diff --git a/completions/mcpctl.bash b/completions/mcpctl.bash
index b0ddc77..9c42b73 100644
--- a/completions/mcpctl.bash
+++ b/completions/mcpctl.bash
@@ -5,7 +5,7 @@ _mcpctl() {
   local cur prev words cword
   _init_completion || return
 
-  local commands="status login logout config get describe delete logs create edit apply chat chat-llm patch backup approve review skills console cache provider test migrate rotate"
+  local commands="status login logout config get describe delete logs create edit apply chat chat-llm patch passwd backup approve review skills console cache provider test migrate rotate"
   local project_commands="get describe delete logs create edit attach-server detach-server"
   local global_opts="-v --version --daemon-url --direct -p --project -h --help"
   local resources="servers instances secrets secretbackends llms agents personalities templates projects users groups rbac prompts promptrequests serverattachments proxymodels inference-tasks all"
@@ -268,6 +268,9 @@ _mcpctl() {
         COMPREPLY=($(compgen -W "$names -h --help" -- "$cur"))
       fi
       return ;;
+    passwd)
+      COMPREPLY=($(compgen -W "-h --help" -- "$cur"))
+      return ;;
     backup)
       local backup_sub=$(_mcpctl_get_subcmd $subcmd_pos)
       if [[ -z "$backup_sub" ]]; then
diff --git a/completions/mcpctl.fish b/completions/mcpctl.fish
index 5e459dd..e9a8582 100644
--- a/completions/mcpctl.fish
+++ b/completions/mcpctl.fish
@@ -4,7 +4,7 @@
 # Erase any stale completions from previous versions
 complete -c mcpctl -e
 
-set -l commands status login logout config get describe delete logs create edit apply chat chat-llm patch backup approve review skills console cache provider test migrate rotate
+set -l commands status login logout config get describe delete logs create edit apply chat chat-llm patch passwd backup approve review skills console cache provider test migrate rotate
 set -l project_commands get describe delete logs create edit attach-server detach-server
 
 # Disable file completions by default
@@ -234,6 +234,7 @@ complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_
 complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_from $commands" -a chat -d 'Open an interactive chat session with an agent (REPL or one-shot).'
 complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_from $commands" -a chat-llm -d 'Stateless chat with any registered LLM (public or virtual). No threads, no tools.'
 complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_from $commands" -a patch -d 'Patch a resource field (e.g. mcpctl patch project myproj llmProvider=none)'
+complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_from $commands" -a passwd -d 'Change a user password (your own when called without an argument)'
 complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_from $commands" -a backup -d 'Git-based backup status and management'
 complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_from $commands" -a approve -d 'Approve a pending prompt request (atomic: delete request, create prompt)'
 complete -c mcpctl -n "not __mcpctl_has_project; and not __fish_seen_subcommand_from $commands" -a review -d 'Triage proposed prompts and skills'
diff --git a/src/cli/src/commands/passwd.ts b/src/cli/src/commands/passwd.ts
new file mode 100644
index 0000000..69c725d
--- /dev/null
+++ b/src/cli/src/commands/passwd.ts
@@ -0,0 +1,72 @@
+import { Command } from 'commander';
+import type { ApiClient } from '../api-client.js';
+
+export interface PasswdPromptDeps {
+  password(message: string): Promise<string>;
+}
+
+export interface PasswdCommandDeps {
+  client: ApiClient;
+  log: (...args: string[]) => void;
+  prompt: PasswdPromptDeps;
+}
+
+interface Me {
+  id: string;
+  email: string;
+}
+
+interface UserView {
+  id: string;
+  email: string;
+}
+
+async function defaultPassword(message: string): Promise<string> {
+  const { default: inquirer } = await import('inquirer');
+  const { answer } = await inquirer.prompt([{ type: 'password', name: 'answer', message, mask: '*' }]);
+  return answer as string;
+}
+
+function validateNew(newPassword: string, confirm: string): void {
+  if (newPassword !== confirm) {
+    throw new Error('Passwords do not match');
+  }
+  if (newPassword.length < 8) {
+    throw new Error('Password must be at least 8 characters');
+  }
+}
+
+export function createPasswdCommand(deps?: Partial<PasswdCommandDeps>): Command {
+  const log = deps?.log ?? ((...args: string[]): void => { console.log(...args); });
+  const prompt: PasswdPromptDeps = deps?.prompt ?? { password: defaultPassword };
+
+  return new Command('passwd')
+    .description('Change a user password (your own when called without an argument)')
+    .argument('[user]', 'email or id of the user whose password to change (defaults to yourself)')
+    .action(async (target: string | undefined) => {
+      const client = deps?.client;
+      if (!client) throw new Error('passwd: no API client configured');
+
+      const me = await client.get<Me>('/api/v1/auth/me');
+      const isSelf = target === undefined || target === me.email || target === me.id;
+
+      if (isSelf) {
+        // Self-service: prove identity with the current password, then set the new one.
+        const currentPassword = await prompt.password('Current password');
+        const newPassword = await prompt.password('New password');
+        const confirm = await prompt.password('Retype new password');
+        validateNew(newPassword, confirm);
+        await client.post('/api/v1/users/me/password', { currentPassword, newPassword });
+        log(`Password updated for ${me.email}.`);
+        return;
+      }
+
+      // Admin reset of another user — requires edit:users.
+      const targetUser = await client.get<UserView>(`/api/v1/users/${encodeURIComponent(target as string)}`);
+      const newPassword = await prompt.password(`New password for ${targetUser.email}`);
+      const confirm = await prompt.password('Retype new password');
+      validateNew(newPassword, confirm);
+      await client.put(`/api/v1/users/${targetUser.id}/password`, { newPassword });
+      log(`Password reset for ${targetUser.email}.`);
+    });
+}
diff --git a/src/cli/src/index.ts b/src/cli/src/index.ts
index cf2ecd6..892f46f 100644
--- a/src/cli/src/index.ts
+++ b/src/cli/src/index.ts
@@ -25,6 +25,7 @@ import { createMigrateCommand } from './commands/migrate.js';
 import { createRotateCommand } from './commands/rotate.js';
 import { createReviewCommand } from './commands/review.js';
 import { createSkillsCommand } from './commands/skills.js';
+import { createPasswdCommand } from './commands/passwd.js';
 import { ApiClient, ApiError } from './api-client.js';
 import { loadConfig } from './config/index.js';
 import { loadCredentials } from './auth/index.js';
@@ -257,6 +258,11 @@ export function createProgram(): Command {
     log: (...args) => console.log(...args),
   }));
 
