diff --git a/app/controllers/api/account.php b/app/controllers/api/account.php
index 5d77b9c68a..200b845987 100644
--- a/app/controllers/api/account.php
+++ b/app/controllers/api/account.php
@@ -675,7 +675,7 @@ App::post('/v1/account/sessions/magic-url')
                 'emailVerification' => false,
                 'status' => true,
                 'password' => null,
-                'passwordUpdate' => \time(),
+                'passwordUpdate' => 0,
                 'registration' => \time(),
                 'reset' => false,
                 'prefs' => new \stdClass(),
@@ -946,7 +946,7 @@ App::post('/v1/account/sessions/anonymous')
             'emailVerification' => false,
             'status' => true,
             'password' => null,
-            'passwordUpdate' => \time(),
+            'passwordUpdate' => 0,
             'registration' => \time(),
             'reset' => false,
             'name' => null,
diff --git a/docs/references/account/update-password.md b/docs/references/account/update-password.md
index c682030a10..d912c9d439 100644
--- a/docs/references/account/update-password.md
+++ b/docs/references/account/update-password.md
@@ -1 +1 @@
-Update currently logged in user password. For validation, user is required to pass in the new password, and the old password. For users created with OAuth and Team Invites, oldPassword is optional.
\ No newline at end of file
+Update currently logged in user password. For validation, user is required to pass in the new password, and the old password. For users created with OAuth, Team Invites and Magic URL, oldPassword is optional.
\ No newline at end of file
diff --git a/tests/e2e/Services/Account/AccountBase.php b/tests/e2e/Services/Account/AccountBase.php
index 1bb489c0a1..cca6c8ff72 100644
--- a/tests/e2e/Services/Account/AccountBase.php
+++ b/tests/e2e/Services/Account/AccountBase.php
@@ -1327,6 +1327,7 @@ trait AccountBase
 
         $data['token'] = $token;
         $data['id'] = $userId;
+        $data['email'] = $email;
 
         return $data;
     }
@@ -1357,6 +1358,9 @@ trait AccountBase
         $this->assertNotEmpty($response['body']['$id']);
         $this->assertNotEmpty($response['body']['userId']);
 
+        $sessionId = $response['body']['$id'];
+        $session = $this->client->parseCookie((string)$response['headers']['set-cookie'])['a_session_'.$this->getProject()['$id']];
+
         /**
          * Test for FAILURE
          */
@@ -1382,6 +1386,102 @@ trait AccountBase
 
         $this->assertEquals(401, $response['headers']['status-code']);
 
+
+        $data['sessionId'] = $sessionId;
+        $data['session'] = $session;
+
         return $data;
     }
+
+    /**
+     * @depends testCreateSessionWithMagicUrl
+     */
+    public function testUpdateAccountPasswordWithMagicUrl($data):array
+    {
+        $email = $data['email'] ?? '';
+        $session = $data['session'] ?? '';
+
+        /**
+         * Test for SUCCESS
+         */
+        $response = $this->client->call(Client::METHOD_PATCH, '/account/password', array_merge([
+            'origin' => 'http://localhost',
+            'content-type' => 'application/json',
+            'x-appwrite-project' => $this->getProject()['$id'],
+            'cookie' => 'a_session_'.$this->getProject()['$id'].'=' . $session,
+        ]), [
+            'password' => 'new-password'
+        ]);
+
+        $this->assertEquals($response['headers']['status-code'], 200);
+        $this->assertIsArray($response['body']);
+        $this->assertNotEmpty($response['body']);
+        $this->assertNotEmpty($response['body']['$id']);
+        $this->assertIsNumeric($response['body']['registration']);
+        $this->assertEquals($response['body']['email'], $email);
+
+        $response = $this->client->call(Client::METHOD_POST, '/account/sessions', array_merge([
+            'origin' => 'http://localhost',
+            'content-type' => 'application/json',
+            'x-appwrite-project' => $this->getProject()['$id'],
+        ]), [
+            'email' => $email,
+            'password' => 'new-password',
+        ]);
+
+        $this->assertEquals($response['headers']['status-code'], 201);
+
+        /**
+         * Test for FAILURE
+         */
+        $response = $this->client->call(Client::METHOD_PATCH, '/account/password', array_merge([
+            'origin' => 'http://localhost',
+            'content-type' => 'application/json',
+            'x-appwrite-project' => $this->getProject()['$id'],
+        ]));
+
+        $this->assertEquals($response['headers']['status-code'], 401);
+        
+        $response = $this->client->call(Client::METHOD_PATCH, '/account/password', array_merge([
+            'origin' => 'http://localhost',
+            'content-type' => 'application/json',
+            'x-appwrite-project' => $this->getProject()['$id'],
+            'cookie' => 'a_session_'.$this->getProject()['$id'].'=' . $session,
+        ]), [
+        ]);
+        
+        $this->assertEquals($response['headers']['status-code'], 400);
+
+        /**
+         * Existing user tries to update password by passing wrong old password -> SHOULD FAIL
+         */
+        $response = $this->client->call(Client::METHOD_PATCH, '/account/password', array_merge([
+            'origin' => 'http://localhost',
+            'content-type' => 'application/json',
+            'x-appwrite-project' => $this->getProject()['$id'],
+            'cookie' => 'a_session_'.$this->getProject()['$id'].'=' . $session,
+        ]), [
+            'password' => 'new-password',
+            'oldPassword' => 'wrong-password',
+        ]);
+        $this->assertEquals($response['headers']['status-code'], 401);
+
+        /**
+         * Existing user tries to update password without passing old password -> SHOULD FAIL 
+         */
+        $response = $this->client->call(Client::METHOD_PATCH, '/account/password', array_merge([
+            'origin' => 'http://localhost',
+            'content-type' => 'application/json',
+            'x-appwrite-project' => $this->getProject()['$id'],
+            'cookie' => 'a_session_'.$this->getProject()['$id'].'=' . $session,
+        ]), [
+            'password' => 'new-password'
+        ]);
+        $this->assertEquals($response['headers']['status-code'], 401);
+
+        $data['password'] = 'new-password';
+
+        return $data;
+    }
+
 }
\ No newline at end of file