fixup! update timeout for tests to avoid ctx deadline errors

- update validation for service account validation call to use `select` instead of `sleep`
- add `validateServiceAccountKeyTimeout` to config. This makes it easier to control the timeout from tests so tests do not have to run for long with the default timeout

internal/credential/attributes_test.go

@@ -119,15 +119,17 @@ func TestGetCredentialsConfig(t *testing.T) {
 				Zone: "us-central-1a",
 			},
 			expected: &Config{
-				Zone:   "us-central-1a",
-				Scopes: []string{defaultGCPScope},
+				Zone:                             "us-central-1a",
+				Scopes:                           []string{defaultGCPScope},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 		},
 		{
 			name:  "nil attributes",
 			attrs: nil,
 			expected: &Config{
-				Scopes: []string{defaultGCPScope},
+				Scopes:                           []string{defaultGCPScope},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 		},
 		{
@@ -154,12 +156,13 @@ func TestGetCredentialsConfig(t *testing.T) {
 				ClientEmail: "test@test.com",
 			},
 			expected: &Config{
-				ProjectId:    "test-project",
-				Zone:         "us-central-1a",
-				ClientEmail:  "test@test.com",
-				PrivateKey:   "test-private-key",
-				PrivateKeyId: "test-private-key-id",
-				Scopes:       []string{defaultGCPScope},
+				ProjectId:                        "test-project",
+				Zone:                             "us-central-1a",
+				ClientEmail:                      "test@test.com",
+				PrivateKey:                       "test-private-key",
+				PrivateKeyId:                     "test-private-key-id",
+				Scopes:                           []string{defaultGCPScope},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 		},
 		{
@@ -220,12 +223,13 @@ func TestGetCredentialsConfig(t *testing.T) {
 				Zone:        "us-central-1a",
 			},
 			expected: &Config{
-				ProjectId:    "test-project",
-				Zone:         "us-central-1a",
-				PrivateKey:   "test-private-key",
-				PrivateKeyId: "test-private-key-id",
-				ClientEmail:  "test@test.com",
-				Scopes:       []string{defaultGCPScope},
+				ProjectId:                        "test-project",
+				Zone:                             "us-central-1a",
+				PrivateKey:                       "test-private-key",
+				PrivateKeyId:                     "test-private-key-id",
+				ClientEmail:                      "test@test.com",
+				Scopes:                           []string{defaultGCPScope},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 		},
 		{
@@ -241,13 +245,14 @@ func TestGetCredentialsConfig(t *testing.T) {
 				TargetServiceAccountId: "test-target-service-account",
 			},
 			expected: &Config{
-				ProjectId:              "test-project",
-				Zone:                   "us-central-1a",
-				PrivateKey:             "test-private-key",
-				PrivateKeyId:           "test-private-key-id",
-				ClientEmail:            "test@test.com",
-				TargetServiceAccountId: "test-target-service-account",
-				Scopes:                 []string{defaultGCPScope},
+				ProjectId:                        "test-project",
+				Zone:                             "us-central-1a",
+				PrivateKey:                       "test-private-key",
+				PrivateKeyId:                     "test-private-key-id",
+				ClientEmail:                      "test@test.com",
+				TargetServiceAccountId:           "test-target-service-account",
+				Scopes:                           []string{defaultGCPScope},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 		},
 	}

internal/credential/config.go

@@ -41,17 +41,21 @@ const (
 	// and then controlling the service account's access by granting it IAM roles.
 	// https://cloud.google.com/compute/docs/access/service-accounts#scopes_best_practice
 	defaultGCPScope = "https://www.googleapis.com/auth/cloud-platform"
+	// defaultValidateServiceAccountKeyTimeout is the timeout for validating
+	// a service account key.
+	defaultValidateServiceAccountKeyTimeout = 5 * time.Second
 )
 
