diff --git a/src/args.rs b/src/args.rs
index 3f9dcc2..b1b78ce 100644
--- a/src/args.rs
+++ b/src/args.rs
@@ -143,6 +143,10 @@ pub struct OptionsArgs {
     #[arg(help("Password for server authentication (requires --server)"))]
     pub server_password: Option<String>,
 
+    #[arg(long, env("KEEP_SERVER_PASSWORD_HASH"))]
+    #[arg(help("Password hash for server authentication (requires --server)"))]
+    pub server_password_hash: Option<String>,
+
     #[arg(long, help("Force output even when binary data would be sent to a TTY"))]
     pub force: bool,
 }
diff --git a/src/config.rs b/src/config.rs
index 3adf962..3f7184c 100644
--- a/src/config.rs
+++ b/src/config.rs
@@ -26,6 +26,7 @@ pub struct ServerConfig {
     pub port: Option<u16>,
     pub password_file: Option<PathBuf>,
     pub password: Option<String>,
+    pub password_hash: Option<String>,
 }
 
 #[derive(Debug, Clone, Deserialize, Serialize)]
@@ -49,6 +50,7 @@ pub struct Settings {
     pub quiet: bool,
     pub force: bool,
     pub server_password: Option<String>,
+    pub server_password_hash: Option<String>,
     pub server_address: Option<String>,
     pub server_port: Option<u16>,
     pub compression: Option<String>,
@@ -90,6 +92,9 @@ impl Settings {
         let server_password = args.options.server_password.clone()
             .or_else(|| config.get_server_password().ok().flatten());
 
+        let server_password_hash = args.options.server_password_hash.clone()
+            .or_else(|| config.server.as_ref().and_then(|s| s.password_hash.clone()));
+
         let server_address = args.mode.server_address.clone()
             .or_else(|| config.server.as_ref().and_then(|s| s.address.clone()));
 
@@ -119,6 +124,7 @@ impl Settings {
             quiet,
             force,
             server_password,
+            server_password_hash,
             server_address,
             server_port,
             compression,
diff --git a/src/modes/server.rs b/src/modes/server.rs
index 4dce4b0..5ffe5ed 100644
--- a/src/modes/server.rs
+++ b/src/modes/server.rs
@@ -48,6 +48,7 @@ pub fn mode_server(
         address: server_address,
         port: Some(server_port),
         password: settings.server_password.clone(),
+        password_hash: settings.server_password_hash.clone(),
     };
     
     // We need to move the connection into the async runtime
@@ -78,6 +79,7 @@ async fn run_server(
         db: db_conn,
         data_dir: data_dir.clone(),
         password: config.password.clone(),
+        password_hash: config.password_hash.clone(),
     };
     
     let app = Router::new()
@@ -89,7 +91,7 @@ async fn run_server(
         .with_state(state)
         // Add middleware layers (applied in reverse order)
         .layer(axum::middleware::from_fn(logging_middleware))
-        .layer(axum::middleware::from_fn(create_auth_middleware(config.password.clone())))
+        .layer(axum::middleware::from_fn(create_auth_middleware(config.password.clone(), config.password_hash.clone())))
         .layer(
             ServiceBuilder::new()
                 .layer(TraceLayer::new_for_http())
diff --git a/src/modes/server/common.rs b/src/modes/server/common.rs
index d899dda..89c65ca 100644
--- a/src/modes/server/common.rs
+++ b/src/modes/server/common.rs
@@ -22,6 +22,7 @@ pub struct ServerConfig {
     pub address: String,
     pub port: Option<u16>,
     pub password: Option<String>,
+    pub password_hash: Option<String>,
 }
 
 #[derive(Clone)]
@@ -29,6 +30,7 @@ pub struct AppState {
     pub db: Arc<Mutex<rusqlite::Connection>>,
     pub data_dir: PathBuf,
     pub password: Option<String>,
+    pub password_hash: Option<String>,
 }
 
