diff --git a/builtin/credential/aws/backend_test.go b/builtin/credential/aws/backend_test.go
index d56478266d9a3..771dc0e311408 100644
--- a/builtin/credential/aws/backend_test.go
+++ b/builtin/credential/aws/backend_test.go
@@ -1046,6 +1046,7 @@ This is an acceptance test.
 	export TEST_AWS_EC2_IAM_ROLE_ARN=$(aws iam get-role --role-name $(curl -q http://169.254.169.254/latest/meta-data/iam/security-credentials/ -S -s) --query Role.Arn --output text)
 	export TEST_AWS_EC2_ACCOUNT_ID=$(aws sts get-caller-identity --query Account --output text)
 
+
 	If the test is not being run on an EC2 instance that has access to
 	credentials using EC2RoleProvider, on top of the above vars, following
 	needs to be set:
@@ -1407,6 +1408,11 @@ func TestBackend_pathStsConfig(t *testing.T) {
 		"sts_role": "arn:aws:iam:account1:role/myRole",
 	}
 
+	data2 := map[string]interface{}{
+		"sts_role":    "arn:aws:iam:account2:role/myRole2",
+		"external_id": "fake_id",
+	}
+
 	stsReq.Data = data
 	// test create operation
 	resp, err := b.HandleRequest(context.Background(), stsReq)
@@ -1440,13 +1446,28 @@ func TestBackend_pathStsConfig(t *testing.T) {
 
 	stsReq.Operation = logical.CreateOperation
 	stsReq.Path = "config/sts/account2"
-	stsReq.Data = data
-	// create another entry to test the list operation
+	stsReq.Data = data2
+	// create another entry with alternate data to test ExternalID and LIST
 	resp, err = b.HandleRequest(context.Background(), stsReq)
 	if err != nil || (resp != nil && resp.IsError()) {
 		t.Fatal(err)
 	}
 
+	// test second read
+	stsReq.Operation = logical.ReadOperation
+	resp, err = b.HandleRequest(context.Background(), stsReq)
+	if err != nil {
+		t.Fatal(err)
+	}
+	expectedStsRole = "arn:aws:iam:account2:role/myRole2"
+	expectedExternalID := "fake_id"
+	if resp.Data["sts_role"].(string) != expectedStsRole {
+		t.Fatalf("bad: expected:%s\n got:%s\n", expectedStsRole, resp.Data["sts_role"].(string))
+	}
+	if resp.Data["external_id"].(string) != expectedExternalID {
+		t.Fatalf("bad: expected:%s\n got:%s\n", expectedExternalID, resp.Data["external_id"].(string))
+	}
+
 	stsReq.Operation = logical.ListOperation
 	stsReq.Path = "config/sts"
 	// test list operation
diff --git a/builtin/credential/aws/client.go b/builtin/credential/aws/client.go
index bed15bb6a4914..a1a6a391c3230 100644
--- a/builtin/credential/aws/client.go
+++ b/builtin/credential/aws/client.go
@@ -84,7 +84,7 @@ func (b *backend) getRawClientConfig(ctx context.Context, s logical.Storage, reg
 // It uses getRawClientConfig to obtain config for the runtime environment, and if
 // stsRole is a non-empty string, it will use AssumeRole to obtain a set of assumed
 // credentials. The credentials will expire after 15 minutes but will auto-refresh.
-func (b *backend) getClientConfig(ctx context.Context, s logical.Storage, region, stsRole, accountID, clientType string) (*aws.Config, error) {
+func (b *backend) getClientConfig(ctx context.Context, s logical.Storage, region, stsRole, externalID, accountID, clientType string) (*aws.Config, error) {
 	config, err := b.getRawClientConfig(ctx, s, region, clientType)
 	if err != nil {
 		return nil, err
@@ -105,7 +105,7 @@ func (b *backend) getClientConfig(ctx context.Context, s logical.Storage, region
 		if err != nil {
 			return nil, err
 		}
-		assumedCredentials := stscreds.NewCredentials(sess, stsRole)
+		assumedCredentials := stscreds.NewCredentials(sess, stsRole, func(p *stscreds.AssumeRoleProvider) { p.ExternalID = aws.String(externalID) })
 		// Test that we actually have permissions to assume the role
 		if _, err = assumedCredentials.Get(); err != nil {
 			return nil, err
@@ -180,22 +180,22 @@ func (b *backend) setCachedUserId(userId, arn string) {
 	}
 }
 
-func (b *backend) stsRoleForAccount(ctx context.Context, s logical.Storage, accountID string) (string, error) {
+func (b *backend) stsRoleForAccount(ctx context.Context, s logical.Storage, accountID string) (string, string, error) {
 	// Check if an STS configuration exists for the AWS account
 	sts, err := b.lockedAwsStsEntry(ctx, s, accountID)
 	if err != nil {
-		return "", fmt.Errorf("error fetching STS config for account ID %q: %w", accountID, err)
+		return "", "", fmt.Errorf("error fetching STS config for account ID %q: %w", accountID, err)
 	}
 	// An empty STS role signifies the master account
 	if sts != nil {
-		return sts.StsRole, nil
+		return sts.StsRole, sts.ExternalID, nil
 	}
-	return "", nil
+	return "", "", nil
 }
 
 // clientEC2 creates a client to interact with AWS EC2 API
 func (b *backend) clientEC2(ctx context.Context, s logical.Storage, region, accountID string) (*ec2.EC2, error) {
-	stsRole, err := b.stsRoleForAccount(ctx, s, accountID)
+	stsRole, stsExternalID, err := b.stsRoleForAccount(ctx, s, accountID)
 	if err != nil {
 		return nil, err
 	}
@@ -218,7 +218,7 @@ func (b *backend) clientEC2(ctx context.Context, s logical.Storage, region, acco
 
 	// Create an AWS config object using a chain of providers
 	var awsConfig *aws.Config
-	awsConfig, err = b.getClientConfig(ctx, s, region, stsRole, accountID, "ec2")
+	awsConfig, err = b.getClientConfig(ctx, s, region, stsRole, stsExternalID, accountID, "ec2")
 	if err != nil {
 		return nil, err
 	}
@@ -247,7 +247,7 @@ func (b *backend) clientEC2(ctx context.Context, s logical.Storage, region, acco
 
 // clientIAM creates a client to interact with AWS IAM API
 func (b *backend) clientIAM(ctx context.Context, s logical.Storage, region, accountID string) (*iam.IAM, error) {
-	stsRole, err := b.stsRoleForAccount(ctx, s, accountID)
+	stsRole, stsExternalID, err := b.stsRoleForAccount(ctx, s, accountID)
 	if err != nil {
 		return nil, err
 	}
@@ -277,7 +277,7 @@ func (b *backend) clientIAM(ctx context.Context, s logical.Storage, region, acco
 
 	// Create an AWS config object using a chain of providers
 	var awsConfig *aws.Config
-	awsConfig, err = b.getClientConfig(ctx, s, region, stsRole, accountID, "iam")
+	awsConfig, err = b.getClientConfig(ctx, s, region, stsRole, stsExternalID, accountID, "iam")
 	if err != nil {
 		return nil, err
 	}
diff --git a/builtin/credential/aws/path_config_sts.go b/builtin/credential/aws/path_config_sts.go
index 21034f69feff4..d2ff2d15a3f56 100644
--- a/builtin/credential/aws/path_config_sts.go
+++ b/builtin/credential/aws/path_config_sts.go
@@ -13,7 +13,8 @@ import (
 
 // awsStsEntry is used to store details of an STS role for assumption
 type awsStsEntry struct {
-	StsRole string `json:"sts_role"`
+	StsRole    string `json:"sts_role"`
+	ExternalID string `json:"external_id,omitempty"` // optional, but recommended
 }
 
 func (b *backend) pathListSts() *framework.Path {
@@ -57,6 +58,11 @@ instances in this account.`,
 				Description: `AWS ARN for STS role to be assumed when interacting with the account specified.
 The Vault server must have permissions to assume this role.`,
 			},
+			"external_id": {
+				Type:        framework.TypeString,
+				Description: `AWS external ID to be used when assuming the STS role.`,
+				Required:    false,
+			},
 		},
 
 		ExistenceCheck: b.pathConfigStsExistenceCheck,
@@ -192,10 +198,15 @@ func (b *backend) pathConfigStsRead(ctx context.Context, req *logical.Request, d
 		return nil, nil
 	}
 
+	dt := map[string]interface{}{
+		"sts_role": stsEntry.StsRole,
+	}
+	if stsEntry.ExternalID != "" {
+		dt["external_id"] = stsEntry.ExternalID
+	}
+
 	return &logical.Response{
-		Data: map[string]interface{}{
-			"sts_role": stsEntry.StsRole,
-		},
+		Data: dt,
 	}, nil
 }
 
@@ -230,6 +241,13 @@ func (b *backend) pathConfigStsCreateUpdate(ctx context.Context, req *logical.Re
 		return logical.ErrorResponse("sts role cannot be empty"), nil
 	}
 
+	stsExternalID, ok := data.GetOk("external_id")
+	if ok {
+		stsEntry.ExternalID = stsExternalID.(string)
+	}
+
+	b.Logger().Info("setting sts", "account_id", accountID, "sts_role", stsEntry.StsRole, "external_id", stsEntry.ExternalID)
+
 	// save the provided STS role
 	if err := b.nonLockedSetAwsStsEntry(ctx, req.Storage, accountID, stsEntry); err != nil {
 		return nil, err
diff --git a/changelog/26628.txt b/changelog/26628.txt
new file mode 100644
index 0000000000000..2ab067f3ef09a
--- /dev/null
+++ b/changelog/26628.txt
@@ -0,0 +1,3 @@
+```release-note:improvement
+auth/aws: add support for external_ids in AWS assume-role
+```
\ No newline at end of file
diff --git a/website/content/api-docs/auth/aws.mdx b/website/content/api-docs/auth/aws.mdx
index b4bb11fa2cb83..450afadec3ed9 100644
--- a/website/content/api-docs/auth/aws.mdx
+++ b/website/content/api-docs/auth/aws.mdx
@@ -438,6 +438,8 @@ when validating IAM principals or EC2 instances in the particular AWS account.
 - `sts_role` `(string: <required>)` - AWS ARN for STS role to be assumed when
   interacting with the account specified. The Vault server must have
   permissions to assume this role.
+- `external_id` `(string: "")` - The external ID expected by the STS role. The
+   associated STS role **must** be configured to require the external ID.
 
 ### Sample payload