diff --git a/internal/pkg/aws/iam/iam.go b/internal/pkg/aws/iam/iam.go
index 92e674449d2..44232140bbe 100644
--- a/internal/pkg/aws/iam/iam.go
+++ b/internal/pkg/aws/iam/iam.go
@@ -25,6 +25,7 @@ type api interface {
 	ListRolePolicies(input *iam.ListRolePoliciesInput) (*iam.ListRolePoliciesOutput, error)
 	DeleteRole(input *iam.DeleteRoleInput) (*iam.DeleteRoleOutput, error)
 	CreateServiceLinkedRole(input *iam.CreateServiceLinkedRoleInput) (*iam.CreateServiceLinkedRoleOutput, error)
+	ListPolicies(input *iam.ListPoliciesInput) (*iam.ListPoliciesOutput, error)
 }
 
 // IAM wraps the AWS SDK's IAM client.
@@ -98,6 +99,32 @@ func (c *IAM) CreateECSServiceLinkedRole() error {
 	return nil
 }
 
+// ListPolicyNames returns a list of local policy names.
+func (c *IAM) ListPolicyNames() ([]string, error) {
+	var policies []*iam.Policy
+	var marker *string
+	for {
+		output, err := c.client.ListPolicies(&iam.ListPoliciesInput{
+			Marker:            marker,
+			Scope:             aws.String("Local"),
+			PolicyUsageFilter: aws.String("PermissionsBoundary"),
+		})
+		if err != nil {
+			return nil, fmt.Errorf("list IAM policies: %w", err)
+		}
+		policies = append(policies, output.Policies...)
+		if !aws.BoolValue(output.IsTruncated) {
+			break
+		}
+		marker = output.Marker
+	}
+	var policyNames = make([]string, len(policies))
+	for i, policy := range policies {
+		policyNames[i] = aws.StringValue(policy.PolicyName)
+	}
+	return policyNames, nil
+}
+
 func (c *IAM) deleteRolePolicies(roleName string) error {
 	policyNames, err := c.listRolePolicyNames(roleName)
 	if err != nil {
diff --git a/internal/pkg/aws/iam/iam_test.go b/internal/pkg/aws/iam/iam_test.go
index 7223baf0d2f..705f8da0bb6 100644
--- a/internal/pkg/aws/iam/iam_test.go
+++ b/internal/pkg/aws/iam/iam_test.go
@@ -242,3 +242,64 @@ func TestIAM_CreateECSServiceLinkedRole(t *testing.T) {
 		})
 	}
 }
+
+func TestIAM_ListPolicies(t *testing.T) {
+	testCases := map[string]struct {
+		inClient func(ctrl *gomock.Controller) *mocks.Mockapi
+
+		wantedPolicies []string
+		wantedErr      error
+	}{
+		"wraps error on failure": {
+			inClient: func(ctrl *gomock.Controller) *mocks.Mockapi {
+				m := mocks.NewMockapi(ctrl)
+				m.EXPECT().
+					ListPolicies(gomock.Any()).
+					Return(nil, errors.New("some error"))
+				return m
+			},
+
+			wantedErr: errors.New("list IAM policies: some error"),
+		},
+		"returns list of policy names": {
+			inClient: func(ctrl *gomock.Controller) *mocks.Mockapi {
+				m := mocks.NewMockapi(ctrl)
+				m.EXPECT().
+					ListPolicies(gomock.Any()).
+					Return(&iam.ListPoliciesOutput{
+						Policies: []*iam.Policy{
+							{
+								PolicyName: aws.String("myFirstPolicyName"),
+							},
+							{
+								PolicyName: aws.String("mySecondPolicyName"),
+							},
+						},
+					}, nil)
+				return m
+			},
+			wantedPolicies: []string{"myFirstPolicyName", "mySecondPolicyName"},
+		},
+	}
+	for name, tc := range testCases {
+		t.Run(name, func(t *testing.T) {
+			// GIVEN
+			ctrl := gomock.NewController(t)
+			defer ctrl.Finish()
+			iam := &IAM{
+				client: tc.inClient(ctrl),
+			}
+
+			// WHEN
+			output, err := iam.ListPolicyNames()
+
+			// THEN
+			if tc.wantedErr != nil {
+				require.EqualError(t, err, tc.wantedErr.Error())
+			} else {
+				require.NoError(t, err)
+				require.Equal(t, tc.wantedPolicies, output)
+			}
+		})
+	}
+}
diff --git a/internal/pkg/aws/iam/mocks/mock_iam.go b/internal/pkg/aws/iam/mocks/mock_iam.go
index 0858de5b034..973b3781dd3 100644
--- a/internal/pkg/aws/iam/mocks/mock_iam.go
+++ b/internal/pkg/aws/iam/mocks/mock_iam.go
@@ -79,6 +79,21 @@ func (mr *MockapiMockRecorder) DeleteRolePolicy(input interface{}) *gomock.Call
 	return mr.mock.ctrl.RecordCallWithMethodType(mr.mock, "DeleteRolePolicy", reflect.TypeOf((*Mockapi)(nil).DeleteRolePolicy), input)
 }
 
