diff --git a/lib/accounts/user.ex b/lib/accounts/user.ex
index 53156b4..daf29ba 100644
--- a/lib/accounts/user.ex
+++ b/lib/accounts/user.ex
@@ -71,6 +71,19 @@ defmodule Mv.Accounts.User do
       accept [:email]
     end
 
+    # Admin action for direct password changes in admin panel
+    # Uses the official Ash Authentication HashPasswordChange with correct context
+    update :admin_set_password do
+      accept [:email]
+      argument :password, :string, allow_nil?: false, sensitive?: true
+      
+      # Set the strategy context that HashPasswordChange expects
+      change set_context(%{strategy_name: :password})
+      
+      # Use the official Ash Authentication password change
+      change AshAuthentication.Strategy.Password.HashPasswordChange
+    end
+
     read :get_by_subject do
       description "Get a user by the subject claim in a JWT"
       argument :subject, :string, allow_nil?: false
@@ -121,6 +134,14 @@ defmodule Mv.Accounts.User do
     identity :unique_oidc_id, [:oidc_id]
   end
 
+  # Global validations - applied to all relevant actions
+  validations do
+    # Password strength policy: minimum 8 characters for all password-related actions
+    validate string_length(:password, min: 8) do
+      where action_is([:register_with_password, :admin_set_password])
+    end
+  end
+
   # You can customize this if you wish, but this is a safe default that
   # only allows user data to be interacted with via AshAuthentication.
   # policies do
diff --git a/lib/mv_web/live/user_live/form.ex b/lib/mv_web/live/user_live/form.ex
index dd78c0c..b599bc1 100644
--- a/lib/mv_web/live/user_live/form.ex
+++ b/lib/mv_web/live/user_live/form.ex
@@ -13,23 +13,81 @@ defmodule MvWeb.UserLive.Form do
       <.form for={@form} id="user-form" phx-change="validate" phx-submit="save">
         <.input field={@form[:email]} label={gettext("Email")} required type="email" />
 
-        <%= if @user do %>
-          <div class="mt-4 p-4 bg-blue-50 rounded-lg">
-            <p class="text-sm text-blue-800">
-              <strong>{gettext("Note")}:</strong> {gettext(
-                "Password can only be changed through authentication functions."
-              )}
-            </p>
-          </div>
-        <% else %>
-          <div class="mt-4 p-4 bg-yellow-50 rounded-lg">
-            <p class="text-sm text-yellow-800">
-              <strong>{gettext("Note")}:</strong> {gettext(
-                "Users created here will need to set their password through the authentication system."
-              )}
-            </p>
-          </div>
-        <% end %>
+        <!-- Password Section -->
+        <div class="mt-6">
+          <label class="flex items-center space-x-2">
+            <input
+              type="checkbox"
+              name="set_password"
+              phx-click="toggle_password_section"
+              checked={@show_password_fields}
+              class="checkbox checkbox-sm"
+            />
+            <span class="text-sm font-medium">
+              {if @user, do: gettext("Change Password"), else: gettext("Set Password")}
+            </span>
+          </label>
+          
+          <%= if @show_password_fields do %>
+            <div class="mt-4 space-y-4 p-4 bg-gray-50 rounded-lg">
+              <.input 
+                field={@form[:password]} 
+                label={gettext("Password")} 
+                type="password" 
+                required
+                autocomplete="new-password"
+              />
+              
+              <!-- Only show password confirmation for new users (register_with_password) -->
+              <%= if !@user do %>
+                <.input 
+                  field={@form[:password_confirmation]} 
+                  label={gettext("Confirm Password")} 
+                  type="password" 
+                  required
+                  autocomplete="new-password"
+                />
+              <% end %>
+              
+              <div class="text-sm text-gray-600">
+                <p><strong>{gettext("Password requirements")}:</strong></p>
+                <ul class="list-disc list-inside text-xs mt-1 space-y-1">
+                  <li>{gettext("At least 8 characters")}</li>
+                  <li>{gettext("Include both letters and numbers")}</li>
+                  <li>{gettext("Consider using special characters")}</li>
+                </ul>
+              </div>
+              
+              <%= if @user do %>
+                <div class="mt-3 p-3 bg-orange-50 border border-orange-200 rounded">
+                  <p class="text-sm text-orange-800">
+                    <strong>{gettext("Admin Note")}:</strong> {gettext(
+                      "As an administrator, you can directly set a new password for this user using the same secure Ash Authentication system."
+                    )}
+                  </p>
+                </div>
+              <% end %>
+            </div>
+          <% else %>
+            <%= if @user do %>
+              <div class="mt-4 p-4 bg-blue-50 rounded-lg">
+                <p class="text-sm text-blue-800">
+                  <strong>{gettext("Note")}:</strong> {gettext(
+                    "Check 'Change Password' above to set a new password for this user."
+                  )}
+                </p>
+              </div>
+            <% else %>
+              <div class="mt-4 p-4 bg-yellow-50 rounded-lg">
+                <p class="text-sm text-yellow-800">
+                  <strong>{gettext("Note")}:</strong> {gettext(
+                    "User will be created without a password. Check 'Set Password' to add one."
+                  )}
+                </p>
+              </div>
+            <% end %>
+          <% end %>
+        </div>
 