+  program.addCommand(createPasswdCommand({
+    client,
+    log: (...args) => console.log(...args),
+  }));
+
   program.addCommand(createBackupCommand({
     client,
     log: (...args) => console.log(...args),
diff --git a/src/mcpd/src/bootstrap/self-password-permission.ts b/src/mcpd/src/bootstrap/self-password-permission.ts
new file mode 100644
index 0000000..a8975a4
--- /dev/null
+++ b/src/mcpd/src/bootstrap/self-password-permission.ts
@@ -0,0 +1,33 @@
+/**
+ * Self-service password change is modelled as a real, admin-revocable RBAC
+ * permission — NOT an exception to the RBAC path. Every new user gets a
+ * personal RbacDefinition (`self-<userId>`) granting the `set-own-password`
+ * operation, gated at creation time by the `allowSelfPasswordChange` system
+ * setting. Admins disable it for an individual by deleting that definition,
+ * or for future users by flipping the setting.
+ */
+
+import type { RbacDefinitionService } from '../services/rbac-definition.service.js';
+
+/** Operation that gates `POST /api/v1/users/me/password`. */
+export const SET_OWN_PASSWORD_OPERATION = 'set-own-password';
+
+/** Name of a user's personal RbacDefinition (currently just self password). */
+export function selfRbacName(userId: string): string {
+  return `self-${userId}`;
+}
+
+/**
+ * Grant a user the default self-service password-change permission.
+ * Idempotent (upsert by name) — safe to call on every creation/bootstrap.
+ */
+export async function grantSelfPasswordPermission(
+  rbac: RbacDefinitionService,
+  user: { id: string; email: string },
+): Promise<void> {
+  await rbac.upsertByName({
+    name: selfRbacName(user.id),
+    subjects: [{ kind: 'User', name: user.email }],
+    roleBindings: [{ role: 'run', action: SET_OWN_PASSWORD_OPERATION }],
+  });
+}
diff --git a/src/mcpd/src/bootstrap/system-settings.ts b/src/mcpd/src/bootstrap/system-settings.ts
new file mode 100644
index 0000000..9fb3f3e
--- /dev/null
+++ b/src/mcpd/src/bootstrap/system-settings.ts
@@ -0,0 +1,47 @@
+/**
+ * Global mcpd settings, stored as JSON in a well-known Secret's `data` field.
+ *
+ * We deliberately reuse the Secret object instead of adding schema columns:
+ * Secrets already have CRUD, RBAC, and backup/restore, so settings stay
+ * admin-editable through the same tooling with no migration per flag.
+ * See the `backup-ssh` secret for the original precedent.
+ */
+
+import type { PrismaClient } from '@prisma/client';
+
+/** Well-known secret holding global mcpd settings as `data` JSON. */
+export const SYSTEM_SETTINGS_SECRET = 'mcpctl-system-settings';
+
+/** Settings key: whether newly-created users get self password-change permission. */
+export const SETTING_ALLOW_SELF_PASSWORD = 'allowSelfPasswordChange';
+
+/** Coerce a stored JSON value (boolean, or "true"/"false"/"0" string) to boolean. */
+function toBool(v: unknown, dflt: boolean): boolean {
+  if (typeof v === 'boolean') return v;
+  if (typeof v === 'string') {
+    const s = v.trim().toLowerCase();
+    if (s === 'false' || s === '0' || s === '') return false;
+    return true;
+  }
+  return dflt;
+}
+
+/**
+ * Whether new users should receive the `set-own-password` permission by default.
+ *
+ * Defaults to TRUE — a fresh install allows self-service password changes.
+ * An admin disables it by setting `allowSelfPasswordChange: false` in the
+ * `mcpctl-system-settings` secret. Missing secret / missing key / read error
+ * all fall back to the permissive default.
+ */
+export async function getAllowSelfPasswordChange(prisma: PrismaClient): Promise<boolean> {
+  try {
+    const secret = await prisma.secret.findUnique({ where: { name: SYSTEM_SETTINGS_SECRET } });
+    if (!secret) return true;
+    const data = (secret.data ?? {}) as Record<string, unknown>;
+    if (!(SETTING_ALLOW_SELF_PASSWORD in data)) return true;
+    return toBool(data[SETTING_ALLOW_SELF_PASSWORD], true);
+  } catch {
+    return true;
+  }
+}
diff --git a/src/mcpd/src/main.ts b/src/mcpd/src/main.ts
index 191b046..5754df6 100644
--- a/src/mcpd/src/main.ts
+++ b/src/mcpd/src/main.ts
@@ -54,6 +54,7 @@ import { PersonalityService } from './services/personality.service.js';
 import { registerPersonalityRoutes } from './routes/personalities.js';
 import { registerWebUi } from './routes/web-ui.js';
 import { bootstrapSystemProject } from './bootstrap/system-project.js';
+import { SET_OWN_PASSWORD_OPERATION } from './bootstrap/self-password-permission.js';
 import { bootstrapSystemSkills } from './bootstrap/system-skills.js';
 import {
   McpServerService,
@@ -130,6 +131,13 @@ function mapUrlToPermission(method: string, url: string): PermissionCheck {
 
