diff --git a/consent/strategy_oauth_test.go b/consent/strategy_oauth_test.go
index f1827fffd5..370a337807 100644
--- a/consent/strategy_oauth_test.go
+++ b/consent/strategy_oauth_test.go
@@ -823,7 +823,7 @@ func TestStrategyLoginConsentNext(t *testing.T) {
 		makeRequestAndExpectCode(t, hc, c, url.Values{})
 
 		// Make request with additional scope and prompt none, which fails
-		makeRequestAndExpectError(t, hc, c, url.Values{"prompt": {"none"}, "scope": {"openid"}},
+		makeRequestAndExpectError(t, hc, c, url.Values{"prompt": {"none"}, "scope": {"openid"}, "redirect_uri": {c.RedirectURIs[0]}},
 			"Prompt 'none' was requested, but no previous consent was found")
 	})
 
@@ -930,11 +930,11 @@ func TestStrategyLoginConsentNext(t *testing.T) {
 		}{
 			{
 				d:      "check all the sub claims",
-				values: url.Values{"scope": {"openid"}},
+				values: url.Values{"scope": {"openid"}, "redirect_uri": {c.RedirectURIs[0]}},
 			},
 			{
 				d:      "works with id_token_hint",
-				values: url.Values{"scope": {"openid"}, "id_token_hint": {testhelpers.NewIDToken(t, reg, hash)}},
+				values: url.Values{"scope": {"openid"}, "redirect_uri": {c.RedirectURIs[0]}, "id_token_hint": {testhelpers.NewIDToken(t, reg, hash)}},
 			},
 		} {
 			t.Run("case="+tc.d, func(t *testing.T) {
@@ -974,7 +974,7 @@ func TestStrategyLoginConsentNext(t *testing.T) {
 			}),
 			acceptConsentHandler(t, &hydra.AcceptOAuth2ConsentRequest{GrantScope: []string{"openid"}}))
 
-		code := makeRequestAndExpectCode(t, nil, c, url.Values{})
+		code := makeRequestAndExpectCode(t, nil, c, url.Values{"redirect_uri": {c.RedirectURIs[0]}})
 
 		conf := oauth2Config(t, c)
 		token, err := conf.Exchange(context.Background(), code)
diff --git a/go.mod b/go.mod
index 08033c6b50..b499154156 100644
--- a/go.mod
+++ b/go.mod
@@ -8,6 +8,10 @@ replace github.com/ory/hydra-client-go/v2 => ./internal/httpclient
 
 replace github.com/gobuffalo/pop/v6 => github.com/ory/pop/v6 v6.2.0
 
+// Bump Fosite to https://github.com/ory/fosite/tree/hperl/v0.47.0%2B168636f, which contains
+// https://github.com/ory/fosite/commit/b40b1cbb1997e2160eaaf97fb6f73960db4c6118 on top of the latest release.
+replace github.com/ory/fosite => github.com/ory/fosite v0.47.1-0.20241030092116-b40b1cbb1997
+
 require (
 	github.com/ThalesIgnite/crypto11 v1.2.5
 	github.com/bradleyjkemp/cupaloy/v2 v2.8.0
@@ -69,8 +73,6 @@ require (
 	golang.org/x/tools v0.23.0
 )
 
-require github.com/hashicorp/go-cleanhttp v0.5.2 // indirect
-
 require (
 	code.dny.dev/ssrf v0.2.0 // indirect
 	dario.cat/mergo v1.0.0 // indirect
@@ -147,6 +149,7 @@ require (
 	github.com/gorilla/websocket v1.5.0 // indirect
 	github.com/grpc-ecosystem/go-grpc-prometheus v1.2.0 // indirect
 	github.com/grpc-ecosystem/grpc-gateway/v2 v2.20.0 // indirect
+	github.com/hashicorp/go-cleanhttp v0.5.2 // indirect
 	github.com/hashicorp/hcl v1.0.0 // indirect
 	github.com/huandu/xstrings v1.4.0 // indirect
 	github.com/imdario/mergo v0.3.16 // indirect
diff --git a/go.sum b/go.sum
index 53e07d5b53..fa41fd2756 100644
--- a/go.sum
+++ b/go.sum
@@ -389,6 +389,12 @@ github.com/ory/dockertest/v3 v3.10.1-0.20240704115616-d229e74b748d h1:By96ZSVuH5
 github.com/ory/dockertest/v3 v3.10.1-0.20240704115616-d229e74b748d/go.mod h1:F2FIjwwAk6CsNAs//B8+aPFQF0t84pbM8oliyNXwQrk=
 github.com/ory/fosite v0.47.0 h1:Iqu5uhx54JqZQPn2hRhqjESrmRRyQb00uJjfEi1a1QI=
 github.com/ory/fosite v0.47.0/go.mod h1:5U6c9nOLxyTdD/qrFv7N88TSxkdk5Wq8NzvB7UViDP0=
+github.com/ory/fosite v0.47.1-0.20241029112424-62f07ce22e57 h1:/eMox8UstN3u1r6YfVpIdiXhuz9y+ESPBUzlEHsK4AU=
+github.com/ory/fosite v0.47.1-0.20241029112424-62f07ce22e57/go.mod h1:LC+0FyghTTjdSAznGVbtj0yK2nq0LAElh6TbMck8diA=
+github.com/ory/fosite v0.47.1-0.20241029134014-168636ff33c7 h1:QyLWLIUgC32pPrHoeW82xlkDiIL2j2o2vq64y5SsLRM=
+github.com/ory/fosite v0.47.1-0.20241029134014-168636ff33c7/go.mod h1:LC+0FyghTTjdSAznGVbtj0yK2nq0LAElh6TbMck8diA=
+github.com/ory/fosite v0.47.1-0.20241030092116-b40b1cbb1997 h1:dryAvfoAFa1hYn6C0SPmISglYn+S775XOZgCCm54tbw=
+github.com/ory/fosite v0.47.1-0.20241030092116-b40b1cbb1997/go.mod h1:5U6c9nOLxyTdD/qrFv7N88TSxkdk5Wq8NzvB7UViDP0=
 github.com/ory/go-acc v0.2.9-0.20230103102148-6b1c9a70dbbe h1:rvu4obdvqR0fkSIJ8IfgzKOWwZ5kOT2UNfLq81Qk7rc=
 github.com/ory/go-acc v0.2.9-0.20230103102148-6b1c9a70dbbe/go.mod h1:z4n3u6as84LbV4YmgjHhnwtccQqzf4cZlSk9f1FhygI=
 github.com/ory/go-convenience v0.1.0 h1:zouLKfF2GoSGnJwGq+PE/nJAE6dj2Zj5QlTgmMTsTS8=
diff --git a/internal/kratos/fake_kratos.go b/internal/kratos/fake_kratos.go
index bffad0696f..2303320c30 100644
--- a/internal/kratos/fake_kratos.go
+++ b/internal/kratos/fake_kratos.go
@@ -7,6 +7,7 @@ import (
 	"context"
 
 	"github.com/ory/fosite"
+	client "github.com/ory/kratos-client-go"
 )
 
 type (
@@ -17,9 +18,10 @@ type (
 )
 
 const (
-	FakeSessionID = "fake-kratos-session-id"
-	FakeUsername  = "fake-kratos-username"
-	FakePassword  = "fake-kratos-password" // nolint: gosec
+	FakeSessionID  = "fake-kratos-session-id"
+	FakeUsername   = "fake-kratos-username"
+	FakePassword   = "fake-kratos-password" // nolint: gosec
+	FakeIdentityID = "fake-kratos-identity-id"
 )
 
 var _ Client = new(FakeKratos)
@@ -35,11 +37,11 @@ func (f *FakeKratos) DisableSession(_ context.Context, identityProviderSessionID
 	return nil
 }
 
-func (f *FakeKratos) Authenticate(_ context.Context, username, password string) error {
+func (f *FakeKratos) Authenticate(_ context.Context, username, password string) (*client.Session, error) {
 	if username == FakeUsername && password == FakePassword {
-		return nil
+		return &client.Session{Identity: &client.Identity{Id: FakeIdentityID}}, nil
 	}
-	return fosite.ErrNotFound
+	return nil, fosite.ErrNotFound
 }
 
 func (f *FakeKratos) Reset() {
diff --git a/internal/kratos/kratos.go b/internal/kratos/kratos.go
index c6d7be034c..04e8fbfcdf 100644
--- a/internal/kratos/kratos.go
+++ b/internal/kratos/kratos.go
@@ -31,7 +31,7 @@ type (
 	}
 	Client interface {
 		DisableSession(ctx context.Context, identityProviderSessionID string) error
-		Authenticate(ctx context.Context, name, secret string) error
+		Authenticate(ctx context.Context, name, secret string) (*client.Session, error)
 	}
 	Default struct {
 		dependencies
@@ -42,7 +42,7 @@ func New(d dependencies) Client {
 	return &Default{dependencies: d}
 }
 