         <.button phx-disable-with={gettext("Saving...")} variant="primary">
           {gettext("Save User")}
@@ -56,6 +114,7 @@ defmodule MvWeb.UserLive.Form do
      |> assign(:return_to, return_to(params["return_to"]))
      |> assign(user: user)
      |> assign(:page_title, page_title)
+     |> assign(:show_password_fields, false)
      |> assign_form()}
   end
 
@@ -63,6 +122,19 @@ defmodule MvWeb.UserLive.Form do
   defp return_to(_), do: "index"
 
   @impl true
+  def handle_event("toggle_password_section", _params, socket) do
+    show_password_fields = !socket.assigns.show_password_fields
+    
+    socket = 
+      socket
+      |> assign(:show_password_fields, show_password_fields)
+      |> assign_form()
+    
+    {:noreply, socket}
+  end
+
+
+
   def handle_event("validate", %{"user" => user_params}, socket) do
     {:noreply, assign(socket, form: AshPhoenix.Form.validate(socket.assigns.form, user_params))}
   end
@@ -86,12 +158,16 @@ defmodule MvWeb.UserLive.Form do
 
   defp notify_parent(msg), do: send(self(), {__MODULE__, msg})
 
-  defp assign_form(%{assigns: %{user: user}} = socket) do
+  defp assign_form(%{assigns: %{user: user, show_password_fields: show_password_fields}} = socket) do
     form =
       if user do
-        AshPhoenix.Form.for_update(user, :update_user, domain: Mv.Accounts, as: "user")
+        # For existing users, use admin password action if password fields are shown
+        action = if show_password_fields, do: :admin_set_password, else: :update_user
+        AshPhoenix.Form.for_update(user, action, domain: Mv.Accounts, as: "user")
       else
-        AshPhoenix.Form.for_create(Mv.Accounts.User, :create_user,
+        # For new users, use password registration if password fields are shown
+        action = if show_password_fields, do: :register_with_password, else: :create_user
+        AshPhoenix.Form.for_create(Mv.Accounts.User, action,
           domain: Mv.Accounts,
           as: "user"
         )
diff --git a/priv/gettext/de/LC_MESSAGES/default.po b/priv/gettext/de/LC_MESSAGES/default.po
index d466469..30d8ad6 100644
--- a/priv/gettext/de/LC_MESSAGES/default.po
+++ b/priv/gettext/de/LC_MESSAGES/default.po
@@ -502,3 +502,53 @@ msgstr "Alle Benutzer auswählen"
 #, elixir-autogen, elixir-format
 msgid "Select user"
 msgstr "Benutzer auswählen"
+
+#: lib/mv_web/live/user_live/form.ex:23
+#, elixir-autogen, elixir-format
+msgid "Set Password"
+msgstr "Passwort setzen"
+
+#: lib/mv_web/live/user_live/form.ex:35
+#, elixir-autogen, elixir-format
+msgid "Password"
+msgstr "Passwort"
+
+#: lib/mv_web/live/user_live/form.ex:42
+#, elixir-autogen, elixir-format
+msgid "Confirm Password"
+msgstr "Passwort bestätigen"
+
+#: lib/mv_web/live/user_live/form.ex:48
+#, elixir-autogen, elixir-format
+msgid "Password requirements"
+msgstr "Passwort-Anforderungen"
+
+#: lib/mv_web/live/user_live/form.ex:50
+#, elixir-autogen, elixir-format
+msgid "At least 8 characters"
+msgstr "Mindestens 8 Zeichen"
+
+#: lib/mv_web/live/user_live/form.ex:51
+#, elixir-autogen, elixir-format
+msgid "Include both letters and numbers"
+msgstr "Buchstaben und Zahlen verwenden"
+
+#: lib/mv_web/live/user_live/form.ex:52
+#, elixir-autogen, elixir-format
