diff --git a/sdk/python/feast/templates/postgres/feature_repo/feature_store.yaml b/sdk/python/feast/templates/postgres/feature_repo/feature_store.yaml
index 0663ff0ad97..a2fc2f51b61 100644
--- a/sdk/python/feast/templates/postgres/feature_repo/feature_store.yaml
+++ b/sdk/python/feast/templates/postgres/feature_repo/feature_store.yaml
@@ -2,7 +2,7 @@ project: my_project
 provider: local
 registry:
     registry_type: sql
-    path: postgresql://postgres:mysecretpassword@127.0.0.1:55001/feast
+    path: postgresql://DB_USERNAME:DB_PASSWORD@DB_HOST:DB_PORT/DB_NAME
     cache_ttl_seconds: 60
     sqlalchemy_config_kwargs:
         echo: false
diff --git a/sdk/python/tests/unit/local_feast_tests/test_init.py b/sdk/python/tests/unit/local_feast_tests/test_init.py
index 4543a239796..1f3c0993845 100644
--- a/sdk/python/tests/unit/local_feast_tests/test_init.py
+++ b/sdk/python/tests/unit/local_feast_tests/test_init.py
@@ -67,3 +67,17 @@ def test_repo_init_with_underscore_in_project_name() -> None:
         )
         result = runner.run(["apply"], cwd=repo_dir)
         assert result.returncode != 0
+
+
+def test_postgres_template_registry_path_is_parameterized() -> None:
+    template_fs_yaml = (
+        Path(__file__).resolve().parents[3]
+        / "feast"
+        / "templates"
+        / "postgres"
+        / "feature_repo"
+        / "feature_store.yaml"
+    )
+    contents = template_fs_yaml.read_text(encoding="utf-8")
+    expected = "path: postgresql://DB_USERNAME:DB_PASSWORD@DB_HOST:DB_PORT/DB_NAME"
+    assert expected in contents