diff --git a/scripts/update-versions/getUpdatedPackageJson.mjs b/scripts/update-versions/getUpdatedPackageJson.mjs
index 83ac50855a2f..8f9e7f71bad1 100644
--- a/scripts/update-versions/getUpdatedPackageJson.mjs
+++ b/scripts/update-versions/getUpdatedPackageJson.mjs
@@ -7,11 +7,10 @@ export const getUpdatedPackageJson = (packageJson, depToVersionHash) =>
     .reduce(
       (acc, sectionName) => ({
         ...acc,
-        [sectionName]: getUpdatedPackageJsonSection(
-          packageJson[sectionName],
-          depToVersionHash,
-          sectionName === "peerDependencies"
-        ),
+        [sectionName]: getUpdatedPackageJsonSection(packageJson[sectionName], depToVersionHash, {
+          isPeer: sectionName === "peerDependencies",
+          packageName: packageJson.name,
+        }),
       }),
       packageJson
     );
diff --git a/scripts/update-versions/getUpdatedPackageJsonSection.mjs b/scripts/update-versions/getUpdatedPackageJsonSection.mjs
index 5b44503e16f5..fe05f3fd70a9 100644
--- a/scripts/update-versions/getUpdatedPackageJsonSection.mjs
+++ b/scripts/update-versions/getUpdatedPackageJsonSection.mjs
@@ -1,11 +1,29 @@
 // @ts-check
-export const getUpdatedPackageJsonSection = (section, depToVersionHash, isPeer = false) =>
+export const getUpdatedPackageJsonSection = (section, depToVersionHash, { isPeer, packageName }) =>
   Object.entries(section)
     .filter(([key, value]) => key.startsWith("@aws-sdk/") && !value.startsWith("file:"))
     .reduce((acc, [key]) => {
       const newVersion = depToVersionHash[key];
       if (newVersion) {
-        acc[key] = isPeer && newVersion !== "*" ? `^${newVersion}` : newVersion;
+        // Use exact version if it's asterisk or not a peer dependency.
+        if (newVersion === "*" || !isPeer) {
+          acc[key] = newVersion;
+          return acc;
+        }
+
+        // Use exact version for client peerDependencies in credential-provider packages.
+        const moduleName = packageName.substring(packageName.indexOf("/") + 1);
+        const authProviderPrefixArray = ["credential-provider", "token-provider"];
+        if (
+          authProviderPrefixArray.some((authProviderPrefix) => moduleName.startsWith(authProviderPrefix)) &&
+          key.startsWith("@aws-sdk/client-")
+        ) {
+          acc[key] = newVersion;
+          return acc;
+        }
+
+        // Use caret version for other peerDependencies.
+        acc[key] = `^${newVersion}`;
       }
       return acc;
     }, section);