diff --git a/clients/client-sso-oidc/package.json b/clients/client-sso-oidc/package.json
index 72b465be55c3..1d91eb1d4501 100644
--- a/clients/client-sso-oidc/package.json
+++ b/clients/client-sso-oidc/package.json
@@ -85,7 +85,7 @@
   },
   "license": "Apache-2.0",
   "peerDependencies": {
-    "@aws-sdk/credential-provider-node": "^3.564.0"
+    "@aws-sdk/credential-provider-node": "*"
   },
   "browser": {
     "./dist-es/runtimeConfig": "./dist-es/runtimeConfig.browser"
diff --git a/clients/client-sts/package.json b/clients/client-sts/package.json
index 2abce90e984d..7a2bef2c6744 100644
--- a/clients/client-sts/package.json
+++ b/clients/client-sts/package.json
@@ -87,7 +87,7 @@
   },
   "license": "Apache-2.0",
   "peerDependencies": {
-    "@aws-sdk/credential-provider-node": "^3.564.0"
+    "@aws-sdk/credential-provider-node": "*"
   },
   "browser": {
     "./dist-es/runtimeConfig": "./dist-es/runtimeConfig.browser"
diff --git a/lib/lib-dynamodb/package.json b/lib/lib-dynamodb/package.json
index 2e18413aac6f..f3219749ada3 100644
--- a/lib/lib-dynamodb/package.json
+++ b/lib/lib-dynamodb/package.json
@@ -32,7 +32,7 @@
     "tslib": "^2.6.2"
   },
   "peerDependencies": {
-    "@aws-sdk/client-dynamodb": "^3.0.0"
+    "@aws-sdk/client-dynamodb": "*"
   },
   "devDependencies": {
     "@aws-sdk/client-dynamodb": "*",
diff --git a/lib/lib-storage/package.json b/lib/lib-storage/package.json
index 20f894cbea24..d7d0a94798c5 100644
--- a/lib/lib-storage/package.json
+++ b/lib/lib-storage/package.json
@@ -35,7 +35,7 @@
     "tslib": "^2.6.2"
   },
   "peerDependencies": {
-    "@aws-sdk/client-s3": "^3.0.0"
+    "@aws-sdk/client-s3": "*"
   },
   "devDependencies": {
     "@aws-sdk/client-s3": "*",
diff --git a/packages/util-dynamodb/package.json b/packages/util-dynamodb/package.json
index 0ef847595e0b..e89834510616 100644
--- a/packages/util-dynamodb/package.json
+++ b/packages/util-dynamodb/package.json
@@ -32,7 +32,7 @@
     "typescript": "~4.9.5"
   },
   "peerDependencies": {
-    "@aws-sdk/client-dynamodb": "^3.0.0"
+    "@aws-sdk/client-dynamodb": "*"
   },
   "engines": {
     "node": ">=14.0.0"
diff --git a/scripts/update-versions/current.mjs b/scripts/update-versions/current.mjs
index d5fcd3b9059d..13f0dd162afe 100755
--- a/scripts/update-versions/current.mjs
+++ b/scripts/update-versions/current.mjs
@@ -4,8 +4,6 @@
 // in dependencies/devDependencies/peerDependencies
 
 import { getDepToCurrentVersionHash } from "./getDepToCurrentVersionHash.mjs";
-import { runUpdatePeers } from "./peers.mjs";
 import { updateVersions } from "./updateVersions.mjs";
 
 updateVersions(getDepToCurrentVersionHash());
-runUpdatePeers();
\ No newline at end of file
diff --git a/scripts/update-versions/default.mjs b/scripts/update-versions/default.mjs
index a5fbde46c654..c935147eb2fd 100755
--- a/scripts/update-versions/default.mjs
+++ b/scripts/update-versions/default.mjs
@@ -4,8 +4,6 @@
 // in dependencies/devDependencies/peerDependencies
 
 import { getDepToDefaultVersionHash } from "./getDepToDefaultVersionHash.mjs";
-import { runUpdatePeers } from "./peers.mjs";
 import { updateVersions } from "./updateVersions.mjs";
 