 // Config is the configuration for the GCP credential.
 type Config struct {
-	ProjectId              string
-	PrivateKey             string
-	PrivateKeyId           string
-	Zone                   string
-	ClientEmail            string
-	TargetServiceAccountId string
-	Scopes                 []string
+	ProjectId                        string
+	PrivateKey                       string
+	PrivateKeyId                     string
+	Zone                             string
+	ClientEmail                      string
+	TargetServiceAccountId           string
+	Scopes                           []string
+	validateServiceAccountKeyTimeout time.Duration
 }
 
 // credentials represents a simplified version of the GCP credentials file format.
@@ -72,13 +76,14 @@ func NewConfig(opt ...Option) (*Config, error) {
 		return nil, err
 	}
 	c := &Config{
-		ProjectId:              opts.WithProjectId,
-		PrivateKey:             opts.WithPrivateKey,
-		PrivateKeyId:           opts.WithPrivateKeyId,
-		ClientEmail:            opts.WithClientEmail,
-		TargetServiceAccountId: opts.WithTargetServiceAccountId,
-		Zone:                   opts.WithZone,
-		Scopes:                 opts.WithScopes,
+		ProjectId:                        opts.WithProjectId,
+		PrivateKey:                       opts.WithPrivateKey,
+		PrivateKeyId:                     opts.WithPrivateKeyId,
+		ClientEmail:                      opts.WithClientEmail,
+		TargetServiceAccountId:           opts.WithTargetServiceAccountId,
+		Zone:                             opts.WithZone,
+		Scopes:                           opts.WithScopes,
+		validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 	}
 	return c, nil
 }
@@ -97,12 +102,14 @@ func (c *Config) toCredentials() *credentials {
 // clone returns a copy of the configuration.
 func (c *Config) clone() *Config {
 	return &Config{
-		ProjectId:              c.ProjectId,
-		PrivateKey:             c.PrivateKey,
-		PrivateKeyId:           c.PrivateKeyId,
-		ClientEmail:            c.ClientEmail,
-		TargetServiceAccountId: c.TargetServiceAccountId,
-		Scopes:                 c.Scopes,
+		ProjectId:                        c.ProjectId,
+		Zone:                             c.Zone,
+		PrivateKey:                       c.PrivateKey,
+		PrivateKeyId:                     c.PrivateKeyId,
+		ClientEmail:                      c.ClientEmail,
+		TargetServiceAccountId:           c.TargetServiceAccountId,
+		Scopes:                           c.Scopes,
+		validateServiceAccountKeyTimeout: c.validateServiceAccountKeyTimeout,
 	}
 }
 

internal/credential/config_test.go

@@ -403,13 +403,14 @@ func TestNewConfig(t *testing.T) {
 				WithScopes([]string{"scope1", "scope2"}),
 			},
 			expected: &Config{
-				ProjectId:              "test-project-id",
-				PrivateKey:             "test-private-key",
-				PrivateKeyId:           "test-private-key-id",
-				ClientEmail:            "test-email@example.com",
-				TargetServiceAccountId: "target-service-account@example.com",
-				Zone:                   "test-zone",
-				Scopes:                 []string{"scope1", "scope2"},
+				ProjectId:                        "test-project-id",
+				PrivateKey:                       "test-private-key",
+				PrivateKeyId:                     "test-private-key-id",
+				ClientEmail:                      "test-email@example.com",
+				TargetServiceAccountId:           "target-service-account@example.com",
+				Zone:                             "test-zone",
+				Scopes:                           []string{"scope1", "scope2"},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 			expectError: false,
 		},
@@ -417,7 +418,8 @@ func TestNewConfig(t *testing.T) {
 			name:    "No Options",
 			options: []Option{},
 			expected: &Config{
-				Scopes: []string{defaultGCPScope},
+				Scopes:                           []string{defaultGCPScope},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 			expectError: false,
 		},
@@ -442,13 +444,14 @@ func TestNewConfig(t *testing.T) {
 				WithZone("test-zone"),
 			},
 			expected: &Config{
-				ProjectId:              "test-project-id",
-				PrivateKey:             "test-private-key",
-				PrivateKeyId:           "test-private-key-id",
-				ClientEmail:            "test-email@example.com",
-				TargetServiceAccountId: "target-service-account@example.com",
-				Zone:                   "test-zone",
-				Scopes:                 []string{defaultGCPScope},
+				ProjectId:                        "test-project-id",
+				PrivateKey:                       "test-private-key",
+				PrivateKeyId:                     "test-private-key-id",
+				ClientEmail:                      "test-email@example.com",
+				TargetServiceAccountId:           "target-service-account@example.com",
+				Zone:                             "test-zone",
+				Scopes:                           []string{defaultGCPScope},
+				validateServiceAccountKeyTimeout: defaultValidateServiceAccountKeyTimeout,
 			},
 			expectError: false,
 		},

