diff --git a/changelogs/fragments/3139-tss-lookup-plugin-update-to-make-compatible-with-sdk-v1.yml b/changelogs/fragments/3139-tss-lookup-plugin-update-to-make-compatible-with-sdk-v1.yml
new file mode 100644
index 0000000000..f06fa68ce0
--- /dev/null
+++ b/changelogs/fragments/3139-tss-lookup-plugin-update-to-make-compatible-with-sdk-v1.yml
@@ -0,0 +1,3 @@
+bugfixes:
+  - tss lookup plugin - fixed incompatibility with ``python-tss-sdk`` version 1.0.0
+    (https://github.com/ansible-collections/community.general/issues/3057, https://github.com/ansible-collections/community.general/pull/3139).
diff --git a/plugins/lookup/tss.py b/plugins/lookup/tss.py
index b7b7cd85e0..d5e6ea6dcd 100644
--- a/plugins/lookup/tss.py
+++ b/plugins/lookup/tss.py
@@ -112,16 +112,17 @@ EXAMPLES = r"""
       - ansible.builtin.debug:
           msg: the password is {{ secret_password }}
 """
-
+from distutils.version import LooseVersion
 from ansible.errors import AnsibleError, AnsibleOptionsError
 
 sdk_is_missing = False
 
 try:
+    from thycotic import __version__ as sdk_version
     from thycotic.secrets.server import (
         SecretServer,
-        SecretServerAccessError,
         SecretServerError,
+        PasswordGrantAuthorizer,
     )
 except ImportError:
     sdk_is_missing = True
@@ -136,7 +137,20 @@ display = Display()
 class LookupModule(LookupBase):
     @staticmethod
     def Client(server_parameters):
-        return SecretServer(**server_parameters)
+
+        if LooseVersion(sdk_version) < LooseVersion('1.0.0'):
+            return SecretServer(**server_parameters)
+        else:
+            authorizer = PasswordGrantAuthorizer(
+                server_parameters["base_url"],
+                server_parameters["username"],
+                server_parameters["password"],
+                server_parameters["token_path_uri"],
+            )
+
+            return SecretServer(
+                server_parameters["base_url"], authorizer, server_parameters["api_path_uri"]
+            )
 
     def run(self, terms, variables, **kwargs):
         if sdk_is_missing: