diff --git a/pkg/generator/credentials.go b/pkg/generator/credentials.go
index e2d22c129..232e49016 100644
--- a/pkg/generator/credentials.go
+++ b/pkg/generator/credentials.go
@@ -53,7 +53,7 @@ func genCredentialSet(namespace string, name string, creds map[string]bundle.Cre
 	sort.Strings(credentialNames)
 
 	for _, name := range credentialNames {
-		c, err := fn(name, surveyCredentials)
+		c, err := fn(name, surveyCredentials, creds[name].Required)
 		if err != nil {
 			return cs, err
 		}
diff --git a/pkg/generator/generator.go b/pkg/generator/generator.go
index a3f14c659..405fa6a6f 100644
--- a/pkg/generator/generator.go
+++ b/pkg/generator/generator.go
@@ -36,24 +36,29 @@ const (
 	questionSkip    = "skip"
 )
 
-type generator func(name string, surveyType SurveyType) (secrets.SourceMap, error)
+type generator func(name string, surveyType SurveyType, required bool) (secrets.SourceMap, error)
 
-func genEmptySet(name string, surveyType SurveyType) (secrets.SourceMap, error) {
+func genEmptySet(name string, surveyType SurveyType, required bool) (secrets.SourceMap, error) {
 	return secrets.SourceMap{
 		Name:   name,
 		Source: secrets.Source{Hint: "TODO"},
 	}, nil
 }
 
-func genSurvey(name string, surveyType SurveyType) (secrets.SourceMap, error) {
+func genSurvey(name string, surveyType SurveyType, required bool) (secrets.SourceMap, error) {
 	if surveyType != surveyCredentials && surveyType != surveyParameters {
 		return secrets.SourceMap{}, fmt.Errorf("unsupported survey type: %s", surveyType)
 	}
 
+	surveyOptions := []string{questionSecret, questionValue, questionEnvVar, questionPath, questionCommand}
+	if !required {
+		surveyOptions = append(surveyOptions, questionSkip)
+	}
+
 	// extra space-suffix to align question and answer. Unfortunately misaligns help text
 	sourceTypePrompt := &survey.Select{
 		Message: fmt.Sprintf("How would you like to set %s %q\n ", surveyType, name),
-		Options: []string{questionSecret, questionValue, questionEnvVar, questionPath, questionCommand, questionSkip},
+		Options: surveyOptions,
 		Default: "environment variable",
 	}
 
diff --git a/pkg/generator/generator_test.go b/pkg/generator/generator_test.go
index 464fd2446..7ada6cb31 100644
--- a/pkg/generator/generator_test.go
+++ b/pkg/generator/generator_test.go
@@ -15,13 +15,13 @@ func Test_genEmptySet(t *testing.T) {
 		Source: secrets.Source{Hint: "TODO"},
 	}
 
-	got, err := genEmptySet("emptyset", surveyParameters)
+	got, err := genEmptySet("emptyset", surveyParameters, false)
 	require.NoError(t, err)
 	require.Equal(t, expected, got)
 }
 
 func Test_genSurvey_unsupported(t *testing.T) {
-	got, err := genSurvey("myturtleset", SurveyType("turtles"))
+	got, err := genSurvey("myturtleset", SurveyType("turtles"), false)
 	require.EqualError(t, err, "unsupported survey type: turtles")
 	require.Equal(t, secrets.SourceMap{}, got)
 }
diff --git a/pkg/generator/parameters.go b/pkg/generator/parameters.go
index 3007fabc8..b878f3ddc 100644
--- a/pkg/generator/parameters.go
+++ b/pkg/generator/parameters.go
@@ -54,7 +54,7 @@ func (opts *GenerateParametersOptions) genParameterSet(fn generator) (storage.Pa
 		if opts.Bundle.IsInternalParameter(name) {
 			continue
 		}
-		c, err := fn(name, surveyParameters)
+		c, err := fn(name, surveyParameters, opts.Bundle.Parameters[name].Required)
 		if err != nil {
 			return pset, err
 		}