internal/credential/rotate.go

@@ -6,8 +6,10 @@ package credential
 import (
 	"context"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"slices"
+	"time"
 
 	admin "cloud.google.com/go/iam/admin/apiv1"
 	"cloud.google.com/go/iam/admin/apiv1/adminpb"
@@ -19,8 +21,16 @@ import (
 )
 
 const (
-	ComputeInstancesListPermission        = "compute.instances.list"
+	// ComputeInstancesListPermission is the IAM permission required
+	// to list compute instances.
+	ComputeInstancesListPermission = "compute.instances.list"
+	// IAMServiceAccountKeysCreatePermission is the IAM permission
+	// required to create a service account key.
+	// This permission is required to rotate service account keys.
 	IAMServiceAccountKeysCreatePermission = "iam.serviceAccountKeys.create"
+	// IAMServiceAccountKeysDeletePermission is the IAM permission
+	// required to delete a service account key.
+	// This permission is required to rotate service account keys.
 	IAMServiceAccountKeysDeletePermission = "iam.serviceAccountKeys.delete"
 )
 
@@ -40,6 +50,10 @@ type ServiceAccountPrivateKey struct {
 	ClientX509CertURL       string `json:"client_x509_cert_url"`
 }
 
+// ValidateCredsCallback is called to validate the credentials after rotating the service account key.
+// The callback should return an error if the credentials are invalid.
+type ValidateCredsCallback func(*Config, ...option.ClientOption) error
+
 // RotateServiceAccountKey takes the private key from this credentials config
 // and first creates a new private key and private key id, then deletes the
 // old private key.
@@ -47,7 +61,12 @@ type ServiceAccountPrivateKey struct {
 // If deletion of the old private key is successful, the new private key and
 // private key id are written into the credentials config and nil is returned.
 // On any error, the old credentials are not overwritten.
-func (c *Config) RotateServiceAccountKey(ctx context.Context, permissions []string, opts ...option.ClientOption) error {
+func (c *Config) RotateServiceAccountKey(
+	ctx context.Context,
+	permissions []string,
+	validateCredsCallback ValidateCredsCallback,
+	opts ...option.ClientOption,
+) error {
 	if c.PrivateKey == "" {
 		return status.Error(codes.InvalidArgument, "cannot rotate credentials when private key is not set")
 	}
@@ -104,10 +123,10 @@ func (c *Config) RotateServiceAccountKey(ctx context.Context, permissions []stri
 	clientOptions = []option.ClientOption{option.WithTokenSource(newCreds.TokenSource)}
 	clientOptions = append(clientOptions, opts...)
 
