diff --git a/changelog/11596.txt b/changelog/11596.txt
new file mode 100644
index 000000000000..3735ca0bf858
--- /dev/null
+++ b/changelog/11596.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+core (enterprise): Fix plugins mounted in namespaces being unable to use password policies
+```
diff --git a/vault/dynamic_system_view.go b/vault/dynamic_system_view.go
index 86e8b560ba73..c9e9c16cbe5e 100644
--- a/vault/dynamic_system_view.go
+++ b/vault/dynamic_system_view.go
@@ -336,11 +336,11 @@ func (d dynamicSystemView) GeneratePasswordFromPolicy(ctx context.Context, polic
 	// Ensure there's a timeout on the context of some sort
 	if _, hasTimeout := ctx.Deadline(); !hasTimeout {
 		var cancel func()
-		ctx, cancel = context.WithTimeout(context.Background(), 1*time.Second)
+		ctx, cancel = context.WithTimeout(ctx, 1*time.Second)
 		defer cancel()
 	}
 
-	policyCfg, err := retrievePasswordPolicy(ctx, d.core.systemBarrierView, policyName)
+	policyCfg, err := d.retrievePasswordPolicy(ctx, policyName)
 	if err != nil {
 		return "", fmt.Errorf("failed to retrieve password policy: %w", err)
 	}
diff --git a/vault/dynamic_system_view_test.go b/vault/dynamic_system_view_test.go
index 2b5044d9f41c..b7861428cf91 100644
--- a/vault/dynamic_system_view_test.go
+++ b/vault/dynamic_system_view_test.go
@@ -2,7 +2,7 @@ package vault
 
 import (
 	"context"
-	"encoding/json"
+	"encoding/base64"
 	"fmt"
 	"reflect"
 	"sort"
@@ -16,6 +16,22 @@ import (
 	"github.com/hashicorp/vault/sdk/logical"
 )
 
+var testPolicyName = "testpolicy"
+var rawTestPasswordPolicy = `
+length = 20
+rule "charset" {
+	charset = "abcdefghijklmnopqrstuvwxyz"
+	min_chars = 1
+}
+rule "charset" {
+	charset = "ABCDEFGHIJKLMNOPQRSTUVWXYZ"
+	min_chars = 1
+}
+rule "charset" {
+	charset = "0123456789"
+	min_chars = 1
+}`
+
 func TestIdentity_BackendTemplating(t *testing.T) {
 	var err error
 	coreConfig := &CoreConfig{
@@ -157,47 +173,45 @@ func TestIdentity_BackendTemplating(t *testing.T) {
 }
 
 func TestDynamicSystemView_GeneratePasswordFromPolicy_successful(t *testing.T) {
-	policyName := "testpolicy"
-	rawPolicy := map[string]interface{}{
-		"policy": `length = 20
-rule "charset" {
-	charset = "abcdefghijklmnopqrstuvwxyz"
-	min_chars = 1
-}
-rule "charset" {
-	charset = "ABCDEFGHIJKLMNOPQRSTUVWXYZ"
-	min_chars = 1
-}
-rule "charset" {
-	charset = "0123456789"
-	min_chars = 1
-}`,
-	}
-	marshalledPolicy, err := json.Marshal(rawPolicy)
-	if err != nil {
-		t.Fatalf("Unable to set up test: unable to marshal raw policy to JSON: %s", err)
+	var err error
+	coreConfig := &CoreConfig{
+		DisableMlock:       true,
+		DisableCache:       true,
+		Logger:             log.NewNullLogger(),
+		CredentialBackends: map[string]logical.Factory{},
 	}
 
-	testStorage := fakeBarrier{
-		getEntry: &logical.StorageEntry{
-			Key:   getPasswordPolicyKey(policyName),
-			Value: marshalledPolicy,
-		},
-	}
+	cluster := NewTestCluster(t, coreConfig, &TestClusterOptions{})
 
-	dsv := dynamicSystemView{
-		core: &Core{
-			systemBarrierView: NewBarrierView(testStorage, "sys/"),
-		},
+	cluster.Start()
+	defer cluster.Cleanup()
+
+	core := cluster.Cores[0].Core
+	TestWaitActive(t, core)
+
+	b64Policy := base64.StdEncoding.EncodeToString([]byte(rawTestPasswordPolicy))
+
+	path := fmt.Sprintf("sys/policies/password/%s", testPolicyName)
+	req := logical.TestRequest(t, logical.CreateOperation, path)
+	req.ClientToken = cluster.RootToken
+	req.Data["policy"] = b64Policy
+
+	_, err = core.HandleRequest(namespace.RootContext(nil), req)
+	if err != nil {
+		t.Fatalf("err: %v", err)
 	}
+
 	ctx, cancel := context.WithTimeout(context.Background(), 1*time.Second)
 	defer cancel()
 
+	ctx = namespace.RootContext(ctx)
+	dsv := dynamicSystemView{core: cluster.Cores[0].Core}
+
 	runeset := map[rune]bool{}
 	runesFound := []rune{}
 
 	for i := 0; i < 100; i++ {
-		actual, err := dsv.GeneratePasswordFromPolicy(ctx, policyName)
+		actual, err := dsv.GeneratePasswordFromPolicy(ctx, testPolicyName)
 		if err != nil {
 			t.Fatalf("no error expected, but got: %s", err)
 		}
@@ -220,12 +234,6 @@ rule "charset" {
 	}
 }
 
-type runes []rune
-
-func (r runes) Len() int           { return len(r) }
-func (r runes) Less(i, j int) bool { return r[i] < r[j] }
-func (r runes) Swap(i, j int)      { r[i], r[j] = r[j], r[i] }
-
 func TestDynamicSystemView_GeneratePasswordFromPolicy_failed(t *testing.T) {
 	type testCase struct {
 		policyName string
@@ -282,6 +290,12 @@ func TestDynamicSystemView_GeneratePasswordFromPolicy_failed(t *testing.T) {
 	}
 }
 
+type runes []rune
+
+func (r runes) Len() int           { return len(r) }
+func (r runes) Less(i, j int) bool { return r[i] < r[j] }
+func (r runes) Swap(i, j int)      { r[i], r[j] = r[j], r[i] }
+
 type fakeBarrier struct {
 	getEntry *logical.StorageEntry
 	getErr   error
diff --git a/vault/password_policy_util.go b/vault/password_policy_util.go
new file mode 100644
index 000000000000..133373677f1c
--- /dev/null
+++ b/vault/password_policy_util.go
@@ -0,0 +1,33 @@
+// +build !enterprise
+
+package vault
+
+import (
+	"context"
+	"encoding/json"
+	"fmt"
+)
+
+const (
+	passwordPolicySubPath = "password_policy/"
+)
+
+// retrievePasswordPolicy retrieves a password policy from the logical storage
+func (d dynamicSystemView) retrievePasswordPolicy(ctx context.Context, policyName string) (*passwordPolicyConfig, error) {
+	storage := d.core.systemBarrierView.SubView(passwordPolicySubPath)
+	entry, err := storage.Get(ctx, policyName)
+	if err != nil {
+		return nil, err
+	}
+	if entry == nil {
+		return nil, nil
+	}
+
+	policyCfg := &passwordPolicyConfig{}
+	err = json.Unmarshal(entry.Value, &policyCfg)
+	if err != nil {
+		return nil, fmt.Errorf("failed to unmarshal stored data: %w", err)
+	}
+
+	return policyCfg, nil
+}