diff --git a/server/src/__tests__/aws-secrets-manager-provider.test.ts b/server/src/__tests__/aws-secrets-manager-provider.test.ts
index aa660961c48..488f3415998 100644
--- a/server/src/__tests__/aws-secrets-manager-provider.test.ts
+++ b/server/src/__tests__/aws-secrets-manager-provider.test.ts
@@ -270,6 +270,7 @@ describe("awsSecretsManagerProvider", () => {
           SecretId:
             "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company-1/openai-api-key",
           SecretString: "rotated-secret-value",
+          VersionStages: ["PAPERCLIP_PENDING"],
         },
       },
     ]);
@@ -750,4 +751,70 @@ describe("awsSecretsManagerProvider", () => {
       },
     ]);
   });
+
+  it("archives pending Paperclip-managed AWS versions without deleting the secret", async () => {
+    const calls: Array<{ op: string; input: Record<string, unknown> }> = [];
+    const provider = createAwsSecretsManagerProvider({
+      config: {
+        region: "us-east-1",
+        endpoint: "https://secretsmanager.us-east-1.amazonaws.com",
+        deploymentId: "prod-use1",
+        prefix: "paperclip",
+        kmsKeyId: "arn:aws:kms:us-east-1:123456789012:key/test",
+        environmentTag: "production",
+        providerOwnerTag: "paperclip",
+        deleteRecoveryWindowDays: 30,
+      },
+      gateway: {
+        async createSecret() {
+          throw new Error("not used");
+        },
+        async putSecretValue() {
+          throw new Error("not used");
+        },
+        async getSecretValue() {
+          throw new Error("not used");
+        },
+        async deleteSecret(input) {
+          calls.push({ op: "deleteSecret", input });
+          return {};
+        },
+        async updateSecretVersionStage(input) {
+          calls.push({ op: "updateSecretVersionStage", input });
+          return {};
+        },
+      },
+    });
+
+    await provider.deleteOrArchive({
+      mode: "archive",
+      externalRef:
+        "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company-1/openai-api-key",
+      material: {
+        scheme: "aws_secrets_manager_v1",
+        secretId:
+          "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company-1/openai-api-key",
+        versionId: "aws-version-2",
+        source: "managed",
+      },
+      context: {
+        companyId: "company-1",
+        secretKey: "openai-api-key",
+        secretName: "OpenAI API Key",
+        version: 2,
+      },
+    });
+
+    expect(calls).toEqual([
+      {
+        op: "updateSecretVersionStage",
+        input: {
+          SecretId:
+            "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company-1/openai-api-key",
+          VersionStage: "PAPERCLIP_PENDING",
+          RemoveFromVersionId: "aws-version-2",
+        },
+      },
+    ]);
+  });
 });
diff --git a/server/src/__tests__/secrets-service.test.ts b/server/src/__tests__/secrets-service.test.ts
index 51238f2e646..6cbcf9cacdc 100644
--- a/server/src/__tests__/secrets-service.test.ts
+++ b/server/src/__tests__/secrets-service.test.ts
@@ -545,6 +545,121 @@ describeEmbeddedPostgres("secretService", () => {
     expect(JSON.stringify(resolveSpy.mock.calls[0]?.[0])).not.toContain("resolved-secret");
   });
 