-	// Validate that the new credentials have the necessary permissions.
-	_, err = newConfig.ValidateIamPermissions(ctx, permissions, clientOptions...)
+	// Validate the new service account key
+	err = newConfig.ValidateServiceAccountKey(ctx, permissions, validateCredsCallback, clientOptions...)
 	if err != nil {
-		return status.Errorf(codes.PermissionDenied, "error testing IAM permissions with rotated service account key: %v", err)
+		return status.Errorf(codes.PermissionDenied, "error validating rotated service account key: %v", err)
 	}
 
 	iamClient, err = admin.NewIamClient(ctx, clientOptions...)
@@ -128,6 +147,44 @@ func (c *Config) RotateServiceAccountKey(ctx context.Context, permissions []stri
 	return nil
 }
 
+// ValidateServiceAccountKey validates the service account key by checking the IAM permissions
+// and calling the validation callback.
+// The function will retry validation until the timeout is reached.
+func (c *Config) ValidateServiceAccountKey(
+	ctx context.Context,
+	permissions []string,
+	validateCredsCallback ValidateCredsCallback,
+	opts ...option.ClientOption) error {
+	var validatePermissionsErr error
+	var validationCallbackErr error
+
+	ticker := time.NewTicker(200 * time.Millisecond)
+	defer ticker.Stop()
+
+	ctx, cancel := context.WithTimeout(ctx, c.validateServiceAccountKeyTimeout)
+	defer cancel()
+
+	for {
+		select {
+		case <-ctx.Done():
+			if ctx.Err() == context.DeadlineExceeded {
+				return fmt.Errorf("failed to validate service account key before timeout: %w", errors.Join(validatePermissionsErr, validationCallbackErr))
+			}
+			return ctx.Err()
+		case <-ticker.C:
+			_, validatePermissionsErr = c.ValidateIamPermissions(ctx, permissions, opts...)
+
+			if validateCredsCallback != nil {
+				validationCallbackErr = validateCredsCallback(c, opts...)
+			}
+
+			if validatePermissionsErr == nil && validationCallbackErr == nil {
+				return nil
+			}
+		}
+	}
+}
+
 func (c *Config) DeletePrivateKey(ctx context.Context, opts ...option.ClientOption) error {
 	if c.PrivateKey == "" {
 		return status.Error(codes.InvalidArgument, "cannot delete credentials when private key is not set")
@@ -167,10 +224,6 @@ func (c *Config) DeletePrivateKey(ctx context.Context, opts ...option.ClientOpti
 
 // ValidateIamPermissions tests the IAM permissions for the credentials.
 // It returns the granted permissions if successful.
-//
-// The caller needs to ensure either a token source is passed in for
-// authentication or authentication is provided by Application Default
-// Credentials
 func (c *Config) ValidateIamPermissions(ctx context.Context, permissions []string, opts ...option.ClientOption) ([]string, error) {
 	if len(permissions) == 0 {
 		return nil, status.Error(codes.InvalidArgument, "permissions are required")

internal/credential/rotate_test.go

@@ -7,6 +7,7 @@ import (
 	"context"
 	"errors"
 	"testing"
+	"time"
 
 	"cloud.google.com/go/iam/admin/apiv1/adminpb"
 	"cloud.google.com/go/iam/apiv1/iampb"
@@ -30,6 +31,7 @@ func TestRotateServiceAccountKey(t *testing.T) {
 			},
 		},
 	}
+	testValidateTimeout := 1 * time.Second
 
 	tests := []struct {
 		name          string
@@ -76,9 +78,10 @@ func TestRotateServiceAccountKey(t *testing.T) {
 		{
 			name: "DeleteServiceAccountKey returns error",
 			config: &Config{
-				PrivateKey:   "some-private-key",
-				PrivateKeyId: "some-private-key-id",
-				ClientEmail:  "client@example.com",
+				PrivateKey:                       "some-private-key",
+				PrivateKeyId:                     "some-private-key-id",
+				ClientEmail:                      "client@example.com",
+				validateServiceAccountKeyTimeout: testValidateTimeout,
 			},
 			setup: func() {
 				testIAMAdminServer.testCreateServiceAccountKeyError = nil
@@ -89,9 +92,10 @@ func TestRotateServiceAccountKey(t *testing.T) {
 		{
 			name: "Successful rotation",
 			config: &Config{
-				PrivateKey:   "some-private-key",
-				PrivateKeyId: "some-private-key-id",
-				ClientEmail:  "client@example.com",
+				PrivateKey:                       "some-private-key",
+				PrivateKeyId:                     "some-private-key-id",
+				ClientEmail:                      "client@example.com",
+				validateServiceAccountKeyTimeout: testValidateTimeout,
 			},
 			setup: func() {
 				testIAMAdminServer.testCreateServiceAccountKeyError = nil
@@ -128,8 +132,14 @@ func TestRotateServiceAccountKey(t *testing.T) {
 				IAMServiceAccountKeysCreatePermission,
 				IAMServiceAccountKeysDeletePermission,
 			}
+			validateCredsCallbackCalled := false
 
