diff --git a/changelogs/fragments/add-droppath-option-to-ssm-lookup.yml b/changelogs/fragments/add-droppath-option-to-ssm-lookup.yml
new file mode 100644
index 0000000000..3e9d1e6e37
--- /dev/null
+++ b/changelogs/fragments/add-droppath-option-to-ssm-lookup.yml
@@ -0,0 +1,3 @@
+---
+minor_changes:
+  - ssm parameter lookup - add new option ``droppath`` to drop the hierarchical search path from ssm parameter lookup results (https://github.com/ansible-collections/amazon.aws/pull/1756).
diff --git a/plugins/lookup/ssm_parameter.py b/plugins/lookup/ssm_parameter.py
index 0ca3afdd8a..9fb4cea101 100644
--- a/plugins/lookup/ssm_parameter.py
+++ b/plugins/lookup/ssm_parameter.py
@@ -44,15 +44,24 @@
     default: false
     type: boolean
   shortnames:
-    description: Indicates whether to return the name only without path if using a parameter hierarchy.
+    description:
+        - Indicates whether to return the name only without path if using a parameter hierarchy.
+        - The O(shortnames) and O(droppath) options are mutually exclusive.
+    default: false
+    type: boolean
+  droppath:
+    description:
+        - Indicates whether to return the parameter name with the searched parameter heirarchy removed.
+        - The O(shortnames) and O(droppath) options are mutually exclusive.
     default: false
     type: boolean
+    version_added: 8.2.0
   on_missing:
     description:
         - Action to take if the SSM parameter is missing.
-        - C(error) will raise a fatal error when the SSM parameter is missing.
-        - C(skip) will silently ignore the missing SSM parameter.
-        - C(warn) will skip over the missing SSM parameter but issue a warning.
+        - V(error) will raise a fatal error when the SSM parameter is missing.
+        - V(skip) will silently ignore the missing SSM parameter.
+        - V(warn) will skip over the missing SSM parameter but issue a warning.
     default: error
     type: string
     choices: ['error', 'skip', 'warn']
@@ -112,9 +121,12 @@
 - name: return a dictionary of ssm parameters from a hierarchy path
   debug: msg="{{ lookup('amazon.aws.aws_ssm', '/PATH/to/params', region='ap-southeast-2', bypath=true, recursive=true ) }}"
 
-- name: return a dictionary of ssm parameters from a hierarchy path with shortened names (param instead of /PATH/to/param)
+- name: return a dictionary of ssm parameters from a hierarchy path with shortened names (param instead of /PATH/to/params/foo/bar/param)
   debug: msg="{{ lookup('amazon.aws.aws_ssm', '/PATH/to/params', region='ap-southeast-2', shortnames=true, bypath=true, recursive=true ) }}"
 
+- name: return a dictionary of ssm parameters from a hierarchy path with the heirarchy path dropped (foo/bar/param instead of /PATH/to/params/foo/bar/param)
+  debug: msg="{{ lookup('amazon.aws.aws_ssm', '/PATH/to/params', region='ap-southeast-2', droppath=true, bypath=true, recursive=true ) }}"
+
 - name: Iterate over a parameter hierarchy (one iteration per parameter)
   debug: msg='Key contains {{ item.key }} , with value {{ item.value }}'
   loop: "{{ lookup('amazon.aws.aws_ssm', '/demo/', region='ap-southeast-2', bypath=True) | dict2items }}"
@@ -173,6 +185,9 @@ def run(self, terms, variables, **kwargs):
                 f'"on_denied" must be a string and one of "error", "warn" or "skip", not {on_denied}'
             )
 
+        if self.get_option("shortnames") and self.get_option("droppath"):
+            raise AnsibleLookupError("shortnames and droppath are mutually exclusive. They cannot both be set to true.")
+
         ret = []
         ssm_dict = {}
 
@@ -193,6 +208,10 @@ def run(self, terms, variables, **kwargs):
                     for x in paramlist:
                         x["Name"] = x["Name"][x["Name"].rfind("/") + 1:]  # fmt: skip
 