+  it("cleans up managed provider secrets when create persistence fails", async () => {
+    const companyId = await seedCompany();
+    const svc = secretService(db);
+    const awsVault = await svc.createProviderConfig(companyId, {
+      provider: "aws_secrets_manager",
+      displayName: "AWS production",
+      config: { region: "us-east-1", namespace: "prod-use1" },
+    });
+    const prepared = {
+      material: {
+        scheme: "aws_secrets_manager_v1",
+        secretId:
+          "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company/create-rollback",
+        versionId: "aws-version-1",
+        source: "managed",
+      },
+      valueSha256: "value-sha-1",
+      fingerprintSha256: "fingerprint-sha-1",
+      externalRef:
+        "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company/create-rollback",
+      providerVersionRef: "aws-version-1",
+    };
+    vi.spyOn(awsSecretsManagerProvider, "createSecret").mockResolvedValue(prepared);
+    const deleteSpy = vi.spyOn(awsSecretsManagerProvider, "deleteOrArchive").mockResolvedValue();
+    vi.spyOn(db, "transaction").mockRejectedValueOnce(new Error("db insert failed"));
+
+    await expect(
+      svc.create(companyId, {
+        name: "Create Rollback",
+        key: "create-rollback",
+        provider: "aws_secrets_manager",
+        providerConfigId: awsVault.id,
+        value: "runtime-secret",
+      }),
+    ).rejects.toThrow("db insert failed");
+
+    expect(deleteSpy).toHaveBeenCalledWith(expect.objectContaining({
+      material: prepared.material,
+      externalRef: prepared.externalRef,
+      mode: "delete",
+      providerConfig: expect.objectContaining({ id: awsVault.id }),
+      context: {
+        companyId,
+        secretKey: "create-rollback",
+        secretName: "Create Rollback",
+        version: 1,
+      },
+    }));
+  });
+
+  it("archives managed provider versions when rotate persistence fails", async () => {
+    const companyId = await seedCompany();
+    const svc = secretService(db);
+    const awsVault = await svc.createProviderConfig(companyId, {
+      provider: "aws_secrets_manager",
+      displayName: "AWS production",
+      config: { region: "us-east-1", namespace: "prod-use1" },
+    });
+    vi.spyOn(awsSecretsManagerProvider, "createSecret").mockResolvedValue({
+      material: {
+        scheme: "aws_secrets_manager_v1",
+        secretId:
+          "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company/rotate-rollback",
+        versionId: "aws-version-1",
+        source: "managed",
+      },
+      valueSha256: "value-sha-1",
+      fingerprintSha256: "fingerprint-sha-1",
+      externalRef:
+        "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company/rotate-rollback",
+      providerVersionRef: "aws-version-1",
+    });
+    const secret = await svc.create(companyId, {
+      name: "Rotate Rollback",
+      key: "rotate-rollback",
+      provider: "aws_secrets_manager",
+      providerConfigId: awsVault.id,
+      value: "runtime-secret",
+    });
+    const prepared = {
+      material: {
+        scheme: "aws_secrets_manager_v1",
+        secretId:
+          "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company/rotate-rollback",
+        versionId: "aws-version-2",
+        source: "managed",
+      },
+      valueSha256: "value-sha-2",
+      fingerprintSha256: "fingerprint-sha-2",
+      externalRef:
+        "arn:aws:secretsmanager:us-east-1:123456789012:secret:paperclip/prod-use1/company/rotate-rollback",
+      providerVersionRef: "aws-version-2",
+    };
+    vi.spyOn(awsSecretsManagerProvider, "createVersion").mockResolvedValue(prepared);
+    const deleteSpy = vi.spyOn(awsSecretsManagerProvider, "deleteOrArchive").mockResolvedValue();
+    vi.spyOn(db, "transaction").mockRejectedValueOnce(new Error("db rotate failed"));
+
+    await expect(svc.rotate(secret.id, { value: "rotated-runtime-secret" })).rejects.toThrow(
+      "db rotate failed",
+    );
+
+    expect(deleteSpy).toHaveBeenCalledWith(expect.objectContaining({
+      material: prepared.material,
+      externalRef: prepared.externalRef,
+      mode: "archive",
+      providerConfig: expect.objectContaining({ id: awsVault.id }),
+      context: {
+        companyId,
+        secretKey: "rotate-rollback",
+        secretName: "Rotate Rollback",
+        version: 2,
+      },
+    }));
+  });
+
   it("rejects rotation for non-active secrets", async () => {
     const companyId = await seedCompany();
     const svc = secretService(db);
diff --git a/server/src/secrets/aws-secrets-manager-provider.ts b/server/src/secrets/aws-secrets-manager-provider.ts
index b36439bf762..2a26b891bcc 100644
--- a/server/src/secrets/aws-secrets-manager-provider.ts
+++ b/server/src/secrets/aws-secrets-manager-provider.ts
@@ -19,6 +19,7 @@ const AWS_SECRETS_MANAGER_SCHEME = "aws_secrets_manager_v1";
 const DEFAULT_PREFIX = "paperclip";
 const DEFAULT_OWNER_TAG = "paperclip";
 const DEFAULT_VERSION_STAGE = "AWSCURRENT";
+const PAPERCLIP_PENDING_VERSION_STAGE = "PAPERCLIP_PENDING";
 const DEFAULT_DELETE_RECOVERY_WINDOW_DAYS = 30;
 const AWS_SECRETS_MANAGER_REQUEST_TIMEOUT_MS = 30_000;
 const AWS_CREDENTIAL_CACHE_TTL_MS = 5 * 60_000;
@@ -95,6 +96,7 @@ interface AwsSecretsManagerGateway {
   putSecretValue(input: {
     SecretId: string;
     SecretString: string;
+    VersionStages?: string[];
   }): Promise<{
     ARN?: string;
     Name?: string;
@@ -114,6 +116,12 @@ interface AwsSecretsManagerGateway {
     SecretId: string;
     RecoveryWindowInDays: number;
   }): Promise<unknown>;
+  updateSecretVersionStage?(input: {
+    SecretId: string;
+    VersionStage: string;
+    RemoveFromVersionId?: string;
+    MoveToVersionId?: string;
+  }): Promise<unknown>;
   listSecrets?(input: {
     MaxResults?: number;
     NextToken?: string;
@@ -665,6 +673,7 @@ class AwsSecretsManagerJsonGateway implements AwsSecretsManagerGateway {
   putSecretValue(input: {
     SecretId: string;
     SecretString: string;
+    VersionStages?: string[];
   }) {
     return this.call<{
       ARN?: string;
@@ -693,6 +702,15 @@ class AwsSecretsManagerJsonGateway implements AwsSecretsManagerGateway {
     return this.call("DeleteSecret", input);
   }
 
