SKY-11678 Add local credential vault persistence to OSS Docker (#7003)

Co-authored-by: Codex <codex@openai.com>

.dockerignore

@@ -4,6 +4,9 @@
 **/traces
 **/inputs
 **/har
+**/downloads
+**/browser_sessions
+**/credential_vault
 **/.git
 **/.github
 **/.mypy_cache

.env.example

@@ -139,12 +139,29 @@ ANALYTICS_ID="anonymous"
 # OP_SERVICE_ACCOUNT_TOKEN: API token for 1Password integration
 OP_SERVICE_ACCOUNT_TOKEN=""
 
+# =============================================================================
+# SKYVERN CREDENTIAL VAULT CONFIGURATION
+# =============================================================================
+# Built-in encrypted local vault used by default by the OSS Docker Compose setup.
+# Docker also sets ENABLE_LOCAL_CREDENTIAL_VAULT=true and persists this under /data/credential_vault.
+CREDENTIAL_VAULT_TYPE=skyvern
+ENABLE_LOCAL_CREDENTIAL_VAULT=true
+# LOCAL_CREDENTIAL_VAULT_PATH=/data/credential_vault
+# Production self-hosters should set LOCAL_CREDENTIAL_VAULT_KEY from an external secret store.
+# If unset, Skyvern generates .fernet_key inside LOCAL_CREDENTIAL_VAULT_PATH; backups or host-dir
+# exposure of that directory include both encrypted items and the key needed to decrypt them.
+# LOCAL_CREDENTIAL_VAULT_KEY=
+# The OSS Docker volumes for browser_sessions/ and downloads/ can contain plaintext cookies,
+# session tokens, and downloaded files. Treat them as sensitive and exclude them from casual backups.
+
 # Enable recording skyvern logs as artifacts
 ENABLE_LOG_ARTIFACTS=false
 
 # =============================================================================
 # SKYVERN BITWARDEN CONFIGURATION
 # =============================================================================
+# Set CREDENTIAL_VAULT_TYPE=bitwarden to use Bitwarden or vaultwarden instead
+# of the built-in Skyvern credential vault.
 # Your organization ID in official Bitwarden server or vaultwarden (if using organizations)
 SKYVERN_AUTH_BITWARDEN_ORGANIZATION_ID=your-org-id-here
 

.gitignore

@@ -162,6 +162,7 @@ ig_*
 
 # Skyvern ignores
 browser_sessions/
+credential_vault/
 videos/
 skyvern/artifacts/
 artifacts/

Dockerfile

@@ -11,6 +11,7 @@ RUN uv pip compile pyproject.toml --extra server --python-version 3.11 -o requir
 FROM python:3.11-slim-bookworm
 WORKDIR /app
 COPY --from=requirements-stage /tmp/requirements.txt /app/requirements.txt
+COPY ./skyvern/forge/sdk/utils/tesseract_languages.py /tmp/tesseract_languages.py
 RUN pip install --upgrade pip setuptools wheel
 # --no-deps: requirements.txt is fully resolved by uv, including the
 # pyproject overrides that loosen litellm's jsonschema==4.23.0 pin.
@@ -18,7 +19,13 @@ RUN pip install --upgrade pip setuptools wheel
 RUN pip install --no-cache-dir --no-deps -r requirements.txt
 RUN playwright install-deps
 RUN playwright install
-RUN apt-get install -y xauth x11-apps netpbm gpg ca-certificates x11vnc && apt-get clean
+RUN apt-get update && \
+    apt-get install -y xauth x11-apps netpbm gpg ca-certificates x11vnc tesseract-ocr $(python /tmp/tesseract_languages.py --apt-packages) && \
+    tesseract --version && \
+    rm /tmp/tesseract_languages.py && \
+    apt-get clean && \
+    rm -rf /var/lib/apt/lists/*
+
 RUN pip install --no-cache-dir websockify
 
 COPY .nvmrc /app/.nvmrc
@@ -47,6 +54,9 @@ ENV VIDEO_PATH=/data/videos
 ENV HAR_PATH=/data/har
 ENV LOG_PATH=/data/log
 ENV ARTIFACT_STORAGE_PATH=/data/artifacts
+ENV DOWNLOAD_PATH=/data/downloads
+ENV BROWSER_SESSION_BASE_PATH=/data/browser_sessions
+ENV LOCAL_CREDENTIAL_VAULT_PATH=/data/credential_vault
 
 # cache tiktoken
 RUN python /app/scripts/load_tiktoken.py

docker-compose.yml

@@ -38,6 +38,9 @@ services:
       - ./videos:/data/videos
       - ./har:/data/har
       - ./log:/data/log
+      - ./downloads:/data/downloads
+      - ./browser_sessions:/data/browser_sessions
+      - ./credential_vault:/data/credential_vault
       # Generated credentials allow the UI to pick up the local API key on first startup.
       - ./.skyvern:/app/.skyvern
       # Uncomment the following two lines if you want to connect to any local changes
@@ -62,6 +65,11 @@ services:
       - BROWSER_REMOTE_DEBUGGING_URL=${BROWSER_REMOTE_DEBUGGING_URL:-http://127.0.0.1:9222}
       - BROWSER_REMOTE_DEBUGGING_HOST_HEADER=${BROWSER_REMOTE_DEBUGGING_HOST_HEADER:-}
       - BROWSER_CDP_CONNECT_TIMEOUT_MS=${BROWSER_CDP_CONNECT_TIMEOUT_MS:-120000}
+      - DOWNLOAD_PATH=/data/downloads
+      - BROWSER_SESSION_BASE_PATH=/data/browser_sessions
+      - CREDENTIAL_VAULT_TYPE=${CREDENTIAL_VAULT_TYPE:-skyvern}
+      - ENABLE_LOCAL_CREDENTIAL_VAULT=${ENABLE_LOCAL_CREDENTIAL_VAULT:-true}
+      - LOCAL_CREDENTIAL_VAULT_PATH=/data/credential_vault
       - ENABLE_CODE_BLOCK=true
       # --- Control your own browser (Chrome/Chromium) ---
       # Prefer Chrome's chrome://inspect/#remote-debugging flow for an existing profile.

