diff --git a/src/components/AnacondaWizard.jsx b/src/components/AnacondaWizard.jsx
index cbbe264d89..c90537d9d5 100644
--- a/src/components/AnacondaWizard.jsx
+++ b/src/components/AnacondaWizard.jsx
@@ -39,7 +39,7 @@ import { getDefaultScenario } from "./storage/InstallationScenario.jsx";
 import { MountPointMapping, getPageProps as getMountPointMappingProps } from "./storage/MountPointMapping.jsx";
 import { DiskEncryption, getStorageEncryptionState, getPageProps as getDiskEncryptionProps } from "./storage/DiskEncryption.jsx";
 import { InstallationLanguage, getPageProps as getInstallationLanguageProps } from "./localization/InstallationLanguage.jsx";
-import { Accounts, getPageProps as getAccountsProps, getAccountsState, accountsToDbusUsers } from "./users/Accounts.jsx";
+import { Accounts, getPageProps as getAccountsProps, getAccountsState, accountsToDbusUsers, cryptUserPassword } from "./users/Accounts.jsx";
 import { InstallationProgress } from "./installation/InstallationProgress.jsx";
 import { ReviewConfiguration, ReviewConfigurationConfirmModal, getPageProps as getReviewConfigurationProps } from "./review/ReviewConfiguration.jsx";
 import { exitGui } from "../helpers/exit.js";
@@ -362,8 +362,12 @@ const Footer = ({
                 },
             });
         } else if (activeStep.id === "accounts") {
-            setUsers(accountsToDbusUsers(accounts));
-            onNext();
+            cryptUserPassword(accounts.password)
+                    .then(cryptedPassword => {
+                        const users = accountsToDbusUsers({ ...accounts, password: cryptedPassword });
+                        setUsers(users);
+                        onNext();
+                    }, onCritFail({ context: N_("Password ecryption failed.") }));
         } else {
             onNext();
         }
diff --git a/src/components/users/Accounts.jsx b/src/components/users/Accounts.jsx
index 8ab65260ae..bce838273b 100644
--- a/src/components/users/Accounts.jsx
+++ b/src/components/users/Accounts.jsx
@@ -17,6 +17,8 @@
 
 import cockpit from "cockpit";
 import React, { useState, useEffect } from "react";
+import * as python from "python.js";
+import encryptUserPw from "../../scripts/encrypt-user-pw.py";
 
 import {
     Form,
@@ -45,12 +47,17 @@ export function getAccountsState (
     };
 }
 
+export const cryptUserPassword = async (password) => {
+    const crypted = await python.spawn(encryptUserPw, password, { err: "message", environ: ["LC_ALL=C.UTF-8"] });
+    return crypted;
+};
+
 export const accountsToDbusUsers = (accounts) => {
     return [{
         name: cockpit.variant("s", accounts.userAccount || ""),
         gecos: cockpit.variant("s", accounts.fullName || ""),
         password: cockpit.variant("s", accounts.password || ""),
-        "is-crypted": cockpit.variant("b", false),
+        "is-crypted": cockpit.variant("b", true),
         groups: cockpit.variant("as", ["wheel"]),
     }];
 };
diff --git a/src/scripts/encrypt-user-pw.py b/src/scripts/encrypt-user-pw.py
new file mode 100644
index 0000000000..91ee9af413
--- /dev/null
+++ b/src/scripts/encrypt-user-pw.py
@@ -0,0 +1,42 @@
+import crypt
+from random import SystemRandom as sr
+import sys
+
+# Using the function from pyanaconda/core/users.py
+
+def crypt_password(password):
+    """Crypt a password.
+
+    Process a password with appropriate salted one-way algorithm.
+
+    :param str password: password to be crypted
+    :returns: crypted representation of the original password
+    :rtype: str
+    """
+    # yescrypt is not supported by Python's crypt module,
+    # so we need to generate the setting ourselves
+    b64 = "./0123456789ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz"
+    setting = "$y$j9T$" + "".join(sr().choice(b64) for _sc in range(24))
+
+    # and try to compute the password hash using our yescrypt setting
+    try:
+        cryptpw = crypt.crypt(password, setting)
+
+    # Fallback to sha512crypt, if yescrypt is not supported
+    except OSError:
+        sys.stderr.write("yescrypt is not supported, falling back to sha512crypt\n")
+        try:
+            cryptpw = crypt.crypt(password, crypt.METHOD_SHA512)
+        except OSError as exc:
+            raise RuntimeError(
+                "Unable to encrypt password: unsupported algorithm {}".format(crypt.METHOD_SHA512)
+            ) from exc
+
+    return cryptpw
+
+
+try:
+    print(crypt_password(sys.argv[1]), end="")
+except Exception as e:
+    sys.stderr.write(str(e) + "\n")
+    sys.exit(1)
diff --git a/test/check-users b/test/check-users
index 2d44d7f978..59fe08e848 100755
--- a/test/check-users
+++ b/test/check-users
@@ -44,8 +44,7 @@ class TestUsers(anacondalib.VirtInstallMachineCase):
 
         users = u.dbus_get_users()
         self.assertIn('"groups" as 1 "wheel"', users)
-        self.assertIn('"is-crypted" b false', users)
-        self.assertIn('"password" s "password"', users)
+        self.assertIn('"is-crypted" b true', users)
 
 if __name__ == '__main__':
     test_main()