diff --git a/awx/main/models/credential.py b/awx/main/models/credential.py
index a035718202..a4bd1061bf 100644
--- a/awx/main/models/credential.py
+++ b/awx/main/models/credential.py
@@ -531,6 +531,7 @@ class CredentialType(CommonModelNameNotUnique):
             existing = ct_class.objects.filter(name=default.name, kind=default.kind).first()
             if existing is not None:
                 existing.namespace = default.namespace
+                existing.description = getattr(default, 'description', '')
                 existing.inputs = {}
                 existing.injectors = {}
                 existing.save()
@@ -570,7 +571,14 @@ class CredentialType(CommonModelNameNotUnique):
     @classmethod
     def load_plugin(cls, ns, plugin):
         # TODO: User "side-loaded" credential custom_injectors isn't supported
-        ManagedCredentialType.registry[ns] = SimpleNamespace(namespace=ns, name=plugin.name, kind='external', inputs=plugin.inputs, backend=plugin.backend)
+        ManagedCredentialType.registry[ns] = SimpleNamespace(
+            namespace=ns,
+            name=plugin.name,
+            kind='external',
+            inputs=plugin.inputs,
+            backend=plugin.backend,
+            description=getattr(plugin, 'plugin_description', ''),
+        )
 
     def inject_credential(self, credential, env, safe_env, args, private_data_dir, container_root=None):
         from awx_plugins.interfaces._temporary_private_inject_api import inject_credential
@@ -582,7 +590,13 @@ class CredentialTypeHelper:
     @classmethod
     def get_creation_params(cls, cred_type):
         if cred_type.kind == 'external':
-            return dict(namespace=cred_type.namespace, kind=cred_type.kind, name=cred_type.name, managed=True)
+            return {
+                'namespace': cred_type.namespace,
+                'kind': cred_type.kind,
+                'name': cred_type.name,
+                'managed': True,
+                'description': getattr(cred_type, 'description', ''),
+            }
         return dict(
             namespace=cred_type.namespace,
             kind=cred_type.kind,
diff --git a/awx/main/tests/unit/models/test_credential.py b/awx/main/tests/unit/models/test_credential.py
index 778029ffa4..437945efc2 100644
--- a/awx/main/tests/unit/models/test_credential.py
+++ b/awx/main/tests/unit/models/test_credential.py
@@ -2,7 +2,11 @@
 
 import pytest
 
+from types import SimpleNamespace
+from unittest import mock
+
 from awx.main.models import Credential, CredentialType
+from awx.main.models.credential import CredentialTypeHelper, ManagedCredentialType
 
 from django.apps import apps
 
@@ -78,3 +82,53 @@ def test_credential_context_property_independent_instances():
     assert cred1.context == {'key1': 'value1'}
     assert cred2.context == {'key2': 'value2'}
     assert cred1.context is not cred2.context
+
+
+def test_load_plugin_passes_description():
+    plugin = SimpleNamespace(name='test_plugin', inputs={'fields': []}, backend=None, plugin_description='A test plugin')
+    CredentialType.load_plugin('test_ns', plugin)
+    entry = ManagedCredentialType.registry['test_ns']
+    assert entry.description == 'A test plugin'
+    del ManagedCredentialType.registry['test_ns']
+
+
+def test_load_plugin_missing_description():
+    plugin = SimpleNamespace(name='test_plugin', inputs={'fields': []}, backend=None)
+    CredentialType.load_plugin('test_ns', plugin)
+    entry = ManagedCredentialType.registry['test_ns']
+    assert entry.description == ''
+    del ManagedCredentialType.registry['test_ns']
+
+
+def test_get_creation_params_external_includes_description():
+    cred_type = SimpleNamespace(namespace='test_ns', kind='external', name='Test', description='My description')
+    params = CredentialTypeHelper.get_creation_params(cred_type)
+    assert params['description'] == 'My description'
+
+
+def test_get_creation_params_external_missing_description():
+    cred_type = SimpleNamespace(namespace='test_ns', kind='external', name='Test')
+    params = CredentialTypeHelper.get_creation_params(cred_type)
+    assert params['description'] == ''
+
+
+@pytest.mark.django_db
+def test_setup_tower_managed_defaults_updates_description():
+    registry_entry = SimpleNamespace(
+        namespace='test_ns',
+        kind='external',
+        name='Test Plugin',
+        inputs={'fields': []},
+        backend=None,
+        description='Updated description',
+    )
+    # Create an existing credential type with no description
+    ct = CredentialType.objects.create(name='Test Plugin', kind='external', namespace='old_ns')
+    assert ct.description == ''
+
+    with mock.patch.dict(ManagedCredentialType.registry, {'test_ns': registry_entry}, clear=True):
+        CredentialType._setup_tower_managed_defaults()
+
+    ct.refresh_from_db()
+    assert ct.description == 'Updated description'
+    assert ct.namespace == 'test_ns'