diff --git a/changelog.d/17717.feature b/changelog.d/17717.feature
new file mode 100644
index 0000000000..292c99ccc5
--- /dev/null
+++ b/changelog.d/17717.feature
@@ -0,0 +1 @@
+Add config option `redis.password_path`.
\ No newline at end of file
diff --git a/docs/usage/configuration/config_documentation.md b/docs/usage/configuration/config_documentation.md
index 08eedc03b7..29f3528c7e 100644
--- a/docs/usage/configuration/config_documentation.md
+++ b/docs/usage/configuration/config_documentation.md
@@ -4524,6 +4524,9 @@ This setting has the following sub-options:
 * `path`: The full path to a local Unix socket file. **If this is used, `host` and
  `port` are ignored.** Defaults to `/tmp/redis.sock'
 * `password`: Optional password if configured on the Redis instance.
+* `password_path`: Alternative to `password`, reading the password from an
+   external file. The file should be a plain text file, containing only the
+   password. Synapse reads the password from the given file once at startup.
 * `dbid`: Optional redis dbid if needs to connect to specific redis logical db.
 * `use_tls`: Whether to use tls connection. Defaults to false.
 * `certificate_file`: Optional path to the certificate file
@@ -4537,13 +4540,16 @@ This setting has the following sub-options:
 
   _Changed in Synapse 1.85.0: Added path option to use a local Unix socket_
 
+  _Changed in Synapse 1.116.0: Added password\_path_
+
 Example configuration:
 ```yaml
 redis:
   enabled: true
   host: localhost
   port: 6379
-  password: <secret_password>
+  password_path: <path_to_the_password_file>
+  # OR password: <secret_password>
   dbid: <dbid>
   #use_tls: True
   #certificate_file: <path_to_the_certificate_file>
diff --git a/synapse/config/redis.py b/synapse/config/redis.py
index f140538088..3f38fa11b0 100644
--- a/synapse/config/redis.py
+++ b/synapse/config/redis.py
@@ -21,10 +21,15 @@
 
 from typing import Any
 
-from synapse.config._base import Config
+from synapse.config._base import Config, ConfigError, read_file
 from synapse.types import JsonDict
 from synapse.util.check_dependencies import check_requirements
 
+CONFLICTING_PASSWORD_OPTS_ERROR = """\
+You have configured both `redis.password` and `redis.password_path`.
+These are mutually incompatible.
+"""
+
 
 class RedisConfig(Config):
     section = "redis"
@@ -43,6 +48,17 @@ class RedisConfig(Config):
         self.redis_path = redis_config.get("path", None)
         self.redis_dbid = redis_config.get("dbid", None)
         self.redis_password = redis_config.get("password")
+        redis_password_path = redis_config.get("password_path")
+        if redis_password_path:
+            if self.redis_password:
+                raise ConfigError(CONFLICTING_PASSWORD_OPTS_ERROR)
+            self.redis_password = read_file(
+                redis_password_path,
+                (
+                    "redis",
+                    "password_path",
+                ),
+            ).strip()
 
         self.redis_use_tls = redis_config.get("use_tls", False)
         self.redis_certificate = redis_config.get("certificate_file", None)
diff --git a/tests/config/test_load.py b/tests/config/test_load.py
index 479d2aab91..c5dee06af5 100644
--- a/tests/config/test_load.py
+++ b/tests/config/test_load.py
@@ -19,13 +19,23 @@
 # [This file includes modifications made by New Vector Limited]
 #
 #
+import tempfile
+from typing import Callable
+
 import yaml
+from parameterized import parameterized
 
 from synapse.config import ConfigError
+from synapse.config._base import RootConfig
 from synapse.config.homeserver import HomeServerConfig
 
 from tests.config.utils import ConfigFileTestCase
 
+try:
+    import hiredis
+except ImportError:
+    hiredis = None  # type: ignore
+
 
 class ConfigLoadingFileTestCase(ConfigFileTestCase):
     def test_load_fails_if_server_name_missing(self) -> None:
@@ -116,3 +126,49 @@ class ConfigLoadingFileTestCase(ConfigFileTestCase):
         self.add_lines_to_config(["trust_identity_server_for_password_resets: true"])
         with self.assertRaises(ConfigError):
             HomeServerConfig.load_config("", ["-c", self.config_file])
+
+    @parameterized.expand(
+        [
+            "turn_shared_secret_path: /does/not/exist",
+            "registration_shared_secret_path: /does/not/exist",
+            *["redis:\n  enabled: true\n  password_path: /does/not/exist"]
+            * (hiredis is not None),
+        ]
+    )
+    def test_secret_files_missing(self, config_str: str) -> None:
+        self.generate_config()
+        self.add_lines_to_config(["", config_str])
+
+        with self.assertRaises(ConfigError):
+            HomeServerConfig.load_config("", ["-c", self.config_file])
+
+    @parameterized.expand(
+        [
+            (
+                "turn_shared_secret_path: {}",
+                lambda c: c.voip.turn_shared_secret,
+            ),
+            (
+                "registration_shared_secret_path: {}",
+                lambda c: c.registration.registration_shared_secret,
+            ),
+            *[
+                (
+                    "redis:\n  enabled: true\n  password_path: {}",
+                    lambda c: c.redis.redis_password,
+                )
+            ]
+            * (hiredis is not None),
+        ]
+    )
+    def test_secret_files_existing(
+        self, config_line: str, get_secret: Callable[[RootConfig], str]
+    ) -> None:
+        self.generate_config_and_remove_lines_containing("registration_shared_secret")
+        with tempfile.NamedTemporaryFile(buffering=0) as secret_file:
+            secret_file.write(b"53C237")
+
+            self.add_lines_to_config(["", config_line.format(secret_file.name)])
+            config = HomeServerConfig.load_config("", ["-c", self.config_file])
+
+            self.assertEqual(get_secret(config), "53C237")