docs/api-reference/openapi.json

@@ -3645,10 +3645,10 @@
                   "type": "null"
                 }
               ],
-              "description": "Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')",
+              "description": "Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')",
               "title": "Vault Type"
             },
-            "description": "Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')"
+            "description": "Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')"
           },
           {
             "name": "credential_type",
@@ -10550,7 +10550,7 @@
                 "type": "null"
               }
             ],
-            "description": "Which vault stores this credential (e.g., 'bitwarden', 'azure_vault', 'custom')"
+            "description": "Which vault stores this credential (e.g., 'skyvern', 'bitwarden', 'azure_vault', 'custom')"
           },
           "browser_profile_id": {
             "anyOf": [
@@ -10670,6 +10670,7 @@
       "CredentialVaultType": {
         "type": "string",
         "enum": [
+          "skyvern",
           "bitwarden",
           "azure_vault",
           "gcp",

docs/cloud/managing-credentials/external-providers.mdx

@@ -363,7 +363,7 @@ Restart Skyvern after setting these variables.
 | Status stays Inactive | Verify the API base URL is a valid URL and the API token is not empty. The configuration is validated on save but does not make a live request to your server. |
 | Credentials not created | Review your API logs for auth errors. Ensure the response includes an `id` field. Skyvern expects HTTP 200 for all operations. |
 | Credentials not retrieved | Ensure the GET response includes all required fields for the credential type (`username` and `password` for passwords, all card fields for credit cards, `secret_value` for secrets). |
-| Env config not working | Restart Skyvern after setting variables. Verify `CREDENTIAL_VAULT_TYPE=custom` is set and both URL and token are provided. The default vault type is `bitwarden`, so this variable must be explicitly set. |
+| Env config not working | Restart Skyvern after setting variables. Verify `CREDENTIAL_VAULT_TYPE=custom` is set and both URL and token are provided. Deployment defaults vary, so `custom` must be explicitly set for an external service. |
 
 ---
 

docs/sdk-reference/credentials/get-credentials.mdx

@@ -26,7 +26,7 @@ for (const c of creds) {
 |-----------|------|----------|---------|-------------|
 | `page` | `int` | No | `None` | Page number. |
 | `page_size` | `int` | No | `None` | Results per page. |
-| `vault_type` | `CredentialVaultType` | No | `None` | Filter credentials by vault type (e.g. `"custom"`, `"bitwarden"`, `"azure_vault"`). |
+| `vault_type` | `CredentialVaultType` | No | `None` | Filter credentials by vault type (e.g. `"skyvern"`, `"custom"`, `"bitwarden"`, `"azure_vault"`). |
 | `request_options` | `RequestOptions` | No | `None` | Per-request configuration (see below). |
 
 ### Returns `list[CredentialResponse]`

fern/openapi/skyvern_openapi.json

@@ -3343,10 +3343,10 @@
                   "type": "null"
                 }
               ],
-              "description": "Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')",
+              "description": "Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')",
               "title": "Vault Type"
             },
-            "description": "Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')"
+            "description": "Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')"
           },
           {
             "name": "credential_type",
@@ -9678,7 +9678,7 @@
                 "type": "null"
               }
             ],
-            "description": "Which vault stores this credential (e.g., 'bitwarden', 'azure_vault', 'custom')"
+            "description": "Which vault stores this credential (e.g., 'skyvern', 'bitwarden', 'azure_vault', 'custom')"
           },
           "browser_profile_id": {
             "anyOf": [
@@ -9767,6 +9767,7 @@
       "CredentialVaultType": {
         "type": "string",
         "enum": [
+          "skyvern",
           "bitwarden",
           "azure_vault",
           "gcp",

skyvern-ts/client/src/api/client/requests/GetCredentialsRequest.ts

@@ -15,6 +15,6 @@ export interface GetCredentialsRequest {
     page?: number;
     /** Number of items per page */
     page_size?: number;
-    /** Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault') */
+    /** Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault') */
     vault_type?: Skyvern.CredentialVaultType;
 }

skyvern-ts/client/src/api/types/CredentialResponse.ts

@@ -14,7 +14,7 @@ export interface CredentialResponse {
     credential_type: Skyvern.CredentialTypeOutput;
     /** Name of the credential */
     name: string;
-    /** Which vault stores this credential (e.g., 'bitwarden', 'azure_vault', 'custom') */
+    /** Which vault stores this credential (e.g., 'skyvern', 'bitwarden', 'azure_vault', 'custom') */
     vault_type?: Skyvern.CredentialVaultType;
     /** Browser profile ID linked to this credential */
     browser_profile_id?: string;

skyvern-ts/client/src/api/types/CredentialVaultType.ts

@@ -1,8 +1,10 @@
 // This file was auto-generated by Fern from our API Definition.
 
 export const CredentialVaultType = {
+    Skyvern: "skyvern",
     Bitwarden: "bitwarden",
     AzureVault: "azure_vault",
+    Gcp: "gcp",
     Custom: "custom",
 } as const;
 export type CredentialVaultType = (typeof CredentialVaultType)[keyof typeof CredentialVaultType];

skyvern/client/client.py

@@ -2079,7 +2079,7 @@ class Skyvern:
             Number of items per page
 
         vault_type : typing.Optional[CredentialVaultType]
-            Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')
+            Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')
 
         request_options : typing.Optional[RequestOptions]
             Request-specific configuration.
@@ -5138,7 +5138,7 @@ class AsyncSkyvern:
             Number of items per page
 
         vault_type : typing.Optional[CredentialVaultType]
-            Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')
+            Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')
 
         request_options : typing.Optional[RequestOptions]
             Request-specific configuration.

skyvern/client/raw_client.py

@@ -2952,7 +2952,7 @@ class RawSkyvern:
             Number of items per page
 
         vault_type : typing.Optional[CredentialVaultType]
-            Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')
+            Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')
 
         request_options : typing.Optional[RequestOptions]
             Request-specific configuration.
@@ -6804,7 +6804,7 @@ class AsyncRawSkyvern:
             Number of items per page
 
         vault_type : typing.Optional[CredentialVaultType]
-            Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')
+            Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')
 
         request_options : typing.Optional[RequestOptions]
             Request-specific configuration.

skyvern/client/types/credential_response.py

@@ -37,7 +37,7 @@ class CredentialResponse(UniversalBaseModel):
 
     vault_type: typing.Optional[CredentialVaultType] = pydantic.Field(default=None)
     """
-    Which vault stores this credential (e.g., 'bitwarden', 'azure_vault', 'custom')
+    Which vault stores this credential (e.g., 'skyvern', 'bitwarden', 'azure_vault', 'custom')
     """
 
     browser_profile_id: typing.Optional[str] = pydantic.Field(default=None)

skyvern/client/types/credential_vault_type.py

@@ -2,4 +2,4 @@
 
 import typing
 
-CredentialVaultType = typing.Union[typing.Literal["bitwarden", "azure_vault", "custom"], typing.Any]
+CredentialVaultType = typing.Union[typing.Literal["skyvern", "bitwarden", "azure_vault", "gcp", "custom"], typing.Any]

skyvern/config.py

@@ -562,8 +562,11 @@ class Settings(BaseSettings):
     BITWARDEN_EMAIL: str | None = None
     OP_SERVICE_ACCOUNT_TOKEN: str | None = None
 
