db.m5.large` | Yes |
 | `allocated_storage` | number | `20` | 20–1000 (GB) | Yes |
 | `postgres_version` | string | `16` | `14`, `15`, `16` | No |
+| `secret_kms_key_id` | string | _(none)_ | Any KMS key ID/ARN in the account | Yes |
 
 > `postgres_version` cannot be changed after creation because PostgreSQL major version upgrades require manual intervention and are not managed by this service.
 
+> `secret_kms_key_id` controls which KMS key encrypts the master password secret in Secrets Manager. If left unset, AWS encrypts it with the default `aws/secretsmanager` managed key — pass a customer-managed key ARN here only if this service instance requires its own key.
+
 ## Workflows
 
 | Workflow | Trigger | What It Does |
diff --git a/rds-postgres-server/deployment/main.tf b/rds-postgres-server/deployment/main.tf
index 8aa289d..51107c3 100644
--- a/rds-postgres-server/deployment/main.tf
+++ b/rds-postgres-server/deployment/main.tf
@@ -45,6 +45,7 @@ resource "random_password" "master" {
 resource "aws_secretsmanager_secret" "master" {
   name                    = "nullplatform/rds/${var.instance_name}/master"
   recovery_window_in_days = 0
+  kms_key_id              = var.secret_kms_key_id
 
   tags = {
     "managed-by"   = "nullplatform"
diff --git a/rds-postgres-server/deployment/variables.tf b/rds-postgres-server/deployment/variables.tf
index 673ba42..315c639 100644
--- a/rds-postgres-server/deployment/variables.tf
+++ b/rds-postgres-server/deployment/variables.tf
@@ -60,3 +60,9 @@ variable "maintenance_window" {
   default     = "Mon:04:00-Mon:05:00"
   description = "Weekly time range for maintenance operations (UTC, ddd:hh:mm-ddd:hh:mm)"
 }
+
+variable "secret_kms_key_id" {
+  type        = string
+  default     = null
+  description = "KMS key ID or ARN used to encrypt the RDS master secret in Secrets Manager. If not set, AWS encrypts it with the default aws/secretsmanager managed key."
+}
diff --git a/rds-postgres-server/scripts/aws/build_context b/rds-postgres-server/scripts/aws/build_context
index 8c6b288..4f5b57d 100755
--- a/rds-postgres-server/scripts/aws/build_context
+++ b/rds-postgres-server/scripts/aws/build_context
@@ -27,6 +27,7 @@ SERVICE_ATTRS=$(echo "$CONTEXT" | jq -r '(.service.attributes // {}) * (.paramet
 INSTANCE_CLASS=$(echo "$SERVICE_ATTRS"   | jq -r '.instance_class    // "db.t3.micro"')
 ALLOCATED_STORAGE=$(echo "$SERVICE_ATTRS" | jq -r '.allocated_storage // 20')
 POSTGRES_VERSION=$(echo "$SERVICE_ATTRS"  | jq -r '.postgres_version  // "16"')
+SECRET_KMS_KEY_ID=$(echo "$SERVICE_ATTRS" | jq -r '.secret_kms_key_id // ""')
 
 # --- Read static config from values.yaml ------------------------------------
 # CRITICAL: $VALUES is a FILE PATH set by "np service workflow exec --values <path>",
@@ -133,7 +134,17 @@ export TOFU_MODULE_DIR="$SERVICE_PATH/deployment"
 
 export TOFU_INIT_VARIABLES="-backend-config=bucket=${TFSTATE_BUCKET} -backend-config=key=terraform.tfstate -backend-config=region=${REGION}"
 
-export TOFU_VARIABLES="-var=service_id=${SERVICE_ID} -var=instance_name=${INSTANCE_NAME} -var=region=${REGION} -var=vpc_id=${VPC_ID} -var=instance_class=${INSTANCE_CLASS} -var=allocated_storage=${ALLOCATED_STORAGE} -var=postgres_version=${POSTGRES_VERSION}"
+TOFU_VARIABLES="-var=service_id=${SERVICE_ID} -var=instance_name=${INSTANCE_NAME} -var=region=${REGION} -var=vpc_id=${VPC_ID} -var=instance_class=${INSTANCE_CLASS} -var=allocated_storage=${ALLOCATED_STORAGE} -var=postgres_version=${POSTGRES_VERSION}"
+
+# Omit the -var entirely when unset, rather than passing an empty string —
+# the Terraform variable defaults to null, which is what makes AWS fall back
+# to the aws/secretsmanager managed key. A "" value would instead fail as an
+# invalid KMS key ID.
+if [ -n "$SECRET_KMS_KEY_ID" ]; then
+  TOFU_VARIABLES="${TOFU_VARIABLES} -var=secret_kms_key_id=${SECRET_KMS_KEY_ID}"
+fi
+
+export TOFU_VARIABLES
 
 # --- Extract link context (link workflows only) -----------------------------
 # These are consumed by build_permissions_context in the next workflow step.
diff --git a/rds-postgres-server/specs/service-spec.json.tpl b/rds-postgres-server/specs/service-spec.json.tpl
index d60120d..5dc49a4 100644
--- a/rds-postgres-server/specs/service-spec.json.tpl
+++ b/rds-postgres-server/specs/service-spec.json.tpl
@@ -46,6 +46,13 @@
           "editableOn": ["create"],
           "order": 3
         },
+        "secret_kms_key_id": {
+          "type": "string",
+          "title": "Secret Encryption Key",
+          "description": "KMS key ID or ARN used to encrypt the master password secret in Secrets Manager. Leave empty to use the AWS-managed aws/secretsmanager key.",
+          "editableOn": ["create", "update"],
+          "order": 4
+        },
         "hostname": {
           "type": "string",
           "title": "Hostname",
@@ -53,7 +60,7 @@
           "visibleOn": ["read"],
           "editableOn": [],
           "description": "RDS endpoint hostname (auto-populated after creation)",
-          "order": 4
+          "order": 5
         },
         "port": {
           "type": "number",
@@ -62,7 +69,7 @@
           "visibleOn": ["read"],
           "editableOn": [],
           "description": "RDS port (auto-populated after creation)",
-          "order": 5
+          "order": 6
         },
         "db_instance_identifier": {
           "type": "string",