+// ListPolicies mocks base method.
+func (m *Mockapi) ListPolicies(input *iam.ListPoliciesInput) (*iam.ListPoliciesOutput, error) {
+	m.ctrl.T.Helper()
+	ret := m.ctrl.Call(m, "ListPolicies", input)
+	ret0, _ := ret[0].(*iam.ListPoliciesOutput)
+	ret1, _ := ret[1].(error)
+	return ret0, ret1
+}
+
+// ListPolicies indicates an expected call of ListPolicies.
+func (mr *MockapiMockRecorder) ListPolicies(input interface{}) *gomock.Call {
+	mr.mock.ctrl.T.Helper()
+	return mr.mock.ctrl.RecordCallWithMethodType(mr.mock, "ListPolicies", reflect.TypeOf((*Mockapi)(nil).ListPolicies), input)
+}
+
 // ListRolePolicies mocks base method.
 func (m *Mockapi) ListRolePolicies(input *iam.ListRolePoliciesInput) (*iam.ListRolePoliciesOutput, error) {
 	m.ctrl.T.Helper()
diff --git a/internal/pkg/cli/app_init.go b/internal/pkg/cli/app_init.go
index c97a45514a3..3126348d175 100644
--- a/internal/pkg/cli/app_init.go
+++ b/internal/pkg/cli/app_init.go
@@ -6,6 +6,7 @@ package cli
 import (
 	"errors"
 	"fmt"
+	"github.com/aws/copilot-cli/internal/pkg/aws/iam"
 	"os"
 
 	"github.com/aws/aws-sdk-go/aws"
@@ -51,6 +52,7 @@ type initAppOpts struct {
 	cfn                  appDeployer
 	prompt               prompter
 	prog                 progress
+	iam                  policyLister
 	isSessionFromEnvVars func() (bool, error)
 
 	cachedHostedZoneID string
@@ -77,6 +79,7 @@ func newInitAppOpts(vars initAppVars) (*initAppOpts, error) {
 		cfn:              cloudformation.New(sess, cloudformation.WithProgressTracker(os.Stderr)),
 		prompt:           prompt.New(),
 		prog:             termprogress.NewSpinner(log.DiagnosticWriter),
+		iam:              iam.New(sess),
 		isSessionFromEnvVars: func() (bool, error) {
 			return sessions.AreCredsFromEnvVars(sess)
 		},
@@ -90,6 +93,11 @@ func (o *initAppOpts) Validate() error {
 			return err
 		}
 	}
+	if o.permissionsBoundary != "" {
+		if err := o.validatePermBound(o.permissionsBoundary); err != nil {
+			return err
+		}
+	}
 	if o.domainName != "" {
 		if err := validateDomainName(o.domainName); err != nil {
 			return fmt.Errorf("domain name %s is invalid: %w", o.domainName, err)
@@ -234,6 +242,19 @@ func (o *initAppOpts) validateAppName(name string) error {
 	return nil
 }
 
+func (o *initAppOpts) validatePermBound(policyName string) error {
+	IAMPolicies, err := o.iam.ListPolicyNames()
+	if err != nil {
+		return fmt.Errorf("list permissions boundary policies: %w", err)
+	}
+	for _, policy := range IAMPolicies {
+		if policy == policyName {
+			return nil
+		}
+	}
+	return fmt.Errorf("IAM policy %q not found in this account", policyName)
+}
+
 func (o *initAppOpts) isDomainOwned() error {
 	err := o.domainInfoGetter.IsRegisteredDomain(o.domainName)
 	if err == nil {
diff --git a/internal/pkg/cli/app_init_test.go b/internal/pkg/cli/app_init_test.go
index 5ac5ea9c64d..b0b9461bcfb 100644
--- a/internal/pkg/cli/app_init_test.go
+++ b/internal/pkg/cli/app_init_test.go
@@ -22,12 +22,14 @@ type initAppMocks struct {
 	mockRoute53Svc       *mocks.MockdomainHostedZoneGetter
 	mockStore            *mocks.Mockstore
 	mockDomainInfoGetter *mocks.MockdomainInfoGetter
+	mockPolicyLister     *mocks.MockpolicyLister
 }
 
 func TestInitAppOpts_Validate(t *testing.T) {
 	testCases := map[string]struct {
-		inAppName    string
-		inDomainName string
+		inAppName      string
+		inDomainName   string
+		inPBPolicyName string
 
 		mock func(m *initAppMocks)
 