-    # Where credentials are stored: bitwarden, azure_vault, gcp, or custom
+    # Where credentials are stored: skyvern, bitwarden, azure_vault, gcp, or custom
     CREDENTIAL_VAULT_TYPE: str = "bitwarden"
+    ENABLE_LOCAL_CREDENTIAL_VAULT: bool | None = None
+    LOCAL_CREDENTIAL_VAULT_PATH: str = str(Path.home() / ".skyvern" / "credential_vault")
+    LOCAL_CREDENTIAL_VAULT_KEY: str | None = None
 
     # GCP Secret Manager credential vault settings
     GCP_CREDENTIAL_VAULT_PROJECT_ID: str | None = None  # project hosting the Secret Manager secrets
@@ -888,6 +891,11 @@ class Settings(BaseSettings):
         """
         return self.ENV != "local"
 
+    def is_local_credential_vault_enabled(self) -> bool:
+        if self.ENABLE_LOCAL_CREDENTIAL_VAULT is not None:
+            return self.ENABLE_LOCAL_CREDENTIAL_VAULT
+        return not self.is_cloud_environment()
+
     def execute_all_steps(self) -> bool:
         """
         This provides the functionality to execute steps one by one through the local UI.

skyvern/forge/forge_app.py

@@ -41,6 +41,7 @@ from skyvern.forge.sdk.services.credential.bitwarden_credential_service import B
 from skyvern.forge.sdk.services.credential.credential_vault_service import CredentialVaultService
 from skyvern.forge.sdk.services.credential.custom_credential_vault_service import CustomCredentialVaultService
 from skyvern.forge.sdk.services.credential.gcp_credential_vault_service import GcpCredentialVaultService
+from skyvern.forge.sdk.services.credential.skyvern_credential_vault_service import SkyvernCredentialVaultService
 from skyvern.forge.sdk.settings_manager import SettingsManager
 from skyvern.forge.sdk.workflow.context_manager import WorkflowContextManager
 from skyvern.forge.sdk.workflow.service import WorkflowService
@@ -95,6 +96,7 @@ class ForgeApp:
     AGENT_FUNCTION: AgentFunction
     PERSISTENT_SESSIONS_MANAGER: PersistentSessionsManager
     BROWSER_SESSION_RECORDING_SERVICE: BrowserSessionRecordingService
+    SKYVERN_CREDENTIAL_VAULT_SERVICE: SkyvernCredentialVaultService | None
     BITWARDEN_CREDENTIAL_VAULT_SERVICE: BitwardenCredentialVaultService
     AZURE_CREDENTIAL_VAULT_SERVICE: AzureCredentialVaultService | None
     GCP_CREDENTIAL_VAULT_SERVICE: GcpCredentialVaultService | None
@@ -283,6 +285,9 @@ def create_forge_app() -> ForgeApp:
 
     app.AZURE_CLIENT_FACTORY = RealAzureClientFactory()
     app.GCP_CLIENT_FACTORY = RealGcpClientFactory()
+    app.SKYVERN_CREDENTIAL_VAULT_SERVICE = (
+        SkyvernCredentialVaultService() if settings.is_local_credential_vault_enabled() else None
+    )
     app.BITWARDEN_CREDENTIAL_VAULT_SERVICE = BitwardenCredentialVaultService()
 
     # Azure Credential Vault Service
@@ -329,6 +334,7 @@ def create_forge_app() -> ForgeApp:
         else CustomCredentialVaultService()  # Create service without client for organization-based configuration
     )
     app.CREDENTIAL_VAULT_SERVICES = {
+        CredentialVaultType.SKYVERN: app.SKYVERN_CREDENTIAL_VAULT_SERVICE,
         CredentialVaultType.BITWARDEN: app.BITWARDEN_CREDENTIAL_VAULT_SERVICE,
         CredentialVaultType.AZURE_VAULT: app.AZURE_CREDENTIAL_VAULT_SERVICE,
         CredentialVaultType.GCP: app.GCP_CREDENTIAL_VAULT_SERVICE,

skyvern/forge/sdk/routes/credentials.py

@@ -934,9 +934,10 @@ async def test_login(
             organization_id=organization_id,
         )
         try:
-            await app.DATABASE.credentials.delete_credential(
+            await _delete_temporary_test_login_credential(
                 credential_id=credential_id,
                 organization_id=organization_id,
+                reason="workflow setup error",
             )
         except Exception:
             LOG.warning(
@@ -1374,20 +1375,11 @@ async def cancel_credential_test(
     # Only clean up temporary credentials after successful cancellation.
     # The background task may also try to delete — that's fine, it handles NotFound gracefully.
     try:
-        credential = await app.DATABASE.credentials.get_credential(
+        await _delete_temporary_test_login_credential(
             credential_id=credential_id,
             organization_id=organization_id,
+            reason="test cancellation",
         )
-        if credential and credential.name.startswith("_test_login_"):
-            await app.DATABASE.credentials.delete_credential(
-                credential_id=credential_id,
-                organization_id=organization_id,
-            )
-            LOG.info(
-                "Cleaned up temporary credential after test cancellation",
-                credential_id=credential_id,
-                organization_id=organization_id,
-            )
     except Exception:
         LOG.warning(
             "Failed to clean up temporary credential after test cancellation",
@@ -1441,14 +1433,10 @@ async def _create_browser_profile_after_workflow(
                 # Clean up temporary credentials created by test-login
                 if credential_name.startswith("_test_login_"):
                     try:
-                        await app.DATABASE.credentials.delete_credential(
+                        await _delete_temporary_test_login_credential(
-                            credential_id=credential_id,
-                            organization_id=organization_id,
-                        )
-                        LOG.info(
-                            "Deleted temporary credential after failed test",
                             credential_id=credential_id,
                             organization_id=organization_id,
+                            reason="failed test",
                         )
                     except Exception:
                         LOG.warning(
@@ -1601,9 +1589,10 @@ async def _create_browser_profile_after_workflow(
         # Clean up temporary credentials on poll timeout
         if credential_name.startswith("_test_login_"):
             try:
-                await app.DATABASE.credentials.delete_credential(
+                await _delete_temporary_test_login_credential(
                     credential_id=credential_id,
                     organization_id=organization_id,
+                    reason="poll timeout",
                 )
             except Exception:
                 LOG.warning(
@@ -1620,9 +1609,10 @@ async def _create_browser_profile_after_workflow(
         # Clean up temporary credentials on unexpected error
         if credential_name.startswith("_test_login_"):
             try:
-                await app.DATABASE.credentials.delete_credential(
+                await _delete_temporary_test_login_credential(
                     credential_id=credential_id,
                     organization_id=organization_id,
+                    reason="profile persistence error",
                 )
             except Exception:
                 LOG.warning(
@@ -1838,7 +1828,8 @@ async def get_credential_totp_code(
     if cached_response is not None:
         return cached_response
 