-			err = tt.config.RotateServiceAccountKey(ctx, permissions, testOptions...)
+			validateCredsCallBack := func(c *Config, opts ...googleOption.ClientOption) error {
+				validateCredsCallbackCalled = true
+				return nil
+			}
+
+			err = tt.config.RotateServiceAccountKey(ctx, permissions, validateCredsCallBack, testOptions...)
 			if tt.expectedError != nil {
 				require.ErrorContains(t, err, tt.expectedError.Error())
 				require.Equal(t, initialClientEmail, tt.config.ClientEmail)
@@ -143,6 +153,7 @@ func TestRotateServiceAccountKey(t *testing.T) {
 			require.NotEmpty(t, tt.config.PrivateKeyId)
 			require.NotEqual(t, initialPrivateKey, tt.config.PrivateKey)
 			require.NotEqual(t, initialPrivateKeyId, tt.config.PrivateKeyId)
+			require.True(t, validateCredsCallbackCalled)
 		})
 	}
 }
@@ -254,6 +265,104 @@ func TestValidateIamPermissions(t *testing.T) {
 		})
 	}
 }
+
+func TestValidateServiceAccountKey(t *testing.T) {
+	ctx := context.Background()
+	testResourceServer := &testResourceServer{}
+	testValidateTimeout := 1 * time.Second
+
+	tests := []struct {
+		name                    string
+		config                  *Config
+		permissions             []string
+		validateCredsCallback   ValidateCredsCallback
+		testIamPermissionsError error
+		expectedError           error
+	}{
+		{
+			name: "Successful validation",
+			config: &Config{
+				ProjectId:                        "test-project-id",
+				PrivateKey:                       "test-private-key",
+				ClientEmail:                      "test@test.com",
+				validateServiceAccountKeyTimeout: testValidateTimeout,
+			},
+			permissions: []string{
+				ComputeInstancesListPermission,
+				IAMServiceAccountKeysCreatePermission,
+				IAMServiceAccountKeysDeletePermission,
+			},
+			validateCredsCallback: func(c *Config, opts ...googleOption.ClientOption) error {
+				return nil
+			},
+			expectedError: nil,
+		},
+		{
+			name: "Validation callback returns error",
+			config: &Config{
+				ProjectId:                        "test-project-id",
+				PrivateKey:                       "test-private-key",
+				ClientEmail:                      "test@test.com",
+				validateServiceAccountKeyTimeout: testValidateTimeout,
+			},
+			permissions: []string{
+				ComputeInstancesListPermission,
+				IAMServiceAccountKeysCreatePermission,
+				IAMServiceAccountKeysDeletePermission,
+			},
+			validateCredsCallback: func(c *Config, opts ...googleOption.ClientOption) error {
+				return errors.New("validation callback error")
+			},
+			expectedError: errors.New("validation callback error"),
+		},
+		{
+			name: "IAM permissions validation returns error",
+			config: &Config{
+				ProjectId:                        "test-project-id",
+				PrivateKey:                       "test-private-key",
+				ClientEmail:                      "test@test.com",
+				validateServiceAccountKeyTimeout: testValidateTimeout,
+			},
+			permissions: []string{
+				ComputeInstancesListPermission,
+				IAMServiceAccountKeysCreatePermission,
+				IAMServiceAccountKeysDeletePermission,
+			},
+			testIamPermissionsError: errors.New("IAM permissions error"),
+			expectedError:           errors.New("failed to validate IAM permissions"),
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			testResourceServer.testIamPermissionsResponse = &iampb.TestIamPermissionsResponse{
+				Permissions: tt.permissions,
+			}
+			testResourceServer.testIamPermissionsError = tt.testIamPermissionsError
+
+			gsrv := NewGRPCServer()
+			resourcemanagerpb.RegisterProjectsServer(gsrv.Server, testResourceServer)
+			addr, err := gsrv.Start()
+			require.NoError(t, err)
+
+			testOptions := []googleOption.ClientOption{
+				googleOption.WithEndpoint(addr),
+				googleOption.WithoutAuthentication(),
+				googleOption.WithGRPCDialOption(grpc.WithTransportCredentials(insecure.NewCredentials())),
+				googleOption.WithTokenSource(nil),
+			}
+
+			err = tt.config.ValidateServiceAccountKey(ctx, tt.permissions, tt.validateCredsCallback, testOptions...)
+			if tt.expectedError != nil {
+				require.ErrorContains(t, err, tt.expectedError.Error())
+				return
+			}
+
+			require.NoError(t, err)
+		})
+	}
+}
+
 func TestDeletePrivateKey(t *testing.T) {
 	testIAMAdminServer := &testIAMAdminServer{}
 

