diff --git a/src/app/api/auth/change-password/route.js b/src/app/api/auth/change-password/route.js
new file mode 100644
index 0000000..8bbf0b6
--- /dev/null
+++ b/src/app/api/auth/change-password/route.js
@@ -0,0 +1,80 @@
+import { NextResponse } from "next/server";
+import { auth } from "@/lib/auth";
+import bcrypt from "bcryptjs";
+import { z } from "zod";
+
+const changePasswordSchema = z.object({
+	currentPassword: z.string().min(1, "Current password is required"),
+	newPassword: z.string().min(6, "New password must be at least 6 characters"),
+});
+
+export async function POST(request) {
+	try {
+		const session = await auth();
+
+		if (!session?.user?.id) {
+			return NextResponse.json(
+				{ error: "Unauthorized" },
+				{ status: 401 }
+			);
+		}
+
+		const body = await request.json();
+		const { currentPassword, newPassword } = changePasswordSchema.parse(body);
+
+		// Import database here to avoid edge runtime issues
+		const { default: db } = await import("@/lib/db.js");
+
+		// Get current user password hash
+		const user = db
+			.prepare("SELECT password_hash FROM users WHERE id = ?")
+			.get(session.user.id);
+
+		if (!user) {
+			return NextResponse.json(
+				{ error: "User not found" },
+				{ status: 404 }
+			);
+		}
+
+		// Verify current password
+		const isValidPassword = await bcrypt.compare(currentPassword, user.password_hash);
+
+		if (!isValidPassword) {
+			return NextResponse.json(
+				{ error: "Current password is incorrect" },
+				{ status: 400 }
+			);
+		}
+
+		// Hash the new password
+		const hashedNewPassword = await bcrypt.hash(newPassword, 12);
+
+		// Update password
+		db.prepare("UPDATE users SET password_hash = ?, updated_at = CURRENT_TIMESTAMP WHERE id = ?")
+			.run(hashedNewPassword, session.user.id);
+
+		// Log audit event
+		try {
+			const { logAuditEventSafe, AUDIT_ACTIONS, RESOURCE_TYPES } = await import("@/lib/auditLogSafe.js");
+			await logAuditEventSafe({
+				action: AUDIT_ACTIONS.USER_UPDATE,
+				userId: session.user.id,
+				resourceType: RESOURCE_TYPES.USER,
+				details: { field: "password", username: session.user.username },
+			});
+		} catch (auditError) {
+			console.error("Failed to log audit event:", auditError);
+		}
+
+		return NextResponse.json({
+			message: "Password changed successfully",
+		});
+	} catch (error) {
+		console.error("Change password error:", error);
+		return NextResponse.json(
+			{ error: "Internal server error" },
+			{ status: 500 }
+		);
+	}
+}
\ No newline at end of file
diff --git a/src/app/api/auth/password-reset/request/route.js b/src/app/api/auth/password-reset/request/route.js
new file mode 100644
index 0000000..ca7c550
--- /dev/null
+++ b/src/app/api/auth/password-reset/request/route.js
@@ -0,0 +1,70 @@
+import { NextResponse } from "next/server";
+import crypto from "crypto";
+import { z } from "zod";
+
+const requestSchema = z.object({
+	username: z.string().min(1, "Username is required"),
+});
+
+export async function POST(request) {
+	try {
+		const body = await request.json();
+		const { username } = requestSchema.parse(body);
+
+		// Import database here to avoid edge runtime issues
+		const { default: db } = await import("@/lib/db.js");
+
+		// Check if user exists and is active
+		const user = db
+			.prepare("SELECT id, username, name FROM users WHERE username = ? AND is_active = 1")
+			.get(username);
+
+		if (!user) {
+			// Don't reveal if user exists or not for security
+			return NextResponse.json(
+				{ message: "If the username exists, a password reset link has been sent." },
+				{ status: 200 }
+			);
+		}
+
+		// Generate reset token
+		const token = crypto.randomBytes(32).toString("hex");
+		const expiresAt = new Date(Date.now() + 60 * 60 * 1000).toISOString(); // 1 hour
+
+		// Delete any existing tokens for this user
+		db.prepare("DELETE FROM password_reset_tokens WHERE user_id = ?").run(user.id);
+
+		// Insert new token
+		db.prepare(
+			"INSERT INTO password_reset_tokens (user_id, token, expires_at) VALUES (?, ?, ?)"