-    credential_service = await _get_credential_vault_service(vault_type_override=credential.vault_type)
+    vault_type = credential.vault_type or CredentialVaultType.BITWARDEN
+    credential_service = await _get_credential_vault_service(vault_type_override=vault_type)
     try:
         credential_item = await credential_service.get_credential_item(credential)
     except SkyvernHttpException as e:
@@ -1981,7 +1972,7 @@ async def get_credentials(
     ),
     vault_type: CredentialVaultType | None = Query(
         default=None,
-        description="Filter credentials by vault type (e.g. 'custom', 'bitwarden', 'azure_vault')",
+        description="Filter credentials by vault type (e.g. 'skyvern', 'custom', 'bitwarden', 'azure_vault')",
     ),
     credential_type: CredentialType | None = Query(
         default=None,
@@ -2886,7 +2877,13 @@ async def _get_credential_vault_service(
     vault_type_override: CredentialVaultType | None = None,
 ) -> CredentialVaultService:
     vault_type = vault_type_override or settings.CREDENTIAL_VAULT_TYPE
-    if vault_type == CredentialVaultType.BITWARDEN:
+    if vault_type == CredentialVaultType.SKYVERN:
+        if not settings.is_local_credential_vault_enabled():
+            raise HTTPException(status_code=400, detail="Skyvern local credential vault is not enabled")
+        if not app.SKYVERN_CREDENTIAL_VAULT_SERVICE:
+            raise HTTPException(status_code=400, detail="Skyvern local credential vault is not configured")
+        return app.SKYVERN_CREDENTIAL_VAULT_SERVICE
+    elif vault_type == CredentialVaultType.BITWARDEN:
         return app.BITWARDEN_CREDENTIAL_VAULT_SERVICE
     elif vault_type == CredentialVaultType.AZURE_VAULT:
         if not app.AZURE_CREDENTIAL_VAULT_SERVICE:
@@ -2904,6 +2901,30 @@ async def _get_credential_vault_service(
         raise HTTPException(status_code=400, detail="Credential storage not supported")
 
 
+async def _delete_temporary_test_login_credential(
+    *,
+    credential_id: str,
+    organization_id: str,
+    reason: str,
+) -> None:
+    credential = await app.DATABASE.credentials.get_credential(
+        credential_id=credential_id,
+        organization_id=organization_id,
+    )
+    if not credential or not credential.name.startswith("_test_login_"):
+        return
+
+    vault_type = credential.vault_type or CredentialVaultType.BITWARDEN
+    credential_service = await _get_credential_vault_service(vault_type_override=vault_type)
+    await credential_service.delete_credential(credential)
+    LOG.info(
+        "Deleted temporary credential",
+        credential_id=credential_id,
+        organization_id=organization_id,
+        reason=reason,
+    )
+
+
 def _convert_to_response(credential: Credential) -> CredentialResponse:
     """Convert an internal ``Credential`` to a safe API response.
 

skyvern/forge/sdk/schemas/credentials.py

@@ -12,6 +12,7 @@ from skyvern.utils.url_validators import validate_url
 
 
 class CredentialVaultType(StrEnum):
+    SKYVERN = "skyvern"
     BITWARDEN = "bitwarden"
     AZURE_VAULT = "azure_vault"
     GCP = "gcp"
@@ -220,7 +221,7 @@ class CreateCredentialRequest(BaseModel):
         default=None,
         description="Which vault to store this credential in. If omitted, uses the instance default. "
         "Use this to mix Skyvern-hosted and custom credentials within the same organization.",
-        examples=["custom", "azure_vault", "bitwarden"],
+        examples=["skyvern", "custom", "azure_vault", "bitwarden"],
     )
     proxy_location: ProxyLocationInput = Field(
         default=None,
@@ -257,7 +258,7 @@ class CredentialResponse(BaseModel):
     name: str = Field(..., description="Name of the credential", examples=["Amazon Login"])
     vault_type: CredentialVaultType | None = Field(
         default=None,
-        description="Which vault stores this credential (e.g., 'bitwarden', 'azure_vault', 'custom')",
+        description="Which vault stores this credential (e.g., 'skyvern', 'bitwarden', 'azure_vault', 'custom')",
     )
     browser_profile_id: str | None = Field(default=None, description="Browser profile ID linked to this credential")
     tested_url: str | None = Field(default=None, description="Login page URL used during the credential test")
@@ -337,7 +338,7 @@ class Credential(BaseModel):
         ..., description="ID of the organization that owns the credential", examples=["o_1234567890"]
     )
     name: str = Field(..., description="Name of the credential", examples=["Skyvern Login"])
-    vault_type: CredentialVaultType | None = Field(..., description="Where the secret is stored: Bitwarden vs Azure")
+    vault_type: CredentialVaultType | None = Field(..., description="Where the secret is stored")
     item_id: str = Field(..., description="ID of the associated credential item", examples=["item_1234567890"])
     credential_type: CredentialType = Field(..., description="Type of the credential. Eg password, credit card, etc.")
     username: str | None = Field(..., description="For password credentials: the username")

