diff --git a/hscontrol/policy/v2/types.go b/hscontrol/policy/v2/types.go
index 4e248323..50a89f8c 100644
--- a/hscontrol/policy/v2/types.go
+++ b/hscontrol/policy/v2/types.go
@@ -2271,6 +2271,10 @@ var tailscaleCapAllowlist = map[tailcfg.PeerCapability]bool{
 	tailcfg.PeerCapabilityWebUI:      true, // tailscale.com/cap/webui
 	tailcfg.PeerCapabilityKubernetes: true, // tailscale.com/cap/kubernetes
 	tailcfg.PeerCapabilityTsIDP:      true, // tailscale.com/cap/tsidp
+
+	// tailscale.com/cap/secrets is the capability used by setec
+	// (github.com/tailscale/setec); allow it so it can be granted via policy.
+	tailcfg.PeerCapability("tailscale.com/cap/secrets"): true,
 }
 
 // validateGrantSrcDstCombination validates [Grant]-specific source/destination
diff --git a/hscontrol/policy/v2/types_test.go b/hscontrol/policy/v2/types_test.go
index 1a046f12..19134e5b 100644
--- a/hscontrol/policy/v2/types_test.go
+++ b/hscontrol/policy/v2/types_test.go
@@ -6244,3 +6244,27 @@ func TestUnmarshalPolicySSHTests(t *testing.T) {
 		})
 	}
 }
+
+func TestValidateCapabilityName(t *testing.T) {
+	tests := []struct {
+		name    string
+		cap     string
+		wantErr error
+	}{
+		{name: "custom domain allowed", cap: "example.com/cap/foo", wantErr: nil},
+		{name: "allowlisted tailscale cap", cap: "tailscale.com/cap/drive", wantErr: nil},
+		{name: "setec secrets cap allowed", cap: "tailscale.com/cap/secrets", wantErr: nil},
+		{name: "non-allowlisted tailscale cap rejected", cap: "tailscale.com/cap/nope", wantErr: ErrCapNameTailscaleDomain},
+		{name: "url scheme rejected", cap: "https://tailscale.com/cap/drive", wantErr: ErrCapNameInvalidForm},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			err := validateCapabilityName(tt.cap)
+			if tt.wantErr == nil {
+				require.NoError(t, err)
+			} else {
+				require.ErrorIs(t, err, tt.wantErr)
+			}
+		})
+	}
+}