diff --git a/pkg/clients/database/rds.go b/pkg/clients/database/rds.go
index cc139e9f9a..b1749c99b8 100644
--- a/pkg/clients/database/rds.go
+++ b/pkg/clients/database/rds.go
@@ -720,6 +720,7 @@ func IsUpToDate(ctx context.Context, kube client.Client, r *v1beta1.RDSInstance,
 		cmpopts.IgnoreTypes(&xpv1.Reference{}, &xpv1.Selector{}, []xpv1.Reference{}),
 		cmpopts.IgnoreFields(v1beta1.RDSInstanceParameters{}, "Region"),
 		cmpopts.IgnoreFields(v1beta1.RDSInstanceParameters{}, "Tags"),
+		cmpopts.IgnoreFields(v1beta1.RDSInstanceParameters{}, "DBName"),
 		cmpopts.IgnoreFields(v1beta1.RDSInstanceParameters{}, "EngineVersion"),
 		cmpopts.IgnoreFields(v1beta1.RDSInstanceParameters{}, "SkipFinalSnapshotBeforeDeletion"),
 		cmpopts.IgnoreFields(v1beta1.RDSInstanceParameters{}, "FinalDBSnapshotIdentifier"),
diff --git a/pkg/clients/database/rds_test.go b/pkg/clients/database/rds_test.go
index f6a160ed99..52d0385a27 100644
--- a/pkg/clients/database/rds_test.go
+++ b/pkg/clients/database/rds_test.go
@@ -335,6 +335,21 @@ func TestIsUpToDate(t *testing.T) {
 			},
 			want: true,
 		},
+		"IgnoresDBName": {
+			args: args{
+				db: rdstypes.DBInstance{
+					DBName: nil,
+				},
+				r: v1beta1.RDSInstance{
+					Spec: v1beta1.RDSInstanceSpec{
+						ForProvider: v1beta1.RDSInstanceParameters{
+							DBName: &dbName,
+						},
+					},
+				},
+			},
+			want: true,
+		},
 		"SamePassword": {
 			args: args{
 				db: rdstypes.DBInstance{