diff --git a/backend/src/ee/routes/v1/pam-resource-routers/index.ts b/backend/src/ee/routes/v1/pam-resource-routers/index.ts
index a63b67d94..6b53781ae 100644
--- a/backend/src/ee/routes/v1/pam-resource-routers/index.ts
+++ b/backend/src/ee/routes/v1/pam-resource-routers/index.ts
@@ -1,7 +1,7 @@
 import { PamResource } from "@app/ee/services/pam-resource/pam-resource-enums";
 import {
   CreatePostgresResourceSchema,
-  PostgresResourceSchema,
+  SanitizedPostgresResourceSchema,
   UpdatePostgresResourceSchema
 } from "@app/ee/services/pam-resource/postgres/postgres-resource-schemas";
 
@@ -12,7 +12,7 @@ export const PAM_RESOURCE_REGISTER_ROUTER_MAP: Record<PamResource, (server: Fast
     registerPamResourceEndpoints({
       server,
       resourceType: PamResource.Postgres,
-      resourceResponseSchema: PostgresResourceSchema,
+      resourceResponseSchema: SanitizedPostgresResourceSchema,
       createResourceSchema: CreatePostgresResourceSchema,
       updateResourceSchema: UpdatePostgresResourceSchema
     });
diff --git a/backend/src/ee/routes/v1/pam-resource-routers/pam-resource-router.ts b/backend/src/ee/routes/v1/pam-resource-routers/pam-resource-router.ts
index c19c2030d..d42a73021 100644
--- a/backend/src/ee/routes/v1/pam-resource-routers/pam-resource-router.ts
+++ b/backend/src/ee/routes/v1/pam-resource-routers/pam-resource-router.ts
@@ -3,14 +3,14 @@ import { z } from "zod";
 import { EventType } from "@app/ee/services/audit-log/audit-log-types";
 import {
   PostgresResourceListItemSchema,
-  PostgresResourceSchema
+  SanitizedPostgresResourceSchema
 } from "@app/ee/services/pam-resource/postgres/postgres-resource-schemas";
 import { readLimit } from "@app/server/config/rateLimiter";
 import { verifyAuth } from "@app/server/plugins/auth/verify-auth";
 import { AuthMode } from "@app/services/auth/auth-type";
 
 // Use z.union([...]) when more resources are added
-const ResourceSchema = PostgresResourceSchema;
+const SanitizedResourceSchema = SanitizedPostgresResourceSchema;
 
 const ResourceOptionsSchema = z.discriminatedUnion("resource", [PostgresResourceListItemSchema]);
 
@@ -50,7 +50,7 @@ export const registerPamResourceRouter = async (server: FastifyZodProvider) => {
       }),
       response: {
         200: z.object({
-          resources: ResourceSchema.array()
+          resources: SanitizedResourceSchema.array()
         })
       }
     },
diff --git a/backend/src/ee/services/pam-resource/pam-resource-service.ts b/backend/src/ee/services/pam-resource/pam-resource-service.ts
index 1c5ead252..076ec6855 100644
--- a/backend/src/ee/services/pam-resource/pam-resource-service.ts
+++ b/backend/src/ee/services/pam-resource/pam-resource-service.ts
@@ -10,7 +10,7 @@ import { TKmsServiceFactory } from "@app/services/kms/kms-service";
 
 import { TGatewayV2ServiceFactory } from "../gateway-v2/gateway-v2-service";
 import { TLicenseServiceFactory } from "../license/license-service";
-import { encryptAccountCredentials } from "../pam-account/pam-account-fns";
+import { decryptAccountCredentials, encryptAccountCredentials } from "../pam-account/pam-account-fns";
 import { TPamResourceDALFactory } from "./pam-resource-dal";
 import { PamResource } from "./pam-resource-enums";
 import { PAM_RESOURCE_FACTORY_MAP } from "./pam-resource-factory";
@@ -192,8 +192,19 @@ export const pamResourceServiceFactory = ({
           gatewayV2Service
         );
 
-        const validatedRotationAccountCredentials =
-          await factory.validateAccountCredentials(rotationAccountCredentials);
+        // Logic to prevent overwriting unedited censored values
+        const finalCredentials = { ...rotationAccountCredentials };
+        if (resource.encryptedRotationAccountCredentials && rotationAccountCredentials.password === "******") {
+          const decryptedCredentials = await decryptAccountCredentials({
+            encryptedCredentials: resource.encryptedRotationAccountCredentials,
+            projectId: resource.projectId,
+            kmsService
+          });
+
+          finalCredentials.password = decryptedCredentials.password;
+        }
+
+        const validatedRotationAccountCredentials = await factory.validateAccountCredentials(finalCredentials);
 
         updateDoc.encryptedRotationAccountCredentials = await encryptAccountCredentials({
           credentials: validatedRotationAccountCredentials,
diff --git a/backend/src/ee/services/pam-resource/postgres/postgres-resource-schemas.ts b/backend/src/ee/services/pam-resource/postgres/postgres-resource-schemas.ts
index f383f521a..bbe83a3a4 100644
--- a/backend/src/ee/services/pam-resource/postgres/postgres-resource-schemas.ts
+++ b/backend/src/ee/services/pam-resource/postgres/postgres-resource-schemas.ts
@@ -26,6 +26,15 @@ export const PostgresResourceSchema = BasePostgresResourceSchema.extend({
   rotationAccountCredentials: PostgresAccountCredentialsSchema.nullable().optional()
 });
 