internal/credential/state.go

@@ -38,7 +38,11 @@ func NewPersistedState(opt ...Option) (*PersistedState, error) {
 }
 
 // RotateCreds rotates the credentials for the GCP catalog and updates the last rotated time.
-func (s *PersistedState) RotateCreds(ctx context.Context, permissions []string, opts ...option.ClientOption) error {
+func (s *PersistedState) RotateCreds(
+	ctx context.Context,
+	permissions []string,
+	validateCredsCallback ValidateCredsCallback,
+	opts ...option.ClientOption) error {
 	if s.CredentialsConfig == nil {
 		return status.Error(codes.InvalidArgument, "missing credentials config")
 	}
@@ -46,7 +50,7 @@ func (s *PersistedState) RotateCreds(ctx context.Context, permissions []string,
 		return status.Error(codes.InvalidArgument, "cannot rotate non-rotatable credentials")
 	}
 
-	err := s.CredentialsConfig.RotateServiceAccountKey(ctx, permissions, opts...)
+	err := s.CredentialsConfig.RotateServiceAccountKey(ctx, permissions, validateCredsCallback, opts...)
 	if err != nil {
 		return status.Errorf(codes.Internal, "failed to rotate credentials: %v", err)
 	}

plugin/service/host/attributes.go

@@ -108,7 +108,7 @@ func buildListInstancesRequest(attributes *SetAttributes, catalog *CatalogAttrib
 		return nil, fmt.Errorf("error building filters: %w", err)
 	}
 
-	if len(filters) > 1 {
+	if len(filters) > 0 {
 		filters := strings.Join(filters, " AND ")
 		request.Filter = &filters
 	}

plugin/service/host/attributes_test.go

@@ -183,6 +183,23 @@ func TestBuildListInstancesRequest(t *testing.T) {
 			},
 			expectedErrContains: "error building filters",
 		},
+		{
+			name: "valid request with no filters",
+			attributes: &SetAttributes{
+				Filters: []string{},
+			},
+			catalog: &CatalogAttributes{
+				CredentialAttributes: &cred.CredentialAttributes{
+					ProjectId: "test-12345",
+					Zone:      "us-central-1a",
+				},
+			},
+			expected: &computepb.ListInstancesRequest{
+				Project: "test-12345",
+				Zone:    "us-central-1a",
+				Filter:  stringPtr("status = running"),
+			},
+		},
 	}
 
 	for _, tc := range cases {

plugin/service/host/plugin.go

@@ -87,8 +87,22 @@ func (p *HostPlugin) OnCreateCatalog(ctx context.Context, req *pb.OnCreateCatalo
 		credential.IAMServiceAccountKeysDeletePermission,
 	}
 
