diff --git a/manifests/drivers/ipmi.pp b/manifests/drivers/ipmi.pp
index 9fafe616..c6b8a06b 100644
--- a/manifests/drivers/ipmi.pp
+++ b/manifests/drivers/ipmi.pp
@@ -51,6 +51,11 @@
 #   (optional) Enables debug outputs of IPMI commands
 #   Defaults to $facts['os_service_default']
 #
+# [*store_cred_in_env*]
+#   (optional) Store IPMI password in an environment variable instead of
+#   a file.
+#   Defaults to $facts['os_service_default']
+#
 # [*cipher_suite_versions*]
 #   (optional) List of possible cipher suites versions that can be supported
 #   by the hardware in case the field `cipher_suite` is not set for the node.
@@ -64,6 +69,7 @@ class ironic::drivers::ipmi (
   $disable_boot_timeout             = $facts['os_service_default'],
   $additional_retryable_ipmi_errors = $facts['os_service_default'],
   $debug                            = $facts['os_service_default'],
+  $store_cred_in_env                = $facts['os_service_default'],
   $cipher_suite_versions            = $facts['os_service_default'],
 ) {
 
@@ -78,6 +84,7 @@ class ironic::drivers::ipmi (
     'ipmi/disable_boot_timeout':             value => $disable_boot_timeout;
     'ipmi/additional_retryable_ipmi_errors': value => $additional_retryable_ipmi_errors;
     'ipmi/debug':                            value => $debug;
+    'ipmi/store_cred_in_env':                value => $store_cred_in_env;
     'ipmi/cipher_suite_versions':            value => join(any2array($cipher_suite_versions), ',');
   }
 
diff --git a/releasenotes/notes/ipmi-store_cred_in_env-ff1a4487605866da.yaml b/releasenotes/notes/ipmi-store_cred_in_env-ff1a4487605866da.yaml
new file mode 100644
index 00000000..1777828a
--- /dev/null
+++ b/releasenotes/notes/ipmi-store_cred_in_env-ff1a4487605866da.yaml
@@ -0,0 +1,5 @@
+---
+features:
+  - |
+    The new ``ironic::drivers::ipmi::store_cred_in_env`` parameter has been
+    added.
diff --git a/spec/classes/ironic_drivers_ipmi_spec.rb b/spec/classes/ironic_drivers_ipmi_spec.rb
index 31a26fbc..80a5c8a7 100644
--- a/spec/classes/ironic_drivers_ipmi_spec.rb
+++ b/spec/classes/ironic_drivers_ipmi_spec.rb
@@ -32,6 +32,7 @@ describe 'ironic::drivers::ipmi' do
         is_expected.to contain_ironic_config('ipmi/disable_boot_timeout').with_value('<SERVICE DEFAULT>')
         is_expected.to contain_ironic_config('ipmi/additional_retryable_ipmi_errors').with_value('<SERVICE DEFAULT>')
         is_expected.to contain_ironic_config('ipmi/debug').with_value('<SERVICE DEFAULT>')
+        is_expected.to contain_ironic_config('ipmi/store_cred_in_env').with_value('<SERVICE DEFAULT>')
         is_expected.to contain_ironic_config('ipmi/cipher_suite_versions').with_value('<SERVICE DEFAULT>')
       end
     end
@@ -46,6 +47,7 @@ describe 'ironic::drivers::ipmi' do
           :disable_boot_timeout             => true,
           :additional_retryable_ipmi_errors => ['error1', 'error2'],
           :debug                            => true,
+          :store_cred_in_env                => false,
           :cipher_suite_versions            => ['1', '2'],
         }
       end
@@ -58,6 +60,7 @@ describe 'ironic::drivers::ipmi' do
         is_expected.to contain_ironic_config('ipmi/disable_boot_timeout').with_value(true)
         is_expected.to contain_ironic_config('ipmi/additional_retryable_ipmi_errors').with_value(['error1', 'error2'])
         is_expected.to contain_ironic_config('ipmi/debug').with_value(true)
+        is_expected.to contain_ironic_config('ipmi/store_cred_in_env').with_value(false)
         is_expected.to contain_ironic_config('ipmi/cipher_suite_versions').with_value('1,2')
       end
     end