   const segment = match[1] as string;
 
+  // Self-service password change — gated by the `set-own-password` operation
+  // (a default, admin-revocable permission), NOT the broad edit:users that an
+  // admin reset of another user needs. Must precede the generic users mapping.
+  if (url.startsWith('/api/v1/users/me/password')) {
+    return { kind: 'operation', operation: SET_OWN_PASSWORD_OPERATION };
+  }
+
   // Operations (non-resource endpoints)
   if (segment === 'backup') return { kind: 'operation', operation: 'backup' };
   if (segment === 'restore') return { kind: 'operation', operation: 'restore' };
@@ -414,6 +422,12 @@ async function main(): Promise<void> {
     mcptokens: mcpTokenRepo,
     llms: llmRepo,
     agents: agentRepo,
+    // Resolve user CUID → email so name-scoped `edit:users:<email>` bindings
+    // match on PUT /api/v1/users/:id/password (admin reset).
+    users: { findById: async (id: string) => {
+      const u = await userRepo.findById(id);
+      return u ? { name: u.email } : null;
+    } },
   };
 
   // Migrate legacy 'admin' role → granular roles
@@ -701,7 +715,7 @@ async function main(): Promise<void> {
     authDeps,
   });
   registerRbacRoutes(app, rbacDefinitionService);
-  registerUserRoutes(app, userService);
+  registerUserRoutes(app, { userService, rbacDefinitionService, prisma });
   registerGroupRoutes(app, groupService);
   registerMcpTokenRoutes(app, { tokenService: mcpTokenService, projectRepo });
   registerPromptRoutes(app, promptService, projectRepo, agentRepo);
diff --git a/src/mcpd/src/repositories/user.repository.ts b/src/mcpd/src/repositories/user.repository.ts
index f008584..bb53e5a 100644
--- a/src/mcpd/src/repositories/user.repository.ts
+++ b/src/mcpd/src/repositories/user.repository.ts
@@ -6,9 +6,11 @@ export type SafeUser = Omit<User, 'passwordHash'>;
 export interface IUserRepository {
   findAll(): Promise<SafeUser[]>;
   findById(id: string): Promise<SafeUser | null>;
+  /** Like findById but includes the passwordHash — used by password verification. */
+  findByIdWithHash(id: string): Promise<User | null>;
   findByEmail(email: string, includeHash?: boolean): Promise<SafeUser | null> | Promise<User | null>;
   create(data: { email: string; passwordHash: string; name?: string; role?: string }): Promise<SafeUser>;
-  update(id: string, data: { name?: string; role?: string }): Promise<SafeUser>;
+  update(id: string, data: { name?: string; role?: string; passwordHash?: string }): Promise<SafeUser>;
   delete(id: string): Promise<void>;
   count(): Promise<number>;
 }
@@ -43,6 +45,10 @@ export class UserRepository implements IUserRepository {
     });
   }
 