skyvern/forge/sdk/services/credential/skyvern_credential_vault_service.py

@@ -0,0 +1,208 @@
+import json
+import os
+import re
+import secrets
+from contextlib import suppress
+from pathlib import Path
+
+import structlog
+from cryptography.fernet import Fernet, InvalidToken
+from fastapi import HTTPException
+
+from skyvern.config import settings
+from skyvern.forge import app
+from skyvern.forge.sdk.schemas.credentials import (
+    CreateCredentialRequest,
+    Credential,
+    CredentialItem,
+    CredentialType,
+    CredentialVaultType,
+    CreditCardCredential,
+)
+from skyvern.forge.sdk.services.credential.credential_vault_service import CredentialVaultService
+
+LOG = structlog.get_logger()
+
+_ITEM_ID_PATTERN = re.compile(r"^[A-Za-z0-9_-]+$")
+
+
+class SkyvernCredentialVaultService(CredentialVaultService):
+    """Local encrypted credential vault for self-hosted Skyvern deployments."""
+
+    def __init__(self) -> None:
+        self._fernet: Fernet | None = None
+
+    async def create_credential(self, organization_id: str, data: CreateCredentialRequest) -> Credential:
+        item_id = self._generate_item_id()
+        item = CredentialItem(
+            item_id=item_id,
+            name=data.name,
+            credential_type=data.credential_type,
+            credential=data.credential,
+        )
+        await self._store_item(item)
+
+        try:
+            return await self._create_db_credential(
+                organization_id=organization_id,
+                data=data,
+                item_id=item_id,
+                vault_type=CredentialVaultType.SKYVERN,
+            )
+        except Exception:
+            self._delete_item_file(item_id)
+            raise
+
+    async def update_credential(self, credential: Credential, data: CreateCredentialRequest) -> Credential:
+        credential_data = data.credential
+        if data.credential_type == CredentialType.CREDIT_CARD and isinstance(credential_data, CreditCardCredential):
+            credential_data = await self._preserve_omitted_credit_card_fields(
+                credential=credential,
+                updated_credential=credential_data,
+            )
+
+        new_item_id = self._generate_item_id()
+        item = CredentialItem(
+            item_id=new_item_id,
+            name=data.name,
+            credential_type=data.credential_type,
+            credential=credential_data,
+        )
+        await self._store_item(item)
+
+        try:
+            return await self._update_db_credential(
+                credential=credential,
+                data=data,
+                item_id=new_item_id,
+            )
+        except Exception:
+            self._delete_item_file(new_item_id)
+            raise
+
+    async def delete_credential(self, credential: Credential) -> None:
+        await app.DATABASE.credentials.delete_credential(credential.credential_id, credential.organization_id)
+        self._delete_item_file(credential.item_id)
+
+    async def post_delete_credential_item(self, item_id: str, organization_id: str | None = None) -> None:
+        self._delete_item_file(item_id)
+
+    async def get_credential_item(self, db_credential: Credential) -> CredentialItem:
+        item_path = self._item_path(db_credential.item_id)
+        if not item_path.exists():
+            raise HTTPException(status_code=404, detail="Credential vault item not found")
+
+        try:
+            encrypted_payload = item_path.read_bytes()
+            payload = self._get_fernet().decrypt(encrypted_payload).decode("utf-8")
+            item = CredentialItem.model_validate(json.loads(payload))
+        except InvalidToken as exc:
+            raise HTTPException(status_code=500, detail="Credential vault item could not be decrypted") from exc
+        except Exception as exc:
+            LOG.warning(
+                "Failed to read local credential vault item",
+                credential_id=db_credential.credential_id,
+                item_id=db_credential.item_id,
+                error_type=type(exc).__name__,
+            )
+            raise HTTPException(status_code=500, detail="Credential vault item could not be read") from exc
+
+        return item
+
+    async def _store_item(self, item: CredentialItem) -> None:
+        item_path = self._item_path(item.item_id)
+        payload = json.dumps(item.model_dump(mode="json"), separators=(",", ":"))
+        encrypted_payload = self._get_fernet().encrypt(payload.encode("utf-8"))
+
+        temp_path = item_path.with_suffix(f".{secrets.token_urlsafe(8)}.tmp")
+        try:
+            self._write_file_durable(temp_path, encrypted_payload, mode=0o600)
+            temp_path.replace(item_path)
+            self._fsync_directory_best_effort(item_path.parent)
+        finally:
+            with suppress(FileNotFoundError):
+                temp_path.unlink()
+
+    def _get_fernet(self) -> Fernet:
+        if self._fernet is not None:
+            return self._fernet
+
+        key = settings.LOCAL_CREDENTIAL_VAULT_KEY
+        if key:
+            self._fernet = Fernet(key.encode("utf-8"))
+            return self._fernet
+
+        vault_dir = self._vault_dir()
+        key_path = vault_dir / ".fernet_key"
+        if key_path.exists():
+            key_bytes = key_path.read_bytes().strip()
+        else:
+            key_bytes = self._create_or_read_key_file(key_path)
+
+        self._fernet = Fernet(key_bytes)
+        return self._fernet
+
+    def _create_or_read_key_file(self, key_path: Path) -> bytes:
+        key_bytes = Fernet.generate_key()
+        temp_path = key_path.with_name(f".fernet_key.{secrets.token_urlsafe(8)}.tmp")
+        try:
+            self._write_file_durable(temp_path, key_bytes + b"\n", mode=0o600)
+            try:
+                os.link(temp_path, key_path)
+                self._fsync_directory_best_effort(key_path.parent)
+                return key_bytes
+            except FileExistsError:
+                return key_path.read_bytes().strip()
+        finally:
+            with suppress(FileNotFoundError):
+                temp_path.unlink()
+
+    def _vault_dir(self) -> Path:
+        vault_dir = Path(settings.LOCAL_CREDENTIAL_VAULT_PATH).expanduser().resolve()
+        vault_dir.mkdir(parents=True, exist_ok=True)
+        self._chmod_best_effort(vault_dir, 0o700)
+        return vault_dir
+
+    def _item_path(self, item_id: str) -> Path:
+        if not item_id or not _ITEM_ID_PATTERN.fullmatch(item_id):
+            raise HTTPException(status_code=400, detail="Invalid credential vault item ID")
+        return self._vault_dir() / f"{item_id}.bin"
+
+    def _delete_item_file(self, item_id: str) -> None:
+        try:
+            self._item_path(item_id).unlink(missing_ok=True)
+        except HTTPException:
+            raise
+        except Exception:
+            LOG.warning("Failed to delete local credential vault item", item_id=item_id, exc_info=True)
+
+    @staticmethod
+    def _generate_item_id() -> str:
+        return f"creditem_{secrets.token_urlsafe(24)}"
+
+    @staticmethod
+    def _chmod_best_effort(path: Path, mode: int) -> None:
+        with suppress(OSError):
+            os.chmod(path, mode)
+
+    @staticmethod
+    def _write_file_durable(path: Path, payload: bytes, *, mode: int) -> None:
+        fd = os.open(path, os.O_WRONLY | os.O_CREAT | os.O_EXCL, mode)
+        try:
+            with os.fdopen(fd, "wb") as file:
+                fd = -1
+                file.write(payload)
+                file.flush()
+                os.fsync(file.fileno())
+        finally:
+            if fd != -1:
+                os.close(fd)
+
+    @staticmethod
+    def _fsync_directory_best_effort(path: Path) -> None:
+        with suppress(OSError):
+            fd = os.open(path, os.O_RDONLY)
+            try:
+                os.fsync(fd)
+            finally:
+                os.close(fd)

tests/unit/test_credential_vault_type_override.py

@@ -1,11 +1,16 @@
 """Tests for per-credential vault_type override in CreateCredentialRequest and vault service routing."""
 
