diff --git a/codegen/src/iam.ts b/codegen/src/iam.ts
index 6f882ad..911bb82 100644
--- a/codegen/src/iam.ts
+++ b/codegen/src/iam.ts
@@ -38,17 +38,16 @@ type Principal =
     };
 
 type Action =
-  | "cloudformation:*"
+  | `${string}:*`
+  | `${iam.AwsBackupActions}`
   | `${iam.AwsCloudformationActions}`
-  | "logs:*"
-  | `${iam.AwsLogsActions}`
-  | "iam:*"
+  | `${iam.AwsEbsActions}`
+  | `${iam.AwsEc2Actions}`
   | `${iam.AwsIamActions}`
-  | "lambda:*"
+  | `${iam.AwsKmsActions}`
   | `${iam.AwsLambdaActions}`
-  | "s3:*"
+  | `${iam.AwsLogsActions}`
   | `${iam.AwsS3Actions}`
-  | "ssm:*"
   | `${iam.AwsSsmActions}`;
 
 type KnownTag =
@@ -65,7 +64,11 @@ type KnownTag =
   | "elastio:authorize"
 
   // Set on every resource deployed by Elastio
-  | "elastio:resource";
+  | "elastio:resource"
+
+  // Set by AWS Backup on resources created as part of AWS Backup restore testing.
+  // The value of this tag is the ID of the AWS Backup restore job.
+  | "awsbackup-restore-test";
 
 export function hasResourceTag(tag: KnownTag) {
   return hasTags("aws:ResourceTag", tag);
diff --git a/codegen/src/policies/ElastioAwsBackupEc2Scan.ts b/codegen/src/policies/ElastioAwsBackupEc2Scan.ts
new file mode 100644
index 0000000..af8fa08
--- /dev/null
+++ b/codegen/src/policies/ElastioAwsBackupEc2Scan.ts
@@ -0,0 +1,114 @@
+import * as iam from "../iam";
+
+export default {
+  description: "Allows Elastio to scan AWS Backup recovery points.",
+
+  statements: [
+    {
+      Sid: "ReadBackupInventory",
+      Action: [
+        // Vaults
+        "backup:ListBackupVaults",
+        "backup:DescribeBackupVault",
+
+        // Recovery points
+        "backup:ListRecoveryPointsByResource",
+        "backup:DescribeRecoveryPoint",
+        "backup:ListRecoveryPointsByBackupVault",
+        "backup:GetRecoveryPointRestoreMetadata",
+
+        // Common for all resources
+        "backup:ListTags",
+
+        // Misc.
+        "backup:ListProtectedResources",
+        "backup:ListProtectedResourcesByBackupVault",
+      ],
+      Resource: "*",
+    },
+
+    {
+      Sid: "ReadEbsInventory",
+      Action: [
+        // Volumes
+        "ec2:DescribeVolumeStatus",
+        "ec2:DescribeVolumes",
+
+        // Snapshots
+        "ec2:DescribeSnapshots",
+        "ec2:DescribeSnapshotAttribute",
+
+        // Common for all resources
+        "ec2:DescribeTags",
+
+        // Used for cost estimation
+        "ebs:ListSnapshotBlocks",
+        "ebs:ListChangedBlocks",
+      ],
+      Resource: "*",
+    },
+
+    {
+      Sid: "ReadEbsSnapshotsData",
+      Action: ["ebs:GetSnapshotBlock"],
+      Resource: "*",
+    },
+
+    {
+      Sid: "ReadEc2Inventory",
+      Action: [
+        "ec2:DescribeInstances",
+        "ec2:DescribeImages",
+        "ec2:DescribeHosts",
+        "ssm:DescribeInstanceInformation",
+      ],
+      Resource: "*",
+    },
+
+    {
+      Sid: "ShareEbsSnapshot",
+      Action: ["ec2:ModifySnapshotAttribute"],
+      Resource: "*",
+      Condition: {
+        // Needed to add createVolumePermission for the sharing the snapshot
+        // with the connector account.
+        StringLike: {
+          "ec2:Add/userId": "*",
+        },
+      },
+    },
+
+    {
+      Sid: "KmsAccess",
+
+      // Users need to put a special tag on their KMS keys to allow Elastio
+      // use them for decrypting their data. It must be documented in public
+      // Elastio documentation.
+      Condition: iam.hasResourceTag("elastio:authorize"),
+
+      Action: [
+        // These actions are needed to reencrypt the volumes that were encrypted
+        // by the KMS key.
+        "kms:ReEncryptFrom",
+        "kms:ReEncryptTo",
+        "kms:CreateGrant",
+        "kms:Encrypt",
+
+        // Needed only for some cases. For example, when we want to snapshot an EBS
+        // volume that was created from a snapshot of the root volume of an EC2 instance.
+        // These calls are made by the ebs.amazonaws.com and not by our code.
+        "kms:DescribeKey",
+
+        // GenerateDataKeyWithoutPlaintext in particular is required in case when
+        // we create a volume from an unencrypted snapshot but there is a default
+        // KMS encryption key set in EBS for the volume.
+        "kms:GenerateDataKey",
+        "kms:GenerateDataKeyWithoutPlaintext",
+
+        // This is required when reading S3 buckets encrypted with a KMS key
+        "kms:Decrypt",
+      ],
+      Resource: "*",
+    },
+  ],
+} satisfies iam.Policy;
diff --git a/iam-policies/terraform/README.md b/iam-policies/terraform/README.md
index 0942133..e6f7954 100644
--- a/iam-policies/terraform/README.md
+++ b/iam-policies/terraform/README.md
@@ -30,8 +30,10 @@ See the basic [usage example](./examples/basic/main.tf).
 | Policy                                                       | Description                                                    |
 | ------------------------------------------------------------ | -------------------------------------------------------------- |
 | [`ElastioAssetAccountDeployer`][ElastioAssetAccountDeployer] | Permissions required to deploy the Elastio Asset Account stack |
+| [`ElastioAwsBackupEc2Scan`][ElastioAwsBackupEc2Scan]         | Allows Elastio to scan AWS Backup recovery points.             |
 
