diff --git a/apps/desktop/src/components/ChangePassword/ChangePasswordForm.test.tsx b/apps/desktop/src/components/ChangePassword/ChangePasswordForm.test.tsx
index 3240dd112c..dd8afc071d 100644
--- a/apps/desktop/src/components/ChangePassword/ChangePasswordForm.test.tsx
+++ b/apps/desktop/src/components/ChangePassword/ChangePasswordForm.test.tsx
@@ -46,7 +46,7 @@ describe("ChangePassword Form", () => {
       });
     });
 
-    it("requires 8 characters", async () => {
+    it("requires 12 characters", async () => {
       render(fixture());
 
       const newPasswordInput = screen.getByTestId("new-password");
@@ -55,7 +55,7 @@ describe("ChangePassword Form", () => {
 
       await waitFor(() => {
         expect(screen.getByTestId("new-password-error")).toHaveTextContent(
-          "Your password must be at least 8 characters long"
+          "Your password must be at least 12 characters long"
         );
       });
     });
diff --git a/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.test.tsx b/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.test.tsx
index 365114648d..52110db863 100644
--- a/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.test.tsx
+++ b/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.test.tsx
@@ -3,6 +3,8 @@ import { renderInModal, screen, userEvent } from "../../testUtils";
 
 const mockOnSubmit = jest.fn();
 
+const password = "Qwerty123123!23vcxz";
+
 describe("<MasterPasswordModal />", () => {
   it("calls onSubmit with entered password when form is submitted", async () => {
     const user = userEvent.setup();
diff --git a/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.tsx b/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.tsx
index adb9ed3480..25c827904c 100644
--- a/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.tsx
+++ b/apps/web/src/components/MasterPasswordModal/MasterPasswordModal.tsx
@@ -51,8 +51,8 @@ export const MasterPasswordModal = ({ onSubmit }: MasterPasswordModalProps) => {
               data-testid="master-password"
               inputName="password"
               label="Password"
+              minLength={0}
               placeholder="Enter your password"
-              required="Password is required"
             />
           </ModalBody>
           <ModalFooter>
diff --git a/apps/web/src/components/Menu/ChangePasswordMenu/ChangePasswordMenu.test.tsx b/apps/web/src/components/Menu/ChangePasswordMenu/ChangePasswordMenu.test.tsx
index 6581a5a946..36f93b5e1f 100644
--- a/apps/web/src/components/Menu/ChangePasswordMenu/ChangePasswordMenu.test.tsx
+++ b/apps/web/src/components/Menu/ChangePasswordMenu/ChangePasswordMenu.test.tsx
@@ -9,6 +9,9 @@ jest.mock("@umami/state", () => ({
   changeMnemonicPassword: jest.fn(),
 }));
 
+const currentPassword = "Qwerty123123!23vcxz";
+const newPassword = "Qwerty123123!23vcxz32llll";
+
 describe("<ChangePasswordMenu />", () => {
   describe("currentPassword", () => {
     it("is empty by default", async () => {
@@ -47,7 +50,7 @@ describe("<ChangePasswordMenu />", () => {
       });
     });
 
-    it("requires 8 characters", async () => {
+    it("requires 12 characters", async () => {
       const user = userEvent.setup();
       await renderInDrawer(<ChangePasswordMenu />);
 
@@ -57,7 +60,7 @@ describe("<ChangePasswordMenu />", () => {
 
       await waitFor(() => {
         expect(screen.getByTestId("new-password-error")).toHaveTextContent(
-          "Your password must be at least 8 characters long"
+          "Your password must be at least 12 characters long"
         );
       });
     });
@@ -108,9 +111,9 @@ describe("<ChangePasswordMenu />", () => {
       const newPasswordInput = screen.getByTestId("new-password");
       const newPasswordConfirmationInput = screen.getByTestId("new-password-confirmation");
 
