diff --git a/.changelog/20229.txt b/.changelog/20229.txt
new file mode 100644
index 000000000000..36326020b2bf
--- /dev/null
+++ b/.changelog/20229.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+aws/resource_aws_lambda_event_source_mapping: Ignore `InvalidParameterValueException` error caused by IAM propagation when creating Lambda event source mapping with Kinesis stream source
+```
diff --git a/aws/resource_aws_lambda_event_source_mapping.go b/aws/resource_aws_lambda_event_source_mapping.go
index b48c61b646a1..cb606aa14f67 100644
--- a/aws/resource_aws_lambda_event_source_mapping.go
+++ b/aws/resource_aws_lambda_event_source_mapping.go
@@ -388,6 +388,10 @@ func resourceAwsLambdaEventSourceMappingCreate(d *schema.ResourceData, meta inte
 			return resource.RetryableError(err)
 		}
 
+		if tfawserr.ErrMessageContains(err, lambda.ErrCodeInvalidParameterValueException, "ensure the role can perform") {
+			return resource.RetryableError(err)
+		}
+
 		if err != nil {
 			return resource.NonRetryableError(err)
 		}