diff --git a/README.md b/README.md
index 67d4c1d..e19631b 100644
--- a/README.md
+++ b/README.md
@@ -12,7 +12,7 @@ A Terraform module for creating and managing Amazon EKS (Elastic Kubernetes Serv
 - **IRSA Support**: OIDC provider setup for IAM Roles for Service Accounts
 - **EKS Addons**: Flexible addon configuration (CoreDNS, VPC CNI, Kube-proxy, Pod Identity Agent, EBS CSI Driver)
 - **EKS Capabilities**: Support for ACK, KRO, and ArgoCD capabilities
-- **AWS Load Balancer Controller**: Optional IAM role creation for AWS Load Balancer Controller (IRSA)
+- **AWS Load Balancer Controller**: Optional IAM role creation for AWS Load Balancer Controller (IRSA). The IRSA role expects the controller's service account in the **`aws-load-balancer-controller`** namespace (e.g. when using the [official Helm chart](https://kubernetes-sigs.github.io/aws-load-balancer-controller/), deploy into that namespace or set the Helm chart namespace accordingly).
 - **Security**: KMS encryption, IMDSv2 enforcement, security groups
 - **CloudWatch Log Group**: Optional log group for EKS control plane logs; set `cloudwatch_log_group_force_destroy = true` to allow the log group to be deleted on `terraform destroy` (default is to protect it).
 
@@ -200,7 +200,7 @@ No modules.
 | <a name="input_create_cloudwatch_log_group"></a> [create\_cloudwatch\_log\_group](#input\_create\_cloudwatch\_log\_group) | Whether to create a CloudWatch log group for EKS cluster logs | `bool` | `true` | no |
 | <a name="input_create_kms_key"></a> [create\_kms\_key](#input\_create\_kms\_key) | Controls if a KMS key for cluster encryption should be created | `bool` | `true` | no |
 | <a name="input_eks_managed_node_groups"></a> [eks\_managed\_node\_groups](#input\_eks\_managed\_node\_groups) | Map of EKS managed node group configurations | <pre>map(object({<br/>    name                       = optional(string)<br/>    ami_type                   = optional(string, "AL2023_x86_64_STANDARD")<br/>    instance_types             = optional(list(string), ["t3.medium"])<br/>    min_size                   = optional(number, 1)<br/>    max_size                   = optional(number, 3)<br/>    desired_size               = optional(number, 2)<br/>    disk_size                  = optional(number, 20)<br/>    subnet_ids                 = optional(list(string))<br/>    enable_bootstrap_user_data = optional(bool, true)<br/>    metadata_options = optional(object({<br/>      http_endpoint               = optional(string, "enabled")<br/>      http_tokens                 = optional(string, "required")<br/>      http_put_response_hop_limit = optional(number, 1)<br/>    }))<br/>    labels = optional(map(string), {})<br/>    tags   = optional(map(string), {})<br/>  }))</pre> | `{}` | no |
-| <a name="input_enable_aws_load_balancer_controller"></a> [enable\_aws\_load\_balancer\_controller](#input\_enable\_aws\_load\_balancer\_controller) | Whether to create IAM role for AWS Load Balancer Controller (IRSA) | `bool` | `false` | no |
+| <a name="input_enable_aws_load_balancer_controller"></a> [enable\_aws\_load\_balancer\_controller](#input\_enable\_aws\_load\_balancer\_controller) | Whether to create IAM role for AWS Load Balancer Controller (IRSA). Role expects the controller's service account in the `aws-load-balancer-controller` namespace. | `bool` | `false` | no |
 | <a name="input_enable_cluster_creator_admin_permissions"></a> [enable\_cluster\_creator\_admin\_permissions](#input\_enable\_cluster\_creator\_admin\_permissions) | Indicates whether or not to add the cluster creator (the identity used by Terraform) as an administrator via access entry | `bool` | `false` | no |
 | <a name="input_enable_external_dns"></a> [enable\_external\_dns](#input\_enable\_external\_dns) | Whether to create IAM role for ExternalDNS (IRSA) | `bool` | `false` | no |
 | <a name="input_enabled_cluster_log_types"></a> [enabled\_cluster\_log\_types](#input\_enabled\_cluster\_log\_types) | List of control plane logging types to enable | `list(string)` | <pre>[<br/>  "api",<br/>  "audit",<br/>  "authenticator"<br/>]</pre> | no |
diff --git a/aws-lb-controller-iam.tf b/aws-lb-controller-iam.tf
index 8435145..98baf67 100644
--- a/aws-lb-controller-iam.tf
+++ b/aws-lb-controller-iam.tf
@@ -20,7 +20,7 @@ data "aws_iam_policy_document" "aws_lb_controller_assume_role" {
     condition {
       test     = "StringEquals"
       variable = "${replace(aws_eks_cluster.this.identity[0].oidc[0].issuer, "https://", "")}:sub"
-      values   = ["system:serviceaccount:kube-system:aws-load-balancer-controller"]
+      values   = ["system:serviceaccount:aws-load-balancer-controller:aws-load-balancer-controller"]
     }
 
