diff --git a/.github/workflows/secrets-check.yml b/.github/workflows/secrets-check.yml
new file mode 100644
index 00000000..5e989082
--- /dev/null
+++ b/.github/workflows/secrets-check.yml
@@ -0,0 +1,21 @@
+name: Kubernetes Secrets Check
+
+on:
+  push:
+    branches: ["main"]
+    paths:
+      - "k8s/**"
+  pull_request:
+    branches: ["main"]
+    paths:
+      - "k8s/**"
+
+jobs:
+  check-secrets-placeholders:
+    name: Verify no real secrets in k8s manifests
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+
+      - name: Check backend-secret.yaml for non-placeholder values
+        run: ./scripts/check-k8s-secrets.sh
diff --git a/.husky/pre-commit b/.husky/pre-commit
index 2312dc58..2eee4916 100644
--- a/.husky/pre-commit
+++ b/.husky/pre-commit
@@ -1 +1,2 @@
 npx lint-staged
+./scripts/check-k8s-secrets.sh
diff --git a/docs/deployment.md b/docs/deployment.md
index 553c0d80..3488d039 100644
--- a/docs/deployment.md
+++ b/docs/deployment.md
@@ -40,21 +40,28 @@ This guide covers deploying PayD to a Kubernetes cluster using either raw manife
 
 ## Option 1: Using Raw Manifests
 
-### 1. Update Secrets
+### 1. Create Secrets
 
-Edit `k8s/base/backend-secret.yaml` with your actual secrets:
+**Do not edit `k8s/base/backend-secret.yaml` with real values.** That file is
+tracked by git and must only contain placeholders. Instead, create the secret
+imperatively:
 
-```yaml
-stringData:
-  DATABASE_URL: "postgresql://user:password@your-db-host:5432/payd_db"
-  DB_USER: "your_db_user"
-  DB_PASSWORD: "your_db_password"
-  JWT_SECRET: "your_secure_jwt_secret"
-  STELLAR_SECRET_KEY: "your_stellar_secret_key"
-  ANCHOR_API_KEY: "your_anchor_api_key"
-  SDS_API_KEY: "your_sds_api_key"
+```bash
+kubectl create secret generic payd-backend-secrets \
+  --namespace payd \
+  --from-literal=DATABASE_URL="postgresql://user:password@your-db-host:5432/payd_db" \
+  --from-literal=DB_USER="your_db_user" \
+  --from-literal=DB_PASSWORD="your_db_password" \
+  --from-literal=JWT_SECRET="$(openssl rand -hex 32)" \
+  --from-literal=STELLAR_SECRET_KEY="your_stellar_secret_key" \
+  --from-literal=ANCHOR_API_KEY="your_anchor_api_key" \
+  --from-literal=SDS_API_KEY="your_sds_api_key" \
+  --dry-run=client -o yaml | kubectl apply -f -
 ```
 
+For production, use the External Secrets Operator to sync from AWS Secrets
+Manager. See [k8s/README.md](../k8s/README.md) for details.
+
 ### 2. Update ConfigMap
 
 Edit `k8s/base/backend-configmap.yaml` if needed:
@@ -346,7 +353,7 @@ kubectl delete -k k8s/base/
 
 ## Security Considerations
 
-1. **Secrets Management**: Use external secret managers (AWS Secrets Manager, HashiCorp Vault) for production
+1. **Secrets Management**: Never commit real secrets to `backend-secret.yaml`. Use `kubectl create secret` from env vars, CI secret injection, or the External Secrets Operator (see [k8s/README.md](../k8s/README.md)). A pre-commit hook and CI check enforce this automatically.
 2. **Network Policies**: Add NetworkPolicy resources to restrict pod-to-pod communication
 3. **Pod Security**: Enable Pod Security Standards/Policies
 4. **RBAC**: Create ServiceAccounts with minimal permissions
diff --git a/k8s/README.md b/k8s/README.md
new file mode 100644
index 00000000..0dfcfd84
--- /dev/null
+++ b/k8s/README.md
@@ -0,0 +1,223 @@
+# PayD Kubernetes Manifests
+
+Kustomize-based manifests for deploying PayD to a Kubernetes cluster.
