diff --git a/cookbooks/aws-parallelcluster-slurm/recipes/config/config_head_node.rb b/cookbooks/aws-parallelcluster-slurm/recipes/config/config_head_node.rb
index ecd6b08b3c..74113ead54 100644
--- a/cookbooks/aws-parallelcluster-slurm/recipes/config/config_head_node.rb
+++ b/cookbooks/aws-parallelcluster-slurm/recipes/config/config_head_node.rb
@@ -281,3 +281,17 @@
   retries 5
   retry_delay 2
 end unless redhat_on_docker?
+
+template "#{node['cluster']['scripts_dir']}/slurm/update_munge_key.sh" do
+  source 'slurm/head_node/update_munge_key.sh.erb'
+  owner 'root'
+  group 'root'
+  mode '0700'
+  variables(
+    munge_key_secret_arn: lazy { node['cluster']['config'].dig(:DevSettings, :SlurmSettings, :MungeKeySecretArn) },
+    region: node['cluster']['region'],
+    munge_user: node['cluster']['munge']['user'],
+    munge_group: node['cluster']['munge']['group'],
+    cluster_user: node['cluster']['cluster_user']
+  )
+end
diff --git a/cookbooks/aws-parallelcluster-slurm/recipes/update/update_head_node.rb b/cookbooks/aws-parallelcluster-slurm/recipes/update/update_head_node.rb
index 812c9c1038..84bfdf22bc 100644
--- a/cookbooks/aws-parallelcluster-slurm/recipes/update/update_head_node.rb
+++ b/cookbooks/aws-parallelcluster-slurm/recipes/update/update_head_node.rb
@@ -201,6 +201,22 @@ def update_nodes_in_queue(strategy, queues)
   only_if { ::File.exist?(node['cluster']['previous_cluster_config_path']) && is_slurm_database_updated? }
 end unless on_docker?
 
+# Update rotation script to update secret arn
+template "#{node['cluster']['scripts_dir']}/slurm/update_munge_key.sh" do
+  source 'slurm/head_node/update_munge_key.sh.erb'
+  owner 'root'
+  group 'root'
+  mode '0700'
+  variables(
+    munge_key_secret_arn: lazy { node['cluster']['config'].dig(:DevSettings, :SlurmSettings, :MungeKeySecretArn) },
+    region: node['cluster']['region'],
+    munge_user: node['cluster']['munge']['user'],
+    munge_group: node['cluster']['munge']['group'],
+    cluster_user: node['cluster']['cluster_user']
+  )
+  only_if { ::File.exist?(node['cluster']['previous_cluster_config_path']) && is_custom_munge_key_updated? }
+end
+
 update_munge_head_node
 
 # The previous execute "generate_pcluster_slurm_configs" block resource may have overridden the slurmdbd password in
diff --git a/cookbooks/aws-parallelcluster-slurm/templates/default/slurm/head_node/update_munge_key.sh.erb b/cookbooks/aws-parallelcluster-slurm/templates/default/slurm/head_node/update_munge_key.sh.erb
new file mode 100644
index 0000000000..3fc6533f65
--- /dev/null
+++ b/cookbooks/aws-parallelcluster-slurm/templates/default/slurm/head_node/update_munge_key.sh.erb
@@ -0,0 +1,69 @@
+#!/bin/bash
+# This script updates the munge key used in the system.
+# It fetches the key from AWS Secrets Manager or generates one if it doesn't exist.
+# The script does not require any argument.
+#
+# Usage: ./update_munge_key.sh
+# #
+
+set -e
+
+MUNGE_KEY_FILE="/etc/munge/munge.key"
+SECRET_ARN="<%= @munge_key_secret_arn %>"
+REGION="<%= @region %>"
+MUNGE_USER="<%= @munge_user %>"
+MUNGE_GROUP="<%= @munge_group %>"
+CLUSTER_USER="<%= @cluster_user %>"
+
+# If SECRET_ARN is provided, fetch the munge key from Secrets Manager
+if [ -n "${SECRET_ARN}" ]; then
+  echo "Fetching munge key from AWS Secrets Manager: ${SECRET_ARN}"
+  encoded_key=$(aws secretsmanager get-secret-value --secret-id ${SECRET_ARN} --query 'SecretString' --output text --region ${REGION})
+
+  if [ -z "${encoded_key}" ]; then
+    echo "Error fetching munge key from Secrets Manager or the key is empty"
+    exit 1
+  fi
+
+  # Decode munge key and write to munge.key file
+  decoded_key=$(echo $encoded_key | base64 -d)
+  if [ $? -ne 0 ]; then
+    echo "Error decoding the munge key with base64"
+    exit 1
+  fi
+
+  echo "${decoded_key}" > ${MUNGE_KEY_FILE}
+
+  # Set ownership on the key
+  chown ${MUNGE_USER}:${MUNGE_GROUP} ${MUNGE_KEY_FILE}
+  # Enforce correct permission on the key
+  chmod 0600 ${MUNGE_KEY_FILE}
+
+else
+  echo "MUNGE KEY SECRET ARN isn't provided"
+  exit 1
+fi
+
+# Enable and restart munge service
+systemctl enable munge
+echo "Restarting munge service"
+systemctl restart munge
+
+# Wait for a short period
+sleep 5
+
+# Check if munge service is running
+if systemctl --quiet is-active munge; then
+  echo "Munge service is active"
+else
+  echo "Failed to restart munge service"
+  exit 1
+fi
+
+# Share munge key
+echo "Sharing munge key"
+mkdir -p /home/${CLUSTER_USER}/.munge
+cp /etc/munge/munge.key /home/${CLUSTER_USER}/.munge/.munge.key
+echo "Shared munge key"
+
+exit 0