     condition {
@@ -46,64 +46,289 @@ resource "aws_iam_role" "aws_lb_controller" {
 }
 
 # Attach AWS managed policy for Elastic Load Balancing
-resource "aws_iam_role_policy_attachment" "aws_lb_controller" {
-  for_each = var.enable_aws_load_balancer_controller ? {
-    elastic_load_balancing = "arn:${data.aws_partition.current.partition}:iam::aws:policy/ElasticLoadBalancingFullAccess"
-    ec2                    = "arn:${data.aws_partition.current.partition}:iam::aws:policy/AmazonEC2FullAccess"
-  } : {}
+data "aws_iam_policy_document" "aws_lb_controller" {
+  count = var.enable_aws_load_balancer_controller ? 1 : 0
 
-  role       = aws_iam_role.aws_lb_controller[0].name
-  policy_arn = each.value
-}
+  statement {
+    sid       = "CreateServiceLinkedRole"
+    effect    = "Allow"
+    actions   = ["iam:CreateServiceLinkedRole"]
+    resources = ["*"]
+    condition {
+      test     = "StringEquals"
+      variable = "iam:AWSServiceName"
+      values   = ["elasticloadbalancing.amazonaws.com"]
+    }
+  }
 
-# IAM policy document for AWS Load Balancer Controller WAF, WAF Regional, and Shield permissions
-data "aws_iam_policy_document" "aws_lb_controller_waf" {
-  count = var.enable_aws_load_balancer_controller ? 1 : 0
+  statement {
+    sid    = "Describe"
+    effect = "Allow"
+    actions = [
+      "ec2:DescribeAccountAttributes",
+      "ec2:DescribeAddresses",
+      "ec2:DescribeAvailabilityZones",
+      "ec2:DescribeInternetGateways",
+      "ec2:DescribeVpcs",
+      "ec2:DescribeVpcPeeringConnections",
+      "ec2:DescribeSubnets",
+      "ec2:DescribeSecurityGroups",
+      "ec2:DescribeInstances",
+      "ec2:DescribeNetworkInterfaces",
+      "ec2:DescribeTags",
+      "ec2:GetCoipPoolUsage",
+      "ec2:DescribeCoipPools",
+      "ec2:GetSecurityGroupsForVpc",
+      "ec2:DescribeIpamPools",
+      "ec2:DescribeRouteTables",
+      "elasticloadbalancing:DescribeLoadBalancers",
+      "elasticloadbalancing:DescribeLoadBalancerAttributes",
+      "elasticloadbalancing:DescribeListeners",
+      "elasticloadbalancing:DescribeListenerCertificates",
+      "elasticloadbalancing:DescribeSSLPolicies",
+      "elasticloadbalancing:DescribeRules",
+      "elasticloadbalancing:DescribeTargetGroups",
+      "elasticloadbalancing:DescribeTargetGroupAttributes",
+      "elasticloadbalancing:DescribeTargetHealth",
+      "elasticloadbalancing:DescribeTags",
+      "elasticloadbalancing:DescribeTrustStores",
+      "elasticloadbalancing:DescribeListenerAttributes",
+      "elasticloadbalancing:DescribeCapacityReservation",
+    ]
+    resources = ["*"]
+  }
 
