diff --git a/compute_tools/src/compute.rs b/compute_tools/src/compute.rs
index a240e69df8..b5415f8742 100644
--- a/compute_tools/src/compute.rs
+++ b/compute_tools/src/compute.rs
@@ -413,6 +413,52 @@ struct StartVmMonitorResult {
     vm_monitor: Option<JoinHandle<Result<()>>>,
 }
 
+/// Databricks-specific environment variables to be passed to the `postgres` sub-process.
+pub struct DatabricksEnvVars {
+    /// The Databricks "endpoint ID" of the compute instance. Used by `postgres` to check
+    /// the token scopes of internal auth tokens.
+    pub endpoint_id: String,
+    /// Hostname of the Databricks workspace URL this compute instance belongs to.
+    /// Used by postgres to verify Databricks PAT tokens.
+    pub workspace_host: String,
+}
+
+impl DatabricksEnvVars {
+    pub fn new(compute_spec: &ComputeSpec, compute_id: Option<&String>) -> Self {
+        // compute_id is a string format of "{endpoint_id}/{compute_idx}"
+        // endpoint_id is a uuid. We only need to pass down endpoint_id to postgres.
+        // Panics if compute_id is not set or not in the expected format.
+        let endpoint_id = compute_id.unwrap().split('/').next().unwrap().to_string();
+        let workspace_host = compute_spec
+            .databricks_settings
+            .as_ref()
+            .map(|s| s.databricks_workspace_host.clone())
+            .unwrap_or("".to_string());
+        Self {
+            endpoint_id,
+            workspace_host,
+        }
+    }
+
+    /// Constants for the names of Databricks-specific postgres environment variables.
+    const DATABRICKS_ENDPOINT_ID_ENVVAR: &'static str = "DATABRICKS_ENDPOINT_ID";
+    const DATABRICKS_WORKSPACE_HOST_ENVVAR: &'static str = "DATABRICKS_WORKSPACE_HOST";
+
+    /// Convert DatabricksEnvVars to a list of string pairs that can be passed as env vars. Consumes `self`.
+    pub fn to_env_var_list(self) -> Vec<(String, String)> {
+        vec![
+            (
+                Self::DATABRICKS_ENDPOINT_ID_ENVVAR.to_string(),
+                self.endpoint_id.clone(),
+            ),
+            (
+                Self::DATABRICKS_WORKSPACE_HOST_ENVVAR.to_string(),
+                self.workspace_host.clone(),
+            ),
+        ]
+    }
+}
+
 impl ComputeNode {
     pub fn new(params: ComputeNodeParams, config: ComputeConfig) -> Result<Self> {
         let connstr = params.connstr.as_str();
@@ -1459,8 +1505,20 @@ impl ComputeNode {
             )
         })?;
 
-        // Update pg_hba.conf received with basebackup.
-        update_pg_hba(pgdata_path, None)?;
+        if let Some(databricks_settings) = spec.databricks_settings.as_ref() {
+            copy_tls_certificates(
+                &databricks_settings.pg_compute_tls_settings.key_file,
+                &databricks_settings.pg_compute_tls_settings.cert_file,
+                pgdata_path,
+            )?;
+
+            // Update pg_hba.conf received with basebackup including additional databricks settings.
+            update_pg_hba(pgdata_path, Some(&databricks_settings.databricks_pg_hba))?;
+            update_pg_ident(pgdata_path, Some(&databricks_settings.databricks_pg_ident))?;
+        } else {
+            // Update pg_hba.conf received with basebackup.
+            update_pg_hba(pgdata_path, None)?;
+        }
 
         // Place pg_dynshmem under /dev/shm. This allows us to use
         // 'dynamic_shared_memory_type = mmap' so that the files are placed in
@@ -1573,14 +1631,31 @@ impl ComputeNode {
     pub fn start_postgres(&self, storage_auth_token: Option<String>) -> Result<PostgresHandle> {
         let pgdata_path = Path::new(&self.params.pgdata);
 
