diff --git a/hassio/src/components/supervisor-backup-content.ts b/hassio/src/components/supervisor-backup-content.ts
index ddbde0f4f3..31d2f3b788 100644
--- a/hassio/src/components/supervisor-backup-content.ts
+++ b/hassio/src/components/supervisor-backup-content.ts
@@ -15,6 +15,7 @@ import { LocalizeFunc } from "../../../src/common/translations/localize";
 import "../../../src/components/ha-checkbox";
 import "../../../src/components/ha-formfield";
 import "../../../src/components/ha-textfield";
+import "../../../src/components/ha-password-field";
 import "../../../src/components/ha-radio";
 import type { HaRadio } from "../../../src/components/ha-radio";
 import {
@@ -261,23 +262,21 @@ export class SupervisorBackupContent extends LitElement {
         : ""}
       ${this.backupHasPassword
         ? html`
-            <ha-textfield
+            <ha-password-field
               .label=${this._localize("password")}
-              type="password"
               name="backupPassword"
               .value=${this.backupPassword}
               @change=${this._handleTextValueChanged}
             >
-            </ha-textfield>
+            </ha-password-field>
             ${!this.backup
-              ? html`<ha-textfield
+              ? html`<ha-password-field
                   .label=${this._localize("confirm_password")}
-                  type="password"
                   name="confirmBackupPassword"
                   .value=${this.confirmBackupPassword}
                   @change=${this._handleTextValueChanged}
                 >
-                </ha-textfield>`
+                </ha-password-field>`
               : ""}
           `
         : ""}
diff --git a/hassio/src/dialogs/network/dialog-hassio-network.ts b/hassio/src/dialogs/network/dialog-hassio-network.ts
index 66b381e0c0..4def6de2a1 100644
--- a/hassio/src/dialogs/network/dialog-hassio-network.ts
+++ b/hassio/src/dialogs/network/dialog-hassio-network.ts
@@ -13,10 +13,12 @@ import "../../../../src/components/ha-circular-progress";
 import "../../../../src/components/ha-dialog";
 import "../../../../src/components/ha-expansion-panel";
 import "../../../../src/components/ha-formfield";
-import "../../../../src/components/ha-textfield";
 import "../../../../src/components/ha-header-bar";
 import "../../../../src/components/ha-icon-button";
+import "../../../../src/components/ha-password-field";
 import "../../../../src/components/ha-radio";
+import "../../../../src/components/ha-textfield";
+import type { HaTextField } from "../../../../src/components/ha-textfield";
 import { extractApiErrorMessage } from "../../../../src/data/hassio/common";
 import {
   AccessPoints,
@@ -34,7 +36,6 @@ import { HassDialog } from "../../../../src/dialogs/make-dialog-manager";
 import { haStyleDialog } from "../../../../src/resources/styles";
 import type { HomeAssistant } from "../../../../src/types";
 import { HassioNetworkDialogParams } from "./show-dialog-network";
-import type { HaTextField } from "../../../../src/components/ha-textfield";
 
 const IP_VERSIONS = ["ipv4", "ipv6"];
 
