diff --git a/README.md b/README.md
index 50e7ba6d..54cb9a93 100644
--- a/README.md
+++ b/README.md
@@ -28,7 +28,7 @@ Once the Hydra service has been configured as above and activate you should alre
 ```
 $ su - hydra
 $ hydra-create-user <USER> --full-name '<NAME>' \
-    --email-address '<EMAIL>' --password <PASSWORD> --role admin
+    --email-address '<EMAIL>' --password-prompt --role admin
 ```
 
 Afterwards you should be able to log by clicking on "_Sign In_" on the top right of the web interface using the credentials specified by `hydra-create-user`. Once you are logged in you can click "_Admin -> Create Project_" to configure your first project.
diff --git a/doc/dev-notes.txt b/doc/dev-notes.txt
index caadb57d..4035c809 100644
--- a/doc/dev-notes.txt
+++ b/doc/dev-notes.txt
@@ -13,7 +13,7 @@
 * Creating a user:
 
   $ hydra-create-user root --email-address 'e.dolstra@tudelft.nl' \
-      --password-hash "$(echo -n foobar | sha1sum | cut -c1-40)"
+      --password-prompt
 
   (Replace "foobar" with the desired password.)
 
diff --git a/doc/manual/src/installation.md b/doc/manual/src/installation.md
index 626d8286..cbf3f907 100644
--- a/doc/manual/src/installation.md
+++ b/doc/manual/src/installation.md
@@ -114,7 +114,7 @@ This can be done using the command `hydra-create-user`:
 
 ```console
 $ hydra-create-user alice --full-name 'Alice Q. User' \
-    --email-address 'alice@example.org' --password foobar --role admin
+    --email-address 'alice@example.org' --password-prompt --role admin
 ```
 
 Additional users can be created through the web interface.
diff --git a/flake.nix b/flake.nix
index 1a8325d3..3e382d9f 100644
--- a/flake.nix
+++ b/flake.nix
@@ -495,6 +495,7 @@
                 StringCompareConstantTime
                 SysHostnameLong
                 TermSizeAny
+                TermReadKey
                 Test2Harness
                 TestMore
                 TestPostgreSQL
diff --git a/src/lib/Hydra/Helper/Nix.pm b/src/lib/Hydra/Helper/Nix.pm
index 7113cb4a..55c1f6f3 100644
--- a/src/lib/Hydra/Helper/Nix.pm
+++ b/src/lib/Hydra/Helper/Nix.pm
@@ -16,20 +16,32 @@ use IPC::Run;
 
 our @ISA = qw(Exporter);
 our @EXPORT = qw(
-    getHydraHome getHydraConfig getBaseUrl
-    getSCMCacheDir getStatsdConfig
-    registerRoot getGCRootsDir gcRootFor
-    jobsetOverview jobsetOverview_
-    getDrvLogPath findLog
-    getMainOutput
+    cancelBuilds
+    captureStdoutStderr
+    captureStdoutStderrWithStdin
+    findLog
+    gcRootFor
+    getBaseUrl
+    getDrvLogPath
     getEvals getMachines
-    pathIsInsidePrefix
-    captureStdoutStderr run grab
-    getTotalShares
+    getGCRootsDir
+    getHydraConfig
+    getHydraHome
+    getMainOutput
+    getSCMCacheDir
+    getStatsdConfig
     getStoreUri
-    readNixFile
+    getTotalShares
+    grab
     isLocalStore
-    cancelBuilds restartBuilds);
+    jobsetOverview
+    jobsetOverview_
+    pathIsInsidePrefix
+    readNixFile
+    registerRoot
+    restartBuilds
+    run
+    );
 
 
 sub getHydraHome {
@@ -417,14 +429,19 @@ sub pathIsInsidePrefix {
 
 sub captureStdoutStderr {
     my ($timeout, @cmd) = @_;
-    my $stdin = "";
+
+    return captureStdoutStderrWithStdin($timeout, \@cmd, "");
+}
+
+sub captureStdoutStderrWithStdin {
+    my ($timeout, $cmd, $stdin) = @_;
     my $stdout;
     my $stderr;
 
     eval {
         local $SIG{ALRM} = sub { die "timeout\n" }; # NB: \n required
         alarm $timeout;
-        IPC::Run::run(\@cmd, \$stdin, \$stdout, \$stderr);
+        IPC::Run::run($cmd, \$stdin, \$stdout, \$stderr);
         alarm 0;
         1;
     } or do {
diff --git a/src/script/hydra-create-user b/src/script/hydra-create-user
index ec14de95..cf9e8316 100755
--- a/src/script/hydra-create-user
+++ b/src/script/hydra-create-user
@@ -5,6 +5,7 @@ use warnings;
 use Hydra::Schema;
 use Hydra::Helper::Nix;
 use Hydra::Model::DB;
+use Term::ReadKey;
 use Getopt::Long qw(:config gnu_getopt);
 