+  async findByIdWithHash(id: string): Promise<User | null> {
+    return this.prisma.user.findUnique({ where: { id } });
+  }
+
   async findByEmail(email: string, includeHash?: boolean): Promise<User | SafeUser | null> {
     if (includeHash === true) {
       return this.prisma.user.findUnique({ where: { email } });
@@ -67,10 +73,11 @@ export class UserRepository implements IUserRepository {
     });
   }
 
-  async update(id: string, data: { name?: string; role?: string }): Promise<SafeUser> {
+  async update(id: string, data: { name?: string; role?: string; passwordHash?: string }): Promise<SafeUser> {
     const updateData: Record<string, unknown> = {};
     if (data.name !== undefined) updateData['name'] = data.name;
     if (data.role !== undefined) updateData['role'] = data.role;
+    if (data.passwordHash !== undefined) updateData['passwordHash'] = data.passwordHash;
     return this.prisma.user.update({
       where: { id },
       data: updateData,
diff --git a/src/mcpd/src/routes/auth.ts b/src/mcpd/src/routes/auth.ts
index e69eba5..6dc3bd8 100644
--- a/src/mcpd/src/routes/auth.ts
+++ b/src/mcpd/src/routes/auth.ts
@@ -6,6 +6,7 @@ import type { RbacDefinitionService } from '../services/rbac-definition.service.
 import type { RbacService } from '../services/rbac.service.js';
 import { createAuthMiddleware } from '../middleware/auth.js';
 import { createRbacMiddleware } from '../middleware/rbac.js';
+import { grantSelfPasswordPermission } from '../bootstrap/self-password-permission.js';
 
 export interface AuthRouteDeps {
   authService: AuthService;
@@ -37,12 +38,18 @@ export function registerAuthRoutes(app: FastifyInstance, deps: AuthRouteDeps): v
     const { email, password, name } = request.body as { email: string; password: string; name?: string };
 
     // Create the first admin user
-    await deps.userService.create({
+    const adminUser = await deps.userService.create({
       email,
       password,
       ...(name !== undefined ? { name } : {}),
     });
 
+    // Fresh install: the admin is also a user, so give them the default
+    // self-service password-change permission (default-on; see
+    // grantSelfPasswordPermission). Their bootstrap-admin edit:* already
+    // covers resetting OTHER users.
+    await grantSelfPasswordPermission(deps.rbacDefinitionService, adminUser);
+
     // Create "admin" group and add the first user to it
     await deps.groupService.create({
       name: 'admin',
diff --git a/src/mcpd/src/routes/users.ts b/src/mcpd/src/routes/users.ts
index 80adaf1..6b5dbcb 100644
--- a/src/mcpd/src/routes/users.ts
+++ b/src/mcpd/src/routes/users.ts
@@ -1,10 +1,20 @@
 import type { FastifyInstance } from 'fastify';
+import type { PrismaClient } from '@prisma/client';
 import type { UserService } from '../services/user.service.js';
+import type { RbacDefinitionService } from '../services/rbac-definition.service.js';
+import { ChangeOwnPasswordSchema, ResetPasswordSchema } from '../validation/user.schema.js';
+import { getAllowSelfPasswordChange } from '../bootstrap/system-settings.js';
+import { grantSelfPasswordPermission } from '../bootstrap/self-password-permission.js';
+
+export interface UserRouteDeps {
+  userService: UserService;
+  rbacDefinitionService: RbacDefinitionService;
+  prisma: PrismaClient;
+}
+
+export function registerUserRoutes(app: FastifyInstance, deps: UserRouteDeps): void {
+  const { userService: service, rbacDefinitionService, prisma } = deps;
 
-export function registerUserRoutes(
-  app: FastifyInstance,
-  service: UserService,
-): void {
   app.get('/api/v1/users', async () => {
     return service.list();
   });
@@ -20,12 +30,58 @@ export function registerUserRoutes(
 
   app.post('/api/v1/users', async (request, reply) => {
     const user = await service.create(request.body);
+    // Seed the default, admin-revocable self password-change permission,
+    // gated by the system setting. Never fail user creation if seeding fails.
+    try {
+      if (await getAllowSelfPasswordChange(prisma)) {
+        await grantSelfPasswordPermission(rbacDefinitionService, user);
+      }
+    } catch (err) {
+      request.log.warn({ err, userId: user.id }, 'failed to seed self password permission');
+    }
     reply.code(201);
     return user;
   });
 