@@ -90,6 +92,21 @@ func TestInitAppOpts_Validate(t *testing.T) {
 			},
 			wantedError: errors.New("check if domain is owned by the account: some error"),
 		},
+		"wrap error from ListPolicies": {
+			inPBPolicyName: "nonexistentPolicyName",
+			mock: func(m *initAppMocks) {
+				m.mockPolicyLister.EXPECT().ListPolicyNames().Return(nil, errors.New("some error"))
+			},
+			wantedError: errors.New("list permissions boundary policies: some error"),
+		},
+		"invalid permissions boundary policy name": {
+			inPBPolicyName: "nonexistentPolicyName",
+			mock: func(m *initAppMocks) {
+				m.mockPolicyLister.EXPECT().ListPolicyNames().Return(
+					[]string{"existentPolicyName"}, nil)
+			},
+			wantedError: errors.New("IAM policy \"nonexistentPolicyName\" not found in this account"),
+		},
 		"invalid domain name that doesn't have a hosted zone": {
 			inDomainName: "badMockDomain.com",
 			mock: func(m *initAppMocks) {
@@ -132,6 +149,7 @@ func TestInitAppOpts_Validate(t *testing.T) {
 				mockStore:            mocks.NewMockstore(ctrl),
 				mockRoute53Svc:       mocks.NewMockdomainHostedZoneGetter(ctrl),
 				mockDomainInfoGetter: mocks.NewMockdomainInfoGetter(ctrl),
+				mockPolicyLister:     mocks.NewMockpolicyLister(ctrl),
 			}
 			tc.mock(m)
 
@@ -139,9 +157,11 @@ func TestInitAppOpts_Validate(t *testing.T) {
 				route53:          m.mockRoute53Svc,
 				domainInfoGetter: m.mockDomainInfoGetter,
 				store:            m.mockStore,
+				iam:              m.mockPolicyLister,
 				initAppVars: initAppVars{
-					name:       tc.inAppName,
-					domainName: tc.inDomainName,
+					name:                tc.inAppName,
+					domainName:          tc.inDomainName,
+					permissionsBoundary: tc.inPBPolicyName,
 				},
 			}
 
diff --git a/internal/pkg/cli/interfaces.go b/internal/pkg/cli/interfaces.go
index 85734437452..783f3554d30 100644
--- a/internal/pkg/cli/interfaces.go
+++ b/internal/pkg/cli/interfaces.go
@@ -555,6 +555,10 @@ type roleDeleter interface {
 	DeleteRole(string) error
 }
 
+type policyLister interface {
+	ListPolicyNames() ([]string, error)
+}
+
 type serviceDescriber interface {
 	DescribeService(app, env, svc string) (*ecs.ServiceDesc, error)
 }
diff --git a/internal/pkg/cli/mocks/mock_interfaces.go b/internal/pkg/cli/mocks/mock_interfaces.go
index ed151f1aa8f..f3df9b139cd 100644
--- a/internal/pkg/cli/mocks/mock_interfaces.go
+++ b/internal/pkg/cli/mocks/mock_interfaces.go
@@ -5891,6 +5891,44 @@ func (mr *MockroleDeleterMockRecorder) DeleteRole(arg0 interface{}) *gomock.Call
 	return mr.mock.ctrl.RecordCallWithMethodType(mr.mock, "DeleteRole", reflect.TypeOf((*MockroleDeleter)(nil).DeleteRole), arg0)
 }
 
+// MockpolicyLister is a mock of policyLister interface.
+type MockpolicyLister struct {
+	ctrl     *gomock.Controller
+	recorder *MockpolicyListerMockRecorder
+}
+
+// MockpolicyListerMockRecorder is the mock recorder for MockpolicyLister.
+type MockpolicyListerMockRecorder struct {
+	mock *MockpolicyLister
+}
+
+// NewMockpolicyLister creates a new mock instance.
+func NewMockpolicyLister(ctrl *gomock.Controller) *MockpolicyLister {
+	mock := &MockpolicyLister{ctrl: ctrl}
+	mock.recorder = &MockpolicyListerMockRecorder{mock}
+	return mock
+}
+
+// EXPECT returns an object that allows the caller to indicate expected use.
+func (m *MockpolicyLister) EXPECT() *MockpolicyListerMockRecorder {
+	return m.recorder
+}
+
+// ListPolicyNames mocks base method.
+func (m *MockpolicyLister) ListPolicyNames() ([]string, error) {
+	m.ctrl.T.Helper()
+	ret := m.ctrl.Call(m, "ListPolicyNames")
+	ret0, _ := ret[0].([]string)
+	ret1, _ := ret[1].(error)
+	return ret0, ret1
+}
+
+// ListPolicyNames indicates an expected call of ListPolicyNames.
+func (mr *MockpolicyListerMockRecorder) ListPolicyNames() *gomock.Call {
+	mr.mock.ctrl.T.Helper()
+	return mr.mock.ctrl.RecordCallWithMethodType(mr.mock, "ListPolicyNames", reflect.TypeOf((*MockpolicyLister)(nil).ListPolicyNames))
+}
+
 // MockserviceDescriber is a mock of serviceDescriber interface.
 type MockserviceDescriber struct {
 	ctrl     *gomock.Controller