 sub showHelp {
@@ -14,6 +15,7 @@ Usage: hydra-create-user NAME
   [--type hydra|google|github]
   [--full-name FULLNAME]
   [--email-address EMAIL-ADDRESS]
+  [--password-prompt]
   [--password-hash HASH]
   [--password PASSWORD (dangerous)]
   [--wipe-roles]
@@ -27,6 +29,16 @@ renamed.
 
 * Specifying Passwords
 
+** Interactively
+
+Pass `--password-prompt` to collect the password on stdin.
+
+The password will be hashed with Argon2id when stored.
+
+Example:
+
+  $ hydra-create-user alice --password-prompt --role admin
+
 ** Specifying a Hash
 
 You can generate a password hash and provide the hash as well. This
@@ -63,7 +75,7 @@ Example:
     exit 0;
 }
 
-my ($renameFrom, $type, $fullName, $emailAddress, $password, $passwordHash);
+my ($renameFrom, $type, $fullName, $emailAddress, $password, $passwordHash, $passwordPrompt);
 my $wipeRoles = 0;
 my @roles;
 
@@ -72,6 +84,7 @@ GetOptions("rename-from=s" => \$renameFrom,
            "full-name=s" => \$fullName,
            "email-address=s" => \$emailAddress,
            "password=s" => \$password,
+           "password-prompt" => \$passwordPrompt,
            "password-hash=s" => \$passwordHash,
            "wipe-roles" => \$wipeRoles,
            "role=s" => \@roles,
@@ -81,9 +94,9 @@ GetOptions("rename-from=s" => \$renameFrom,
 die "$0: one user name required\n" if scalar @ARGV != 1;
 my $userName = $ARGV[0];
 
-my $chosenPasswordOptions = grep { defined($_) }  ($passwordHash, $password);
+my $chosenPasswordOptions = grep { defined($_) }  ($passwordPrompt, $passwordHash, $password);
 if ($chosenPasswordOptions > 1) {
-    die "$0: please specify only one --password* option. See --help for more information.\n";
+    die "$0: please specify only one of --password-prompt or --password-hash. See --help for more information.\n";
 }
 
 die "$0: type must be `hydra', `google' or `github'\n"
@@ -118,17 +131,43 @@ $db->txn_do(sub {
             if defined $password;
         die "$0: Google and GitHub accounts do not have a password.\n"
             if defined $passwordHash;
+        die "$0: Google and GitHub accounts do not have a password.\n"
+            if defined $passwordPrompt;
         $user->update({ emailaddress => $userName, password => "!" });
     } else {
         $user->update({ emailaddress => $emailAddress }) if defined $emailAddress;
 
-        if (defined $password && !(defined $passwordHash)) {
+        if (defined $password) {
+            # !!! TODO: Remove support for plaintext passwords in 2023.
+            print STDERR "Submitting plaintext passwords as arguments is deprecated and will be removed. See --help for alternatives.\n";
             $user->setPassword($password);
         }
 
         if (defined $passwordHash) {
             $user->setPasswordHash($passwordHash);
         }
+
+        if (defined $passwordPrompt) {
+            ReadMode 2;
+            print STDERR "Password: ";
+            my $password = <STDIN> // "";
+            chomp $password;
+
+            print STDERR "\nPassword Confirmation: ";
+            my $passwordConfirm = <STDIN> // "";
+            chomp $passwordConfirm;
+            ReadMode 0;
+
+            print STDERR "\n";
+
+            if ($password ne $passwordConfirm) {
+                die "Passwords don't match."
+            } elsif ($password eq "") {
+                die "Password cannot be empty."
+            }
+
+            $user->setPassword($password);
+        }
     }
 
     $user->userroles->delete if $wipeRoles;
diff --git a/t/lib/CliRunners.pm b/t/lib/CliRunners.pm
index e693eeb7..ddaa34ae 100644
--- a/t/lib/CliRunners.pm
+++ b/t/lib/CliRunners.pm
@@ -5,6 +5,7 @@ package CliRunners;
 our @ISA = qw(Exporter);
 our @EXPORT = qw(
     captureStdoutStderr
+    captureStdoutStderrWithStdin
     evalFails
     evalSucceeds
     runBuild
@@ -21,6 +22,15 @@ sub captureStdoutStderr {
     return Hydra::Helper::Nix::captureStdoutStderr(@_)
 }
 
