diff --git a/modules/installation-osp-describing-cloud-parameters.adoc b/modules/installation-osp-describing-cloud-parameters.adoc
index e34893f8161b..8bbb39c154e4 100644
--- a/modules/installation-osp-describing-cloud-parameters.adoc
+++ b/modules/installation-osp-describing-cloud-parameters.adoc
@@ -18,11 +18,13 @@ The {product-title} installation program relies on a file that is called `clouds
 +
 [IMPORTANT]
 ====
-Remember to add a password to the `auth` field. You can also keep secrets in link:https://docs.openstack.org/os-client-config/latest/user/configuration.html#splitting-secrets[a separate file] from `clouds.yaml`.
+Remember to add your credentials to the `auth` field. You can also keep secrets in link:https://docs.openstack.org/os-client-config/latest/user/configuration.html#splitting-secrets[a separate file] from `clouds.yaml`.
 ====
 
 ** If your {rh-openstack} distribution does not include the Horizon web UI, or you do not want to use Horizon, create the file yourself. For detailed information about `clouds.yaml`, see https://docs.openstack.org/openstacksdk/latest/user/config/configuration.html#config-files[Config files] in the {rh-openstack} documentation.
 +
+The following example shows a `clouds.yaml` file that uses password authentication:
++
 [source,yaml]
 ----
 clouds:
@@ -42,6 +44,22 @@ clouds:
       project_name: 'devonly'
       auth_url: 'https://10.10.14.22:5001/v2.0'
 ----
++
+Alternatively, you can use token-based authentication instead of a username and password. The following example shows a `clouds.yaml` file that uses token authentication:
++
+[source,yaml]
+----
+clouds:
+  shiftstack:
+    auth:
+      auth_url: http://10.10.14.42:5000/v3
+      project_name: shiftstack
+      token: <token>
+    auth_type: v3token
+----
++
+where:
+`<token>`:: Specifies a valid {rh-openstack} token.
 
 . If your {rh-openstack} installation uses self-signed certificate authority (CA) certificates for endpoint authentication:
 .. Copy the certificate authority file to your machine.