+		).run(user.id, token, expiresAt);
+
+		// TODO: Send email with reset link
+		// For now, return the token for testing purposes
+		console.log(`Password reset token for ${username}: ${token}`);
+
+		// Log audit event
+		try {
+			const { logAuditEventSafe, AUDIT_ACTIONS, RESOURCE_TYPES } = await import("@/lib/auditLogSafe.js");
+			await logAuditEventSafe({
+				action: AUDIT_ACTIONS.PASSWORD_RESET_REQUEST,
+				userId: user.id,
+				resourceType: RESOURCE_TYPES.USER,
+				details: { username: user.username },
+			});
+		} catch (auditError) {
+			console.error("Failed to log audit event:", auditError);
+		}
+
+		return NextResponse.json(
+			{ message: "If the username exists, a password reset link has been sent." },
+			{ status: 200 }
+		);
+	} catch (error) {
+		console.error("Password reset request error:", error);
+		return NextResponse.json(
+			{ error: "Internal server error" },
+			{ status: 500 }
+		);
+	}
+}
\ No newline at end of file
diff --git a/src/app/api/auth/password-reset/reset/route.js b/src/app/api/auth/password-reset/reset/route.js
new file mode 100644
index 0000000..b525b2e
--- /dev/null
+++ b/src/app/api/auth/password-reset/reset/route.js
@@ -0,0 +1,71 @@
+import { NextResponse } from "next/server";
+import bcrypt from "bcryptjs";
+import { z } from "zod";
+
+const resetSchema = z.object({
+	token: z.string().min(1, "Token is required"),
+	password: z.string().min(6, "Password must be at least 6 characters"),
+});
+
+export async function POST(request) {
+	try {
+		const body = await request.json();
+		const { token, password } = resetSchema.parse(body);
+
+		// Import database here to avoid edge runtime issues
+		const { default: db } = await import("@/lib/db.js");
+
+		// Check if token exists and is valid
+		const resetToken = db
+			.prepare(
+				`
+				SELECT prt.*, u.username, u.name
+				FROM password_reset_tokens prt
+				JOIN users u ON prt.user_id = u.id
+				WHERE prt.token = ? AND prt.used = 0 AND prt.expires_at > datetime('now')
+			`
+			)
+			.get(token);
+
+		if (!resetToken) {
+			return NextResponse.json(
+				{ error: "Invalid or expired token" },
+				{ status: 400 }
+			);
+		}
+
+		// Hash the new password
+		const hashedPassword = await bcrypt.hash(password, 12);
+
+		// Update user password
+		db.prepare("UPDATE users SET password_hash = ?, updated_at = CURRENT_TIMESTAMP WHERE id = ?")
+			.run(hashedPassword, resetToken.user_id);
+
+		// Mark token as used
+		db.prepare("UPDATE password_reset_tokens SET used = 1 WHERE id = ?")
+			.run(resetToken.id);
+
+		// Log audit event
+		try {
+			const { logAuditEventSafe, AUDIT_ACTIONS, RESOURCE_TYPES } = await import("@/lib/auditLogSafe.js");
+			await logAuditEventSafe({
+				action: AUDIT_ACTIONS.PASSWORD_RESET,
+				userId: resetToken.user_id,
+				resourceType: RESOURCE_TYPES.USER,
+				details: { username: resetToken.username },
+			});
+		} catch (auditError) {
+			console.error("Failed to log audit event:", auditError);
+		}
+
+		return NextResponse.json({
+			message: "Password has been reset successfully",
+		});
+	} catch (error) {
+		console.error("Password reset error:", error);
+		return NextResponse.json(
+			{ error: "Internal server error" },
+			{ status: 500 }
+		);
+	}
+}
\ No newline at end of file
diff --git a/src/app/api/auth/password-reset/verify/route.js b/src/app/api/auth/password-reset/verify/route.js
new file mode 100644
index 0000000..ec7f8b5
--- /dev/null
+++ b/src/app/api/auth/password-reset/verify/route.js
@@ -0,0 +1,47 @@
+import { NextResponse } from "next/server";
+import { z } from "zod";
+
+const verifySchema = z.object({
+	token: z.string().min(1, "Token is required"),
+});
+
+export async function POST(request) {
+	try {
+		const body = await request.json();
+		const { token } = verifySchema.parse(body);
+
+		// Import database here to avoid edge runtime issues
+		const { default: db } = await import("@/lib/db.js");
+
+		// Check if token exists and is valid
+		const resetToken = db
+			.prepare(
+				`
+				SELECT prt.*, u.username, u.name
+				FROM password_reset_tokens prt
+				JOIN users u ON prt.user_id = u.id
+				WHERE prt.token = ? AND prt.used = 0 AND prt.expires_at > datetime('now')
+			`
+			)
