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AWS Secrets Manager vs Systems Manager Parameter Store: Which One Should You Use?

Updated October 2026 · 2 min read · Based on official AWS documentation

Quick answer

Use AWS Secrets Manager for secrets such as database credentials, API keys and tokens: it offers automatic rotation and cross-Region replication. Use Systems Manager Parameter Store for configuration data; its SecureString type encrypts values with AWS KMS.

Secrets Manager vs Parameter Store at a glance

AWS Secrets Manager compared with Systems Manager Parameter Store
FeatureAWS Secrets ManagerSystems Manager Parameter Store
PurposeManage, retrieve and rotate database credentials, application credentials, OAuth tokens, API keys and other secrets throughout their lifecycles.A centralized configuration data store for named values called parameters, such as text, lists of names, AMI IDs or license keys.
Value typesSecrets.String, StringList and SecureString.
Rotation and replicationPurpose-built controls, including automatic rotation and cross-Region replication.AWS recommends Secrets Manager when you need these controls for secrets.
AWS recommendationPurpose-built for secrets such as database credentials, API keys and supported third-party secrets.Good for configuration data. For credentials, usernames, passwords and other secrets, AWS recommends Secrets Manager.

Source: docs.aws.amazon.com/systems-manager/latest/userguide/systems-manager-parameter-store.html

Parameter Store encrypts SecureString values using AWS Key Management Service.

Sources: What is AWS Secrets Manager? and Systems Manager Parameter Store. The Parameter Store page also compares AWS AppConfig, which AWS lists for frequently changed application configuration.

Why not hard-code credentials?

Secrets Manager lets you replace hard-coded credentials in application source code with a runtime call that retrieves them when needed. Storing credentials outside the application avoids exposing them to anyone who can inspect your code or its components. With rotation, you replace long-term secrets with short-term ones, and rotating no longer requires redeploying your applications.

How rotation works in Secrets Manager

See Secrets Manager rotation notes in our data protection topic.

Exam shortcuts

These appear under Domain 5, task 5.3.1 (design management and rotation of credentials and secrets). See Domain 5.

Frequently asked questions

Should I store database passwords in Parameter Store or Secrets Manager?

AWS recommends Secrets Manager for credentials such as usernames and passwords, because it is purpose-built for secrets and supports automatic rotation.

Does Parameter Store encrypt values?

Yes, with the SecureString type. Parameter Store encrypts those values using AWS Key Management Service.

Can Secrets Manager rotate secrets without Lambda?

Yes, for managed rotation and for managed external secrets. Other secrets use a Lambda function.

What is the third option AWS mentions for application data?

AWS AppConfig, which AWS lists for frequently changed application configuration.

Sources

AWS updates its programs and documentation. Check the linked official pages for the latest details before you decide or pay.

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