+  updateSecretVersionStage(input: {
+    SecretId: string;
+    VersionStage: string;
+    RemoveFromVersionId?: string;
+    MoveToVersionId?: string;
+  }) {
+    return this.call("UpdateSecretVersionStage", input);
+  }
+
   listSecrets(input: {
     MaxResults?: number;
     NextToken?: string;
@@ -904,6 +922,7 @@ export function createAwsSecretsManagerProvider(
         const created = await gateway.putSecretValue({
           SecretId: secretId,
           SecretString: input.value,
+          VersionStages: [PAPERCLIP_PENDING_VERSION_STAGE],
         });
         const normalizedSecretId = created.ARN ?? created.Name ?? secretId;
         return {
@@ -990,7 +1009,7 @@ export function createAwsSecretsManagerProvider(
           ? asAwsSecretsManagerMaterial(input.material)
           : null;
 
-      if (input.mode !== "delete" || material?.source !== "managed") return;
+      if (material?.source !== "managed") return;
 
       const config = resolveConfig(input.providerConfig);
       const gateway = resolveGateway(config);
@@ -1001,12 +1020,22 @@ export function createAwsSecretsManagerProvider(
       });
 
       try {
+        if (input.mode === "archive") {
+          if (material.versionId && gateway.updateSecretVersionStage) {
+            await gateway.updateSecretVersionStage({
+              SecretId: secretId,
+              VersionStage: PAPERCLIP_PENDING_VERSION_STAGE,
+              RemoveFromVersionId: material.versionId,
+            });
+          }
+          return;
+        }
         await gateway.deleteSecret({
           SecretId: secretId,
           RecoveryWindowInDays: config.deleteRecoveryWindowDays,
         });
       } catch (error) {
-        normalizeAwsError("deleteSecret", error);
+        normalizeAwsError(input.mode === "archive" ? "updateSecretVersionStage" : "deleteSecret", error);
       }
     },
     healthCheck,
diff --git a/server/src/services/secrets.ts b/server/src/services/secrets.ts
index df62846ca85..2060774b8ec 100644
--- a/server/src/services/secrets.ts
+++ b/server/src/services/secrets.ts
@@ -47,7 +47,9 @@ import type {
   PreparedSecretVersion,
   RemoteSecretListResult,
   SecretProviderHealthCheck,
+  SecretProviderModule,
   SecretProviderVaultRuntimeConfig,
+  SecretProviderWriteContext,
 } from "../secrets/types.js";
 import { isSecretProviderClientError } from "../secrets/types.js";
 
@@ -130,6 +132,36 @@ function remoteImportRowFailureReason(error: unknown, fallback: string, context:
   return fallback;
 }
 