+
+## Directory Structure
+
+```
+k8s/base/
+├── kustomization.yaml          # Resource list and common labels
+├── backend-deployment.yaml     # Backend API deployment (2 replicas)
+├── backend-service.yaml        # Backend ClusterIP service
+├── backend-configmap.yaml      # Non-sensitive backend config
+├── backend-secret.yaml         # Secret placeholders (never commit real values)
+├── backend-hpa.yaml            # Horizontal Pod Autoscaler
+├── frontend-deployment.yaml    # Frontend deployment (2 replicas)
+├── frontend-service.yaml       # Frontend ClusterIP service
+├── frontend-configmap.yaml     # Frontend runtime config
+└── ingress.yaml                # nginx ingress with TLS
+```
+
+## Secrets Management
+
+**`backend-secret.yaml` must never contain real secret values.** The committed file
+contains `CHANGE_ME` placeholders only. Real values are injected at deploy time
+using one of the methods below.
+
+### Why this matters
+
+The `STELLAR_SECRET_KEY` field holds a Stellar private key that controls funds on
+the network. A leaked key means immediate, irreversible loss of assets. The other
+fields (database credentials, JWT signing key, API keys) are equally sensitive.
+Committing any of them to git — even briefly — means they live in the repository
+history forever unless every clone is force-purged.
+
+### Method 1: `kubectl create secret` (simplest, no extra tooling)
+
+Create the secret imperatively from environment variables or a local file so that
+no real value ever touches a tracked file:
+
+```bash
+# From environment variables (recommended for CI)
+kubectl create secret generic payd-backend-secrets \
+  --namespace payd \
+  --from-literal=DATABASE_URL="$DATABASE_URL" \
+  --from-literal=DB_USER="$DB_USER" \
+  --from-literal=DB_PASSWORD="$DB_PASSWORD" \
+  --from-literal=JWT_SECRET="$JWT_SECRET" \
+  --from-literal=STELLAR_SECRET_KEY="$STELLAR_SECRET_KEY" \
+  --from-literal=ANCHOR_API_KEY="$ANCHOR_API_KEY" \
+  --from-literal=SDS_API_KEY="$SDS_API_KEY" \
+  --dry-run=client -o yaml | kubectl apply -f -
+```
+
+Then deploy the remaining manifests without the secret file:
+
+```bash
+kubectl apply -k k8s/base/ --prune -l app=payd
+```
+
+Or exclude the secret from kustomize by removing it from `kustomization.yaml`
+locally (do not commit that change).
+
+### Method 2: Helm `--set` (if using the Helm chart)
+
+```bash
+helm install payd charts/payd \
+  --namespace payd --create-namespace \
+  --set backend.secrets.DATABASE_URL="$DATABASE_URL" \
+  --set backend.secrets.DB_PASSWORD="$DB_PASSWORD" \
+  --set backend.secrets.JWT_SECRET="$JWT_SECRET" \
+  --set backend.secrets.STELLAR_SECRET_KEY="$STELLAR_SECRET_KEY" \
+  --set backend.secrets.ANCHOR_API_KEY="$ANCHOR_API_KEY" \
+  --set backend.secrets.SDS_API_KEY="$SDS_API_KEY"
+```
+
+### Method 3: External Secrets Operator (recommended for production)
+
+See [External Secrets Operator](#external-secrets-operator) below.
