diff --git a/cookbooks/aws-parallelcluster-slurm/templates/default/slurm/head_node/update_slurm_database_password.sh.erb b/cookbooks/aws-parallelcluster-slurm/templates/default/slurm/head_node/update_slurm_database_password.sh.erb
index b0f2148dd9..30af40918d 100644
--- a/cookbooks/aws-parallelcluster-slurm/templates/default/slurm/head_node/update_slurm_database_password.sh.erb
+++ b/cookbooks/aws-parallelcluster-slurm/templates/default/slurm/head_node/update_slurm_database_password.sh.erb
@@ -30,6 +30,11 @@ fi
 echo "Reading password from AWS Secrets Manager: ${SECRET_ARN}"
 password_from_secrets_manager=$(aws secretsmanager get-secret-value --secret-id ${SECRET_ARN} --region ${REGION} --query 'SecretString' --output text)
 
+if [[ "${password_from_secrets_manager}" =~ '#' ]]; then
+  echo "You cannot use the # character in the database password as Slurm does not support it with $SLURMDBD_PROPERTY configuration paramter in $SLURMDBD_CONFIG_FILE. Please refer to the official SchedMD documentation for more details."
+  exit 1
+fi
+
 [ "${password_from_dbd_config}" == "${password_from_secrets_manager}" ] && echo "Password match, skipping update" && exit 0
 
 echo "Writing AWS Secrets Manager password to ${SLURMDBD_CONFIG_FILE}"