diff --git a/changelog/unreleased/kong/fix-vault-reference-parsing-endslash.yml b/changelog/unreleased/kong/fix-vault-reference-parsing-endslash.yml
new file mode 100644
index 000000000000..fdebe2687f4c
--- /dev/null
+++ b/changelog/unreleased/kong/fix-vault-reference-parsing-endslash.yml
@@ -0,0 +1,4 @@
+message: |
+   **Vault**: Reference ending with slash when parsed should not return a key.
+type: bugfix
+scope: PDK
diff --git a/kong/pdk/vault.lua b/kong/pdk/vault.lua
index 4a29f405aff8..4d2b231a1626 100644
--- a/kong/pdk/vault.lua
+++ b/kong/pdk/vault.lua
@@ -58,6 +58,11 @@ local BRACE_START = byte("{")
 local BRACE_END = byte("}")
 local COLON = byte(":")
 local SLASH = byte("/")
+local BYT_V = byte("v")
+local BYT_A = byte("a")
+local BYT_U = byte("u")
+local BYT_L = byte("l")
+local BYT_T = byte("t")
 
 
 local VAULT_QUERY_OPTS = { workspace = ngx.null }
@@ -72,13 +77,17 @@ local VAULT_QUERY_OPTS = { workspace = ngx.null }
 -- @tparam string reference reference to check
 -- @treturn boolean `true` is the passed in reference looks like a reference, otherwise `false`
 local function is_reference(reference)
-  return type(reference)      == "string"
-     and byte(reference, 1)   == BRACE_START
-     and byte(reference, -1)  == BRACE_END
-     and byte(reference, 7)   == COLON
-     and byte(reference, 8)   == SLASH
-     and byte(reference, 9)   == SLASH
-     and sub(reference, 2, 6) == "vault"
+  return type(reference)     == "string"
+     and byte(reference, 1)  == BRACE_START
+     and byte(reference, 2)  == BYT_V
+     and byte(reference, 3)  == BYT_A
+     and byte(reference, 4)  == BYT_U
+     and byte(reference, 5)  == BYT_L
+     and byte(reference, 6)  == BYT_T
+     and byte(reference, 7)  == COLON
+     and byte(reference, 8)  == SLASH
+     and byte(reference, 9)  == SLASH
+     and byte(reference, -1) == BRACE_END
 end
 
 
@@ -146,18 +155,15 @@ local function parse_reference(reference)
   local key
   local parts = parse_path(resource)
   local count = #parts
-  if count == 1 then
+  if count == 0 then
+    return nil, fmt("reference url has invalid path [%s]", reference)
+  elseif count == 1 then
     resource = unescape_uri(parts[1])
-
+  elseif parts.is_directory then
+    resource = unescape_uri(concat(parts, "/", 1, count))
   else
     resource = unescape_uri(concat(parts, "/", 1, count - 1))
-    if parts[count] ~= "" then
-      key = unescape_uri(parts[count])
-    end
-  end
-
-  if resource == "" then
-    return nil, fmt("reference url has invalid path [%s]", reference)
+    key = unescape_uri(parts[count])
   end
 
   local config
diff --git a/spec/01-unit/23-vaults_spec.lua b/spec/01-unit/23-vaults_spec.lua
index 5eae2fc5aef0..f522f86ac6a0 100644
--- a/spec/01-unit/23-vaults_spec.lua
+++ b/spec/01-unit/23-vaults_spec.lua
@@ -70,6 +70,20 @@ describe("Vault PDK", function()
     assert.is_nil(res.version)
   end)
 
+  it("test init path with only slashes does not work", function()
+    local res, err = parse_reference("{vault://env}")
+    assert.is_nil(res)
+    assert.equal("reference url is missing path [{vault://env}]", err)
+
+    local res, err = parse_reference("{vault://env/}")
+    assert.is_nil(res)
+    assert.equal("reference url has empty path [{vault://env/}]", err)
+
+    local res, err = parse_reference("{vault://env/////}")
+    assert.is_nil(res)
+    assert.equal("reference url has invalid path [{vault://env/////}]", err)
+  end)
+
   it("test init nested/path", function()
     local res, err = parse_reference("{vault://env/test-secret/test-key}")
     assert.is_nil(err)
@@ -80,6 +94,46 @@ describe("Vault PDK", function()
     assert.is_nil(res.version)
   end)
 
+  it("test init nested/path is url decoded", function()
+    local res, err = parse_reference("{vault://env/test%3Asecret/test%3Akey}")
+    assert.is_nil(err)
+    assert.is_nil(res.config)
+    assert.is_equal("env", res.name)
+    assert.is_equal("test:secret", res.resource)
+    assert.is_equal("test:key", res.key)
+    assert.is_nil(res.version)
+  end)
+
+  it("test init nested/path ignores consecutive slashes", function()
+    local res, err = parse_reference("{vault://env//////test-secret//////test-key}")
+    assert.is_nil(err)
+    assert.is_nil(res.config)
+    assert.is_equal("env", res.name)
+    assert.is_equal("test-secret", res.resource)
+    assert.is_equal("test-key", res.key)
+    assert.is_nil(res.version)
+  end)
+
+  it("test init nested/path ending with slash", function()
+    local res, err = parse_reference("{vault://env/test-secret/test-key/}")
+    assert.is_nil(err)
+    assert.is_nil(res.config)
+    assert.is_equal("env", res.name)
+    assert.is_equal("test-secret/test-key", res.resource)
+    assert.is_nil(res.key)
+    assert.is_nil(res.version)
+  end)
+
+  it("test init nested/path ending with slash ignores consecutive slashes", function()
+    local res, err = parse_reference("{vault://env//////test-secret//////test-key//////}")
+    assert.is_nil(err)
+    assert.is_nil(res.config)
+    assert.is_equal("env", res.name)
+    assert.is_equal("test-secret/test-key", res.resource)
+    assert.is_nil(res.key)
+    assert.is_nil(res.version)
+  end)
+
   it("test init opts", function()
     local res, err = parse_reference("{vault://env/test?opt1=val1}")
     assert.is_nil(err)