diff --git a/metadata-service/factories/src/main/resources/application.yml b/metadata-service/factories/src/main/resources/application.yml
index 7526e315e10f2d..d4c5efd0be5b46 100644
--- a/metadata-service/factories/src/main/resources/application.yml
+++ b/metadata-service/factories/src/main/resources/application.yml
@@ -44,7 +44,7 @@ telemetry:
   enabledServer: ${DATAHUB_TELEMETRY_ENABLED:true}
 
 secretService:
-  encryptionKey: "#{systemEnvironment['SECRET_SERVICE_ENCRYPTION_KEY']}:ENCRYPTION_KEY"
+  encryptionKey: "#{systemEnvironment['SECRET_SERVICE_ENCRYPTION_KEY'] ?: 'ENCRYPTION_KEY'}"
 
 datahub:
   serverType: ${DATAHUB_SERVER_TYPE:prod}
diff --git a/metadata-service/factories/src/test/java/com/linkedin/gms/factory/secret/SecretServiceFactoryTest.java b/metadata-service/factories/src/test/java/com/linkedin/gms/factory/secret/SecretServiceFactoryTest.java
new file mode 100644
index 00000000000000..b04b9e037be230
--- /dev/null
+++ b/metadata-service/factories/src/test/java/com/linkedin/gms/factory/secret/SecretServiceFactoryTest.java
@@ -0,0 +1,34 @@
+package com.linkedin.gms.factory.secret;
+
+import com.linkedin.metadata.secret.SecretService;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.beans.factory.annotation.Value;
+import org.springframework.boot.test.context.SpringBootTest;
+import org.springframework.test.context.TestPropertySource;
+import org.springframework.test.context.testng.AbstractTestNGSpringContextTests;
+import org.testng.annotations.Test;
+
+import java.io.IOException;
+import java.nio.charset.StandardCharsets;
+
+import static org.testng.Assert.assertEquals;
+import static org.testng.Assert.assertNotNull;
+
+@TestPropertySource(locations = "classpath:/application.yml")
+@SpringBootTest(classes = {SecretServiceFactory.class})
+public class SecretServiceFactoryTest extends AbstractTestNGSpringContextTests {
+
+    @Value("${secretService.encryptionKey}")
+    private String encryptionKey;
+
+    @Autowired
+    SecretService test;
+
+    @Test
+    void testInjection() throws IOException {
+        assertEquals(encryptionKey, "ENCRYPTION_KEY");
+        assertNotNull(test);
+        assertEquals(test.getHashedPassword("".getBytes(StandardCharsets.UTF_8), "password"),
+                "XohImNooBHFR0OVvjcYpJ3NgPQ1qq73WKhHvch0VQtg=");
+    }
+}