-  app.delete<{ Params: { id: string } }>('/api/v1/users/:id', async (_request, reply) => {
-    await service.delete(_request.params.id);
+  // ── Self-service password change ──
+  // Gated by the `set-own-password` operation (global RBAC hook). Requires the
+  // current password as proof — a user who forgot it must use an admin reset.
+  app.post('/api/v1/users/me/password', async (request, reply) => {
+    if (request.userId === undefined) {
+      reply.code(401);
+      return { error: 'Authentication required' };
+    }
+    const { currentPassword, newPassword } = ChangeOwnPasswordSchema.parse(request.body);
+    const ok = await service.verifyPassword(request.userId, currentPassword);
+    if (!ok) {
+      reply.code(401);
+      return { error: 'Current password is incorrect' };
+    }
+    await service.setPassword(request.userId, newPassword);
+    return { success: true };
+  });
+
+  // ── Admin reset of another user's password ──
+  // Gated by edit:users (admins have edit:*). No current password required.
+  app.put<{ Params: { id: string } }>('/api/v1/users/:id/password', async (request) => {
+    const idOrEmail = request.params.id;
+    const target = idOrEmail.includes('@')
+      ? await service.getByEmail(idOrEmail)
+      : await service.getById(idOrEmail);
+    const { newPassword } = ResetPasswordSchema.parse(request.body);
+    await service.setPassword(target.id, newPassword);
+    return { success: true };
+  });
+
+  app.delete<{ Params: { id: string } }>('/api/v1/users/:id', async (request, reply) => {
+    // A user cannot delete their own account through the API — self bindings
+    // grant password change, not account deletion. Admins delete others.
+    if (request.userId !== undefined && request.userId === request.params.id) {
+      reply.code(403);
+      return { error: 'You cannot delete your own account' };
+    }
+    await service.delete(request.params.id);
     reply.code(204);
+    return undefined;
   });
 }
diff --git a/src/mcpd/src/services/user.service.ts b/src/mcpd/src/services/user.service.ts
index 81725fb..e8b2a4a 100644
--- a/src/mcpd/src/services/user.service.ts
+++ b/src/mcpd/src/services/user.service.ts
@@ -1,6 +1,6 @@
 import bcrypt from 'bcrypt';
 import type { IUserRepository, SafeUser } from '../repositories/user.repository.js';
-import { CreateUserSchema } from '../validation/user.schema.js';
+import { CreateUserSchema, PasswordSchema } from '../validation/user.schema.js';
 import { NotFoundError, ConflictError } from './mcp-server.service.js';
 
 const SALT_ROUNDS = 10;
@@ -54,6 +54,27 @@ export class UserService {
     await this.userRepo.delete(id);
   }
 
+  /** Verify a plaintext password against the stored hash for a user id. */
+  async verifyPassword(id: string, password: string): Promise<boolean> {
+    const user = await this.userRepo.findByIdWithHash(id);
+    if (user === null) {
+      throw new NotFoundError(`User not found: ${id}`);
+    }
+    // Locked accounts (e.g. system user with `!locked`) never verify.
+    if (!user.passwordHash || user.passwordHash.startsWith('!') || user.passwordHash.startsWith('__')) {
+      return false;
+    }
+    return bcrypt.compare(password, user.passwordHash);
+  }
+
+  /** Hash + store a new password for a user. Throws NotFoundError if absent. */
+  async setPassword(id: string, newPassword: string): Promise<void> {
+    PasswordSchema.parse(newPassword);
+    await this.getById(id); // 404 if missing
+    const passwordHash = await bcrypt.hash(newPassword, SALT_ROUNDS);
+    await this.userRepo.update(id, { passwordHash });
+  }
+
   async count(): Promise<number> {
     return this.userRepo.count();
   }
diff --git a/src/mcpd/src/validation/user.schema.ts b/src/mcpd/src/validation/user.schema.ts
index 3db8be4..fc2f203 100644
--- a/src/mcpd/src/validation/user.schema.ts
+++ b/src/mcpd/src/validation/user.schema.ts
@@ -1,14 +1,28 @@
 import { z } from 'zod';
 
+/** Shared password rules — reused by create, self-change, and admin-reset paths. */
+export const PasswordSchema = z.string().min(8).max(128);
+
 export const CreateUserSchema = z.object({
   email: z.string().email(),
-  password: z.string().min(8).max(128),
+  password: PasswordSchema,
   name: z.string().max(100).optional(),
 });
 
 export const UpdateUserSchema = z.object({
   name: z.string().max(100).optional(),
-  password: z.string().min(8).max(128).optional(),
+  password: PasswordSchema.optional(),
+});
+
+/** Self-service change: requires the current password as proof. */
+export const ChangeOwnPasswordSchema = z.object({
+  currentPassword: z.string().min(1),
+  newPassword: PasswordSchema,
+});
+
+/** Admin reset of another user: no current password needed. */
+export const ResetPasswordSchema = z.object({
+  newPassword: PasswordSchema,
 });
 