+export const SanitizedPostgresResourceSchema = BasePostgresResourceSchema.extend({
+  connectionDetails: PostgresResourceConnectionDetailsSchema,
+  rotationAccountCredentials: PostgresAccountCredentialsSchema.pick({
+    username: true
+  })
+    .nullable()
+    .optional()
+});
+
 export const PostgresResourceListItemSchema = z.object({
   name: z.literal("PostgreSQL"),
   resource: z.literal(PamResource.Postgres)
diff --git a/frontend/src/pages/pam/PamAccountsPage/components/PamAccountRow.tsx b/frontend/src/pages/pam/PamAccountsPage/components/PamAccountRow.tsx
index 758ef2c20..8e7507ac9 100644
--- a/frontend/src/pages/pam/PamAccountsPage/components/PamAccountRow.tsx
+++ b/frontend/src/pages/pam/PamAccountsPage/components/PamAccountRow.tsx
@@ -11,8 +11,8 @@ import {
   faTrash
 } from "@fortawesome/free-solid-svg-icons";
 import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
-import { twMerge } from "tailwind-merge";
 import { formatDistance } from "date-fns";
+import { twMerge } from "tailwind-merge";
 
 import { createNotification } from "@app/components/notifications";
 import { ProjectPermissionCan } from "@app/components/permissions";
diff --git a/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/PostgresResourceForm.tsx b/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/PostgresResourceForm.tsx
index c172bb561..427fff40b 100644
--- a/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/PostgresResourceForm.tsx
+++ b/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/PostgresResourceForm.tsx
@@ -31,17 +31,25 @@ export const PostgresResourceForm = ({ resource, onSubmit }: Props) => {
 
   const form = useForm<FormData>({
     resolver: zodResolver(formSchema),
-    defaultValues: resource ?? {
-      resourceType: PamResourceType.Postgres,
-      connectionDetails: {
-        host: "",
-        port: 5432,
-        database: "default",
-        sslEnabled: true,
-        sslRejectUnauthorized: true,
-        sslCertificate: undefined
-      }
-    }
+    defaultValues: resource
+      ? {
+          ...resource,
+          rotationAccountCredentials: {
+            ...resource.rotationAccountCredentials,
+            password: "******"
+          }
+        }
+      : {
+          resourceType: PamResourceType.Postgres,
+          connectionDetails: {
+            host: "",
+            port: 5432,
+            database: "default",
+            sslEnabled: true,
+            sslRejectUnauthorized: true,
+            sslCertificate: undefined
+          }
+        }
   });
 
   const {
@@ -62,7 +70,7 @@ export const PostgresResourceForm = ({ resource, onSubmit }: Props) => {
           selectedTabIndex={selectedTabIndex}
           setSelectedTabIndex={setSelectedTabIndex}
         />
-        <SqlRotateAccountFields />
+        <SqlRotateAccountFields isUpdate={isUpdate} />
         <div className="mt-6 flex items-center">
           <Button
             className="mr-4"
diff --git a/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/shared/SqlRotateAccountFields.tsx b/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/shared/SqlRotateAccountFields.tsx
index 00b841a27..9341a1f4f 100644
--- a/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/shared/SqlRotateAccountFields.tsx
+++ b/frontend/src/pages/pam/PamResourcesPage/components/PamResourceForm/shared/SqlRotateAccountFields.tsx
@@ -6,11 +6,10 @@ import {
   AccordionItem,
   AccordionTrigger,
   FormControl,
-  Input,
-  SecretInput
+  Input
 } from "@app/components/v2";
 
-export const SqlRotateAccountFields = () => {
+export const SqlRotateAccountFields = ({ isUpdate }: { isUpdate: boolean }) => {
   const { control } = useFormContext();
 
   return (
@@ -49,9 +48,21 @@ export const SqlRotateAccountFields = () => {
                   isError={Boolean(error?.message)}
                   label="Password"
                 >
-                  <SecretInput
-                    containerClassName="text-gray-400 group-focus-within:border-primary-400/50! border border-mineshaft-500 bg-mineshaft-900 px-2.5 py-1.5"
+                  <Input
                     {...field}
+                    type="password"
+                    onFocus={(e) => {
+                      if (isUpdate && field.value === "******") {
+                        field.onChange("");
+                      }
+                      e.target.type = "text";
+                    }}
+                    onBlur={(e) => {
+                      if (isUpdate && field.value === "") {
+                        field.onChange("******");
+                      }
+                      e.target.type = "password";
+                    }}
                   />
                 </FormControl>
               )}