-func (k *Default) Authenticate(ctx context.Context, name, secret string) (err error) {
+func (k *Default) Authenticate(ctx context.Context, name, secret string) (session *client.Session, err error) {
 	ctx, span := k.Tracer(ctx).Tracer().Start(ctx, "kratos.Authenticate")
 	otelx.End(span, &err)
 
@@ -52,17 +52,17 @@ func (k *Default) Authenticate(ctx context.Context, name, secret string) (err er
 		span.SetAttributes(attribute.Bool("skipped", true))
 		span.SetAttributes(attribute.String("reason", "kratos public url not set"))
 
-		return errors.New("kratos public url not set")
+		return nil, errors.New("kratos public url not set")
 	}
 
 	kratos := k.newKratosClient(ctx, publicURL)
 
 	flow, _, err := kratos.FrontendAPI.CreateNativeLoginFlow(ctx).Execute()
 	if err != nil {
-		return err
+		return nil, err
 	}
 
-	_, _, err = kratos.FrontendAPI.UpdateLoginFlow(ctx).Flow(flow.Id).UpdateLoginFlowBody(client.UpdateLoginFlowBody{
+	res, _, err := kratos.FrontendAPI.UpdateLoginFlow(ctx).Flow(flow.Id).UpdateLoginFlowBody(client.UpdateLoginFlowBody{
 		UpdateLoginFlowWithPasswordMethod: &client.UpdateLoginFlowWithPasswordMethod{
 			Method:     "password",
 			Identifier: name,
@@ -70,10 +70,10 @@ func (k *Default) Authenticate(ctx context.Context, name, secret string) (err er
 		},
 	}).Execute()
 	if err != nil {
-		return fosite.ErrNotFound.WithWrap(err)
+		return nil, fosite.ErrNotFound.WithWrap(err)
 	}
 
-	return nil
+	return &res.Session, nil
 }
 
 func (k *Default) DisableSession(ctx context.Context, identityProviderSessionID string) (err error) {
diff --git a/oauth2/handler.go b/oauth2/handler.go
index e4b63d5a0c..288ed1f16f 100644
--- a/oauth2/handler.go
+++ b/oauth2/handler.go
@@ -962,7 +962,8 @@ func (h *Handler) oauth2TokenExchange(w http.ResponseWriter, r *http.Request) {
 	}
 
 	if accessRequest.GetGrantTypes().ExactOne(string(fosite.GrantTypeClientCredentials)) ||
-		accessRequest.GetGrantTypes().ExactOne(string(fosite.GrantTypeJWTBearer)) {
+		accessRequest.GetGrantTypes().ExactOne(string(fosite.GrantTypeJWTBearer)) ||
+		accessRequest.GetGrantTypes().ExactOne(string(fosite.GrantTypePassword)) {
 		var accessTokenKeyID string
 		if h.c.AccessTokenStrategy(ctx, client.AccessTokenStrategySource(accessRequest.GetClient())) == "jwt" {
 			accessTokenKeyID, err = h.r.AccessTokenJWTStrategy().GetPublicKeyID(ctx)
@@ -975,9 +976,21 @@ func (h *Handler) oauth2TokenExchange(w http.ResponseWriter, r *http.Request) {
 		}
 
 		// only for client_credentials, otherwise Authentication is included in session
-		if accessRequest.GetGrantTypes().ExactOne("client_credentials") {
+		if accessRequest.GetGrantTypes().ExactOne(string(fosite.GrantTypeClientCredentials)) {
 			session.Subject = accessRequest.GetClient().GetID()
 		}
+		// only for password grant, otherwise Authentication is included in session
+		if accessRequest.GetGrantTypes().ExactOne(string(fosite.GrantTypePassword)) {
+			if sess, ok := accessRequest.GetSession().(fosite.ExtraClaimsSession); ok {
+				sess.GetExtraClaims()["username"] = accessRequest.GetRequestForm().Get("username")
+				session.DefaultSession.Username = accessRequest.GetRequestForm().Get("username")
+			}
+
+			// Also add audience claims
+			for _, aud := range accessRequest.GetClient().GetAudience() {
+				accessRequest.GrantAudience(aud)
+			}
+		}
 		session.ClientID = accessRequest.GetClient().GetID()
 		session.KID = accessTokenKeyID
 		session.DefaultSession.Claims.Issuer = h.c.IssuerURL(ctx).String()
diff --git a/oauth2/oauth2_rop_test.go b/oauth2/oauth2_rop_test.go
index 73946a2553..4adb490445 100644
--- a/oauth2/oauth2_rop_test.go
+++ b/oauth2/oauth2_rop_test.go
@@ -5,7 +5,11 @@ package oauth2_test
 
 import (
 	"context"
+	"encoding/json"
+	"net/http"
+	"net/http/httptest"
 	"testing"
+	"time"
 