+			.get(token);
+
+		if (!resetToken) {
+			return NextResponse.json(
+				{ error: "Invalid or expired token" },
+				{ status: 400 }
+			);
+		}
+
+		return NextResponse.json({
+			valid: true,
+			username: resetToken.username,
+			name: resetToken.name,
+		});
+	} catch (error) {
+		console.error("Token verification error:", error);
+		return NextResponse.json(
+			{ error: "Internal server error" },
+			{ status: 500 }
+		);
+	}
+}
\ No newline at end of file
diff --git a/src/app/settings/page.js b/src/app/settings/page.js
index e9c4196..936ba1a 100644
--- a/src/app/settings/page.js
+++ b/src/app/settings/page.js
@@ -6,6 +6,7 @@ import PageHeader from "@/components/ui/PageHeader";
 import { Card, CardHeader, CardContent } from "@/components/ui/Card";
 import ThemeToggle from "@/components/ui/ThemeToggle";
 import LanguageSwitcher from "@/components/ui/LanguageSwitcher";
+import PasswordReset from "@/components/settings/PasswordReset";
 
 export default function SettingsPage() {
 	const { t } = useTranslation();
@@ -58,6 +59,18 @@ export default function SettingsPage() {
 						</div>
 					</CardContent>
 				</Card>
+
+				{/* Password Settings */}
+				<Card>
+					<CardHeader>
+						<h2 className="text-lg font-semibold text-gray-900 dark:text-white">
+							{t('settings.password') || 'Password'}
+						</h2>
+					</CardHeader>
+					<CardContent>
+						<PasswordReset />
+					</CardContent>
+				</Card>
 			</div>
 		</PageContainer>
 	);
diff --git a/src/components/settings/PasswordReset.js b/src/components/settings/PasswordReset.js
new file mode 100644
index 0000000..9ab25c1
--- /dev/null
+++ b/src/components/settings/PasswordReset.js
@@ -0,0 +1,129 @@
+"use client";
+
+import { useState } from "react";
+import { useTranslation } from "@/lib/i18n";
+
+export default function PasswordReset() {
+	const { t } = useTranslation();
+	const [currentPassword, setCurrentPassword] = useState("");
+	const [newPassword, setNewPassword] = useState("");
+	const [confirmPassword, setConfirmPassword] = useState("");
+	const [isLoading, setIsLoading] = useState(false);
+	const [message, setMessage] = useState("");
+	const [error, setError] = useState("");
+
+	const handleSubmit = async (e) => {
+		e.preventDefault();
+		setError("");
+		setMessage("");
+
+		if (newPassword !== confirmPassword) {
+			setError("New passwords do not match");
+			return;
+		}
+
+		if (newPassword.length < 6) {
+			setError("New password must be at least 6 characters long");
+			return;
+		}
+
+		setIsLoading(true);
+
+		try {
+			const response = await fetch("/api/auth/change-password", {
+				method: "POST",
+				headers: {
+					"Content-Type": "application/json",
+				},
+				body: JSON.stringify({
+					currentPassword,
+					newPassword,
+				}),
+			});
+
+			const data = await response.json();
+
+			if (response.ok) {
+				setMessage("Password changed successfully");
+				setCurrentPassword("");
+				setNewPassword("");
+				setConfirmPassword("");
+			} else {
+				setError(data.error || "Failed to change password");
+			}
+		} catch (err) {
+			setError("An error occurred while changing password");
+		} finally {
+			setIsLoading(false);
+		}
+	};
+
+	return (
+		<div className="space-y-4">
+			<p className="text-sm text-gray-500 dark:text-gray-400">
+				{t('settings.passwordDescription') || 'Change your account password'}
+			</p>
+
+			<form onSubmit={handleSubmit} className="space-y-4">
+				<div>
+					<label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-1">
+						{t('settings.currentPassword') || 'Current Password'}
+					</label>
+					<input
+						type="password"
+						value={currentPassword}
+						onChange={(e) => setCurrentPassword(e.target.value)}
+						className="w-full px-3 py-2 border border-gray-300 rounded-md shadow-sm focus:outline-none focus:ring-2 focus:ring-blue-500 focus:border-blue-500 dark:bg-gray-700 dark:border-gray-600 dark:text-white"
+						required
+					/>
+				</div>
+
+				<div>
+					<label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-1">
+						{t('settings.newPassword') || 'New Password'}
+					</label>
+					<input
+						type="password"
+						value={newPassword}
+						onChange={(e) => setNewPassword(e.target.value)}