-from unittest.mock import MagicMock, patch
+from types import SimpleNamespace
+from unittest.mock import AsyncMock, MagicMock, patch
 
 import pytest
 from fastapi import HTTPException
 
-from skyvern.forge.sdk.routes.credentials import _get_credential_vault_service
+from skyvern.config import Settings
+from skyvern.forge.sdk.routes.credentials import (
+    _delete_temporary_test_login_credential,
+    _get_credential_vault_service,
+)
 from skyvern.forge.sdk.schemas.credentials import (
     CreateCredentialRequest,
     CredentialResponse,
@@ -19,6 +24,22 @@ from skyvern.forge.sdk.schemas.credentials import (
 from skyvern.forge.sdk.services.credential.credential_vault_service import CredentialVaultService
 
 
+class TestLocalCredentialVaultSettings:
+    """Verify the local filesystem vault is enabled only in local envs by default."""
+
+    def test_local_credential_vault_defaults_enabled_for_local_env(self) -> None:
+        settings = Settings(_env_file=None, ENV="local", ENABLE_LOCAL_CREDENTIAL_VAULT=None)
+        assert settings.is_local_credential_vault_enabled()
+
+    def test_local_credential_vault_defaults_disabled_for_non_local_env(self) -> None:
+        settings = Settings(_env_file=None, ENV="prod", ENABLE_LOCAL_CREDENTIAL_VAULT=None)
+        assert not settings.is_local_credential_vault_enabled()
+
+    def test_local_credential_vault_can_be_explicitly_enabled_for_non_local_env(self) -> None:
+        settings = Settings(_env_file=None, ENV="prod", ENABLE_LOCAL_CREDENTIAL_VAULT=True)
+        assert settings.is_local_credential_vault_enabled()
+
+
 class TestCreateCredentialRequestVaultType:
     """Verify the optional vault_type field on CreateCredentialRequest."""
 
@@ -57,6 +78,15 @@ class TestCreateCredentialRequestVaultType:
         )
         assert req.vault_type == CredentialVaultType.BITWARDEN
 
+    def test_vault_type_can_be_set_to_skyvern(self) -> None:
+        req = CreateCredentialRequest(
+            name="Test",
+            credential_type=CredentialType.PASSWORD,
+            credential=NonEmptyPasswordCredential(username="u", password="p"),
+            vault_type=CredentialVaultType.SKYVERN,
+        )
+        assert req.vault_type == CredentialVaultType.SKYVERN
+
     def test_vault_type_serializes_in_json(self) -> None:
         req = CreateCredentialRequest(
             name="Test",
@@ -145,6 +175,69 @@ class TestGetCredentialVaultServiceRouting:
             result = await _get_credential_vault_service()
             assert result is mock_bw
 