+
+### Method 4: CI-injected secrets
+
+In GitHub Actions or similar CI, store secrets in the CI provider's secret store
+and inject them at deploy time:
+
+```yaml
+# In your deploy step
+- name: Deploy to Kubernetes
+  env:
+    DATABASE_URL: ${{ secrets.DATABASE_URL }}
+    JWT_SECRET: ${{ secrets.JWT_SECRET }}
+    STELLAR_SECRET_KEY: ${{ secrets.STELLAR_SECRET_KEY }}
+    ANCHOR_API_KEY: ${{ secrets.ANCHOR_API_KEY }}
+    SDS_API_KEY: ${{ secrets.SDS_API_KEY }}
+  run: |
+    kubectl create secret generic payd-backend-secrets \
+      --namespace payd \
+      --from-literal=DATABASE_URL="$DATABASE_URL" \
+      --from-literal=DB_USER="payd_user" \
+      --from-literal=DB_PASSWORD="$DB_PASSWORD" \
+      --from-literal=JWT_SECRET="$JWT_SECRET" \
+      --from-literal=STELLAR_SECRET_KEY="$STELLAR_SECRET_KEY" \
+      --from-literal=ANCHOR_API_KEY="$ANCHOR_API_KEY" \
+      --from-literal=SDS_API_KEY="$SDS_API_KEY" \
+      --dry-run=client -o yaml | kubectl apply -f -
+```
+
+## External Secrets Operator
+
+For production clusters, the [External Secrets Operator (ESO)](https://external-secrets.io/)
+syncs Kubernetes Secrets from an external provider (AWS Secrets Manager, HashiCorp
+Vault, GCP Secret Manager, Azure Key Vault, etc.) so that no secret value is ever
+stored in the git repository — not even as a placeholder that invites hand-editing.
+
+### Why ESO over Sealed Secrets
+
+| Criterion | External Secrets Operator | Sealed Secrets |
+|---|---|---|
+| Secret source | External provider (AWS SM, Vault, etc.) | Encrypted blob committed to git |
+| Key rotation | Automatic via provider | Requires re-encryption with `kubeseal` |
+| Access control | IAM/policies at the provider layer | Cluster-scoped sealing key |
+| Audit trail | Provider-native (CloudTrail, Vault audit) | Only K8s audit logs |
+| Fits existing infra | Yes — PayD already uses AWS Secrets Manager (see `infrastructure/terraform/modules/secrets/`) | Requires new Sealed Secrets controller |
+| Secret updates | Automatic sync on provider change | Manual re-seal + commit |
+
+ESO is the better fit because PayD's Terraform stack already provisions secrets in
+AWS Secrets Manager. ESO bridges that into Kubernetes without introducing a second
+secret store.
+
+### Quick start (AWS Secrets Manager)
+
+1. Install ESO in the cluster:
+
+```bash
+helm repo add external-secrets https://charts.external-secrets.io
+helm install external-secrets external-secrets/external-secrets \
+  --namespace external-secrets --create-namespace
+```
+
+2. Create a `SecretStore` pointing at AWS Secrets Manager:
+
+```yaml
+# k8s/base/secret-store.yaml
+apiVersion: external-secrets.io/v1beta1
+kind: SecretStore
+metadata:
+  name: aws-secrets-manager
+  labels:
+    app: payd
+spec:
+  provider:
+    aws:
+      service: SecretsManager
+      region: us-east-1
+      auth:
+        jwt:
+          serviceAccountRef:
+            name: external-secrets-sa
+```
+
+3. Create an `ExternalSecret` that maps provider keys to K8s secret keys:
+
+```yaml
+# k8s/base/external-secret.yaml
+apiVersion: external-secrets.io/v1beta1
+kind: ExternalSecret
+metadata:
+  name: payd-backend-secrets
+  labels:
+    app: payd
+    component: backend
+spec:
+  refreshInterval: 1h
+  secretStoreRef:
+    name: aws-secrets-manager
+    kind: SecretStore
+  target:
+    name: payd-backend-secrets
+    creationPolicy: Owner
+  data:
+    - secretKey: DATABASE_URL
+      remoteRef:
+        key: payd/prod/database-url
+    - secretKey: DB_USER
+      remoteRef:
+        key: payd/prod/db-user
+    - secretKey: DB_PASSWORD
+      remoteRef:
+        key: payd/prod/db-password
+    - secretKey: JWT_SECRET
+      remoteRef:
+        key: payd/prod/jwt-secret
+    - secretKey: STELLAR_SECRET_KEY
+      remoteRef:
+        key: payd/prod/stellar-secret-key
+    - secretKey: ANCHOR_API_KEY
+      remoteRef:
+        key: payd/prod/anchor-api-key
+    - secretKey: SDS_API_KEY
+      remoteRef:
+        key: payd/prod/sds-api-key
+```
+
+4. Remove `backend-secret.yaml` from `kustomization.yaml` (the ExternalSecret
+   creates the K8s Secret automatically).