 [ElastioAssetAccountDeployer]: ../../codegen/src/policies/ElastioAssetAccountDeployer.ts
+[ElastioAwsBackupEc2Scan]: ../../codegen/src/policies/ElastioAwsBackupEc2Scan.ts
 
 <!-- ELASTIO_END_POLICY_NAMES -->
 
diff --git a/iam-policies/terraform/policies/ElastioAwsBackupEc2Scan.json b/iam-policies/terraform/policies/ElastioAwsBackupEc2Scan.json
new file mode 100644
index 0000000..dc8cf7c
--- /dev/null
+++ b/iam-policies/terraform/policies/ElastioAwsBackupEc2Scan.json
@@ -0,0 +1,86 @@
+{
+  "Description": "Allows Elastio to scan AWS Backup recovery points.",
+  "PolicyDocument": {
+    "Version": "2012-10-17",
+    "Statement": [
+      {
+        "Sid": "ReadBackupInventory",
+        "Action": [
+          "backup:ListBackupVaults",
+          "backup:DescribeBackupVault",
+          "backup:ListRecoveryPointsByResource",
+          "backup:DescribeRecoveryPoint",
+          "backup:ListRecoveryPointsByBackupVault",
+          "backup:GetRecoveryPointRestoreMetadata",
+          "backup:ListTags",
+          "backup:ListProtectedResources",
+          "backup:ListProtectedResourcesByBackupVault"
+        ],
+        "Resource": "*",
+        "Effect": "Allow"
+      },
+      {
+        "Sid": "ReadEbsInventory",
+        "Action": [
+          "ec2:DescribeVolumeStatus",
+          "ec2:DescribeVolumes",
+          "ec2:DescribeSnapshots",
+          "ec2:DescribeSnapshotAttribute",
+          "ec2:DescribeTags",
+          "ebs:ListSnapshotBlocks",
+          "ebs:ListChangedBlocks"
+        ],
+        "Resource": "*",
+        "Effect": "Allow"
+      },
+      {
+        "Sid": "ReadEbsSnapshotsData",
+        "Action": ["ebs:GetSnapshotBlock"],
+        "Resource": "*",
+        "Effect": "Allow"
+      },
+      {
+        "Sid": "ReadEc2Inventory",
+        "Action": [
+          "ec2:DescribeInstances",
+          "ec2:DescribeImages",
+          "ec2:DescribeHosts",
+          "ssm:DescribeInstanceInformation"
+        ],
+        "Resource": "*",
+        "Effect": "Allow"
+      },
+      {
+        "Sid": "ShareEbsSnapshot",
+        "Action": ["ec2:ModifySnapshotAttribute"],
+        "Resource": "*",
+        "Condition": {
+          "StringLike": {
+            "ec2:Add/userId": "*"
+          }
+        },
+        "Effect": "Allow"
+      },
+      {
+        "Sid": "KmsAccess",
+        "Condition": {
+          "StringLike": {
+            "aws:ResourceTag/elastio:authorize": "*"
+          }
+        },
+        "Action": [
+          "kms:ReEncryptFrom",
+          "kms:ReEncryptTo",
+          "kms:CreateGrant",
+          "kms:Encrypt",
+          "kms:DescribeKey",
+          "kms:GenerateDataKey",
+          "kms:GenerateDataKeyWithoutPlaintext",
+          "kms:Decrypt"
+        ],
+        "Resource": "*",
+        "Effect": "Allow"
+      }
+    ]
+  }
+}