+						className="w-full px-3 py-2 border border-gray-300 rounded-md shadow-sm focus:outline-none focus:ring-2 focus:ring-blue-500 focus:border-blue-500 dark:bg-gray-700 dark:border-gray-600 dark:text-white"
+						required
+					/>
+				</div>
+
+				<div>
+					<label className="block text-sm font-medium text-gray-700 dark:text-gray-300 mb-1">
+						{t('settings.confirmPassword') || 'Confirm New Password'}
+					</label>
+					<input
+						type="password"
+						value={confirmPassword}
+						onChange={(e) => setConfirmPassword(e.target.value)}
+						className="w-full px-3 py-2 border border-gray-300 rounded-md shadow-sm focus:outline-none focus:ring-2 focus:ring-blue-500 focus:border-blue-500 dark:bg-gray-700 dark:border-gray-600 dark:text-white"
+						required
+					/>
+				</div>
+
+				{error && (
+					<div className="text-red-600 text-sm">
+						{error}
+					</div>
+				)}
+
+				{message && (
+					<div className="text-green-600 text-sm">
+						{message}
+					</div>
+				)}
+
+				<button
+					type="submit"
+					disabled={isLoading}
+					className="w-full bg-blue-600 text-white py-2 px-4 rounded-md hover:bg-blue-700 focus:outline-none focus:ring-2 focus:ring-blue-500 focus:ring-offset-2 disabled:opacity-50 disabled:cursor-not-allowed"
+				>
+					{isLoading ? (t('common.loading') || 'Loading...') : (t('settings.changePassword') || 'Change Password')}
+				</button>
+			</form>
+		</div>
+	);
+}
\ No newline at end of file
diff --git a/src/lib/auditLogSafe.js b/src/lib/auditLogSafe.js
index 84234e9..1e58c82 100644
--- a/src/lib/auditLogSafe.js
+++ b/src/lib/auditLogSafe.js
@@ -9,6 +9,8 @@ export const AUDIT_ACTIONS = {
 	LOGIN: "login",
 	LOGOUT: "logout",
 	LOGIN_FAILED: "login_failed",
+	PASSWORD_RESET_REQUEST: "password_reset_request",
+	PASSWORD_RESET: "password_reset",
 
 	// Projects
 	PROJECT_CREATE: "project_create",
diff --git a/src/lib/i18n.js b/src/lib/i18n.js
index 90c00b9..95e4f66 100644
--- a/src/lib/i18n.js
+++ b/src/lib/i18n.js
@@ -582,7 +582,13 @@ const translations = {
       theme: "Motyw",
       themeDescription: "Wybierz preferowany motyw",
       language: "Język",
-      languageDescription: "Wybierz preferowany język"
+      languageDescription: "Wybierz preferowany język",
+      password: "Hasło",
+      passwordDescription: "Zmień hasło do konta",
+      currentPassword: "Aktualne hasło",
+      newPassword: "Nowe hasło",
+      confirmPassword: "Potwierdź nowe hasło",
+      changePassword: "Zmień hasło"
     }
   },
   
@@ -1090,7 +1096,13 @@ const translations = {
       theme: "Theme",
       themeDescription: "Choose your preferred theme",
       language: "Language",
-      languageDescription: "Select your preferred language"
+      languageDescription: "Select your preferred language",
+      password: "Password",
+      passwordDescription: "Change your account password",
+      currentPassword: "Current Password",
+      newPassword: "New Password",
+      confirmPassword: "Confirm New Password",
+      changePassword: "Change Password"
     }
   }
 };
diff --git a/src/lib/init-db.js b/src/lib/init-db.js
index 66754fe..1ba1c79 100644
--- a/src/lib/init-db.js
+++ b/src/lib/init-db.js
@@ -452,5 +452,20 @@ export default function initializeDatabase() {
 		CREATE INDEX IF NOT EXISTS idx_field_history_table_record ON field_change_history(table_name, record_id);
 		CREATE INDEX IF NOT EXISTS idx_field_history_field ON field_change_history(table_name, record_id, field_name);
 		CREATE INDEX IF NOT EXISTS idx_field_history_changed_by ON field_change_history(changed_by);
+
+		-- Password reset tokens table
+		CREATE TABLE IF NOT EXISTS password_reset_tokens (
+			id TEXT PRIMARY KEY DEFAULT (lower(hex(randomblob(16)))),
+			user_id TEXT NOT NULL,
+			token TEXT UNIQUE NOT NULL,
+			expires_at TEXT NOT NULL,
+			used INTEGER DEFAULT 0,
+			created_at TEXT DEFAULT CURRENT_TIMESTAMP,
+			FOREIGN KEY (user_id) REFERENCES users(id) ON DELETE CASCADE
+		);
+
+		-- Create index for password reset tokens
+		CREATE INDEX IF NOT EXISTS idx_password_reset_token ON password_reset_tokens(token);
+		CREATE INDEX IF NOT EXISTS idx_password_reset_user ON password_reset_tokens(user_id);
 	`);
 }