diff --git a/ansible/roles/grafana/templates/prometheus.yaml.j2 b/ansible/roles/grafana/templates/prometheus.yaml.j2
index d4b3ac9669..5615638fb5 100644
--- a/ansible/roles/grafana/templates/prometheus.yaml.j2
+++ b/ansible/roles/grafana/templates/prometheus.yaml.j2
@@ -5,8 +5,9 @@ datasources:
   type: prometheus
   access: proxy
   basicAuth: true
-  basicAuthPassword: "{{ prometheus_grafana_password }}"
   basicAuthUser: "{{ prometheus_grafana_user }}"
+  secureJsonData:
+    basicAuthPassword: "{{ prometheus_grafana_password }}"
   orgId: 1
   url: {{ grafana_prometheus_url }}
   version: 1
diff --git a/releasenotes/notes/fix-prometheus-grafana-datasource-e11074378004b5ca.yaml b/releasenotes/notes/fix-prometheus-grafana-datasource-e11074378004b5ca.yaml
new file mode 100644
index 0000000000..2d0007660e
--- /dev/null
+++ b/releasenotes/notes/fix-prometheus-grafana-datasource-e11074378004b5ca.yaml
@@ -0,0 +1,4 @@
+---
+fixes:
+  - |
+    Fixes prometheus grafana datasource using incorrect basic auth credentials.