@@ -246,9 +247,8 @@ export class DialogHassioNetwork
                       ${this._wifiConfiguration.auth === "wpa-psk" ||
                       this._wifiConfiguration.auth === "wep"
                         ? html`
-                            <ha-textfield
+                            <ha-password-field
                               class="flex-auto"
-                              type="password"
                               id="psk"
                               .label=${this.supervisor.localize(
                                 "dialog.network.wifi_password"
@@ -256,7 +256,7 @@ export class DialogHassioNetwork
                               version="wifi"
                               @change=${this._handleInputValueChangedWifi}
                             >
-                            </ha-textfield>
+                            </ha-password-field>
                           `
                         : ""}
                     `
diff --git a/src/components/ha-password-field.ts b/src/components/ha-password-field.ts
new file mode 100644
index 0000000000..8612703053
--- /dev/null
+++ b/src/components/ha-password-field.ts
@@ -0,0 +1,160 @@
+import { TextAreaCharCounter } from "@material/mwc-textfield/mwc-textfield-base";
+import { mdiEye, mdiEyeOff } from "@mdi/js";
+import { LitElement, css, html } from "lit";
+import { customElement, eventOptions, property, state } from "lit/decorators";
+import { HomeAssistant } from "../types";
+import "./ha-icon-button";
+import "./ha-textfield";
+
+@customElement("ha-password-field")
+export class HaPasswordField extends LitElement {
+  @property({ attribute: false }) public hass?: HomeAssistant;
+
+  @property({ type: Boolean }) public invalid?: boolean;
+
+  @property({ attribute: "error-message" }) public errorMessage?: string;
+
+  @property({ type: Boolean }) public icon = false;
+
+  @property({ type: Boolean }) public iconTrailing = false;
+
+  @property() public autocomplete?: string;
+
+  @property() public autocorrect?: string;
+
+  @property({ attribute: "input-spellcheck" })
+  public inputSpellcheck?: string;
+
+  @property({ type: String }) value = "";
+
+  @property({ type: String }) placeholder = "";
+
+  @property({ type: String }) label = "";
+
+  @property({ type: Boolean, reflect: true }) disabled = false;
+
+  @property({ type: Boolean }) required = false;
+
+  @property({ type: Number }) minLength = -1;
+
+  @property({ type: Number }) maxLength = -1;
+
+  @property({ type: Boolean, reflect: true }) outlined = false;
+
+  @property({ type: String }) helper = "";
+
+  @property({ type: Boolean }) validateOnInitialRender = false;
+
+  @property({ type: String }) validationMessage = "";
+
+  @property({ type: Boolean }) autoValidate = false;
+
+  @property({ type: String }) pattern = "";
+
+  @property({ type: Number }) size: number | null = null;
+
+  @property({ type: Boolean }) helperPersistent = false;
+
+  @property({ type: Boolean }) charCounter: boolean | TextAreaCharCounter =
+    false;
+
+  @property({ type: Boolean }) endAligned = false;
+
+  @property({ type: String }) prefix = "";
+
+  @property({ type: String }) suffix = "";
+
+  @property({ type: String }) name = "";
+
+  @property({ type: String, attribute: "input-mode" })
+  inputMode!: string;
+
+  @property({ type: Boolean }) readOnly = false;
+
+  @property({ type: String }) autocapitalize = "";
+
+  @state() private _unmaskedPassword = false;
+
+  protected render() {
+    return html`<ha-textfield
+        .invalid=${this.invalid}
+        .errorMessage=${this.errorMessage}
+        .icon=${this.icon}
+        .iconTrailing=${this.iconTrailing}
+        .autocomplete=${this.autocomplete}
+        .autocorrect=${this.autocorrect}
+        .inputSpellcheck=${this.inputSpellcheck}
+        .value=${this.value}
+        .placeholder=${this.placeholder}
+        .label=${this.label}
+        .disabled=${this.disabled}
+        .required=${this.required}
+        .minLength=${this.minLength}
+        .maxLength=${this.maxLength}
+        .outlined=${this.outlined}
+        .helper=${this.helper}
+        .validateOnInitialRender=${this.validateOnInitialRender}
+        .validationMessage=${this.validationMessage}
+        .autoValidate=${this.autoValidate}
+        .pattern=${this.pattern}
+        .size=${this.size}
+        .helperPersistent=${this.helperPersistent}
+        .charCounter=${this.charCounter}
+        .endAligned=${this.endAligned}
+        .prefix=${this.prefix}
+        .name=${this.name}
+        .inputMode=${this.inputMode}
+        .readOnly=${this.readOnly}
+        .autocapitalize=${this.autocapitalize}
+        .type=${this._unmaskedPassword ? "text" : "password"}
+        .suffix=${html`<div style="width: 24px"></div>`}
+        @input=${this._handleInputChange}
+      ></ha-textfield>
+      <ha-icon-button
+        toggles
+        .label=${this.hass?.localize(
+          this._unmaskedPassword
+            ? "ui.components.selectors.text.hide_password"
+            : "ui.components.selectors.text.show_password"
+        ) || (this._unmaskedPassword ? "Hide password" : "Show password")}
+        @click=${this._toggleUnmaskedPassword}
+        .path=${this._unmaskedPassword ? mdiEyeOff : mdiEye}
+      ></ha-icon-button>`;
+  }
+
+  private _toggleUnmaskedPassword(): void {
+    this._unmaskedPassword = !this._unmaskedPassword;
+  }
+
+  @eventOptions({ passive: true })
+  private _handleInputChange(ev) {
+    this.value = ev.target.value;
+  }
+
+  static styles = css`
+    :host {
+      display: block;
+      position: relative;
+    }
+    ha-textfield {
+      width: 100%;
+    }
+    ha-icon-button {
+      position: absolute;
+      top: 8px;
+      right: 8px;
+      inset-inline-start: initial;
+      inset-inline-end: 8px;
+      --mdc-icon-button-size: 40px;
+      --mdc-icon-size: 20px;
+      color: var(--secondary-text-color);
+      direction: var(--direction);
+    }
+  `;
+}
+
+declare global {
+  interface HTMLElementTagNameMap {
+    "ha-password-field": HaPasswordField;
+  }
+}
diff --git a/src/components/ha-textfield.ts b/src/components/ha-textfield.ts
index bf45e85a1f..4b2df4c09f 100644
--- a/src/components/ha-textfield.ts
+++ b/src/components/ha-textfield.ts
@@ -6,7 +6,7 @@ import { mainWindow } from "../common/dom/get_main_window";
 
 @customElement("ha-textfield")
 export class HaTextField extends TextFieldBase {
-  @property({ type: Boolean }) public invalid = false;
+  @property({ type: Boolean }) public invalid?: boolean;
 
   @property({ attribute: "error-message" }) public errorMessage?: string;
 
@@ -28,14 +28,24 @@ export class HaTextField extends TextFieldBase {
   override updated(changedProperties: PropertyValues) {
     super.updated(changedProperties);
     if (
-      (changedProperties.has("invalid") &&
-        (this.invalid || changedProperties.get("invalid") !== undefined)) ||
+      changedProperties.has("invalid") ||
       changedProperties.has("errorMessage")
     ) {
       this.setCustomValidity(
-        this.invalid ? this.errorMessage || "Invalid" : ""
+        this.invalid
+          ? this.errorMessage || this.validationMessage || "Invalid"
+          : ""
       );
-      this.reportValidity();
+      if (
+        this.invalid ||
+        this.validateOnInitialRender ||
+        (changedProperties.has("invalid") &&
+          changedProperties.get("invalid") !== undefined)
+      ) {
+        // Only report validity if the field is invalid or the invalid state has changed from
+        // true to false to prevent setting empty required fields to invalid on first render
+        this.reportValidity();
+      }
     }
     if (changedProperties.has("autocomplete")) {
       if (this.autocomplete) {
diff --git a/src/panels/config/application_credentials/dialog-add-application-credential.ts b/src/panels/config/application_credentials/dialog-add-application-credential.ts
index e30e494b47..d5e9ca4c84 100644
--- a/src/panels/config/application_credentials/dialog-add-application-credential.ts
+++ b/src/panels/config/application_credentials/dialog-add-application-credential.ts
@@ -5,12 +5,13 @@ import { css, CSSResultGroup, html, LitElement, nothing } from "lit";
 import { customElement, property, state } from "lit/decorators";
 import { fireEvent } from "../../../common/dom/fire_event";
 import "../../../components/ha-alert";
+import "../../../components/ha-button";
 import "../../../components/ha-circular-progress";
 import "../../../components/ha-combo-box";
 import { createCloseHeading } from "../../../components/ha-dialog";
 import "../../../components/ha-markdown";
+import "../../../components/ha-password-field";
 import "../../../components/ha-textfield";
-import "../../../components/ha-button";
 import {
   ApplicationCredential,
   ApplicationCredentialsConfig,
@@ -208,11 +209,10 @@ export class DialogAddApplicationCredential extends LitElement {
             )}
             helperPersistent
           ></ha-textfield>
-          <ha-textfield
+          <ha-password-field
             .label=${this.hass.localize(
               "ui.panel.config.application_credentials.editor.client_secret"
             )}
-            type="password"
             name="clientSecret"
             .value=${this._clientSecret}
             required
@@ -222,7 +222,7 @@ export class DialogAddApplicationCredential extends LitElement {
               "ui.panel.config.application_credentials.editor.client_secret_helper"
             )}
             helperPersistent
-          ></ha-textfield>
+          ></ha-password-field>
         </div>
         ${this._loading
           ? html`
diff --git a/src/panels/config/cloud/login/cloud-login.ts b/src/panels/config/cloud/login/cloud-login.ts
index d31f7c7250..c617dfd2b2 100644
--- a/src/panels/config/cloud/login/cloud-login.ts
+++ b/src/panels/config/cloud/login/cloud-login.ts
@@ -22,6 +22,7 @@ import { haStyle } from "../../../../resources/styles";
 import { HomeAssistant } from "../../../../types";
 import "../../ha-config-section";
 import { setAssistPipelinePreferred } from "../../../../data/assist_pipeline";
+import "../../../../components/ha-password-field";
 
 @customElement("cloud-login")
 export class CloudLogin extends LitElement {
@@ -142,14 +143,13 @@ export class CloudLogin extends LitElement {
                     "ui.panel.config.cloud.login.email_error_msg"
                   )}
                 ></ha-textfield>
-                <ha-textfield
+                <ha-password-field
                   id="password"
                   name="password"
                   .label=${this.hass.localize(
                     "ui.panel.config.cloud.login.password"
                   )}
                   .value=${this._password || ""}
-                  type="password"
                   autocomplete="current-password"
                   required
                   minlength="8"
@@ -158,7 +158,7 @@ export class CloudLogin extends LitElement {
                   .validationMessage=${this.hass.localize(
                     "ui.panel.config.cloud.login.password_error_msg"
                   )}
-                ></ha-textfield>
+                ></ha-password-field>
               </div>
               <div class="card-actions">
                 <ha-progress-button
diff --git a/src/panels/config/cloud/register/cloud-register.ts b/src/panels/config/cloud/register/cloud-register.ts
index 65aea4bf04..10964e5cf0 100644
--- a/src/panels/config/cloud/register/cloud-register.ts
+++ b/src/panels/config/cloud/register/cloud-register.ts
@@ -11,6 +11,7 @@ import "../../../../layouts/hass-subpage";
 import { haStyle } from "../../../../resources/styles";
 import { HomeAssistant } from "../../../../types";
 import "../../ha-config-section";
+import "../../../../components/ha-password-field";
 
 @customElement("cloud-register")
 export class CloudRegister extends LitElement {
@@ -145,14 +146,13 @@ export class CloudRegister extends LitElement {
                     "ui.panel.config.cloud.register.email_error_msg"
                   )}
                 ></ha-textfield>
-                <ha-textfield
+                <ha-password-field
                   id="password"
                   name="password"
                   .label=${this.hass.localize(
                     "ui.panel.config.cloud.register.password"
                   )}
                   .value=${this._password}
-                  type="password"
                   autocomplete="new-password"
                   minlength="8"
                   required
@@ -160,7 +160,7 @@ export class CloudRegister extends LitElement {
                   validationMessage=${this.hass.localize(
                     "ui.panel.config.cloud.register.password_error_msg"
                   )}
-                ></ha-textfield>
+                ></ha-password-field>
               </div>
               <div class="card-actions">
                 <ha-progress-button
diff --git a/src/panels/config/network/supervisor-network.ts b/src/panels/config/network/supervisor-network.ts
index 28e9351a95..166b60b58f 100644
--- a/src/panels/config/network/supervisor-network.ts
+++ b/src/panels/config/network/supervisor-network.ts
@@ -14,6 +14,11 @@ import "../../../components/ha-circular-progress";
 import "../../../components/ha-expansion-panel";
 import "../../../components/ha-formfield";
 import "../../../components/ha-icon-button";
+import "../../../components/ha-password-field";
+import "../../../components/ha-radio";
+import type { HaRadio } from "../../../components/ha-radio";
+import "../../../components/ha-textfield";
+import type { HaTextField } from "../../../components/ha-textfield";
 import { extractApiErrorMessage } from "../../../data/hassio/common";
 import {
   AccessPoints,
@@ -29,10 +34,6 @@ import {
 } from "../../../dialogs/generic/show-dialog-box";
 import type { HomeAssistant } from "../../../types";
 import { showIPDetailDialog } from "./show-ip-detail-dialog";
-import "../../../components/ha-textfield";
-import type { HaTextField } from "../../../components/ha-textfield";
-import "../../../components/ha-radio";
-import type { HaRadio } from "../../../components/ha-radio";
 
 const IP_VERSIONS = ["ipv4", "ipv6"];
 
@@ -214,8 +215,7 @@ export class HassioNetwork extends LitElement {
                       ${this._wifiConfiguration.auth === "wpa-psk" ||
                       this._wifiConfiguration.auth === "wep"
                         ? html`
-                            <ha-textfield
-                              type="password"
+                            <ha-password-field
                               id="psk"
                               .label=${this.hass.localize(
                                 "ui.panel.config.network.supervisor.wifi_password"
@@ -223,7 +223,7 @@ export class HassioNetwork extends LitElement {
                               .version=${"wifi"}
                               @change=${this._handleInputValueChangedWifi}
                             >
-                            </ha-textfield>
+                            </ha-password-field>
                           `
                         : ""}
                     `
diff --git a/src/panels/config/users/dialog-add-user.ts b/src/panels/config/users/dialog-add-user.ts
index 640f1aa104..7e7e9e70cd 100644
--- a/src/panels/config/users/dialog-add-user.ts
+++ b/src/panels/config/users/dialog-add-user.ts
@@ -29,6 +29,7 @@ import {
 import { haStyleDialog } from "../../../resources/styles";
 import { HomeAssistant, ValueChangedEvent } from "../../../types";
 import { AddUserDialogParams } from "./show-dialog-add-user";
+import "../../../components/ha-password-field";
 
 @customElement("dialog-add-user")
 export class DialogAddUser extends LitElement {
@@ -87,6 +88,7 @@ export class DialogAddUser extends LitElement {
     if (!this._params) {
       return nothing;
     }
+
     return html`
       <ha-dialog
         open
@@ -130,34 +132,32 @@ export class DialogAddUser extends LitElement {
             dialogInitialFocus
           ></ha-textfield>
 
-          <ha-textfield
+          <ha-password-field
             .label=${this.hass.localize(
               "ui.panel.config.users.add_user.password"
             )}
-            type="password"
             name="password"
             .value=${this._password}
             required
             @input=${this._handleValueChanged}
             .validationMessage=${this.hass.localize("ui.common.error_required")}
-          ></ha-textfield>
+          ></ha-password-field>
 
-          <ha-textfield
-            label=${this.hass.localize(
+          <ha-password-field
+            .label=${this.hass.localize(
               "ui.panel.config.users.add_user.password_confirm"
             )}
             name="passwordConfirm"
             .value=${this._passwordConfirm}
             @input=${this._handleValueChanged}
             required
-            type="password"
             .invalid=${this._password !== "" &&
             this._passwordConfirm !== "" &&
             this._passwordConfirm !== this._password}
-            .validationMessage=${this.hass.localize(
+            .errorMessage=${this.hass.localize(
               "ui.panel.config.users.add_user.password_not_match"
             )}
-          ></ha-textfield>
+          ></ha-password-field>
           <ha-settings-row>
             <span slot="heading">
               ${this.hass.localize(
@@ -311,7 +311,8 @@ export class DialogAddUser extends LitElement {
           display: flex;
           padding: 8px 0;
         }
-        ha-textfield {
+        ha-textfield,
+        ha-password-field {
           display: block;
           margin-bottom: 8px;
         }
diff --git a/src/panels/profile/ha-change-password-card.ts b/src/panels/profile/ha-change-password-card.ts
index a09ac13a3e..063ca339d8 100644
--- a/src/panels/profile/ha-change-password-card.ts
+++ b/src/panels/profile/ha-change-password-card.ts
@@ -11,6 +11,7 @@ import { customElement, property, state } from "lit/decorators";
 import "../../components/ha-card";
 import "../../components/ha-circular-progress";
 import "../../components/ha-textfield";
+import "../../components/ha-password-field";
 import { haStyle } from "../../resources/styles";
 import type { HomeAssistant } from "../../types";
 import "../../components/ha-alert";
@@ -52,47 +53,44 @@ class HaChangePasswordCard extends LitElement {
             ? html`<ha-alert alert-type="success">${this._statusMsg}</ha-alert>`
             : ""}
 
-          <ha-textfield
+          <ha-password-field
             id="currentPassword"
             name="currentPassword"
             .label=${this.hass.localize(
               "ui.panel.profile.change_password.current_password"
             )}
-            type="password"
             autocomplete="current-password"
             .value=${this._currentPassword}
             @input=${this._currentPasswordChanged}
             @change=${this._currentPasswordChanged}
             required
-          ></ha-textfield>
+          ></ha-password-field>
 
           ${this._currentPassword
-            ? html`<ha-textfield
+            ? html`<ha-password-field
                   .label=${this.hass.localize(
                     "ui.panel.profile.change_password.new_password"
                   )}
                   name="password"
-                  type="password"
                   autocomplete="new-password"
                   .value=${this._password}
                   @input=${this._newPasswordChanged}
                   @change=${this._newPasswordChanged}
                   required
                   auto-validate
-                ></ha-textfield>
-                <ha-textfield
+                ></ha-password-field>
+                <ha-password-field
                   .label=${this.hass.localize(
                     "ui.panel.profile.change_password.confirm_new_password"
                   )}
                   name="passwordConfirm"
-                  type="password"
                   autocomplete="new-password"
                   .value=${this._passwordConfirm}
                   @input=${this._newPasswordConfirmChanged}
                   @change=${this._newPasswordConfirmChanged}
                   required
                   auto-validate
-                ></ha-textfield>`
+                ></ha-password-field>`
             : ""}
         </div>