+msgid "Consider using special characters"
+msgstr "Sonderzeichen empfohlen"
+
+#: lib/mv_web/live/user_live/form.ex:57
+#, elixir-autogen, elixir-format
+msgid "User will be created without a password. Check 'Set Password' to add one."
+msgstr "Benutzer wird ohne Passwort erstellt. Aktivieren Sie 'Passwort setzen', um eines hinzuzufügen."
+
+#: lib/mv_web/live/user_live/form.ex:75
+#, elixir-autogen, elixir-format
+msgid "As an administrator, you can directly set a new password for this user using the same secure Ash Authentication system."
+msgstr "Als Administrator können Sie direkt ein neues Passwort für diesen Benutzer setzen, wobei das gleiche sichere Ash Authentication System verwendet wird."
+
+#: lib/mv_web/live/user_live/form.ex:85
+#, elixir-autogen, elixir-format
+msgid "Check 'Change Password' above to set a new password for this user."
+msgstr "Aktivieren Sie 'Passwort ändern' oben, um ein neues Passwort für diesen Benutzer zu setzen."
diff --git a/priv/gettext/en/LC_MESSAGES/default.po b/priv/gettext/en/LC_MESSAGES/default.po
index 4bddf9a..0536761 100644
--- a/priv/gettext/en/LC_MESSAGES/default.po
+++ b/priv/gettext/en/LC_MESSAGES/default.po
@@ -492,4 +492,54 @@ msgstr ""
 #: lib/mv_web/live/user_live/form.ex:27
 #, elixir-autogen, elixir-format
 msgid "Users created here will need to set their password through the authentication system."
-msgstr ""
+msgstr "Users created here will need to set their password through the authentication system."
+
+#: lib/mv_web/live/user_live/form.ex:23
+#, elixir-autogen, elixir-format
+msgid "Set Password"
+msgstr "Set Password"
+
+#: lib/mv_web/live/user_live/form.ex:35
+#, elixir-autogen, elixir-format
+msgid "Password"
+msgstr "Password"
+
+#: lib/mv_web/live/user_live/form.ex:42
+#, elixir-autogen, elixir-format
+msgid "Confirm Password"
+msgstr "Confirm Password"
+
+#: lib/mv_web/live/user_live/form.ex:48
+#, elixir-autogen, elixir-format
+msgid "Password requirements"
+msgstr "Password requirements"
+
+#: lib/mv_web/live/user_live/form.ex:50
+#, elixir-autogen, elixir-format
+msgid "At least 8 characters"
+msgstr "At least 8 characters"
+
+#: lib/mv_web/live/user_live/form.ex:51
+#, elixir-autogen, elixir-format
+msgid "Include both letters and numbers"
+msgstr "Include both letters and numbers"
+
+#: lib/mv_web/live/user_live/form.ex:52
+#, elixir-autogen, elixir-format
+msgid "Consider using special characters"
+msgstr "Consider using special characters"
+
+#: lib/mv_web/live/user_live/form.ex:57
+#, elixir-autogen, elixir-format
+msgid "User will be created without a password. Check 'Set Password' to add one."
+msgstr "User will be created without a password. Check 'Set Password' to add one."
+
+#: lib/mv_web/live/user_live/form.ex:75
+#, elixir-autogen, elixir-format
+msgid "As an administrator, you can directly set a new password for this user using the same secure Ash Authentication system."
+msgstr "As an administrator, you can directly set a new password for this user using the same secure Ash Authentication system."
+
+#: lib/mv_web/live/user_live/form.ex:85
+#, elixir-autogen, elixir-format
+msgid "Check 'Change Password' above to set a new password for this user."
+msgstr "Check 'Change Password' above to set a new password for this user."