+	if !credState.CredentialsConfig.IsRotatable() && !catalogAttributes.DisableCredentialRotation {
+		return nil, status.Error(codes.InvalidArgument, "cannot rotate credentials for non-rotatable credentials")
+	}
+
 	if credState.CredentialsConfig.IsRotatable() && !catalogAttributes.DisableCredentialRotation {
-		if err := credState.RotateCreds(ctx, permissions, p.testGCPClientOpts...); err != nil {
+		state, err := newGCPCatalogPersistedState(
+			append([]gcpCatalogPersistedStateOption{
+				withCredentials(credState),
+			}, p.testCatalogStateOpts...)...,
+		)
+		if err != nil {
+			return nil, status.Errorf(codes.Internal, "error setting up persisted state: %s", err)
+		}
+		validateCredsCallback := state.ValidateCredsCallbackFn(ctx, p.testGCPClientOpts...)
+
+		if err := credState.RotateCreds(ctx, permissions, validateCredsCallback, p.testGCPClientOpts...); err != nil {
 			return nil, err
 		}
 	}
@@ -215,7 +229,17 @@ func (p *HostPlugin) OnUpdateCatalog(ctx context.Context, req *pb.OnUpdateCatalo
 		// If we're enabling rotation now but didn't before, or have
 		// freshly replaced credentials, we can rotate here.
 		if !newCatalogAttributes.DisableCredentialRotation && credState.CredsLastRotatedTime.IsZero() {
-			if err := credState.RotateCreds(ctx, permissions, p.testGCPClientOpts...); err != nil {
+			state, err := newGCPCatalogPersistedState(
+				append([]gcpCatalogPersistedStateOption{
+					withCredentials(credState),
+				}, p.testCatalogStateOpts...)...,
+			)
+			if err != nil {
+				return nil, status.Errorf(codes.Internal, "error setting up persisted state: %s", err)
+			}
+			validateCredsCallback := state.ValidateCredsCallbackFn(ctx, p.testGCPClientOpts...)
+
+			if err := credState.RotateCreds(ctx, permissions, validateCredsCallback, p.testGCPClientOpts...); err != nil {
 				return nil, err
 			}
 		}

plugin/service/host/plugin_test.go

@@ -878,6 +878,53 @@ func TestCreateCatalog(t *testing.T) {
 				},
 			},
 		},
+		{
+			name: "create with application default credentials and credential rotation disabled",
+			req: &pb.OnCreateCatalogRequest{
+				Catalog: &hostcatalogs.HostCatalog{
+					Attrs: &hostcatalogs.HostCatalog_Attributes{
+						Attributes: &structpb.Struct{
+							Fields: map[string]*structpb.Value{
+								cred.ConstProjectId:                 structpb.NewStringValue("test-project"),
+								cred.ConstZone:                      structpb.NewStringValue("us-central1-a"),
+								cred.ConstDisableCredentialRotation: structpb.NewBoolValue(true),
+							},
+						},
+					},
+				},
+			},
+			catalogOpts: []gcpCatalogPersistedStateOption{
+				withTestInstancesAPIFunc(newTestMockInstances(ctx,
+					nil,
+					testMockInstancesWithListInstancesOutput(&computepb.InstanceList{}),
+					testMockInstancesWithListInstancesError(nil),
+				)),
+			},
+			expectedRsp: &pb.OnCreateCatalogResponse{
+				Persisted: &pb.HostCatalogPersisted{
+					Secrets: &structpb.Struct{
+						Fields: map[string]*structpb.Value{},
+					},
+				},
+			},
+		},
+		{
+			name: "create with application default credentials and credential rotation enabled",
+			req: &pb.OnCreateCatalogRequest{
+				Catalog: &hostcatalogs.HostCatalog{
+					Attrs: &hostcatalogs.HostCatalog_Attributes{
+						Attributes: &structpb.Struct{
+							Fields: map[string]*structpb.Value{
+								cred.ConstProjectId:                 structpb.NewStringValue("test-project"),
+								cred.ConstZone:                      structpb.NewStringValue("us-central1-a"),
+								cred.ConstDisableCredentialRotation: structpb.NewBoolValue(false),
+							},
+						},
+					},
+				},
+			},
+			expectedErr: "cannot rotate credentials for non-rotatable credentials",
+		},
 	}
 