 export type CreateUserInput = z.infer<typeof CreateUserSchema>;
diff --git a/src/mcpd/tests/auth-bootstrap.test.ts b/src/mcpd/tests/auth-bootstrap.test.ts
index 051bff6..8a043ec 100644
--- a/src/mcpd/tests/auth-bootstrap.test.ts
+++ b/src/mcpd/tests/auth-bootstrap.test.ts
@@ -92,6 +92,7 @@ interface MockDeps {
     getByName: ReturnType<typeof vi.fn>;
     update: ReturnType<typeof vi.fn>;
     delete: ReturnType<typeof vi.fn>;
+    upsertByName: ReturnType<typeof vi.fn>;
   };
   rbacService: {
     canAccess: ReturnType<typeof vi.fn>;
@@ -131,6 +132,7 @@ function createMockDeps(): MockDeps {
       getByName: vi.fn(async () => null),
       update: vi.fn(async () => makeRbacDef()),
       delete: vi.fn(async () => {}),
+      upsertByName: vi.fn(async () => makeRbacDef()),
     },
     rbacService: {
       canAccess: vi.fn(async () => false),
@@ -223,6 +225,13 @@ describe('Auth Bootstrap', () => {
 
       // Verify auto-login was called
       expect(deps.authService.login).toHaveBeenCalledWith('admin@example.com', 'securepass123');
+
+      // Verify the admin also got the default self password-change permission
+      expect(deps.rbacDefinitionService.upsertByName).toHaveBeenCalledWith({
+        name: 'self-user-1',
+        subjects: [{ kind: 'User', name: 'admin@example.com' }],
+        roleBindings: [{ role: 'run', action: 'set-own-password' }],
+      });
     });
 