 	"github.com/google/uuid"
 	"github.com/stretchr/testify/assert"
@@ -13,12 +17,18 @@ import (
 	"golang.org/x/oauth2"
 
 	"github.com/ory/fosite/compose"
+	"github.com/ory/fosite/token/jwt"
 	hydra "github.com/ory/hydra/v2/client"
+	"github.com/ory/hydra/v2/driver/config"
+	"github.com/ory/hydra/v2/flow"
 	"github.com/ory/hydra/v2/fositex"
 	"github.com/ory/hydra/v2/internal"
 	"github.com/ory/hydra/v2/internal/kratos"
 	"github.com/ory/hydra/v2/internal/testhelpers"
+	hydraoauth2 "github.com/ory/hydra/v2/oauth2"
+	"github.com/ory/hydra/v2/x"
 	"github.com/ory/x/contextx"
+	"github.com/ory/x/sqlxx"
 )
 
 func TestResourceOwnerPasswordGrant(t *testing.T) {
@@ -27,12 +37,19 @@ func TestResourceOwnerPasswordGrant(t *testing.T) {
 	reg := internal.NewMockedRegistry(t, &contextx.Default{})
 	reg.WithKratos(fakeKratos)
 	reg.WithExtraFositeFactories([]fositex.Factory{compose.OAuth2ResourceOwnerPasswordCredentialsFactory})
-	_, adminTS := testhelpers.NewOAuth2Server(ctx, t, reg)
+	publicTS, adminTS := testhelpers.NewOAuth2Server(ctx, t, reg)
 
 	secret := uuid.New().String()
+	audience := sqlxx.StringSliceJSONFormat{"https://aud.example.com"}
 	client := &hydra.Client{
 		Secret:     secret,
-		GrantTypes: []string{"password"},
+		GrantTypes: []string{"password", "refresh_token"},
+		Scope:      "offline",
+		Audience:   audience,
+		Lifespans: hydra.Lifespans{
+			PasswordGrantAccessTokenLifespan:  x.NullDuration{Duration: 1 * time.Hour, Valid: true},
+			PasswordGrantRefreshTokenLifespan: x.NullDuration{Duration: 1 * time.Hour, Valid: true},
+		},
 	}
 	require.NoError(t, reg.ClientManager().CreateClient(ctx, client))
 
@@ -44,15 +61,94 @@ func TestResourceOwnerPasswordGrant(t *testing.T) {
 			TokenURL:  reg.Config().OAuth2TokenURL(ctx).String(),
 			AuthStyle: oauth2.AuthStyleInHeader,
 		},
+		Scopes: []string{"offline"},
 	}
 