+sub captureStdoutStderrWithStdin {
+    # "Lazy"-load Hydra::Helper::Nix to avoid the compile-time
+    # import of Hydra::Model::DB. Early loading of the DB class
+    # causes fixation of the DSN, and we need to fixate it after
+    # the temporary DB is setup.
+    require Hydra::Helper::Nix;
+    return Hydra::Helper::Nix::captureStdoutStderrWithStdin(@_)
+}
+
 sub evalSucceeds {
     my ($jobset) = @_;
     my ($res, $stdout, $stderr) = captureStdoutStderr(60, ("hydra-eval-jobset", $jobset->project->name, $jobset->name));
diff --git a/t/lib/Setup.pm b/t/lib/Setup.pm
index d7772731..56e01bdc 100644
--- a/t/lib/Setup.pm
+++ b/t/lib/Setup.pm
@@ -13,6 +13,7 @@ use CliRunners;
 our @ISA = qw(Exporter);
 our @EXPORT = qw(
     captureStdoutStderr
+    captureStdoutStderrWithStdin
     createBaseJobset
     createJobsetWithOneInput
     evalFails
diff --git a/t/scripts/hydra-create-user.t b/t/scripts/hydra-create-user.t
index 597f4ebc..66d019ef 100644
--- a/t/scripts/hydra-create-user.t
+++ b/t/scripts/hydra-create-user.t
@@ -10,6 +10,7 @@ subtest "Handling password and password hash creation" => sub {
     subtest "Creating a user with a plain text password (insecure) stores the password securely" => sub {
         my ($res, $stdout, $stderr) = captureStdoutStderr(5, ("hydra-create-user", "plain-text-user", "--password", "foobar"));
         is($res, 0, "hydra-create-user should exit zero");
+        like($stderr, qr/Submitting plaintext passwords as arguments is deprecated and will be removed/, "Submitting a plain text password is deprecated.");
 
         my $user = $db->resultset('Users')->find({ username => "plain-text-user" });
         isnt($user, undef, "The user exists");
@@ -46,15 +47,37 @@ subtest "Handling password and password hash creation" => sub {
         is($storedPassword, $user->password, "The password was not upgraded.");
     };
 
+    subtest "Creating a user by prompting for the password" => sub {
+        subtest "with the same password twice" => sub {
+            my ($res, $stdout, $stderr) = captureStdoutStderrWithStdin(5, ["hydra-create-user", "prompted-pass-user", "--password-prompt"], "my-password\nmy-password\n");
+            is($res, 0, "hydra-create-user should exit zero");
+
+            my $user = $db->resultset('Users')->find({ username => "prompted-pass-user" });
+            isnt($user, undef, "The user exists");
+            like($user->password, qr/^\$argon2id\$v=/, "The password was saved, hashed with argon2id.");
+
+            my $storedPassword = $user->password;
+            ok($user->check_password("my-password"), "Their password validates");
+        };
+
+        subtest "With mismatched password confirmation" => sub {
+            my ($res, $stdout, $stderr) = captureStdoutStderrWithStdin(5, ["hydra-create-user", "prompted-pass-user", "--password-prompt"], "my-password\nnot-my-password\n");
+            isnt($res, 0, "hydra-create-user should exit non-zero");
+        };
+    };
+
     subtest "Specifying conflicting password options fails" => sub {
         my @cases = (
+            [ "--password=foo", "--password-hash=8843d7f92416211de9ebb963ff4ce28125932878", "--password-prompt" ],
+            [ "--password=foo", "--password-prompt" ],
             [ "--password=foo", "--password-hash=8843d7f92416211de9ebb963ff4ce28125932878" ],
+            [ "--password-hash=8843d7f92416211de9ebb963ff4ce28125932878", "--password-prompt" ],
         );
 
         for my $case (@cases) {
             my ($res, $stdout, $stderr) = captureStdoutStderr(5, (
                 "hydra-create-user", "bogus-password-options", @{$case}));
-            like($stderr, qr/please specify only one --password\* option/, "We get an error about specifying the password");
+            like($stderr, qr/please specify only one of --password-prompt or --password-hash/, "We get an error about specifying the password");
             isnt($res, 0, "hydra-create-user should exit non-zero with conflicting " . join(" ", @{$case}));
         }
     };