diff --git a/pulsar-io/kinesis/src/main/java/org/apache/pulsar/io/kinesis/KinesisSinkConfig.java b/pulsar-io/kinesis/src/main/java/org/apache/pulsar/io/kinesis/KinesisSinkConfig.java
index d4f34a05596e0..53abf5ec31219 100644
--- a/pulsar-io/kinesis/src/main/java/org/apache/pulsar/io/kinesis/KinesisSinkConfig.java
+++ b/pulsar-io/kinesis/src/main/java/org/apache/pulsar/io/kinesis/KinesisSinkConfig.java
@@ -113,10 +113,25 @@ public class KinesisSinkConfig extends BaseKinesisConfig implements Serializable
             defaultValue = "",
             help = "Path to the native Amazon Kinesis Producer Library (KPL) binary.\n"
                     + "Only use this setting if you want to use a custom build of the native code.\n"
-                    + "This setting can also be set with the environment variable `PULSAR_IO_KINESIS_KPL_PATH`.\n"
+                    + "This setting can also be set with the environment variable `PULSAR_IO_KINESIS_KPL_1_0_PATH`"
+                    + "or `PULSAR_IO_KINESIS_KPL_PATH`.\n"
                     + "If not set, the Kinesis sink will use the built-in native executable."
     )
-    private String nativeExecutable = System.getenv("PULSAR_IO_KINESIS_KPL_PATH");
+    private String nativeExecutable = resolveDefaultKinesisProducerLibraryPath();
+
+    private static String resolveDefaultKinesisProducerLibraryPath() {
+        // Prefer PULSAR_IO_KINESIS_KPL_1_0_PATH environment variable over PULSAR_IO_KINESIS_KPL_PATH.
+        // This setting supports building a Pulsar Functions base image that is used to run different Pulsar IO Kinesis
+        // sink versions. The older versions of Pulsar IO Kinesis sink can continue to use the binary configured with
+        // PULSAR_IO_KINESIS_KPL_PATH, pointing to a 0.15.12 native executable. The newer versions of Pulsar IO Kinesis
+        // sink can use the binary configured with PULSAR_IO_KINESIS_KPL_1_0_PATH, pointing to a 1.0.4
+        // native executable.
+        String kplPath = System.getenv("PULSAR_IO_KINESIS_KPL_1_0_PATH");
+        if (isNotBlank(kplPath)) {
+            return kplPath;
+        }
+        return System.getenv("PULSAR_IO_KINESIS_KPL_PATH");
+    }
 
     public static KinesisSinkConfig load(Map<String, Object> config, SinkContext sinkContext) {
         KinesisSinkConfig kinesisSinkConfig = IOConfigUtils.loadWithSecrets(config, KinesisSinkConfig.class, sinkContext);