diff --git a/source/auth/auth.md b/source/auth/auth.md
index 22ac4ba845..3d9b610120 100644
--- a/source/auth/auth.md
+++ b/source/auth/auth.md
@@ -959,6 +959,11 @@ Examples are provided below.
 
         Drivers MUST allow the user to specify an AWS session token for authentication with temporary credentials.
 
+    - AWS_CREDENTIAL_PROVIDER
+
+        Drivers MAY allow the user to specify a custom credential provider object or function. See
+        [Custom Credential Providers](https://github.com/mongodb/specifications/blob/master/source/auth/auth.md#custom-credential-providers)
+
 #### Obtaining Credentials
 
 Drivers will need AWS IAM credentials (an access key, a secret access key and optionally a session token) to complete
@@ -1006,8 +1011,8 @@ Drivers MAY expose API for default providers for the following scenarios when ap
 The order in which Drivers MUST search for credentials is:
 
 1. The URI
-2. Environment variables
-3. A custom AWS credential provider if the driver supports it.
+2. A custom AWS credential provider if the driver supports it.
+3. Environment variables
 4. Using `AssumeRoleWithWebIdentity` if `AWS_WEB_IDENTITY_TOKEN_FILE` and `AWS_ROLE_ARN` are set.
 5. The ECS endpoint if `AWS_CONTAINER_CREDENTIALS_RELATIVE_URI` is set. Otherwise, the EC2 endpoint.
 
@@ -2157,6 +2162,8 @@ practice to avoid this. (See
 
 ## Changelog
 
+- 2025-09-10: Update precedence of MONGODB-AWS credential fetching behaviour.
+
 - 2025-01-29: Add support for custom AWS credential providers.
 
 - 2024-10-02: Add Kubernetes built-in OIDC provider integration.
diff --git a/source/auth/tests/mongodb-aws.md b/source/auth/tests/mongodb-aws.md
index e64335c3cc..9ad9340ca0 100644
--- a/source/auth/tests/mongodb-aws.md
+++ b/source/auth/tests/mongodb-aws.md
@@ -21,15 +21,17 @@ SecretAccessKey=wJalrXUtnFEMI/K7MDENG/bPxRfiCYEXAMPLEKEY
 Token=AQoDYXdzEJr...<remainder of security token>
 ```
 
-If the driver supports user provided custom AWS credential providers, then the driver MUST also test the above scenarios
-2-6 with a user provided `AWS_CREDENTIAL_PROVIDER` auth mechanism property. This value MUST be the default credential
-provider from the AWS SDK. If the default provider does not cover all scenarios above, those not covered MAY be skipped.
-In these tests the driver MUST also assert that the user provided credential provider was called at least once in each
-test.
-
-If the driver supports a custom AWS credential provider, it MUST verify the custom provider was used when testing. This
-may be via a custom function or object that wraps the calls to the custom provider and asserts that it was called at
-least once.
+## Testing custom credential providers
+
+If the driver supports custom AWS credential providers, the driver MUST test the following:
+
+Scenarios 1-6 from the previous section with a user provided `AWS_CREDENTIAL_PROVIDER` auth mechanism property. This
+value MAY be the default credential provider from the AWS SDK. If the default provider does not cover all scenarios
+above, those not covered MAY be skipped. In these tests the driver MUST also assert that the user provided credential
+provider was called in each test. This may be via a custom function or object that wraps the calls to the custom
+provider and asserts that it was called at least once. For test scenarios where the drivers tools scripts put the
+credentials in the MONGODB_URI, drivers MAY extract the credentials from the URI and return the AWS credentials directly
+from the custom provider instead of using the AWS SDK default provider.
 
 ## Regular credentials
 
diff --git a/source/client-side-encryption/tests/README.md b/source/client-side-encryption/tests/README.md
index 9c0fa81656..1565f91219 100644
--- a/source/client-side-encryption/tests/README.md
+++ b/source/client-side-encryption/tests/README.md
@@ -3788,6 +3788,57 @@ class AutoEncryptionOpts {
 
 Assert that an error is thrown.
 
+#### Case 4: ClientEncryption with `credentialProviders` and valid environment variables.
+
+Ensure a valid `ACCESS_KEY_ID` and `SECRET_ACCESS_KEY` are present in the environment.
+
+Create a MongoClient named `setupClient`.
+
+Create a [ClientEncryption](../client-side-encryption.md#clientencryption) object with the following options:
+
+```typescript
+class ClientEncryptionOpts {
+  keyVaultClient: <setupClient>,
+  keyVaultNamespace: "keyvault.datakeys",
+  kmsProviders: { "aws": {} },
+  credentialProviders: { "aws": <object/function that returns valid credentials from the secrets manager> }
+}
+```
+
+Use the client encryption to create a datakey using the "aws" KMS provider. This should successfully load and use the
+AWS credentials that were provided by the secrets manager for the remote provider. Assert the datakey was created and
+that the custom credential provider was called at least once.
+
+An example of this in Node.js:
+
+```typescript
+import { ClientEncryption, MongoClient } from 'mongodb';
+
+let calledCount = 0;
+const masterKey = {
+  region: '<aws region>',
+  key: '<key for arn>'
+};
+const keyVaultClient = new MongoClient(process.env.MONGODB_URI);
+const options = {
+  keyVaultNamespace: 'keyvault.datakeys',
+  kmsProviders: { aws: {} },
+  credentialProviders: {
+    aws: async () => {
+      calledCount++;
+      return {
+        accessKeyId: process.env.FLE_AWS_KEY,
+        secretAccessKey: process.env.FLE_AWS_SECRET
+      };
+    }
+  }
+};
+const clientEncryption = new ClientEncryption(keyVaultClient, options);
+const dk = await clientEncryption.createDataKey('aws', { masterKey });
+expect(dk).to.be.a(Binary);
+expect(calledCount).to.be.greaterThan(0);
+```
+
 ### 27. Text Explicit Encryption
 
 The Text Explicit Encryption tests utilize Queryable Encryption (QE) range protocol V2 and require MongoDB server 8.2.0+