+    @pytest.mark.asyncio
+    async def test_no_override_uses_global_skyvern(self) -> None:
+        mock_skyvern = MagicMock(spec=CredentialVaultService)
+        with (
+            patch("skyvern.forge.sdk.routes.credentials.settings") as mock_settings,
+            patch("skyvern.forge.sdk.routes.credentials.app") as mock_app,
+        ):
+            mock_settings.CREDENTIAL_VAULT_TYPE = CredentialVaultType.SKYVERN
+            mock_settings.is_local_credential_vault_enabled.return_value = True
+            mock_app.SKYVERN_CREDENTIAL_VAULT_SERVICE = mock_skyvern
+            result = await _get_credential_vault_service()
+            assert result is mock_skyvern
+
+    @pytest.mark.asyncio
+    async def test_no_override_skyvern_raises_when_local_vault_disabled(self) -> None:
+        with (
+            patch("skyvern.forge.sdk.routes.credentials.settings") as mock_settings,
+            patch("skyvern.forge.sdk.routes.credentials.app") as mock_app,
+        ):
+            mock_settings.CREDENTIAL_VAULT_TYPE = CredentialVaultType.SKYVERN
+            mock_settings.is_local_credential_vault_enabled.return_value = False
+            mock_app.SKYVERN_CREDENTIAL_VAULT_SERVICE = MagicMock(spec=CredentialVaultService)
+            with pytest.raises(HTTPException) as exc_info:
+                await _get_credential_vault_service()
+            assert exc_info.value.status_code == 400
+            assert "local credential vault is not enabled" in str(exc_info.value.detail)
+
+    @pytest.mark.asyncio
+    async def test_override_skyvern_ignores_global(self) -> None:
+        mock_bw = MagicMock(spec=CredentialVaultService)
+        mock_skyvern = MagicMock(spec=CredentialVaultService)
+        with (
+            patch("skyvern.forge.sdk.routes.credentials.settings") as mock_settings,
+            patch("skyvern.forge.sdk.routes.credentials.app") as mock_app,
+        ):
+            mock_settings.CREDENTIAL_VAULT_TYPE = CredentialVaultType.BITWARDEN
+            mock_settings.is_local_credential_vault_enabled.return_value = True
+            mock_app.BITWARDEN_CREDENTIAL_VAULT_SERVICE = mock_bw
+            mock_app.SKYVERN_CREDENTIAL_VAULT_SERVICE = mock_skyvern
+            result = await _get_credential_vault_service(
+                vault_type_override=CredentialVaultType.SKYVERN,
+            )
+            assert result is mock_skyvern
+
+    @pytest.mark.asyncio
+    async def test_override_skyvern_raises_when_local_vault_disabled(self) -> None:
+        mock_bw = MagicMock(spec=CredentialVaultService)
+        mock_skyvern = MagicMock(spec=CredentialVaultService)
+        with (
+            patch("skyvern.forge.sdk.routes.credentials.settings") as mock_settings,
+            patch("skyvern.forge.sdk.routes.credentials.app") as mock_app,
+        ):
+            mock_settings.CREDENTIAL_VAULT_TYPE = CredentialVaultType.BITWARDEN
+            mock_settings.is_local_credential_vault_enabled.return_value = False
+            mock_app.BITWARDEN_CREDENTIAL_VAULT_SERVICE = mock_bw
+            mock_app.SKYVERN_CREDENTIAL_VAULT_SERVICE = mock_skyvern
+            with pytest.raises(HTTPException) as exc_info:
+                await _get_credential_vault_service(
+                    vault_type_override=CredentialVaultType.SKYVERN,
+                )
+            assert exc_info.value.status_code == 400
+            assert "local credential vault is not enabled" in str(exc_info.value.detail)
+
     @pytest.mark.asyncio
     async def test_override_custom_ignores_global(self) -> None:
         mock_bw = MagicMock(spec=CredentialVaultService)
@@ -234,3 +327,88 @@ class TestGetCredentialVaultServiceRouting:
             mock_app.CUSTOM_CREDENTIAL_VAULT_SERVICE = mock_custom
             result = await _get_credential_vault_service(vault_type_override=None)
             assert result is mock_custom
+
+
+class TestTemporaryTestLoginCredentialCleanup:
+    """Verify temporary login-test credentials are deleted through the owning vault service."""
+
+    @pytest.mark.asyncio
+    async def test_deletes_temporary_skyvern_credential_through_vault_service(self) -> None:
+        credential = SimpleNamespace(
+            credential_id="cred_temp",
+            organization_id="org_test",
+            name="_test_login_example",
+            vault_type=CredentialVaultType.SKYVERN,
+        )
+        mock_repository = MagicMock()
+        mock_repository.get_credential = AsyncMock(return_value=credential)
+        mock_service = MagicMock(spec=CredentialVaultService)
+        mock_service.delete_credential = AsyncMock()
+
+        with (
+            patch("skyvern.forge.sdk.routes.credentials.settings") as mock_settings,
+            patch("skyvern.forge.sdk.routes.credentials.app") as mock_app,
+        ):
+            mock_settings.is_local_credential_vault_enabled.return_value = True
+            mock_app.DATABASE.credentials = mock_repository
+            mock_app.SKYVERN_CREDENTIAL_VAULT_SERVICE = mock_service
+
+            await _delete_temporary_test_login_credential(
+                credential_id="cred_temp",
+                organization_id="org_test",
+                reason="test",
+            )
+
+        mock_service.delete_credential.assert_awaited_once_with(credential)
+
+    @pytest.mark.asyncio
+    async def test_defaults_missing_vault_type_to_bitwarden_for_legacy_credentials(self) -> None:
+        credential = SimpleNamespace(
+            credential_id="cred_temp",
+            organization_id="org_test",
+            name="_test_login_example",
+            vault_type=None,
+        )
+        mock_repository = MagicMock()
+        mock_repository.get_credential = AsyncMock(return_value=credential)
+        mock_service = MagicMock(spec=CredentialVaultService)
+        mock_service.delete_credential = AsyncMock()
+
+        with (
+            patch("skyvern.forge.sdk.routes.credentials.settings"),
+            patch("skyvern.forge.sdk.routes.credentials.app") as mock_app,
+        ):
+            mock_app.DATABASE.credentials = mock_repository
+            mock_app.BITWARDEN_CREDENTIAL_VAULT_SERVICE = mock_service
+
+            await _delete_temporary_test_login_credential(
+                credential_id="cred_temp",
+                organization_id="org_test",
+                reason="test",
+            )
+
+        mock_service.delete_credential.assert_awaited_once_with(credential)
+
+    @pytest.mark.asyncio
+    async def test_ignores_non_temporary_credentials(self) -> None:
+        credential = SimpleNamespace(
+            credential_id="cred_regular",
+            organization_id="org_test",
+            name="regular credential",
+            vault_type=CredentialVaultType.SKYVERN,
+        )
+        mock_repository = MagicMock()
+        mock_repository.get_credential = AsyncMock(return_value=credential)
+        mock_service = MagicMock(spec=CredentialVaultService)
+        mock_service.delete_credential = AsyncMock()
+
+        with patch("skyvern.forge.sdk.routes.credentials.app") as mock_app:
+            mock_app.DATABASE.credentials = mock_repository
+
+            await _delete_temporary_test_login_credential(
+                credential_id="cred_regular",
+                organization_id="org_test",
+                reason="test",
+            )
+
+        mock_service.delete_credential.assert_not_awaited()