     it('passes name when provided', async () => {
diff --git a/src/mcpd/tests/users-password.test.ts b/src/mcpd/tests/users-password.test.ts
new file mode 100644
index 0000000..c25e704
--- /dev/null
+++ b/src/mcpd/tests/users-password.test.ts
@@ -0,0 +1,154 @@
+import { describe, it, expect, vi, beforeEach, afterEach } from 'vitest';
+import Fastify, { type FastifyInstance } from 'fastify';
+import { registerUserRoutes } from '../src/routes/users.js';
+import { errorHandler } from '../src/middleware/error-handler.js';
+
+/**
+ * Unit tests for the password endpoints. RBAC/auth is enforced by global hooks
+ * in main.ts (not registerUserRoutes), so here we set request.userId via a test
+ * preHandler from the `x-test-user` header to drive the route logic directly.
+ */
+
+let app: FastifyInstance;
+
+function makeUser(over?: Partial<{ id: string; email: string }>) {
+  return { id: 'user-1', email: 'me@example.com', name: null, role: 'user', provider: 'local', externalId: null, version: 1, createdAt: new Date(), updatedAt: new Date(), ...over };
+}
+
+function makeDeps() {
+  return {
+    userService: {
+      list: vi.fn(async () => []),
+      getById: vi.fn(async (id: string) => makeUser({ id })),
+      getByEmail: vi.fn(async (email: string) => makeUser({ email, id: 'user-2' })),
+      create: vi.fn(async () => makeUser({ id: 'new-user' })),
+      delete: vi.fn(async () => {}),
+      verifyPassword: vi.fn(async () => true),
+      setPassword: vi.fn(async () => {}),
+    },
+    rbacDefinitionService: {
+      upsertByName: vi.fn(async () => ({})),
+    },
+    prisma: {
+      secret: { findUnique: vi.fn(async () => null) }, // no settings secret → default ON
+    },
+  };
+}
+
+type Deps = ReturnType<typeof makeDeps>;
+
+async function createApp(deps: Deps): Promise<FastifyInstance> {
+  app = Fastify({ logger: false });
+  app.setErrorHandler(errorHandler);
+  // Emulate the global auth hook: set userId from a test header when present.
+  app.addHook('preHandler', async (request) => {
+    const u = request.headers['x-test-user'];
+    if (typeof u === 'string') request.userId = u;
+  });
+  registerUserRoutes(app, deps as unknown as Parameters<typeof registerUserRoutes>[1]);
+  await app.ready();
+  return app;
+}
+
+afterEach(async () => { await app?.close(); });
+
+describe('POST /api/v1/users/me/password (self-service)', () => {
+  let deps: Deps;
+  beforeEach(() => { deps = makeDeps(); });
+
+  it('changes password when current password verifies', async () => {
+    await createApp(deps);
+    const res = await app.inject({
+      method: 'POST', url: '/api/v1/users/me/password',
+      headers: { 'x-test-user': 'user-1' },
+      payload: { currentPassword: 'oldpass12', newPassword: 'newpass345' },
+    });
+    expect(res.statusCode).toBe(200);
+    expect(res.json()).toEqual({ success: true });
+    expect(deps.userService.verifyPassword).toHaveBeenCalledWith('user-1', 'oldpass12');
+    expect(deps.userService.setPassword).toHaveBeenCalledWith('user-1', 'newpass345');
+  });
+
+  it('rejects with 401 when current password is wrong', async () => {
+    deps.userService.verifyPassword.mockResolvedValueOnce(false);
+    await createApp(deps);
+    const res = await app.inject({
+      method: 'POST', url: '/api/v1/users/me/password',
+      headers: { 'x-test-user': 'user-1' },
+      payload: { currentPassword: 'wrong', newPassword: 'newpass345' },
+    });
+    expect(res.statusCode).toBe(401);
+    expect(deps.userService.setPassword).not.toHaveBeenCalled();
+  });
+
+  it('rejects with 401 when unauthenticated', async () => {
+    await createApp(deps);
+    const res = await app.inject({
+      method: 'POST', url: '/api/v1/users/me/password',
+      payload: { currentPassword: 'x', newPassword: 'newpass345' },
+    });
+    expect(res.statusCode).toBe(401);
+  });
+
+  it('rejects with 400 when new password too short', async () => {
+    await createApp(deps);
+    const res = await app.inject({
+      method: 'POST', url: '/api/v1/users/me/password',
+      headers: { 'x-test-user': 'user-1' },
+      payload: { currentPassword: 'oldpass12', newPassword: 'short' },
+    });
+    expect(res.statusCode).toBe(400);
+    expect(deps.userService.setPassword).not.toHaveBeenCalled();
+  });
+});
+
+describe('PUT /api/v1/users/:id/password (admin reset)', () => {
+  let deps: Deps;
+  beforeEach(() => { deps = makeDeps(); });
+
+  it('resets by id without requiring a current password', async () => {
+    await createApp(deps);
+    const res = await app.inject({
+      method: 'PUT', url: '/api/v1/users/user-9/password',
+      payload: { newPassword: 'resetpass99' },
+    });
+    expect(res.statusCode).toBe(200);
+    expect(deps.userService.setPassword).toHaveBeenCalledWith('user-9', 'resetpass99');
+    expect(deps.userService.verifyPassword).not.toHaveBeenCalled();
+  });
+
+  it('resolves an email target to its id before resetting', async () => {
+    await createApp(deps);
+    const res = await app.inject({
+      method: 'PUT', url: `/api/v1/users/${encodeURIComponent('other@example.com')}/password`,
+      payload: { newPassword: 'resetpass99' },
+    });
+    expect(res.statusCode).toBe(200);
+    expect(deps.userService.getByEmail).toHaveBeenCalledWith('other@example.com');
+    expect(deps.userService.setPassword).toHaveBeenCalledWith('user-2', 'resetpass99');
+  });
+});
+
+describe('POST /api/v1/users — self-permission seeding', () => {
+  let deps: Deps;
+  beforeEach(() => { deps = makeDeps(); });
+
+  it('seeds the self password permission when the setting is ON (default)', async () => {
+    await createApp(deps);
+    const res = await app.inject({ method: 'POST', url: '/api/v1/users', payload: { email: 'x@y.com', password: 'password12' } });
+    expect(res.statusCode).toBe(201);
+    expect(deps.rbacDefinitionService.upsertByName).toHaveBeenCalledWith({
+      name: 'self-new-user',
+      subjects: [{ kind: 'User', name: 'me@example.com' }],
+      roleBindings: [{ role: 'run', action: 'set-own-password' }],
+    });
+  });
+
+  it('does NOT seed when the setting is disabled', async () => {