+	hs := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		assert.Equal(t, r.Header.Get("Content-Type"), "application/json; charset=UTF-8")
+		assert.Equal(t, r.Header.Get("Authorization"), "Bearer secret value")
+
+		var hookReq hydraoauth2.TokenHookRequest
+		require.NoError(t, json.NewDecoder(r.Body).Decode(&hookReq))
+		assert.NotEmpty(t, hookReq.Session)
+		assert.NotEmpty(t, hookReq.Request)
+
+		claims := hookReq.Session.Extra
+		claims["hooked"] = true
+		if hookReq.Request.GrantTypes[0] == "refresh_token" {
+			claims["refreshed"] = true
+		}
+
+		hookResp := hydraoauth2.TokenHookResponse{
+			Session: flow.AcceptOAuth2ConsentRequestSession{
+				AccessToken: claims,
+				IDToken:     claims,
+			},
+		}
+
+		w.WriteHeader(http.StatusOK)
+		require.NoError(t, json.NewEncoder(w).Encode(&hookResp))
+	}))
+	defer hs.Close()
+
+	reg.Config().MustSet(ctx, config.KeyTokenHook, &config.HookConfig{
+		URL: hs.URL,
+		Auth: &config.Auth{
+			Type: "api_key",
+			Config: config.AuthConfig{
+				In:    "header",
+				Name:  "Authorization",
+				Value: "Bearer secret value",
+			},
+		},
+	})
+	reg.Config().MustSet(ctx, config.KeyAccessTokenStrategy, "jwt")
+
 	t.Run("case=get ROP grant token with valid username and password", func(t *testing.T) {
 		token, err := oauth2Config.PasswordCredentialsToken(ctx, kratos.FakeUsername, kratos.FakePassword)
 		require.NoError(t, err)
 		require.NotEmpty(t, token.AccessToken)
-		i := testhelpers.IntrospectToken(t, oauth2Config, token.AccessToken, adminTS)
-		assert.True(t, i.Get("active").Bool(), "%s", i)
-		assert.EqualValues(t, oauth2Config.ClientID, i.Get("client_id").String(), "%s", i)
+
+		// Access token should have hook and identity_id claims
+		jwtAT, err := jwt.Parse(token.AccessToken, func(token *jwt.Token) (interface{}, error) {
+			return reg.AccessTokenJWTStrategy().GetPublicKey(ctx)
+		})
+		require.NoError(t, err)
+		assert.Equal(t, kratos.FakeUsername, jwtAT.Claims["ext"].(map[string]any)["username"])
+		assert.Equal(t, kratos.FakeIdentityID, jwtAT.Claims["sub"])
+		assert.Equal(t, publicTS.URL, jwtAT.Claims["iss"])
+		assert.True(t, jwtAT.Claims["ext"].(map[string]any)["hooked"].(bool))
+		assert.ElementsMatch(t, audience, jwtAT.Claims["aud"])
+
+		t.Run("case=introspect token", func(t *testing.T) {
+			// Introspected token should have hook and identity_id claims
+			i := testhelpers.IntrospectToken(t, oauth2Config, token.AccessToken, adminTS)
+			assert.True(t, i.Get("active").Bool(), "%s", i)
+			assert.Equal(t, kratos.FakeUsername, i.Get("ext.username").String(), "%s", i)
+			assert.Equal(t, kratos.FakeIdentityID, i.Get("sub").String(), "%s", i)
+			assert.True(t, i.Get("ext.hooked").Bool(), "%s", i)
+			assert.EqualValues(t, oauth2Config.ClientID, i.Get("client_id").String(), "%s", i)
+		})
+
+		t.Run("case=refresh token", func(t *testing.T) {
+			// Refreshed access token should have hook and identity_id claims
+			require.NotEmpty(t, token.RefreshToken)
+			token.Expiry = token.Expiry.Add(-time.Hour * 24)
+			refreshedToken, err := oauth2Config.TokenSource(context.Background(), token).Token()
+			require.NoError(t, err)
+
+			require.NotEqual(t, token.AccessToken, refreshedToken.AccessToken)
+			require.NotEqual(t, token.RefreshToken, refreshedToken.RefreshToken)
+
+			jwtAT, err := jwt.Parse(refreshedToken.AccessToken, func(token *jwt.Token) (interface{}, error) {
+				return reg.AccessTokenJWTStrategy().GetPublicKey(ctx)
+			})
+			require.NoError(t, err)
+			assert.Equal(t, kratos.FakeIdentityID, jwtAT.Claims["sub"])
+			assert.Equal(t, kratos.FakeUsername, jwtAT.Claims["ext"].(map[string]any)["username"])
+			assert.True(t, jwtAT.Claims["ext"].(map[string]any)["hooked"].(bool))
+			assert.True(t, jwtAT.Claims["ext"].(map[string]any)["refreshed"].(bool))
+		})
 	})
 
 	t.Run("case=access denied for invalid password", func(t *testing.T) {
diff --git a/oauth2/session.go b/oauth2/session.go
index 6dc9039eb2..0630cb0914 100644
--- a/oauth2/session.go
+++ b/oauth2/session.go
@@ -194,3 +194,17 @@ func (s *Session) UnmarshalJSON(original []byte) (err error) {
 
 	return nil
 }
+
+// GetExtraClaims implements ExtraClaimsSession for Session.
+// The returned value can be modified in-place.
+func (s *Session) GetExtraClaims() map[string]interface{} {
+	if s == nil {
+		return nil
+	}
+
+	if s.Extra == nil {
+		s.Extra = make(map[string]interface{})
+	}
+
+	return s.Extra
+}
diff --git a/persistence/sql/persister_authenticate.go b/persistence/sql/persister_authenticate.go
index 4fdc7eff0a..013ccc3005 100644
--- a/persistence/sql/persister_authenticate.go
+++ b/persistence/sql/persister_authenticate.go
@@ -3,8 +3,14 @@
 
 package sql
 
-import "context"
+import (
+	"context"
+)
 
-func (p *Persister) Authenticate(ctx context.Context, name, secret string) error {
-	return p.r.Kratos().Authenticate(ctx, name, secret)
+func (p *Persister) Authenticate(ctx context.Context, name, secret string) (subject string, err error) {
+	session, err := p.r.Kratos().Authenticate(ctx, name, secret)
+	if err != nil {
+		return "", err
+	}
+	return session.Identity.Id, nil
 }