diff --git a/api/src/cli/commands/users/passwd.ts b/api/src/cli/commands/users/passwd.ts
new file mode 100644
index 0000000000..d2909aa598
--- /dev/null
+++ b/api/src/cli/commands/users/passwd.ts
@@ -0,0 +1,32 @@
+import argon2 from 'argon2';
+import { getSchema } from '../../../utils/get-schema';
+
+export default async function usersPasswd({ email, password }: any) {
+	const { default: database } = require('../../../database/index');
+	const { UsersService } = require('../../../services/users');
+
+	if (!email || !password) {
+		console.error('Email and password are required');
+		process.exit(1);
+	}
+
+	try {
+		const passwordHashed = await argon2.hash(password);
+		const schema = await getSchema();
+		const service = new UsersService({ schema, knex: database });
+
+		const user = await service.knex.select('id').from('directus_users').where({ email }).first();
+		if (user) {
+			await service.knex('directus_users').update({ password: passwordHashed }).where({ id: user.id });
+			console.log(`Password is updated for user ${user.id}`);
+		} else {
+			console.log('No such user by this email');
+		}
+
+		await database.destroy();
+		process.exit(user ? 0 : 1);
+	} catch (err) {
+		console.error(err);
+		process.exit(1);
+	}
+}
diff --git a/api/src/cli/index.ts b/api/src/cli/index.ts
index e44b179212..48206eabd5 100644
--- a/api/src/cli/index.ts
+++ b/api/src/cli/index.ts
@@ -9,6 +9,7 @@ import init from './commands/init';
 import dbInstall from './commands/database/install';
 import dbMigrate from './commands/database/migrate';
 import usersCreate from './commands/users/create';
+import usersPasswd from './commands/users/passwd';
 import rolesCreate from './commands/roles/create';
 import count from './commands/count';
 import bootstrap from './commands/bootstrap';
@@ -42,6 +43,12 @@ usersCommand
 	.option('--password <value>', `user's password`)
 	.option('--role <value>', `user's role`)
 	.action(usersCreate);
+usersCommand
+	.command('passwd')
+	.description('Set user password')
+	.option('--email <value>', `user's email`)
+	.option('--password <value>', `user's new password`)
+	.action(usersPasswd);
 
 const rolesCommand = program.command('roles');
 rolesCommand