diff --git a/bgpd/bgp_fsm.c b/bgpd/bgp_fsm.c
index b67cf3b874..e911c2d18e 100644
--- a/bgpd/bgp_fsm.c
+++ b/bgpd/bgp_fsm.c
@@ -602,6 +602,7 @@ const char *const peer_down_str[] = {
 	"Socket Error",
 	"Admin. shutdown (RTT)",
 	"Suppress Fib Turned On or Off",
+	"Password config change",
 };
 
 static void bgp_graceful_restart_timer_off(struct peer_connection *connection,
diff --git a/bgpd/bgpd.c b/bgpd/bgpd.c
index 043a6e201c..a59a9b6b0f 100644
--- a/bgpd/bgpd.c
+++ b/bgpd/bgpd.c
@@ -6790,6 +6790,7 @@ int peer_password_set(struct peer *peer, const char *password)
 
 	/* Check if handling a regular peer. */
 	if (!CHECK_FLAG(peer->sflags, PEER_STATUS_GROUP)) {
+		peer->last_reset = PEER_DOWN_PASSWORD_CHANGE;
 		/* Send notification or reset peer depending on state. */
 		if (BGP_IS_VALID_STATE_FOR_NOTIF(peer->connection->status))
 			bgp_notify_send(peer->connection, BGP_NOTIFY_CEASE,
@@ -6827,6 +6828,7 @@ int peer_password_set(struct peer *peer, const char *password)
 			XFREE(MTYPE_PEER_PASSWORD, member->password);
 		member->password = XSTRDUP(MTYPE_PEER_PASSWORD, password);
 
+		member->last_reset = PEER_DOWN_PASSWORD_CHANGE;
 		/* Send notification or reset peer depending on state. */
 		if (BGP_IS_VALID_STATE_FOR_NOTIF(member->connection->status))
 			bgp_notify_send(member->connection, BGP_NOTIFY_CEASE,
diff --git a/bgpd/bgpd.h b/bgpd/bgpd.h
index 95ddba4cdd..6e6358bac7 100644
--- a/bgpd/bgpd.h
+++ b/bgpd/bgpd.h
@@ -1819,6 +1819,7 @@ struct peer {
 #define PEER_DOWN_SOCKET_ERROR          34U /* Some socket error happened */
 #define PEER_DOWN_RTT_SHUTDOWN          35U /* Automatically shutdown due to RTT */
 #define PEER_DOWN_SUPPRESS_FIB_PENDING	 36U /* Suppress fib pending changed */
+#define PEER_DOWN_PASSWORD_CHANGE	 37U /* neighbor password command */
 	/*
 	 * Remember to update peer_down_str in bgp_fsm.c when you add
 	 * a new value to the last_reset reason