+                if self.get_option("droppath"):
+                    for x in paramlist:
+                        x["Name"] = x["Name"].replace(ssm_dict["Path"], "")
+
                 display.vvvv(f"AWS_ssm path lookup returned: {to_native(paramlist)}")
 
                 ret.append(
diff --git a/tests/integration/targets/lookup_ssm_parameter/tasks/main.yml b/tests/integration/targets/lookup_ssm_parameter/tasks/main.yml
index b96307d877..83a8dcce1c 100644
--- a/tests/integration/targets/lookup_ssm_parameter/tasks/main.yml
+++ b/tests/integration/targets/lookup_ssm_parameter/tasks/main.yml
@@ -28,14 +28,21 @@
     path_name: /{{ ssm_key_prefix }}/path
     path_name_a: "{{ path_name }}/key_one"
     path_shortname_a: key_one
+    path_droppath_name_a: /key_one
     path_name_b: "{{ path_name }}/keyTwo"
     path_shortname_b: keyTwo
+    path_droppath_name_b: /keyTwo
     path_name_c: "{{ path_name }}/Nested/Key"
     path_shortname_c: Key
+    path_droppath_name_c: /Nested/Key
+    path_name_d: "{{ path_name }}/AnotherNested/Key"
+    path_shortname_d: Key
+    path_droppath_name_d: /AnotherNested/Key
     path_description: This is somewhere to store a set of keys
     path_value_a: value_one
     path_value_b: valueTwo
     path_value_c: Value Three
+    path_value_d: value-fou
     missing_name: "{{ path_name }}/IDoNotExist"
   block:
   # ============================================================
@@ -131,7 +138,14 @@
         description: "{{ path_description }}"
         value: "{{ path_value_c }}"
 
+    - name: Create nested key/value pair in aws parameter store (4)
+      ssm_parameter:
+        name: '{{ path_name_d }}'
+        description: '{{ path_description }}'
+        value: '{{ path_value_d }}'
+
     # ============================================================
+
     - name: Lookup a keys using bypath
       ansible.builtin.set_fact:
         lookup_value: "{{ lookup('amazon.aws.aws_ssm', path_name, bypath=True, wantlist=True, **connection_args ) | first }}"
@@ -154,7 +168,9 @@
           - lookup_value[path_name_b] == path_value_b
           - path_name_c in lookup_value
           - lookup_value[path_name_c] == path_value_c
-          - lookup_value | length == 3
+          - path_name_d in lookup_value
+          - lookup_value[path_name_d] == path_value_d
+          - lookup_value | length == 4
 
     - name: Lookup a keys using bypath and shortname
       ansible.builtin.set_fact:
@@ -180,6 +196,21 @@
           - lookup_value[path_shortname_c] == path_value_c
           - lookup_value | length == 3
 
+    - name: Lookup a keys using bypath and recursive and droppath
+      ansible.builtin.set_fact:
+        lookup_value: "{{ lookup('amazon.aws.aws_ssm', path_name, bypath=True, recursive=True, droppath=True, wantlist=True, **connection_args ) | first }}"
+    - ansible.builtin.assert:
+        that:
+          - path_droppath_name_a in lookup_value
+          - lookup_value[path_droppath_name_a] == path_value_a
+          - path_droppath_name_b in lookup_value
+          - lookup_value[path_droppath_name_b] == path_value_b
+          - path_droppath_name_c in lookup_value
+          - lookup_value[path_droppath_name_c] == path_value_c
+          - path_droppath_name_d in lookup_value
+          - lookup_value[path_droppath_name_d] == path_value_d
+          - lookup_value | length == 4
+
     # ============================================================
 
     - name: Explicitly lookup two keys
@@ -259,7 +290,9 @@
           - lookup_value[0][path_name_b] == path_value_b
           - path_name_c in lookup_value[0]
           - lookup_value[0][path_name_c] == path_value_c
-          - lookup_value[0] | length == 3
+          - path_name_d in lookup_value[0]
+          - lookup_value[0][path_name_d] == path_value_d
+          - lookup_value[0] | length == 4
 
   always:
   # ============================================================