+async function cleanupPreparedProviderWrite(input: {
+  provider: SecretProviderModule;
+  prepared: PreparedSecretVersion;
+  providerConfig: SecretProviderVaultRuntimeConfig | null;
+  context: SecretProviderWriteContext;
+  mode: "archive" | "delete";
+  operation: string;
+}) {
+  try {
+    await input.provider.deleteOrArchive({
+      material: input.prepared.material,
+      externalRef: input.prepared.externalRef,
+      providerConfig: input.providerConfig,
+      context: input.context,
+      mode: input.mode,
+    });
+  } catch (cleanupError) {
+    logger.warn(
+      {
+        err: cleanupError,
+        companyId: input.context.companyId,
+        provider: input.provider.id,
+        providerConfigId: input.providerConfig?.id ?? null,
+        operation: input.operation,
+      },
+      "remote secret provider cleanup failed after db write failure",
+    );
+  }
+}
+
 type CanonicalEnvBinding =
   | { type: "plain"; value: string }
   | { type: "secret_ref"; secretId: string; version: number | "latest" };
@@ -1462,67 +1494,77 @@ export function secretService(db: Db) {
       if (managedMode === "paperclip_managed" && !input.value?.trim()) {
         throw unprocessable("Managed secrets require value");
       }
+      const providerWriteContext = {
+        companyId,
+        secretKey: key,
+        secretName: input.name,
+        version: 1,
+      };
       const prepared =
         managedMode === "external_reference"
           ? await provider.linkExternalSecret({
               externalRef: input.externalRef ?? "",
               providerVersionRef: input.providerVersionRef ?? null,
               providerConfig,
-              context: {
-                companyId,
-                secretKey: key,
-                secretName: input.name,
-                version: 1,
-              },
+              context: providerWriteContext,
             })
           : await provider.createSecret({
               value: input.value ?? "",
               externalRef: null,
               providerConfig,
-              context: {
-                companyId,
-                secretKey: key,
-                secretName: input.name,
-                version: 1,
-              },
+              context: providerWriteContext,
             });
 
-      return db.transaction(async (tx) => {
-        const secret = await tx
-          .insert(companySecrets)
-          .values({
-            companyId,
-            key,
-            name: input.name,
-            provider: input.provider,
-            providerConfigId: input.providerConfigId ?? null,
-            status: "active",
-            managedMode,
-            externalRef: prepared.externalRef,
-            providerMetadata: input.providerMetadata ?? null,
-            latestVersion: 1,
-            description: input.description ?? null,
-            lastRotatedAt: new Date(),
+      try {
+        return await db.transaction(async (tx) => {
+          const secret = await tx
+            .insert(companySecrets)
+            .values({
+              companyId,
+              key,
+              name: input.name,
+              provider: input.provider,
+              providerConfigId: input.providerConfigId ?? null,
+              status: "active",
+              managedMode,
+              externalRef: prepared.externalRef,
+              providerMetadata: input.providerMetadata ?? null,
+              latestVersion: 1,
+              description: input.description ?? null,
+              lastRotatedAt: new Date(),
+              createdByAgentId: actor?.agentId ?? null,
+              createdByUserId: actor?.userId ?? null,
+            })
+            .returning()
+            .then((rows) => rows[0]);
+
+          await tx.insert(companySecretVersions).values({
+            secretId: secret.id,
+            version: 1,
+            material: prepared.material,
+            valueSha256: prepared.valueSha256,
+            fingerprintSha256: prepared.fingerprintSha256 ?? prepared.valueSha256,
+            providerVersionRef: prepared.providerVersionRef ?? null,
+            status: "current",
             createdByAgentId: actor?.agentId ?? null,
             createdByUserId: actor?.userId ?? null,
-          })
-          .returning()
-          .then((rows) => rows[0]);
+          });
 
