diff --git a/spec/changelog.yml b/spec/changelog.yml
index d6552142b..b38b25aca 100644
--- a/spec/changelog.yml
+++ b/spec/changelog.yml
@@ -10,6 +10,11 @@
     - description: Add support for semantic_text field definition.
       type: enhancement
       link: https://github.com/elastic/package-spec/pull/807
+- version: 3.4.1-next
+  changes:
+    - description: Add fips_compatible boolean flag for input package policy templates.
+      type: enhancement
+      link: https://github.com/elastic/package-spec/pull/914
 - version: 3.4.0
   changes:
     - description: Add kibana/security_ai_prompt to support security AI prompt assets.
diff --git a/spec/input/manifest.spec.yml b/spec/input/manifest.spec.yml
index fa9bd7456..4c2d02b80 100644
--- a/spec/input/manifest.spec.yml
+++ b/spec/input/manifest.spec.yml
@@ -71,6 +71,8 @@ spec:
             $ref: "../integration/manifest.spec.yml#/definitions/deployment_modes"
           configuration_links:
             $ref: "../integration/manifest.spec.yml#/definitions/configuration_links"
+          fips_compatible:
+            $ref: "../integration/manifest.spec.yml#/definitions/fips_compatible"
           icons:
             $ref: "../integration/manifest.spec.yml#/definitions/icons"
           screenshots:
diff --git a/spec/integration/manifest.spec.yml b/spec/integration/manifest.spec.yml
index e8d64f0b9..d144a3599 100644
--- a/spec/integration/manifest.spec.yml
+++ b/spec/integration/manifest.spec.yml
@@ -274,6 +274,10 @@ spec:
         - title
         - url
         - type
+    fips_compatible:
+      type: boolean
+      description: Indicate if this package is capable of satisfying FIPS requirements. Set to false if it uses any input that cannot be configured to use FIPS cryptography.
+      default: true
     icons:
       description: List of icons for by this package.
       type: array
@@ -481,6 +485,8 @@ spec:
             $ref: "#/definitions/deployment_modes"
           configuration_links:
             $ref: "#/definitions/configuration_links"
+          fips_compatible:
+            $ref: "#/definitions/fips_compatible"
           inputs:
             description: List of inputs supported by policy template.
             type: array
@@ -532,10 +538,6 @@ spec:
             $ref: "#/definitions/screenshots"
           vars:
             $ref: "./data_stream/manifest.spec.yml#/definitions/vars"
-          fips_compatible:
-            type: boolean
-            description: Indicate if this package is capable of satisfying FIPS requirements. Set to false if it uses any input that cannot be configured to use FIPS cryptography.
-            default: true
         required:
           - name
           - title
diff --git a/test/packages/good_input/manifest.yml b/test/packages/good_input/manifest.yml
index 345116569..de19e257c 100644
--- a/test/packages/good_input/manifest.yml
+++ b/test/packages/good_input/manifest.yml
@@ -22,6 +22,7 @@ policy_templates:
     description: Query the database to capture metrics.
     input: sql
     template_path: input.yml.hbs
+    fips_compatible: false
     vars:
       - name: hosts
         type: text
diff --git a/test/packages/good_v3/manifest.yml b/test/packages/good_v3/manifest.yml
index facfa90a3..29ac8ef20 100644
--- a/test/packages/good_v3/manifest.yml
+++ b/test/packages/good_v3/manifest.yml
@@ -44,6 +44,7 @@ policy_templates:
           requests:
             memory: 1024M
             cpu: "0.5"
+    fips_compatible: false
     configuration_links:
       - title: View Agents
         url: "kbn:/app/fleet/agents"