diff --git a/airflow_secrets.tf b/airflow_secrets.tf
index 85218fe..9eeb0ca 100644
--- a/airflow_secrets.tf
+++ b/airflow_secrets.tf
@@ -9,6 +9,8 @@ resource "random_password" "airflow_auth" {
   min_numeric = 1
   min_special = 1
   special     = true
+  # YAML-safe special characters only - excludes quotes, backslashes, and other problematic chars
+  override_special = "!@#$%^&*()-_=+[]{}:?"
 }
 
 resource "kubernetes_secret_v1" "airflow_auth" {
diff --git a/modules/opensearch/main.tf b/modules/opensearch/main.tf
index 53ddd7a..7897ef3 100644
--- a/modules/opensearch/main.tf
+++ b/modules/opensearch/main.tf
@@ -92,7 +92,8 @@ resource "random_password" "opensearch_password" {
   min_numeric      = 1
   min_special      = 1
   special          = true
-  override_special = "_-."
+  # YAML-safe special characters only - excludes quotes, backslashes, and other problematic chars
+  override_special = "!@#$%^&*()-_=+[]{}:?"
 }
 
 resource "kubernetes_secret_v1" "opensearch_credentials" {
diff --git a/modules/rds/main.tf b/modules/rds/main.tf
index d7856da..aaf3ca8 100644
--- a/modules/rds/main.tf
+++ b/modules/rds/main.tf
@@ -7,7 +7,8 @@ resource "random_password" "db_password" {
   min_numeric      = 1
   min_special      = 1
   special          = true
-  override_special = "#^&*()-_=+[]{}:?"
+  # YAML-safe special characters only - excludes quotes, backslashes, and other problematic chars
+  override_special = "!@#$%^&*()-_=+[]{}:?"
 }
 
 module "rds" {
diff --git a/test_password_security.tf b/test_password_security.tf
new file mode 100644
index 0000000..b5402d3
--- /dev/null
+++ b/test_password_security.tf
@@ -0,0 +1,97 @@
+# Password Security Testing for Issue #14
+# This file provides validation and testing for YAML-safe password generation
+
+# Test random password generation with YAML-safe characters
+resource "random_password" "test_password_yaml_safe" {
+  length      = 16
+  min_upper   = 1
+  min_lower   = 1
+  min_numeric = 1
+  min_special = 1
+  special     = true
+  # Only YAML-safe special characters
+  override_special = "!@#$%^&*()-_=+[]{}:?"
+}
+
+# Validation: Ensure password can be safely encoded in YAML
+locals {
+  test_password_validation = {
+    raw_password     = random_password.test_password_yaml_safe.result
+    yaml_encoded     = yamlencode(random_password.test_password_yaml_safe.result)
+    is_yaml_safe     = can(yamlencode(random_password.test_password_yaml_safe.result))
+    contains_quotes  = contains(split("", random_password.test_password_yaml_safe.result), "\"")
+    contains_backslash = contains(split("", random_password.test_password_yaml_safe.result), "\\")
+  }
+}
+
+# Output validation results for testing
+output "password_security_test" {
+  sensitive = true
+  value = {
+    yaml_safe_check    = local.test_password_validation.is_yaml_safe
+    contains_quotes    = local.test_password_validation.contains_quotes
+    contains_backslash = local.test_password_validation.contains_backslash
+    # Don't output the actual password for security
+    password_length    = length(local.test_password_validation.raw_password)
+  }
+  description = "Password security validation results - all should be: yaml_safe=true, contains_quotes=false, contains_backslash=false"
+}
+
+# Test YAML template rendering with special characters
+resource "local_file" "test_yaml_template" {
+  content = templatefile("${path.module}/test_yaml_template.tftpl", {
+    test_password = random_password.test_password_yaml_safe.result
+  })
+  filename = "/tmp/test_yaml_output.yaml"
+}
+
+# Validate that the generated YAML is parseable (simplified validation without PyYAML dependency)
+data "external" "yaml_validation" {
+  program = ["python3", "-c", <<-EOT
+import json
+import sys
+import os
+
+try:
+    # Check if file exists and is readable
+    if not os.path.exists('/tmp/test_yaml_output.yaml'):
+        print(json.dumps({"valid": "false", "error": "YAML file not found"}))
+        sys.exit(0)
+
+    with open('/tmp/test_yaml_output.yaml', 'r') as f:
+        content = f.read()
+
+    # Basic YAML syntax validation - check for common YAML issues
+    lines = content.strip().split('\n')
+    errors = []
+
+    for i, line in enumerate(lines, 1):
+        line = line.strip()
+        if not line or line.startswith('#'):
+            continue
+
+        # Check for unclosed quotes
+        if line.count('"') % 2 != 0:
+            errors.append(f"Unclosed quotes on line {i}")
+
+        # Check for unescaped special characters outside quotes
+        if '\\' in line and '"' not in line:
+            errors.append(f"Unescaped backslash on line {i}")
+
+    if errors:
+        print(json.dumps({"valid": "false", "error": "; ".join(errors)}))
+    else:
+        print(json.dumps({"valid": "true", "error": "none", "note": "Basic syntax validation passed"}))
+
+except Exception as e:
+    print(json.dumps({"valid": "false", "error": str(e)}))
+EOT
+  ]
+
+  depends_on = [local_file.test_yaml_template]
+}
+
+output "yaml_parsing_test" {
+  value = data.external.yaml_validation.result
+  description = "YAML parsing validation - should show valid=true"
+}
\ No newline at end of file
diff --git a/test_yaml_template.tftpl b/test_yaml_template.tftpl
new file mode 100644
index 0000000..01377fe
--- /dev/null
+++ b/test_yaml_template.tftpl
@@ -0,0 +1,12 @@
+# Test YAML template to validate password handling
+test_config:
+  password: "${test_password}"
+  # Test that password is properly rendered without breaking YAML syntax
+  database:
+    auth:
+      password: "${test_password}"
+  services:
+    - name: "test-service"
+      password: "${test_password}"
+      config:
+        secret: "${test_password}"
\ No newline at end of file