-        await tx.insert(companySecretVersions).values({
-          secretId: secret.id,
-          version: 1,
-          material: prepared.material,
-          valueSha256: prepared.valueSha256,
-          fingerprintSha256: prepared.fingerprintSha256 ?? prepared.valueSha256,
-          providerVersionRef: prepared.providerVersionRef ?? null,
-          status: "current",
-          createdByAgentId: actor?.agentId ?? null,
-          createdByUserId: actor?.userId ?? null,
+          return secret;
         });
-
-        return secret;
-      });
+      } catch (error) {
+        if (managedMode === "paperclip_managed") {
+          await cleanupPreparedProviderWrite({
+            provider,
+            prepared,
+            providerConfig,
+            context: providerWriteContext,
+            mode: "delete",
+            operation: "create.rollback",
+          });
+        }
+        throw error;
+      }
     },
 
     rotate: async (
@@ -1557,64 +1599,74 @@ export function secretService(db: Db) {
       if (secret.managedMode !== "external_reference" && !input.value?.trim()) {
         throw unprocessable("Managed secrets require value");
       }
+      const providerWriteContext = {
+        companyId: secret.companyId,
+        secretKey: secret.key,
+        secretName: secret.name,
+        version: nextVersion,
+      };
       const prepared =
         secret.managedMode === "external_reference"
           ? await provider.linkExternalSecret({
               externalRef: input.externalRef ?? secret.externalRef ?? "",
               providerVersionRef: input.providerVersionRef ?? null,
               providerConfig,
-              context: {
-                companyId: secret.companyId,
-                secretKey: secret.key,
-                secretName: secret.name,
-                version: nextVersion,
-              },
+              context: providerWriteContext,
             })
           : await provider.createVersion({
               value: input.value ?? "",
               externalRef: secret.externalRef ?? null,
               providerConfig,
-              context: {
-                companyId: secret.companyId,
-                secretKey: secret.key,
-                secretName: secret.name,
-                version: nextVersion,
-              },
+              context: providerWriteContext,
             });
 
-      return db.transaction(async (tx) => {
-        await tx
-          .update(companySecretVersions)
-          .set({ status: "previous" })
-          .where(eq(companySecretVersions.secretId, secret.id));
-        await tx.insert(companySecretVersions).values({
-          secretId: secret.id,
-          version: nextVersion,
-          material: prepared.material,
-          valueSha256: prepared.valueSha256,
-          fingerprintSha256: prepared.fingerprintSha256 ?? prepared.valueSha256,
-          providerVersionRef: prepared.providerVersionRef ?? null,
-          status: "current",
-          createdByAgentId: actor?.agentId ?? null,
-          createdByUserId: actor?.userId ?? null,
+      try {
+        return await db.transaction(async (tx) => {
+          await tx
+            .update(companySecretVersions)
+            .set({ status: "previous" })
+            .where(eq(companySecretVersions.secretId, secret.id));
+          await tx.insert(companySecretVersions).values({
+            secretId: secret.id,
+            version: nextVersion,
+            material: prepared.material,
+            valueSha256: prepared.valueSha256,
+            fingerprintSha256: prepared.fingerprintSha256 ?? prepared.valueSha256,
+            providerVersionRef: prepared.providerVersionRef ?? null,
+            status: "current",
+            createdByAgentId: actor?.agentId ?? null,
+            createdByUserId: actor?.userId ?? null,
+          });
+
+          const updated = await tx
+            .update(companySecrets)
+            .set({
+              latestVersion: nextVersion,
+              externalRef: prepared.externalRef,
+              providerConfigId,
+              lastRotatedAt: new Date(),
+              updatedAt: new Date(),
+            })
+            .where(eq(companySecrets.id, secret.id))
+            .returning()
+            .then((rows) => rows[0] ?? null);
+
+          if (!updated) throw notFound("Secret not found");
+          return updated;
         });
-
-        const updated = await tx
-          .update(companySecrets)
-          .set({
-            latestVersion: nextVersion,
-            externalRef: prepared.externalRef,
-            providerConfigId,
-            lastRotatedAt: new Date(),
-            updatedAt: new Date(),
-          })
-          .where(eq(companySecrets.id, secret.id))
-          .returning()
-          .then((rows) => rows[0] ?? null);
-
-        if (!updated) throw notFound("Secret not found");
-        return updated;
-      });
+      } catch (error) {
+        if (secret.managedMode !== "external_reference") {
+          await cleanupPreparedProviderWrite({
+            provider,
+            prepared,
+            providerConfig,
+            context: providerWriteContext,
+            mode: "archive",
+            operation: "rotate.rollback",
+          });
+        }
+        throw error;
+      }
     },
 
     update: async (