diff --git a/pkg/storage/chunk/client/aws/config.go b/pkg/storage/chunk/client/aws/config.go
index 5512d0645f4d2..918beecd4490b 100644
--- a/pkg/storage/chunk/client/aws/config.go
+++ b/pkg/storage/chunk/client/aws/config.go
@@ -16,7 +16,6 @@ import (
 	"github.com/aws/aws-sdk-go-v2/aws"
 	"github.com/aws/aws-sdk-go-v2/credentials"
 	"github.com/aws/aws-sdk-go-v2/service/dynamodb"
-	"github.com/pkg/errors"
 )
 
 // DynamoConfigFromURL returns AWS config from given URL. It expects escaped
@@ -73,15 +72,17 @@ func DynamoConfigFromURL(awsURL *url.URL) (*dynamodb.Options, error) {
 	return &config, nil
 }
 
-func CredentialsFromURL(awsURL *url.URL) (key, secret, session string, err error) {
+func CredentialsFromURL(awsURL *url.URL) (key, secret, session string) {
 	if awsURL.User != nil {
 		username := awsURL.User.Username()
 		password, _ := awsURL.User.Password()
 
 		// We request at least the username or password being set to enable the static credentials.
 		if username != "" || password != "" {
-			return username, password, "", nil
+			return username, password, ""
 		}
 	}
-	return "", "", "", errors.New("Unable to build AWS credentials from URL")
+	// Return empty credentials instead of error to allow AWS SDK to use default credential chain
+	// (environment variables, IAM roles, etc.)
+	return "", "", ""
 }
diff --git a/pkg/storage/chunk/client/aws/config_test.go b/pkg/storage/chunk/client/aws/config_test.go
new file mode 100644
index 0000000000000..ce016592cc1f9
--- /dev/null
+++ b/pkg/storage/chunk/client/aws/config_test.go
@@ -0,0 +1,59 @@
+package aws
+
+import (
+	"net/url"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+func TestCredentialsFromURL(t *testing.T) {
+	tests := []struct {
+		name            string
+		urlStr          string
+		expectedKey     string
+		expectedSecret  string
+		expectedSession string
+	}{
+		{
+			name:            "URL with username and password",
+			urlStr:          "s3://mykey:mysecret@us-east-1",
+			expectedKey:     "mykey",
+			expectedSecret:  "mysecret",
+			expectedSession: "",
+		},
+		{
+			name:            "URL with only username",
+			urlStr:          "s3://mykey@us-east-1",
+			expectedKey:     "mykey",
+			expectedSecret:  "",
+			expectedSession: "",
+		},
+		{
+			name:            "URL without credentials (should not error)",
+			urlStr:          "s3://us-east-1",
+			expectedKey:     "",
+			expectedSecret:  "",
+			expectedSession: "",
+		},
+		{
+			name:            "URL with endpoint without credentials",
+			urlStr:          "s3://s3.amazonaws.com",
+			expectedKey:     "",
+			expectedSecret:  "",
+			expectedSession: "",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			u, err := url.Parse(tt.urlStr)
+			require.NoError(t, err)
+
+			key, secret, session := CredentialsFromURL(u)
+			require.Equal(t, tt.expectedKey, key)
+			require.Equal(t, tt.expectedSecret, secret)
+			require.Equal(t, tt.expectedSession, session)
+		})
+	}
+}
diff --git a/pkg/storage/chunk/client/aws/s3_storage_client.go b/pkg/storage/chunk/client/aws/s3_storage_client.go
index 317b5d91aed3e..45efcebe80939 100644
--- a/pkg/storage/chunk/client/aws/s3_storage_client.go
+++ b/pkg/storage/chunk/client/aws/s3_storage_client.go
@@ -215,11 +215,13 @@ func buildS3Client(cfg S3Config, hedgingCfg hedging.Config, hedging bool) (*s3.C
 
 	// if an s3 url is passed use it to initialize the s3Config and then override with any additional params
 	if cfg.S3.URL != nil {
-		key, secret, session, err := CredentialsFromURL(cfg.S3.URL)
-		if err != nil {
-			return nil, err
+		key, secret, session := CredentialsFromURL(cfg.S3.URL)
+
+		// Only set credentials if they were provided in the URL
+		// Otherwise, let AWS SDK use the default credential chain
+		if key != "" || secret != "" {
+			s3Options.Credentials = credentials.NewStaticCredentialsProvider(key, secret, session)
 		}
-		s3Options.Credentials = credentials.NewStaticCredentialsProvider(key, secret, session)
 	} else {
 		s3Options.Region = "dummy"
 	}