diff --git a/stack_orchestrator/deploy/deployment_create.py b/stack_orchestrator/deploy/deployment_create.py
index ec15362f..7f5f5d73 100644
--- a/stack_orchestrator/deploy/deployment_create.py
+++ b/stack_orchestrator/deploy/deployment_create.py
@@ -16,6 +16,8 @@
 import click
 from importlib import util
 import os
+import re
+import base64
 from pathlib import Path
 from typing import List, Optional
 import random
@@ -484,15 +486,99 @@ def init_operation(
         get_yaml().dump(spec_file_content, output_file)
 
 
-def _write_config_file(spec_file: Path, config_env_file: Path):
+# Token pattern: $generate:hex:32$ or $generate:base64:16$
+GENERATE_TOKEN_PATTERN = re.compile(r"\$generate:(\w+):(\d+)\$")
+
+
+def _generate_and_store_secrets(config_vars: dict, deployment_name: str):
+    """Generate secrets for $generate:...$ tokens and store in K8s Secret.
+
+    Called by `deploy create` - generates fresh secrets and stores them.
+    Returns the generated secrets dict for reference.
+    """
+    from kubernetes import client, config as k8s_config
+
+    secrets = {}
+    for name, value in config_vars.items():
+        if not isinstance(value, str):
+            continue
+        match = GENERATE_TOKEN_PATTERN.search(value)
+        if not match:
+            continue
+
+        secret_type, length = match.group(1), int(match.group(2))
+        if secret_type == "hex":
+            secrets[name] = token_hex(length)
+        elif secret_type == "base64":
+            secrets[name] = base64.b64encode(os.urandom(length)).decode()
+        else:
+            secrets[name] = token_hex(length)
+
+    if not secrets:
+        return secrets
+
+    # Store in K8s Secret
+    try:
+        k8s_config.load_kube_config()
+    except Exception:
+        # Fall back to in-cluster config if available
+        try:
+            k8s_config.load_incluster_config()
+        except Exception:
+            print(
+                "Warning: Could not load kube config, secrets will not be stored in K8s"
+            )
+            return secrets
+
+    v1 = client.CoreV1Api()
+    secret_name = f"{deployment_name}-generated-secrets"
+    namespace = "default"
+
+    secret_data = {k: base64.b64encode(v.encode()).decode() for k, v in secrets.items()}
+    k8s_secret = client.V1Secret(
+        metadata=client.V1ObjectMeta(name=secret_name), data=secret_data, type="Opaque"
+    )
+
+    try:
+        v1.create_namespaced_secret(namespace, k8s_secret)
+        num_secrets = len(secrets)
+        print(f"Created K8s Secret '{secret_name}' with {num_secrets} secret(s)")
+    except client.exceptions.ApiException as e:
+        if e.status == 409:  # Already exists
+            v1.replace_namespaced_secret(secret_name, namespace, k8s_secret)
+            num_secrets = len(secrets)
+            print(f"Updated K8s Secret '{secret_name}' with {num_secrets} secret(s)")
+        else:
+            raise
+
+    return secrets
+
+
+def _write_config_file(
+    spec_file: Path, config_env_file: Path, deployment_name: Optional[str] = None
+):
     spec_content = get_parsed_deployment_spec(spec_file)
-    # Note: we want to write an empty file even if we have no config variables
+    config_vars = spec_content.get("config", {}) or {}
+
+    # Generate and store secrets in K8s if deployment_name provided and tokens exist
+    if deployment_name and config_vars:
+        has_generate_tokens = any(
+            isinstance(v, str) and GENERATE_TOKEN_PATTERN.search(v)
+            for v in config_vars.values()
+        )
+        if has_generate_tokens:
+            _generate_and_store_secrets(config_vars, deployment_name)
+
+    # Write non-secret config to config.env (exclude $generate:...$ tokens)
     with open(config_env_file, "w") as output_file:
-        if "config" in spec_content and spec_content["config"]:
-            config_vars = spec_content["config"]
-            if config_vars:
-                for variable_name, variable_value in config_vars.items():
-                    output_file.write(f"{variable_name}={variable_value}\n")
+        if config_vars:
+            for variable_name, variable_value in config_vars.items():
+                # Skip variables with generate tokens - they go to K8s Secret
+                if isinstance(variable_value, str) and GENERATE_TOKEN_PATTERN.search(
+                    variable_value
+                ):
+                    continue
+                output_file.write(f"{variable_name}={variable_value}\n")
 
 
 def _write_kube_config_file(external_path: Path, internal_path: Path):
@@ -756,7 +842,11 @@ def _write_deployment_files(
         _create_deployment_file(target_dir, stack_source=stack_source)
 
     # Copy any config variables from the spec file into an env file suitable for compose
-    _write_config_file(spec_file, target_dir.joinpath(constants.config_file_name))
+    # Use stack_name as deployment_name for K8s secret naming
+    deployment_name = stack_name.replace("_", "-")
+    _write_config_file(
+        spec_file, target_dir.joinpath(constants.config_file_name), deployment_name
+    )
 
     # Copy any k8s config file into the target dir
     if deployment_type == "k8s":
diff --git a/stack_orchestrator/deploy/k8s/cluster_info.py b/stack_orchestrator/deploy/k8s/cluster_info.py
index 42c41b4b..0d9ac2ed 100644
--- a/stack_orchestrator/deploy/k8s/cluster_info.py
+++ b/stack_orchestrator/deploy/k8s/cluster_info.py
@@ -453,6 +453,16 @@ class ClusterInfo:
                 if "command" in service_info:
                     cmd = service_info["command"]
                     container_args = cmd if isinstance(cmd, list) else cmd.split()
+                # Add env_from to pull secrets from K8s Secret
+                secret_name = f"{self.app_name}-generated-secrets"
+                env_from = [
+                    client.V1EnvFromSource(
+                        secret_ref=client.V1SecretEnvSource(
+                            name=secret_name,
+                            optional=True,  # Don't fail if no secrets
+                        )
+                    )
+                ]
                 container = client.V1Container(
                     name=container_name,
                     image=image_to_use,
@@ -460,6 +470,7 @@ class ClusterInfo:
                     command=container_command,
                     args=container_args,
                     env=envs,
+                    env_from=env_from,
                     ports=container_ports if container_ports else None,
                     volume_mounts=volume_mounts,
                     security_context=client.V1SecurityContext(