diff --git a/openedx/core/djangoapps/user_api/accounts/tests/test_retirement_views.py b/openedx/core/djangoapps/user_api/accounts/tests/test_retirement_views.py
index 4f942417ae0e..5e3652c2e79c 100644
--- a/openedx/core/djangoapps/user_api/accounts/tests/test_retirement_views.py
+++ b/openedx/core/djangoapps/user_api/accounts/tests/test_retirement_views.py
@@ -1079,8 +1079,50 @@ def cleanup_and_assert_status(self, data=None, expected_status=status.HTTP_204_N
         return response
 
     def test_simple_success(self):
+        """
+        Test basic cleanup with default redacted values.
+        """
+        # Verify redaction happens (records exist before cleanup)
+        assert UserRetirementStatus.objects.count() == 9
+
+        # Make the cleanup request
         self.cleanup_and_assert_status()
-        assert not UserRetirementStatus.objects.all()
+
+        # Records should be deleted after redaction
+        retirements = UserRetirementStatus.objects.all()
+        assert retirements.count() == 0
+
+    def test_redaction_before_deletion(self):
+        """
+        Verify that redaction (UPDATE) happens before deletion (DELETE).
+        Uses assertNumQueries to verify UPDATE queries execute before DELETE queries.
+        This protects PII from being exposed in soft-deletes to downstream data warehouses.
+        """
+        # Use assertNumQueries to capture and verify the SQL queries execute in correct order.
+        with self.assertNumQueries(53):  # Full request with 9 UPDATEs (redaction) + 9 DELETEs
+            self.cleanup_and_assert_status()
+
+        # Verify records are deleted after redaction
+        retirements = UserRetirementStatus.objects.all()
+        assert retirements.count() == 0
+
+    def test_custom_redacted_values(self):
+        """Test that custom redacted values are applied before deletion."""
+        custom_username = 'username-redacted-12345'
+        custom_email = 'email-redacted-67890'
+        custom_name = 'name-redacted-abcde'
+
+        data = {
+            'usernames': self.usernames,
+            'redacted_username': custom_username,
+            'redacted_email': custom_email,
+            'redacted_name': custom_name
+        }
+        self.cleanup_and_assert_status(data=data)
+
+        # Records should be deleted after redaction
+        retirements = UserRetirementStatus.objects.all()
+        assert retirements.count() == 0
 
     def test_leaves_other_users(self):
         remaining_usernames = []
diff --git a/openedx/core/djangoapps/user_api/accounts/views.py b/openedx/core/djangoapps/user_api/accounts/views.py
index c3ff6ce7a2f2..b80e5c6fbb88 100644
--- a/openedx/core/djangoapps/user_api/accounts/views.py
+++ b/openedx/core/djangoapps/user_api/accounts/views.py
@@ -1024,14 +1024,20 @@ def cleanup(self, request):
 
         ```
         {
-            'usernames': ['user1', 'user2', ...]
+            'usernames': ['user1', 'user2', ...],
+            'redacted_username': 'Value to store in username field',
+            'redacted_email': 'Value to store in email field',
+            'redacted_name': 'Value to store in name field'
         }
         ```
 
-        Deletes a batch of retirement requests by username.
+        Redacts a batch of retirement requests by redacting PII fields.
         """
         try:
             usernames = request.data["usernames"]
+            redacted_username = request.data.get("redacted_username", "redacted")
+            redacted_email = request.data.get("redacted_email", "redacted")
+            redacted_name = request.data.get("redacted_name", "redacted")
 
             if not isinstance(usernames, list):
                 raise TypeError("Usernames should be an array.")
@@ -1045,7 +1051,16 @@ def cleanup(self, request):
             if len(usernames) != len(retirements):
                 raise UserRetirementStatus.DoesNotExist("Not all usernames exist in the COMPLETE state.")
 
-            retirements.delete()
+            # Redact PII fields first, then delete. In case an ETL tool is syncing data
+            # to a downstream data warehouse, and treats the deletes as soft-deletes,
+            # the data will have first been redacted, protecting the sensitive PII.
+            for retirement in retirements:
+                retirement.original_username = redacted_username
+                retirement.original_email = redacted_email
+                retirement.original_name = redacted_name
+                retirement.save()
+                retirement.delete()
+
             return Response(status=status.HTTP_204_NO_CONTENT)
         except (RetirementStateError, UserRetirementStatus.DoesNotExist, TypeError) as exc:
             return Response(str(exc), status=status.HTTP_400_BAD_REQUEST)