+
+5. Configure IRSA or static credentials for the ESO service account to read from
+   AWS Secrets Manager.
+
+## Pre-commit Safety Check
+
+A pre-commit hook (`scripts/check-k8s-secrets.sh`) verifies that
+`backend-secret.yaml` contains only the expected `CHANGE_ME` placeholders. This
+runs automatically via Husky and is also enforced in CI.
+
+To run it manually:
+
+```bash
+./scripts/check-k8s-secrets.sh
+```
+
+## Deploying
+
+See [docs/deployment.md](../docs/deployment.md) for full deployment instructions.
diff --git a/scripts/check-k8s-secrets.sh b/scripts/check-k8s-secrets.sh
new file mode 100755
index 00000000..6736a67d
--- /dev/null
+++ b/scripts/check-k8s-secrets.sh
@@ -0,0 +1,78 @@
+#!/usr/bin/env bash
+#
+# check-k8s-secrets.sh — verify that k8s/base/backend-secret.yaml contains
+# only the expected CHANGE_ME placeholders and no real secret values.
+#
+# Exit codes:
+#   0 — file is clean (only placeholders)
+#   1 — file contains values that are NOT known placeholders (possible leak)
+#   2 — file not found or parse error
+#
+# Usage:
+#   ./scripts/check-k8s-secrets.sh          # standalone
+#   # Also wired into .husky/pre-commit and .github/workflows/secrets-check.yml
+
+set -euo pipefail
+
+SECRET_FILE="k8s/base/backend-secret.yaml"
+
+if [[ ! -f "$SECRET_FILE" ]]; then
+  echo "ERROR: $SECRET_FILE not found."
+  exit 2
+fi
+
+# Allowed placeholder values. Any stringData value not in this set is flagged.
+ALLOWED_VALUES=(
+  "CHANGE_ME"
+  "CHANGE_ME_TO_A_SECURE_RANDOM_STRING"
+  "postgresql://payd_user:CHANGE_ME@postgres:5432/payd_db"
+  "payd_user"
+)
+
+# Extract values from the stringData block. Uses Python for reliable YAML
+# parsing — avoids fragile awk/grep that breaks on edge cases.
+values=$(python3 -c "
+import sys, re
+
+with open('$SECRET_FILE') as f:
+    content = f.read()
+
+# Find the stringData block
+match = re.search(r'^stringData:\s*\n((?:\s+\w+:.*\n?)*)', content, re.MULTILINE)
+if not match:
+    sys.exit(2)
+
+block = match.group(1)
+for line in block.strip().splitlines():
+    # Extract value after the key: separator
+    val = line.split(':', 1)[1].strip().strip('\"')
+    print(val)
+" 2>/dev/null)
+
+if [[ -z "$values" ]]; then
+  echo "ERROR: Could not parse stringData values from $SECRET_FILE"
+  exit 2
+fi
+
+failed=0
+while IFS= read -r value; do
+  matched=0
+  for allowed in "${ALLOWED_VALUES[@]}"; do
+    if [[ "$value" == "$allowed" ]]; then
+      matched=1
+      break
+    fi
+  done
+  if [[ $matched -eq 0 ]]; then
+    echo "FAIL: $SECRET_FILE contains a non-placeholder value."
+    echo "      Real secrets must not be committed. See k8s/README.md for safe alternatives."
+    failed=1
+  fi
+done <<< "$values"
+
+if [[ $failed -eq 1 ]]; then
+  exit 1
+fi
+
+echo "OK: $SECRET_FILE contains only placeholder values."
+exit 0