   statement {
-    sid    = "WAFv2Permissions"
+    sid    = "CognitoAcmIamWafShield"
     effect = "Allow"
     actions = [
+      "cognito-idp:DescribeUserPoolClient",
+      "acm:ListCertificates",
+      "acm:DescribeCertificate",
+      "iam:ListServerCertificates",
+      "iam:GetServerCertificate",
+      "waf-regional:GetWebACL",
+      "waf-regional:GetWebACLForResource",
+      "waf-regional:AssociateWebACL",
+      "waf-regional:DisassociateWebACL",
       "wafv2:GetWebACL",
       "wafv2:GetWebACLForResource",
       "wafv2:AssociateWebACL",
       "wafv2:DisassociateWebACL",
-      "wafv2:ListWebACLs"
+      "wafv2:ListWebACLs",
+      "shield:GetSubscriptionState",
+      "shield:DescribeProtection",
+      "shield:CreateProtection",
+      "shield:DeleteProtection",
     ]
     resources = ["*"]
   }
 
   statement {
-    sid    = "WAFRegionalPermissions"
+    sid       = "SecurityGroupIngressEgress"
+    effect    = "Allow"
+    actions   = ["ec2:AuthorizeSecurityGroupIngress", "ec2:RevokeSecurityGroupIngress"]
+    resources = ["*"]
+  }
+
+  statement {
+    sid       = "CreateSecurityGroup"
+    effect    = "Allow"
+    actions   = ["ec2:CreateSecurityGroup"]
+    resources = ["*"]
+  }
+
+  statement {
+    sid       = "CreateTagsSecurityGroup"
+    effect    = "Allow"
+    actions   = ["ec2:CreateTags"]
+    resources = ["arn:${data.aws_partition.current.partition}:ec2:*:*:security-group/*"]
+    condition {
+      test     = "StringEquals"
+      variable = "ec2:CreateAction"
+      values   = ["CreateSecurityGroup"]
+    }
+    condition {
+      test     = "Null"
+      variable = "aws:RequestTag/elbv2.k8s.aws/cluster"
+      values   = ["false"]
+    }
+  }
+
+  statement {
+    sid       = "CreateDeleteTagsSecurityGroup"
+    effect    = "Allow"
+    actions   = ["ec2:CreateTags", "ec2:DeleteTags"]
+    resources = ["arn:${data.aws_partition.current.partition}:ec2:*:*:security-group/*"]
+    condition {
+      test     = "Null"
+      variable = "aws:RequestTag/elbv2.k8s.aws/cluster"
+      values   = ["true"]
+    }
+    condition {
+      test     = "Null"
+      variable = "aws:ResourceTag/elbv2.k8s.aws/cluster"
+      values   = ["false"]
+    }
+  }
+
+  statement {
+    sid    = "SecurityGroupManageTagged"
     effect = "Allow"
     actions = [
-      "waf-regional:GetWebACL",
-      "waf-regional:GetWebACLForResource",
-      "waf-regional:AssociateWebACL",
-      "waf-regional:DisassociateWebACL",
-      "waf-regional:ListWebACLs"
+      "ec2:AuthorizeSecurityGroupIngress",
+      "ec2:RevokeSecurityGroupIngress",
+      "ec2:DeleteSecurityGroup",
     ]
     resources = ["*"]
+    condition {
+      test     = "Null"
+      variable = "aws:ResourceTag/elbv2.k8s.aws/cluster"
+      values   = ["false"]
+    }
   }
 