+    deps.prisma.secret.findUnique.mockResolvedValueOnce({ name: 'mcpctl-system-settings', data: { allowSelfPasswordChange: false } } as never);
+    await createApp(deps);
+    const res = await app.inject({ method: 'POST', url: '/api/v1/users', payload: { email: 'x@y.com', password: 'password12' } });
+    expect(res.statusCode).toBe(201);
+    expect(deps.rbacDefinitionService.upsertByName).not.toHaveBeenCalled();
+  });
+});
diff --git a/src/mcplocal/tests/smoke/passwd.smoke.test.ts b/src/mcplocal/tests/smoke/passwd.smoke.test.ts
new file mode 100644
index 0000000..f6ce344
--- /dev/null
+++ b/src/mcplocal/tests/smoke/passwd.smoke.test.ts
@@ -0,0 +1,124 @@
+/**
+ * Smoke tests: `mcpctl passwd` end-to-end against live mcpd.
+ *
+ * Exercises the full password-change contract:
+ *   1. Admin creates a throwaway user (gets the default self-permission seeded).
+ *   2. That user self-changes their password (POST /users/me/password) with the
+ *      correct current password → succeeds; new password logs in, old does not.
+ *   3. Wrong current password → 401, password unchanged.
+ *   4. Admin resets the user's password (PUT /users/:id/password) → new one logs in.
+ *   5. Cleanup: delete the throwaway user.
+ *
+ * Target: $MCPD_URL (default https://mcpctl.ad.itaz.eu). Admin token is read
+ * from the local mcpctl credentials file (the box running smoke tests is logged
+ * in as admin). If /healthz fails or no admin token is found, the suite skips.
+ *
+ * Run with: pnpm test:smoke
+ */
+import { describe, it, expect, beforeAll } from 'vitest';
+import http from 'node:http';
+import https from 'node:https';
+import { readFileSync } from 'node:fs';
+import { homedir } from 'node:os';
+import { join } from 'node:path';
+
+const MCPD_URL = process.env.MCPD_URL ?? 'https://mcpctl.ad.itaz.eu';
+const STAMP = Date.now().toString(36);
+const EMAIL = `smoke-passwd-${STAMP}@example.com`;
+const P1 = `Smoke-${STAMP}-aaa1`;
+const P2 = `Smoke-${STAMP}-bbb2`;
+const P3 = `Smoke-${STAMP}-ccc3`;
+
+interface Resp { status: number; body: string; json: <T = unknown>() => T }
+
+function request(method: string, url: string, token?: string, payload?: unknown): Promise<Resp> {
+  return new Promise((resolve, reject) => {
+    const u = new URL(url);
+    const driver = u.protocol === 'https:' ? https : http;
+    const data = payload === undefined ? undefined : JSON.stringify(payload);
+    const headers: Record<string, string> = {};
+    if (token) headers['Authorization'] = `Bearer ${token}`;
+    if (data) { headers['Content-Type'] = 'application/json'; headers['Content-Length'] = String(Buffer.byteLength(data)); }
+    const req = driver.request(url, { method, headers, timeout: 15_000 }, (res) => {
+      const chunks: Buffer[] = [];
+      res.on('data', (c: Buffer) => chunks.push(c));
+      res.on('end', () => {
+        const body = Buffer.concat(chunks).toString('utf-8');
+        resolve({ status: res.statusCode ?? 0, body, json: <T,>() => JSON.parse(body) as T });
+      });
+    });
+    req.on('error', reject);
+    req.on('timeout', () => { req.destroy(); reject(new Error('timeout')); });
+    if (data) req.write(data);
+    req.end();
+  });
+}
+
+async function healthz(): Promise<boolean> {
+  try {
+    const res = await request('GET', `${MCPD_URL.replace(/\/$/, '')}/healthz`);
+    return res.status === 200;
+  } catch { return false; }
+}
+
+function adminToken(): string | undefined {
+  try {
+    const raw = readFileSync(join(homedir(), '.config', 'mcpctl', 'credentials'), 'utf-8');
+    return (JSON.parse(raw) as { token?: string }).token;
+  } catch { return undefined; }
+}
+
+async function login(email: string, password: string): Promise<Resp> {
+  return request('POST', `${MCPD_URL}/api/v1/auth/login`, undefined, { email, password });
+}
+
+describe('passwd smoke', () => {
+  let token: string | undefined;
+  let ready = false;
+  let userId: string | undefined;
+
+  beforeAll(async () => {
+    token = adminToken();
+    const up = await healthz();
+    ready = up && token !== undefined;
+    if (!ready) {
+      console.warn(`\n  ○ passwd smoke: skipped — ${MCPD_URL}/healthz up=${up}, adminToken=${token !== undefined}.\n`);
+      return;
+    }
+    // Create the throwaway user (admin).
+    const res = await request('POST', `${MCPD_URL}/api/v1/users`, token, { email: EMAIL, password: P1 });
+    expect([201, 409]).toContain(res.status);
+    const me = await request('GET', `${MCPD_URL}/api/v1/users/${encodeURIComponent(EMAIL)}`, token);
+    userId = me.json<{ id: string }>().id;
+  });
+
+  it('self-change succeeds with correct current password; new logs in, old does not', async () => {
+    if (!ready) return;
+    const userTok = (await login(EMAIL, P1)).json<{ token: string }>().token;
+    const chg = await request('POST', `${MCPD_URL}/api/v1/users/me/password`, userTok, { currentPassword: P1, newPassword: P2 });
+    expect(chg.status).toBe(200);
+    expect((await login(EMAIL, P2)).status).toBe(200);
+    expect((await login(EMAIL, P1)).status).toBe(401);
+  });
+
+  it('self-change with wrong current password is rejected (401)', async () => {
+    if (!ready) return;
+    const userTok = (await login(EMAIL, P2)).json<{ token: string }>().token;
+    const chg = await request('POST', `${MCPD_URL}/api/v1/users/me/password`, userTok, { currentPassword: 'definitely-wrong', newPassword: P3 });
+    expect(chg.status).toBe(401);
+    expect((await login(EMAIL, P2)).status).toBe(200); // unchanged
+  });
+
+  it('admin reset sets a new password without the current one', async () => {
+    if (!ready || !userId) return;
+    const reset = await request('PUT', `${MCPD_URL}/api/v1/users/${userId}/password`, token, { newPassword: P3 });
+    expect(reset.status).toBe(200);
+    expect((await login(EMAIL, P3)).status).toBe(200);
+  });
+
+  it('cleanup: delete the throwaway user', async () => {
+    if (!ready || !userId) return;
+    const del = await request('DELETE', `${MCPD_URL}/api/v1/users/${userId}`, token);
+    expect([204, 404]).toContain(del.status);
+  });
+});