diff --git a/CHANGELOG.md b/CHANGELOG.md
index d33472c8e6..e64b292766 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -26,6 +26,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
   ([#3777](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/3777))
 - `opentelemetry-exporter-credential-provider-gcp`: create this package which provides support for supplying your machine's Application Default 
   Credentials (https://cloud.google.com/docs/authentication/application-default-credentials) to the OTLP Exporters created automatically by OpenTelemetry Python's auto instrumentation. These credentials authorize OTLP traces to be sent to `telemetry.googleapis.com`. [#3766](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/3766).
+- `opentelemetry-instrumentation-psycopg` Add missing parameter `capture_parameters` to instrumentor.
+  ([#3676](https://github.com/open-telemetry/opentelemetry-python-contrib/pull/3676))
 
 ## Version 1.37.0/0.58b0 (2025-09-11)
 
diff --git a/instrumentation/opentelemetry-instrumentation-psycopg/src/opentelemetry/instrumentation/psycopg/__init__.py b/instrumentation/opentelemetry-instrumentation-psycopg/src/opentelemetry/instrumentation/psycopg/__init__.py
index d2c4880650..e3c85ccf16 100644
--- a/instrumentation/opentelemetry-instrumentation-psycopg/src/opentelemetry/instrumentation/psycopg/__init__.py
+++ b/instrumentation/opentelemetry-instrumentation-psycopg/src/opentelemetry/instrumentation/psycopg/__init__.py
@@ -184,6 +184,7 @@ def _instrument(self, **kwargs: Any):
         enable_attribute_commenter = kwargs.get(
             "enable_attribute_commenter", False
         )
+        capture_parameters = kwargs.get("capture_parameters", False)
         dbapi.wrap_connect(
             __name__,
             psycopg,
@@ -196,6 +197,7 @@ def _instrument(self, **kwargs: Any):
             enable_commenter=enable_sqlcommenter,
             commenter_options=commenter_options,
             enable_attribute_commenter=enable_attribute_commenter,
+            capture_parameters=capture_parameters,
         )
 
         dbapi.wrap_connect(
@@ -210,6 +212,7 @@ def _instrument(self, **kwargs: Any):
             enable_commenter=enable_sqlcommenter,
             commenter_options=commenter_options,
             enable_attribute_commenter=enable_attribute_commenter,
+            capture_parameters=capture_parameters,
         )
         dbapi.wrap_connect(
             __name__,
@@ -223,6 +226,7 @@ def _instrument(self, **kwargs: Any):
             enable_commenter=enable_sqlcommenter,
             commenter_options=commenter_options,
             enable_attribute_commenter=enable_attribute_commenter,
+            capture_parameters=capture_parameters,
         )
 
     def _uninstrument(self, **kwargs: Any):
diff --git a/instrumentation/opentelemetry-instrumentation-psycopg/tests/test_psycopg_integration.py b/instrumentation/opentelemetry-instrumentation-psycopg/tests/test_psycopg_integration.py
index 0987d3e932..da43fbad32 100644
--- a/instrumentation/opentelemetry-instrumentation-psycopg/tests/test_psycopg_integration.py
+++ b/instrumentation/opentelemetry-instrumentation-psycopg/tests/test_psycopg_integration.py
@@ -264,6 +264,24 @@ def test_span_name(self):
         self.assertEqual(spans_list[6].name, "postgresql")
         self.assertEqual(spans_list[7].name, "--")
 
+    def test_span_params_attribute(self):
+        PsycopgInstrumentor().instrument(capture_parameters=True)
+        cnx = psycopg.connect(database="test")
+        query = "SELECT * FROM mytable WHERE myparam1 = %s AND myparam2 = %s"
+        params = ("test", 42)
+
+        cursor = cnx.cursor()
+
+        cursor.execute(query, params)
+        spans_list = self.memory_exporter.get_finished_spans()
+        self.assertEqual(len(spans_list), 1)
+        self.assertEqual(spans_list[0].name, "SELECT")
+        assert spans_list[0].attributes is not None
+        self.assertEqual(spans_list[0].attributes["db.statement"], query)
+        self.assertEqual(
+            spans_list[0].attributes["db.statement.parameters"], str(params)
+        )
+
     # pylint: disable=unused-argument
     def test_not_recording(self):
         mock_tracer = mock.Mock()
@@ -479,6 +497,23 @@ async def test_span_name_async(self):
         self.assertEqual(spans_list[4].name, "query")
         self.assertEqual(spans_list[5].name, "query")
 
+    async def test_span_params_attribute(self):
+        PsycopgInstrumentor().instrument(capture_parameters=True)
+        cnx = await psycopg.AsyncConnection.connect("test")
+        query = "SELECT * FROM mytable WHERE myparam1 = %s AND myparam2 = %s"
+        params = ("test", 42)
+        async with cnx.cursor() as cursor:
+            await cursor.execute(query, params)
+
+        spans_list = self.memory_exporter.get_finished_spans()
+        self.assertEqual(len(spans_list), 1)
+        self.assertEqual(spans_list[0].name, "SELECT")
+        assert spans_list[0].attributes is not None
+        self.assertEqual(spans_list[0].attributes["db.statement"], query)
+        self.assertEqual(
+            spans_list[0].attributes["db.statement.parameters"], str(params)
+        )
+
     # pylint: disable=unused-argument
     async def test_not_recording_async(self):
         mock_tracer = mock.Mock()