diff --git a/.changelog/34112.txt b/.changelog/34112.txt
new file mode 100644
index 00000000000..b6c505d854d
--- /dev/null
+++ b/.changelog/34112.txt
@@ -0,0 +1,3 @@
+```release-note:enhancement
+resource/aws_kms_key: Add configurable timeouts
+```
\ No newline at end of file
diff --git a/internal/service/kms/external_key.go b/internal/service/kms/external_key.go
index ec1e8362814..f1b0d8ede02 100644
--- a/internal/service/kms/external_key.go
+++ b/internal/service/kms/external_key.go
@@ -155,7 +155,7 @@ func resourceExternalKeyCreate(ctx context.Context, d *schema.ResourceData, meta
 	// KMS will report this error until it can validate the policy itself.
 	// They acknowledge this here:
 	// http://docs.aws.amazon.com/kms/latest/APIReference/API_CreateKey.html
-	output, err := WaitIAMPropagation(ctx, func() (*kms.CreateKeyOutput, error) {
+	output, err := WaitIAMPropagation(ctx, propagationTimeout, func() (*kms.CreateKeyOutput, error) {
 		return conn.CreateKeyWithContext(ctx, input)
 	})
 
diff --git a/internal/service/kms/key.go b/internal/service/kms/key.go
index 1bc18d77c69..9934cf3cbe7 100644
--- a/internal/service/kms/key.go
+++ b/internal/service/kms/key.go
@@ -7,6 +7,7 @@ import (
 	"context"
 	"fmt"
 	"log"
+	"time"
 
 	"github.com/aws/aws-sdk-go/aws"
 	"github.com/aws/aws-sdk-go/service/kms"
@@ -39,6 +40,10 @@ func ResourceKey() *schema.Resource {
 			StateContext: schema.ImportStatePassthroughContext,
 		},
 
+		Timeouts: &schema.ResourceTimeout{
+			Create: schema.DefaultTimeout(2 * time.Minute),
+		},
+
 		CustomizeDiff: verify.SetTagsDiff,
 
 		Schema: map[string]*schema.Schema{
@@ -157,7 +162,7 @@ func resourceKeyCreate(ctx context.Context, d *schema.ResourceData, meta interfa
 	// The KMS service's awareness of principals is limited by "eventual consistency".
 	// They acknowledge this here:
 	// http://docs.aws.amazon.com/kms/latest/APIReference/API_CreateKey.html
-	output, err := WaitIAMPropagation(ctx, func() (*kms.CreateKeyOutput, error) {
+	output, err := WaitIAMPropagation(ctx, d.Timeout(schema.TimeoutCreate), func() (*kms.CreateKeyOutput, error) {
 		return conn.CreateKeyWithContext(ctx, input)
 	})
 
diff --git a/internal/service/kms/replica_external_key.go b/internal/service/kms/replica_external_key.go
index eac29ac47fb..0a2cfef8c3a 100644
--- a/internal/service/kms/replica_external_key.go
+++ b/internal/service/kms/replica_external_key.go
@@ -151,7 +151,7 @@ func resourceReplicaExternalKeyCreate(ctx context.Context, d *schema.ResourceDat
 
 	replicateConn := kms.New(session)
 
-	output, err := WaitIAMPropagation(ctx, func() (*kms.ReplicateKeyOutput, error) {
+	output, err := WaitIAMPropagation(ctx, propagationTimeout, func() (*kms.ReplicateKeyOutput, error) {
 		return replicateConn.ReplicateKeyWithContext(ctx, input)
 	})
 
diff --git a/internal/service/kms/replica_key.go b/internal/service/kms/replica_key.go
index a5a6a080227..759bad69a1f 100644
--- a/internal/service/kms/replica_key.go
+++ b/internal/service/kms/replica_key.go
@@ -139,7 +139,7 @@ func resourceReplicaKeyCreate(ctx context.Context, d *schema.ResourceData, meta
 
 	replicateConn := kms.New(session)
 
-	output, err := WaitIAMPropagation(ctx, func() (*kms.ReplicateKeyOutput, error) {
+	output, err := WaitIAMPropagation(ctx, propagationTimeout, func() (*kms.ReplicateKeyOutput, error) {
 		return replicateConn.ReplicateKeyWithContext(ctx, input)
 	})
 
diff --git a/internal/service/kms/wait.go b/internal/service/kms/wait.go
index 09307585925..7e83547b795 100644
--- a/internal/service/kms/wait.go
+++ b/internal/service/kms/wait.go
@@ -35,8 +35,8 @@ const (
 
 // WaitIAMPropagation retries the specified function if the returned error indicates an IAM eventual consistency issue.
 // If the retries time out the specified function is called one last time.
-func WaitIAMPropagation[T any](ctx context.Context, f func() (T, error)) (T, error) {
-	outputRaw, err := tfresource.RetryWhenAWSErrCodeEquals(ctx, propagationTimeout, func() (interface{}, error) {
+func WaitIAMPropagation[T any](ctx context.Context, timeout time.Duration, f func() (T, error)) (T, error) {
+	outputRaw, err := tfresource.RetryWhenAWSErrCodeEquals(ctx, timeout, func() (interface{}, error) {
 		return f()
 	},
 		kms.ErrCodeMalformedPolicyDocumentException)
diff --git a/website/docs/r/kms_key.html.markdown b/website/docs/r/kms_key.html.markdown
index c71e8264cef..303451e7776 100644
--- a/website/docs/r/kms_key.html.markdown
+++ b/website/docs/r/kms_key.html.markdown
@@ -57,6 +57,14 @@ This resource exports the following attributes in addition to the arguments abov
 * `key_id` - The globally unique identifier for the key.
 * `tags_all` - A map of tags assigned to the resource, including those inherited from the provider [`default_tags` configuration block](https://registry.terraform.io/providers/hashicorp/aws/latest/docs#default_tags-configuration-block).
 
+## Timeouts
+
+~> **Note:** There are a variety of default timeouts set internally. If you set a shorter custom timeout than one of the defaults, the custom timeout will not be respected as the longer of the custom or internal default will be used.
+
+[Configuration options](https://developer.hashicorp.com/terraform/language/resources/syntax#operation-timeouts):
+
+* `create` - (Default `2m`)
+
 ## Import
 
 In Terraform v1.5.0 and later, use an [`import` block](https://developer.hashicorp.com/terraform/language/import) to import KMS Keys using the `id`. For example: