diff --git a/lib/auth/password.test.ts b/lib/auth/password.test.ts
new file mode 100644
index 0000000..530644e
--- /dev/null
+++ b/lib/auth/password.test.ts
@@ -0,0 +1,104 @@
+import * as bcrypt from 'bcrypt';
+import { 
+  generateSecureSalt,
+  validatePasswordComplexity, 
+  hashPassword, 
+  verifyPassword 
+} from './password';
+
+describe('Password Security Utilities', () => {
+  // Valid complex password for testing
+  const validPassword = 'StrongP@ssw0rd123!';
+  const invalidPasswords = [
+    'short',  // too short
+    'onlylowercase',  // missing uppercase, numbers, special chars
+    'ONLYUPPERCASE',  // missing lowercase, numbers, special chars
+    'NoSpecialChars123',  // missing special chars
+  ];
+
+  describe('generateSecureSalt', () => {
+    it('should generate a unique salt each time', () => {
+      const salt1 = generateSecureSalt();
+      const salt2 = generateSecureSalt();
+      
+      expect(salt1).toBeDefined();
+      expect(salt2).toBeDefined();
+      expect(salt1).not.toEqual(salt2);
+    });
+  });
+
+  describe('validatePasswordComplexity', () => {
+    it('should validate complex password', () => {
+      expect(validatePasswordComplexity(validPassword)).toBe(true);
+    });
+
+    it.each(invalidPasswords)('should reject invalid password: %s', (password) => {
+      expect(validatePasswordComplexity(password)).toBe(false);
+    });
+
+    it('should handle empty password', () => {
+      expect(validatePasswordComplexity('')).toBe(false);
+      expect(validatePasswordComplexity(undefined as any)).toBe(false);
+    });
+
+    it('should allow custom complexity options', () => {
+      // Less strict options
+      expect(validatePasswordComplexity('simplePwd', { 
+        minLength: 5, 
+        requireUppercase: false,
+        requireLowercase: false,
+        requireNumbers: false,
+        requireSpecialChars: false 
+      })).toBe(true);
+    });
+  });
+
+  describe('hashPassword', () => {
+    it('should hash a valid password', async () => {
+      const hashedPassword = await hashPassword(validPassword);
+      
+      expect(hashedPassword).toBeTruthy();
+      expect(hashedPassword).not.toEqual(validPassword);
+      expect(hashedPassword.length).toBeGreaterThan(0);
+    });
+
+    it('should throw error for invalid password', async () => {
+      await expect(hashPassword('weak')).rejects.toThrow('Password does not meet complexity requirements');
+    });
+
+    it('should use 12 rounds of bcrypt hashing', async () => {
+      const bcryptHashSpy = jest.spyOn(bcrypt, 'hash');
+      
+      await hashPassword(validPassword);
+      
+      expect(bcryptHashSpy).toHaveBeenCalledWith(
+        validPassword, 
+        12  // Verify 12 rounds are used
+      );
+    });
+  });
+
+  describe('verifyPassword', () => {
+    it('should verify correct password', async () => {
+      const hashedPassword = await hashPassword(validPassword);
+      const result = await verifyPassword(validPassword, hashedPassword);
+      
+      expect(result).toBe(true);
+    });
+
+    it('should reject incorrect password', async () => {
+      const hashedPassword = await hashPassword(validPassword);
+      const result = await verifyPassword('WrongPassword123!', hashedPassword);
+      
+      expect(result).toBe(false);
+    });
+
+    it('should handle empty inputs', async () => {
+      const result1 = await verifyPassword('', '');
+      const result2 = await verifyPassword(undefined as any, undefined as any);
+      
+      expect(result1).toBe(false);
+      expect(result2).toBe(false);
+    });
+  });
+});
diff --git a/lib/auth/password.ts b/lib/auth/password.ts
new file mode 100644
index 0000000..4294027
--- /dev/null
+++ b/lib/auth/password.ts
@@ -0,0 +1,117 @@
+import * as crypto from 'crypto';
+import * as bcrypt from 'bcrypt';
+
+// Constants for password security
+const SALT_ROUNDS = 12;
+const MIN_PASSWORD_LENGTH = 8;
+
+// Password complexity requirements
+interface PasswordComplexityOptions {
+  minLength?: number;
+  requireUppercase?: boolean;
+  requireLowercase?: boolean;
+  requireNumbers?: boolean;
+  requireSpecialChars?: boolean;
+}
+
+const DEFAULT_COMPLEXITY_OPTIONS: PasswordComplexityOptions = {
+  minLength: 8,
+  requireUppercase: true,
+  requireLowercase: true,
+  requireNumbers: true,
+  requireSpecialChars: true,
+};
+
+/**
+ * Generate a cryptographically secure random salt
+ * @returns Secure random salt
+ */
+export const generateSecureSalt = (): string => {
+  return crypto.randomBytes(16).toString('hex');
+};
+
+/**
+ * Validate password complexity
+ * @param password - Password to validate
+ * @param options - Complexity requirements
+ * @returns Boolean indicating password meets complexity requirements
+ */
+export const validatePasswordComplexity = (
+  password: string, 
+  options: PasswordComplexityOptions = DEFAULT_COMPLEXITY_OPTIONS
+): boolean => {
+  // Ensure password is not empty or undefined
+  if (!password) return false;
+
+  // Check minimum length
+  if (password.length < (options.minLength || MIN_PASSWORD_LENGTH)) {
+    return false;
+  }
+
+  // Uppercase check
+  if (options.requireUppercase && !/[A-Z]/.test(password)) {
+    return false;
+  }
+
+  // Lowercase check
+  if (options.requireLowercase && !/[a-z]/.test(password)) {
+    return false;
+  }
+
+  // Number check
+  if (options.requireNumbers && !/[0-9]/.test(password)) {
+    return false;
+  }
+
+  // Special character check
+  if (options.requireSpecialChars && !/[!@#$%^&*(),.?":{}|<>]/.test(password)) {
+    return false;
+  }
+
+  return true;
+};
+
+/**
+ * Securely hash a password
+ * @param password - Plain text password
+ * @returns Hashed password
+ * @throws Error if password is invalid
+ */
+export const hashPassword = async (password: string): Promise<string> => {
+  // Validate password complexity before hashing
+  if (!validatePasswordComplexity(password)) {
+    throw new Error('Password does not meet complexity requirements');
+  }
+
+  try {
+    // Use bcrypt with 12 rounds and generate a secure salt
+    return await bcrypt.hash(password, SALT_ROUNDS);
+  } catch (error) {
+    console.error('Password hashing failed', error);
+    throw new Error('Failed to hash password');
+  }
+};
+
+/**
+ * Verify a password against its hash
+ * @param password - Plain text password to verify
+ * @param hashedPassword - Stored hashed password to compare against
+ * @returns Boolean indicating if password is correct
+ */
+export const verifyPassword = async (
+  password: string, 
+  hashedPassword: string
+): Promise<boolean> => {
+  // Input validation
+  if (!password || !hashedPassword) {
+    return false;
+  }
+
+  try {
+    // Use constant-time comparison to prevent timing attacks
+    return await bcrypt.compare(password, hashedPassword);
+  } catch (error) {
+    console.error('Password verification failed', error);
+    return false;
+  }
+};