+        let env_vars: Vec<(String, String)> = if self.params.lakebase_mode {
+            let databricks_env_vars = {
+                let state = self.state.lock().unwrap();
+                let spec = &state.pspec.as_ref().unwrap().spec;
+                DatabricksEnvVars::new(spec, Some(&self.params.compute_id))
+            };
+
+            info!(
+                "Starting Postgres for databricks endpoint id: {}",
+                &databricks_env_vars.endpoint_id
+            );
+
+            let mut env_vars = databricks_env_vars.to_env_var_list();
+            env_vars.extend(storage_auth_token.map(|t| ("NEON_AUTH_TOKEN".to_string(), t)));
+            env_vars
+        } else if let Some(storage_auth_token) = &storage_auth_token {
+            vec![("NEON_AUTH_TOKEN".to_owned(), storage_auth_token.to_owned())]
+        } else {
+            vec![]
+        };
+
         // Run postgres as a child process.
         let mut pg = maybe_cgexec(&self.params.pgbin)
             .args(["-D", &self.params.pgdata])
-            .envs(if let Some(storage_auth_token) = &storage_auth_token {
-                vec![("NEON_AUTH_TOKEN", storage_auth_token)]
-            } else {
-                vec![]
-            })
+            .envs(env_vars)
             .stderr(Stdio::piped())
             .spawn()
             .expect("cannot start postgres process");
diff --git a/compute_tools/src/spec.rs b/compute_tools/src/spec.rs
index d00f86a2c0..751de76ca5 100644
--- a/compute_tools/src/spec.rs
+++ b/compute_tools/src/spec.rs
@@ -137,12 +137,13 @@ pub fn get_config_from_control_plane(base_uri: &str, compute_id: &str) -> Result
 /// Check `pg_hba.conf` and update if needed to allow external connections.
 pub fn update_pg_hba(pgdata_path: &Path, databricks_pg_hba: Option<&String>) -> Result<()> {
     // XXX: consider making it a part of config.json
+    info!("checking pg_hba.conf");
     let pghba_path = pgdata_path.join("pg_hba.conf");
 
     // Update pg_hba to contains databricks specfic settings before adding neon settings
     // PG uses the first record that matches to perform authentication, so we need to have
     // our rules before the default ones from neon.
-    // See https://www.postgresql.org/docs/16/auth-pg-hba-conf.html
+    // See https://www.postgresql.org/docs/current/auth-pg-hba-conf.html
     if let Some(databricks_pg_hba) = databricks_pg_hba {
         if config::line_in_file(
             &pghba_path,
diff --git a/control_plane/src/endpoint.rs b/control_plane/src/endpoint.rs
index 6221d83c7f..1c7f489d68 100644
--- a/control_plane/src/endpoint.rs
+++ b/control_plane/src/endpoint.rs
@@ -793,6 +793,7 @@ impl Endpoint {
                 autoprewarm: args.autoprewarm,
                 offload_lfc_interval_seconds: args.offload_lfc_interval_seconds,
                 suspend_timeout_seconds: -1, // Only used in neon_local.
+                databricks_settings: None,
             };
 
             // this strange code is needed to support respec() in tests
diff --git a/libs/compute_api/src/spec.rs b/libs/compute_api/src/spec.rs
index 061ac3e66d..474f523e73 100644
--- a/libs/compute_api/src/spec.rs
+++ b/libs/compute_api/src/spec.rs
@@ -193,6 +193,10 @@ pub struct ComputeSpec {
     ///
     /// We use this value to derive other values, such as the installed extensions metric.
     pub suspend_timeout_seconds: i64,
+
+    // Databricks specific options for compute instance.
+    // These settings are not part of postgresql.conf.
+    pub databricks_settings: Option<DatabricksSettings>,
 }
 
 /// Feature flag to signal `compute_ctl` to enable certain experimental functionality.