 	for _, tc := range cases {

plugin/service/host/state.go

@@ -13,6 +13,7 @@ import (
 	"github.com/googleapis/gax-go/v2"
 	"github.com/hashicorp/boundary-plugin-gcp/internal/credential"
 	pb "github.com/hashicorp/boundary/sdk/pbs/plugin"
+	"google.golang.org/api/iterator"
 	"google.golang.org/api/option"
 	"google.golang.org/protobuf/types/known/structpb"
 )
@@ -99,3 +100,30 @@ func (s *gcpCatalogPersistedState) InstancesClient(
 
 	return client, nil
 }
+
+// validateCredsCallbackFn returns a ValidateCredsCallback function that
+// validates the credentials by listing instances in the project and zone.
+func (s *gcpCatalogPersistedState) ValidateCredsCallbackFn(
+	ctx context.Context,
+	opts ...option.ClientOption,
+) credential.ValidateCredsCallback {
+	return func(config *credential.Config, opts ...option.ClientOption) error {
+		s.CredentialsConfig = config
+		instancesClient, err := s.InstancesClient(ctx, opts...)
+		if err != nil {
+			return fmt.Errorf("error creating instances client: %w", err)
+		}
+
+		it := instancesClient.List(ctx, &computepb.ListInstancesRequest{
+			Project: s.CredentialsConfig.ProjectId,
+			Zone:    s.CredentialsConfig.Zone,
+		})
+
+		_, err = it.Next()
+		if err != nil && err != iterator.Done {
+			return fmt.Errorf("error listing instances: %w", err)
+		}
+
+		return nil
+	}
+}

plugin/service/host/state_test.go

@@ -5,9 +5,11 @@ package host
 
 import (
 	"context"
+	"errors"
 	"testing"
 	"time"
 
+	computepb "cloud.google.com/go/compute/apiv1/computepb"
 	"github.com/hashicorp/boundary-plugin-gcp/internal/credential"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
@@ -87,3 +89,44 @@ func TestInstancesClient(t *testing.T) {
 		assert.Contains(t, err.Error(), "error creating instances client")
 	})
 }
+func TestValidateCredsCallbackFn(t *testing.T) {
+	ctx := context.Background()
+	cred := &credential.PersistedState{
+		CredentialsConfig: &credential.Config{
+			ProjectId: "test-project-id",
+			Zone:      "test-zone",
+		},
+	}
+	state := &gcpCatalogPersistedState{PersistedState: cred}
+
+	t.Run("List instances error", func(t *testing.T) {
+		state.testInstancesAPIFunc = newTestMockInstances(ctx,
+			nil,
+			testMockInstancesWithListInstancesOutput(nil),
+			testMockInstancesWithListInstancesError(errors.New("error listing instances")),
+		)
+
+		callback := state.ValidateCredsCallbackFn(ctx)
+		err := callback(&credential.Config{
+			ProjectId: "test-project-id",
+			Zone:      "test-zone",
+		})
+		assert.Error(t, err)
+		assert.Contains(t, err.Error(), "error listing instances")
+	})
+
+	t.Run("Success", func(t *testing.T) {
+		state.testInstancesAPIFunc = newTestMockInstances(ctx,
+			nil,
+			testMockInstancesWithListInstancesOutput(&computepb.InstanceList{}),
+			testMockInstancesWithListInstancesError(nil),
+		)
+
+		callback := state.ValidateCredsCallbackFn(ctx)
+		err := callback(&credential.Config{
+			ProjectId: "test-project-id",
+			Zone:      "test-zone",
+		})
+		assert.NoError(t, err)
+	})
+}