diff --git a/pyproject.toml b/pyproject.toml
index 09bc7e6..cd0f10a 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "pgmq"
-version = "1.0.2"
+version = "1.0.3"
 description = "Python client for the PGMQ Postgres extension."
 readme = "README.md"
 license = "Apache-2.0"
diff --git a/src/pgmq/queue.py b/src/pgmq/queue.py
index 8883567..26b2c2c 100644
--- a/src/pgmq/queue.py
+++ b/src/pgmq/queue.py
@@ -1,6 +1,8 @@
 from dataclasses import dataclass, field
-from typing import Optional, List, Union
+from collections.abc import Callable
+from typing import Optional, List, Union, Any
 from psycopg.types.json import Jsonb
+from psycopg.conninfo import make_conninfo
 from psycopg_pool import ConnectionPool
 import os
 from pgmq.messages import Message, QueueMetrics
@@ -21,7 +23,7 @@ class PGMQueue:
     delay: int = 0
     vt: int = 30
     pool_size: int = 10
-    kwargs: dict = field(default_factory=dict)
+    kwargs: Union[dict, Callable[[], dict[str, Any]]] = field(default_factory=dict)
     verbose: bool = False
     log_filename: Optional[str] = None
     init_extension: bool = True
@@ -37,7 +39,23 @@ def __post_init__(self) -> None:
         user={self.username}
         password={self.password}
         """
-        self.pool = ConnectionPool(conninfo, open=True, **self.kwargs)
+        if callable(self.kwargs):
+            # When kwargs is callable, create a callable conninfo that merges
+            # the base connection string with dynamic values (e.g., IAM auth tokens).
+            # psycopg_pool calls this each time a new connection is needed.
+            kwargs_callable = self.kwargs
+
+            def get_conninfo() -> str:
+                extra = kwargs_callable()  # e.g., {"password": "fresh_token"}
+                return make_conninfo(conninfo, **extra)
+
+            self.pool = ConnectionPool(get_conninfo, open=True)
+        else:
+            if "kwargs" in self.kwargs:
+                raise TypeError(
+                    "The 'kwargs' key is reserved for callables and cannot be used in the kwargs dictionary."
+                )
+            self.pool = ConnectionPool(conninfo, open=True, **self.kwargs)
         self._initialize_logging()
         if self.init_extension:
             self._initialize_extensions()
diff --git a/uv.lock b/uv.lock
index 4f4b499..82dfe30 100644
--- a/uv.lock
+++ b/uv.lock
@@ -1428,7 +1428,7 @@ wheels = [
 
 [[package]]
 name = "pgmq"
-version = "1.0.1"
+version = "1.0.3"
 source = { editable = "." }
 dependencies = [
     { name = "orjson" },