 updateVersions(getDepToDefaultVersionHash());
-runUpdatePeers();
diff --git a/scripts/update-versions/getUpdatedPackageJson.mjs b/scripts/update-versions/getUpdatedPackageJson.mjs
index 6eb2cd5537c2..83ac50855a2f 100644
--- a/scripts/update-versions/getUpdatedPackageJson.mjs
+++ b/scripts/update-versions/getUpdatedPackageJson.mjs
@@ -2,12 +2,16 @@
 import { getUpdatedPackageJsonSection } from "./getUpdatedPackageJsonSection.mjs";
 
 export const getUpdatedPackageJson = (packageJson, depToVersionHash) =>
-  ["dependencies", "devDependencies"]
+  ["dependencies", "devDependencies", "peerDependencies"]
     .filter((sectionName) => sectionName in packageJson)
     .reduce(
       (acc, sectionName) => ({
         ...acc,
-        [sectionName]: getUpdatedPackageJsonSection(packageJson[sectionName], depToVersionHash),
+        [sectionName]: getUpdatedPackageJsonSection(
+          packageJson[sectionName],
+          depToVersionHash,
+          sectionName === "peerDependencies"
+        ),
       }),
       packageJson
     );
diff --git a/scripts/update-versions/getUpdatedPackageJsonSection.mjs b/scripts/update-versions/getUpdatedPackageJsonSection.mjs
index 32f80f3bf670..5b44503e16f5 100644
--- a/scripts/update-versions/getUpdatedPackageJsonSection.mjs
+++ b/scripts/update-versions/getUpdatedPackageJsonSection.mjs
@@ -1,5 +1,11 @@
 // @ts-check
-export const getUpdatedPackageJsonSection = (section, depToVersionHash) =>
+export const getUpdatedPackageJsonSection = (section, depToVersionHash, isPeer = false) =>
   Object.entries(section)
     .filter(([key, value]) => key.startsWith("@aws-sdk/") && !value.startsWith("file:"))
-    .reduce((acc, [key, value]) => ({ ...acc, [key]: depToVersionHash[key] || value }), section);
+    .reduce((acc, [key]) => {
+      const newVersion = depToVersionHash[key];
+      if (newVersion) {
+        acc[key] = isPeer && newVersion !== "*" ? `^${newVersion}` : newVersion;
+      }
+      return acc;
+    }, section);
diff --git a/scripts/update-versions/peers.mjs b/scripts/update-versions/peers.mjs
deleted file mode 100644
index 46c3a236850c..000000000000
--- a/scripts/update-versions/peers.mjs
+++ /dev/null
@@ -1,17 +0,0 @@
-import { readFileSync } from "fs";
-import { dirname, join } from "path";
-import { fileURLToPath } from "url";
-
-import { updatePeerVersions } from "./updateVersions.mjs";
-
-const __dirname = dirname(fileURLToPath(import.meta.url));
-
-const currentCredentialProviderNode = JSON.parse(
-  readFileSync(join(__dirname, "..", "..", "packages", "credential-provider-node", "package.json"), "utf-8")
-);
-
-export const runUpdatePeers = () => {
-  updatePeerVersions({
-    "@aws-sdk/credential-provider-node": `^${currentCredentialProviderNode.version}`,
-  });
-};
diff --git a/scripts/update-versions/updateVersions.mjs b/scripts/update-versions/updateVersions.mjs
index 7820d9838547..c551c7437a01 100644
--- a/scripts/update-versions/updateVersions.mjs
+++ b/scripts/update-versions/updateVersions.mjs
@@ -14,18 +14,3 @@ export const updateVersions = (depToVersionHash) => {
     writeFileSync(packageJsonPath, format(JSON.stringify(updatedPackageJson), { parser: "json-stringify" }));
   });
 };
-
-export const updatePeerVersions = (depToVersionHash) => {
-  getWorkspacePaths().forEach((workspacePath) => {
-    const packageJsonPath = join(workspacePath, "package.json");
-    const packageJson = JSON.parse(readFileSync(packageJsonPath).toString());
-    if (packageJson.peerDependencies) {
-      for (const peer of Object.keys(packageJson.peerDependencies)) {
-        if (peer in depToVersionHash) {
-          packageJson.peerDependencies[peer] = depToVersionHash[peer];
-        }
-      }
-    }
-    writeFileSync(packageJsonPath, format(JSON.stringify(packageJson), { parser: "json-stringify" }));
-  });
-};