tests/unit/test_skyvern_credential_vault_service.py

@@ -0,0 +1,242 @@
+from concurrent.futures import ThreadPoolExecutor
+from datetime import datetime
+
+import pytest
+from cryptography.fernet import Fernet
+from fastapi import HTTPException
+
+from skyvern.config import settings
+from skyvern.forge import app
+from skyvern.forge.sdk.schemas.credentials import (
+    CreateCredentialRequest,
+    Credential,
+    CredentialType,
+    CredentialVaultType,
+    NonEmptyPasswordCredential,
+)
+from skyvern.forge.sdk.services.credential.skyvern_credential_vault_service import (
+    SkyvernCredentialVaultService,
+)
+
+
+class _FakeCredentialRepository:
+    def __init__(self) -> None:
+        self.deleted: tuple[str, str] | None = None
+
+    async def create_credential(self, **kwargs: object) -> Credential:
+        return self._credential(
+            credential_id="cred_test",
+            organization_id=str(kwargs["organization_id"]),
+            name=str(kwargs["name"]),
+            vault_type=kwargs["vault_type"],
+            item_id=str(kwargs["item_id"]),
+            credential_type=kwargs["credential_type"],
+            username=kwargs["username"],
+        )
+
+    async def update_credential_vault_data(self, **kwargs: object) -> Credential:
+        return self._credential(
+            credential_id=str(kwargs["credential_id"]),
+            organization_id=str(kwargs["organization_id"]),
+            name=str(kwargs["name"]),
+            vault_type=CredentialVaultType.SKYVERN,
+            item_id=str(kwargs["item_id"]),
+            credential_type=kwargs["credential_type"],
+            username=kwargs["username"],
+        )
+
+    async def delete_credential(self, credential_id: str, organization_id: str) -> None:
+        self.deleted = (credential_id, organization_id)
+
+    @staticmethod
+    def _credential(
+        *,
+        credential_id: str,
+        organization_id: str,
+        name: str,
+        vault_type: object,
+        item_id: str,
+        credential_type: object,
+        username: object,
+    ) -> Credential:
+        return Credential(
+            credential_id=credential_id,
+            organization_id=organization_id,
+            name=name,
+            vault_type=vault_type,
+            item_id=item_id,
+            credential_type=credential_type,
+            username=username,
+            totp_type="none",
+            totp_identifier=None,
+            card_last4=None,
+            card_brand=None,
+            secret_label=None,
+            browser_profile_id=None,
+            tested_url=None,
+            user_context=None,
+            save_browser_session_intent=False,
+            folder_id=None,
+            created_at=datetime(2026, 1, 1),
+            modified_at=datetime(2026, 1, 1),
+            deleted_at=None,
+        )
+
+
+class _FailingCreateCredentialRepository(_FakeCredentialRepository):
+    async def create_credential(self, **kwargs: object) -> Credential:
+        raise RuntimeError("database unavailable")
+
+
+class _FailingUpdateCredentialRepository(_FakeCredentialRepository):
+    async def update_credential_vault_data(self, **kwargs: object) -> Credential:
+        raise RuntimeError("database unavailable")
+
+
+def _password_request(name: str = "Login", password: str = "secret-password") -> CreateCredentialRequest:
+    return CreateCredentialRequest(
+        name=name,
+        credential_type=CredentialType.PASSWORD,
+        credential=NonEmptyPasswordCredential(username="user@example.com", password=password),
+    )
+
+
+@pytest.mark.asyncio
+async def test_skyvern_credential_vault_round_trips_encrypted_password(tmp_path, monkeypatch) -> None:
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_PATH", str(tmp_path))
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", None)
+
+    repository = _FakeCredentialRepository()
+    monkeypatch.setattr(app.DATABASE, "credentials", repository)
+
+    service = SkyvernCredentialVaultService()
+    request = _password_request()
+
+    credential = await service.create_credential("org_test", request)
+
+    assert credential.vault_type == CredentialVaultType.SKYVERN
+    item_path = tmp_path / f"{credential.item_id}.bin"
+    assert item_path.exists()
+    assert b"secret-password" not in item_path.read_bytes()
+
+    item = await service.get_credential_item(credential)
+    assert item.name == "Login"
+    assert item.credential_type == CredentialType.PASSWORD
+    assert item.credential.username == "user@example.com"
+    assert item.credential.password == "secret-password"
+
+    await service.delete_credential(credential)
+    assert repository.deleted == ("cred_test", "org_test")
+    assert not item_path.exists()
+
+
+@pytest.mark.asyncio
+async def test_skyvern_credential_vault_update_creates_new_item_and_cleans_old(tmp_path, monkeypatch) -> None:
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_PATH", str(tmp_path))
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", None)
+
+    monkeypatch.setattr(app.DATABASE, "credentials", _FakeCredentialRepository())
+
+    service = SkyvernCredentialVaultService()
+    request = _password_request(password="old-password")
+    credential = await service.create_credential("org_test", request)
+    old_item_id = credential.item_id
+
+    update_request = _password_request(name="Login Updated", password="new-password")
+    updated = await service.update_credential(credential, update_request)
+
+    assert updated.item_id != old_item_id
+    assert (tmp_path / f"{old_item_id}.bin").exists()
+
+    await service.post_delete_credential_item(old_item_id)
+    assert not (tmp_path / f"{old_item_id}.bin").exists()
+
+    item = await service.get_credential_item(updated)
+    assert item.name == "Login Updated"
+    assert item.credential.password == "new-password"
+
+
+@pytest.mark.asyncio
+async def test_skyvern_credential_vault_cleans_item_when_create_db_fails(tmp_path, monkeypatch) -> None:
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_PATH", str(tmp_path))
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", None)
+    monkeypatch.setattr(app.DATABASE, "credentials", _FailingCreateCredentialRepository())
+
+    service = SkyvernCredentialVaultService()
+
+    with pytest.raises(RuntimeError, match="database unavailable"):
+        await service.create_credential("org_test", _password_request())
+
+    assert list(tmp_path.glob("*.bin")) == []
+
+
+@pytest.mark.asyncio
+async def test_skyvern_credential_vault_cleans_new_item_when_update_db_fails(tmp_path, monkeypatch) -> None:
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_PATH", str(tmp_path))
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", None)
+    monkeypatch.setattr(app.DATABASE, "credentials", _FailingUpdateCredentialRepository())
+
+    service = SkyvernCredentialVaultService()
+    credential = await service.create_credential("org_test", _password_request(password="old-password"))
+    old_item_path = tmp_path / f"{credential.item_id}.bin"
+
+    with pytest.raises(RuntimeError, match="database unavailable"):
+        await service.update_credential(
+            credential,
+            _password_request(name="Login Updated", password="new-password"),
+        )
+
+    assert old_item_path.exists()
+    assert list(tmp_path.glob("*.bin")) == [old_item_path]
+
+
+@pytest.mark.asyncio
+async def test_skyvern_credential_vault_rejects_invalid_item_id(tmp_path, monkeypatch) -> None:
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_PATH", str(tmp_path))
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", None)
+    credential = _FakeCredentialRepository._credential(
+        credential_id="cred_test",
+        organization_id="org_test",
+        name="Login",
+        vault_type=CredentialVaultType.SKYVERN,
+        item_id="../outside",
+        credential_type=CredentialType.PASSWORD,
+        username="user@example.com",
+    )
+
+    with pytest.raises(HTTPException) as exc_info:
+        await SkyvernCredentialVaultService().get_credential_item(credential)
+
+    assert exc_info.value.status_code == 400
+
+
+@pytest.mark.asyncio
+async def test_skyvern_credential_vault_wrong_key_cannot_decrypt_item(tmp_path, monkeypatch) -> None:
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_PATH", str(tmp_path))
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", Fernet.generate_key().decode("utf-8"))
+    monkeypatch.setattr(app.DATABASE, "credentials", _FakeCredentialRepository())
+
+    credential = await SkyvernCredentialVaultService().create_credential("org_test", _password_request())
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", Fernet.generate_key().decode("utf-8"))
+
+    with pytest.raises(HTTPException) as exc_info:
+        await SkyvernCredentialVaultService().get_credential_item(credential)
+
+    assert exc_info.value.status_code == 500
+
+
+def test_skyvern_credential_vault_key_file_creation_is_single_winner(tmp_path, monkeypatch) -> None:
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_PATH", str(tmp_path))
+    monkeypatch.setattr(settings, "LOCAL_CREDENTIAL_VAULT_KEY", None)
+    key_path = tmp_path / ".fernet_key"
+
+    def create_key_file() -> bytes:
+        return SkyvernCredentialVaultService()._create_or_read_key_file(key_path)
+
+    with ThreadPoolExecutor(max_workers=8) as executor:
+        returned_keys = list(executor.map(lambda _: create_key_file(), range(8)))
+
+    stored_key = key_path.read_bytes().strip()
+    assert len(set(returned_keys)) == 1
+    assert returned_keys[0] == stored_key
+    assert list(tmp_path.glob("*.tmp")) == []