-      await user.type(currentPasswordInput, "myOldPassword");
-      await user.type(newPasswordInput, "myNewPassword");
-      await user.type(newPasswordConfirmationInput, "myNewPassword");
+      await user.type(currentPasswordInput, currentPassword);
+      await user.type(newPasswordInput, newPassword);
+      await user.type(newPasswordConfirmationInput, newPassword);
 
       expect(screen.getByRole("button", { name: "Update Password" })).toBeEnabled();
     });
@@ -123,15 +126,15 @@ describe("<ChangePasswordMenu />", () => {
       const newPasswordInput = screen.getByTestId("new-password");
       const newPasswordConfirmationInput = screen.getByTestId("new-password-confirmation");
 
-      await user.type(currentPasswordInput, "myOldPassword");
-      await user.type(newPasswordInput, "myNewPassword");
-      await user.type(newPasswordConfirmationInput, "myNewPassword");
+      await user.type(currentPasswordInput, currentPassword);
+      await user.type(newPasswordInput, newPassword);
+      await user.type(newPasswordConfirmationInput, newPassword);
 
       await user.click(screen.getByRole("button", { name: "Update Password" }));
 
       expect(changeMnemonicPassword).toHaveBeenCalledWith({
-        currentPassword: "myOldPassword",
-        newPassword: "myNewPassword",
+        currentPassword: currentPassword,
+        newPassword: newPassword,
       });
     });
   });
diff --git a/apps/web/src/components/Menu/Menu.test.tsx b/apps/web/src/components/Menu/Menu.test.tsx
index 95cf7f7166..b9830bd181 100644
--- a/apps/web/src/components/Menu/Menu.test.tsx
+++ b/apps/web/src/components/Menu/Menu.test.tsx
@@ -34,6 +34,7 @@ jest.mock("@umami/state", () => ({
 
 let store: UmamiStore;
 const account = mockImplicitAccount(0);
+const password = "Qwerty123123!23vcxz";
 
 beforeEach(() => {
   store = makeStore();
@@ -96,8 +97,8 @@ describe("<Menu />", () => {
 
       await user.click(screen.getByText("Save Backup"));
 
-      await user.type(screen.getByLabelText("Set Password"), "password");
-      await user.type(screen.getByLabelText("Confirm Password"), "password");
+      await user.type(screen.getByLabelText("Set Password"), password);
+      await user.type(screen.getByLabelText("Confirm Password"), password);
       await user.click(screen.getByRole("button", { name: "Save Backup" }));
 
       expect(mockDownloadBackupFile).toHaveBeenCalled();
diff --git a/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.test.tsx b/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.test.tsx
index bf1a609e1f..832df08afe 100644
--- a/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.test.tsx
+++ b/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.test.tsx
@@ -31,7 +31,7 @@ jest.mock("@umami/state", () => ({
   useIsPasswordSet: jest.fn(),
 }));
 
-const password = "password";
+const password = "Qwerty123123!23vcxz";
 
 beforeEach(() => {
   jest.mocked(useGetDecryptedMnemonic).mockReturnValue(() => Promise.resolve(mnemonic1));
diff --git a/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.tsx b/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.tsx
index e0d6f9ec4a..80a18df3a0 100644
--- a/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.tsx
+++ b/apps/web/src/components/Onboarding/SetupPassword/SetupPassword.tsx
@@ -112,7 +112,7 @@ export const SetupPassword = ({ mode }: SetupPasswordProps) => {
   const downloadBackupFile = useDownloadBackupFile();
 
   const form = useMultiForm<FormFields>({
-    mode: "onChange",
+    mode: "all",
     defaultValues: {
       derivationPath: defaultDerivationPathTemplate,
       curve: "ed25519",
@@ -201,6 +201,7 @@ export const SetupPassword = ({ mode }: SetupPasswordProps) => {
                 checkPasswordStrength={!isPasswordSet}
                 inputName="password"
                 label={isPasswordSet ? "Password" : "Set Password"}
+                required="Password is required"
               />
               {!isPasswordSet && (
                 <PasswordInput