 #[derive(Serialize, Deserialize, ToSchema)]
@@ -125,11 +127,23 @@ pub struct ItemQuery {
     pub allow_binary: bool,
 }
 
-fn check_bearer_auth(auth_str: &str, expected_password: &str) -> bool {
-    auth_str.starts_with("Bearer ") && &auth_str[7..] == expected_password
+fn check_bearer_auth(auth_str: &str, expected_password: &str, expected_hash: &Option<String>) -> bool {
+    if !auth_str.starts_with("Bearer ") {
+        return false;
+    }
+    
+    let provided_password = &auth_str[7..];
+    
+    // If we have a password hash, verify against it
+    if let Some(hash) = expected_hash {
+        return pwhash::unix::verify(provided_password, hash);
+    }
+    
+    // Otherwise, do direct comparison
+    provided_password == expected_password
 }
 
-fn check_basic_auth(auth_str: &str, expected_password: &str) -> bool {
+fn check_basic_auth(auth_str: &str, expected_password: &str, expected_hash: &Option<String>) -> bool {
     if !auth_str.starts_with("Basic ") {
         return false;
     }
@@ -137,25 +151,36 @@ fn check_basic_auth(auth_str: &str, expected_password: &str) -> bool {
     let encoded = &auth_str[6..];
     if let Ok(decoded_bytes) = base64::engine::general_purpose::STANDARD.decode(encoded) {
         if let Ok(decoded_str) = String::from_utf8(decoded_bytes) {
-            let expected_credentials = format!("keep:{}", expected_password);
-            return decoded_str == expected_credentials;
+            if let Some(colon_pos) = decoded_str.find(':') {
+                let provided_password = &decoded_str[colon_pos + 1..];
+                
+                // If we have a password hash, verify against it
+                if let Some(hash) = expected_hash {
+                    return pwhash::unix::verify(provided_password, hash);
+                }
+                
+                // Otherwise, do direct comparison
+                let expected_credentials = format!("keep:{}", expected_password);
+                return decoded_str == expected_credentials;
+            }
         }
     }
     false
 }
 
-pub fn check_auth(headers: &HeaderMap, password: &Option<String>) -> bool {
-    if let Some(expected_password) = password {
-        if let Some(auth_header) = headers.get("authorization") {
-            if let Ok(auth_str) = auth_header.to_str() {
-                return check_bearer_auth(auth_str, expected_password) || 
-                       check_basic_auth(auth_str, expected_password);
-            }
-        }
-        false
-    } else {
-        true // No password required
+pub fn check_auth(headers: &HeaderMap, password: &Option<String>, password_hash: &Option<String>) -> bool {
+    // If neither password nor hash is set, no authentication required
+    if password.is_none() && password_hash.is_none() {
+        return true;
     }
+    
+    if let Some(auth_header) = headers.get("authorization") {
+        if let Ok(auth_str) = auth_header.to_str() {
+            return check_bearer_auth(auth_str, password.as_deref().unwrap_or(""), password_hash) || 
+                   check_basic_auth(auth_str, password.as_deref().unwrap_or(""), password_hash);
+        }
+    }
+    false
 }
 
 pub async fn logging_middleware(
@@ -182,14 +207,16 @@ pub async fn logging_middleware(
 
 pub fn create_auth_middleware(
     password: Option<String>,
+    password_hash: Option<String>,
 ) -> impl Fn(ConnectInfo<SocketAddr>, Request, Next) -> std::pin::Pin<Box<dyn std::future::Future<Output = Result<Response, StatusCode>> + Send>> + Clone {
     move |ConnectInfo(addr): ConnectInfo<SocketAddr>, request: Request, next: Next| {
         let password = password.clone();
+        let password_hash = password_hash.clone();
         Box::pin(async move {
             let headers = request.headers().clone();
             let uri = request.uri().clone();
             
-            if !check_auth(&headers, &password) {
+            if !check_auth(&headers, &password, &password_hash) {
                 warn!("Unauthorized request to {} from {}", uri, addr);
                 return Err(StatusCode::UNAUTHORIZED);
             }