   statement {
-    sid    = "ShieldPermissions"
+    sid    = "CreateLoadBalancerTargetGroup"
     effect = "Allow"
     actions = [
-      "shield:GetSubscriptionState",
-      "shield:DescribeProtection",
-      "shield:CreateProtection",
-      "shield:DeleteProtection"
+      "elasticloadbalancing:CreateLoadBalancer",
+      "elasticloadbalancing:CreateTargetGroup",
+    ]
+    resources = ["*"]
+    condition {
+      test     = "Null"
+      variable = "aws:RequestTag/elbv2.k8s.aws/cluster"
+      values   = ["false"]
+    }
+  }
+
+  statement {
+    sid    = "ListenerRule"
+    effect = "Allow"
+    actions = [
+      "elasticloadbalancing:CreateListener",
+      "elasticloadbalancing:DeleteListener",
+      "elasticloadbalancing:CreateRule",
+      "elasticloadbalancing:DeleteRule",
+    ]
+    resources = ["*"]
+  }
+
+  statement {
+    sid     = "AddRemoveTagsLbTargetGroup"
+    effect  = "Allow"
+    actions = ["elasticloadbalancing:AddTags", "elasticloadbalancing:RemoveTags"]
+    resources = [
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:targetgroup/*/*",
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:loadbalancer/net/*/*",
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:loadbalancer/app/*/*",
+    ]
+    condition {
+      test     = "Null"
+      variable = "aws:RequestTag/elbv2.k8s.aws/cluster"
+      values   = ["true"]
+    }
+    condition {
+      test     = "Null"
+      variable = "aws:ResourceTag/elbv2.k8s.aws/cluster"
+      values   = ["false"]
+    }
+  }
+
+  statement {
+    sid     = "AddRemoveTagsListener"
+    effect  = "Allow"
+    actions = ["elasticloadbalancing:AddTags", "elasticloadbalancing:RemoveTags"]
+    resources = [
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:listener/net/*/*/*",
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:listener/app/*/*/*",
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:listener-rule/net/*/*/*",
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:listener-rule/app/*/*/*",
+    ]
+  }
+
+  statement {
+    sid    = "ModifyDeleteLbTargetGroup"
+    effect = "Allow"
+    actions = [
+      "elasticloadbalancing:ModifyLoadBalancerAttributes",
+      "elasticloadbalancing:SetIpAddressType",
+      "elasticloadbalancing:SetSecurityGroups",
+      "elasticloadbalancing:SetSubnets",
+      "elasticloadbalancing:DeleteLoadBalancer",
+      "elasticloadbalancing:ModifyTargetGroup",
+      "elasticloadbalancing:ModifyTargetGroupAttributes",
+      "elasticloadbalancing:DeleteTargetGroup",
+      "elasticloadbalancing:ModifyListenerAttributes",
+      "elasticloadbalancing:ModifyCapacityReservation",
+      "elasticloadbalancing:ModifyIpPools"
+    ]
+    resources = ["*"]
+    condition {
+      test     = "Null"
+      variable = "aws:ResourceTag/elbv2.k8s.aws/cluster"
+      values   = ["false"]
+    }
+  }
+
+  statement {
+    sid     = "AddTagsOnCreate"
+    effect  = "Allow"
+    actions = ["elasticloadbalancing:AddTags"]
+    resources = [
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:targetgroup/*/*",
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:loadbalancer/net/*/*",
+      "arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:loadbalancer/app/*/*",
+    ]
+    condition {
+      test     = "StringEquals"
+      variable = "elasticloadbalancing:CreateAction"
+      values   = ["CreateTargetGroup", "CreateLoadBalancer"]
+    }
+    condition {
+      test     = "Null"
+      variable = "aws:RequestTag/elbv2.k8s.aws/cluster"
+      values   = ["false"]
+    }
+  }
+
+  statement {
+    sid       = "RegisterTargets"
+    effect    = "Allow"
+    actions   = ["elasticloadbalancing:RegisterTargets", "elasticloadbalancing:DeregisterTargets"]
+    resources = ["arn:${data.aws_partition.current.partition}:elasticloadbalancing:*:*:targetgroup/*/*"]
+  }
+
+  statement {
+    sid    = "SetWebAclModifyListenerRule"
+    effect = "Allow"
+    actions = [
+      "elasticloadbalancing:SetWebAcl",
+      "elasticloadbalancing:ModifyListener",
+      "elasticloadbalancing:AddListenerCertificates",
+      "elasticloadbalancing:RemoveListenerCertificates",
+      "elasticloadbalancing:ModifyRule",
+      "elasticloadbalancing:SetRulePriorities"
     ]
     resources = ["*"]
   }
 }
 
-# IAM policy for AWS Load Balancer Controller WAF permissions
-resource "aws_iam_role_policy" "aws_lb_controller_waf" {
+resource "aws_iam_policy" "aws_lb_controller" {
+  count = var.enable_aws_load_balancer_controller ? 1 : 0
+
+  name        = "${var.name}-aws-lb-controller-policy"
+  path        = "/"
+  description = "Least-privilege permissions for AWS Load Balancer Controller"
+  policy      = data.aws_iam_policy_document.aws_lb_controller[0].json
+
+  tags = var.tags
+}
+
+resource "aws_iam_role_policy_attachment" "aws_lb_controller" {
   count = var.enable_aws_load_balancer_controller ? 1 : 0
 
-  name   = "${var.name}-aws-lb-controller-waf-policy"
-  role   = aws_iam_role.aws_lb_controller[0].id
-  policy = data.aws_iam_policy_document.aws_lb_controller_waf[0].json
+  role       = aws_iam_role.aws_lb_controller[0].name
+  policy_arn = aws_iam_policy.aws_lb_controller[0].arn
 }