diff --git a/doc/lua_api.md b/doc/lua_api.md
index 438769085e..71cf4a4df4 100644
--- a/doc/lua_api.md
+++ b/doc/lua_api.md
@@ -3108,7 +3108,7 @@ Elements
   (`x` and `y` are used as offset values, `w` and `h` are ignored)
 * Available since formspec version 2
 
-### `pwdfield[<X>,<Y>;<W>,<H>;<name>;<label>]`
+### `pwdfield[<X>,<Y>;<W>,<H>;<name>;<label>;<default>]`
 
 * Textual password style field; will be sent to server when a button is clicked
 * When enter is pressed in field, `fields.key_enter_field` will be sent with the
@@ -3118,6 +3118,10 @@ Elements
 * `name` is the name of the field as returned in fields to `on_receive_fields`
 * `label`, if not blank, will be text printed on the top left above the field
 * See `field_close_on_enter` to stop enter closing the formspec
+* `default` (optional) is the default value of the password
+    * `default` may contain variable references such as `${text}` which
+      will fill the value from the metadata value `text`
+    * **Note**: no extra text or more than a single variable is supported ATM.
 
 ### `field[<X>,<Y>;<W>,<H>;<name>;<label>;<default>]`
 
diff --git a/games/devtest/mods/testformspec/formspec.lua b/games/devtest/mods/testformspec/formspec.lua
index f2f632fa0f..516651350b 100644
--- a/games/devtest/mods/testformspec/formspec.lua
+++ b/games/devtest/mods/testformspec/formspec.lua
@@ -271,7 +271,7 @@ local scroll_fs =
 		"button[0,1;1,1;lorem;Lorem]"..
 		"animated_image[0,1;4.5,1;clip_animated_image;testformspec_animation.png;4;100]" ..
 		"button[0,10;1,1;ipsum;Ipsum]"..
-		"pwdfield[2,2;1,1;lorem2;Lorem]"..
+		"pwdfield[2,2;1,1;lorem2;Lorem;password]"..
 		"list[current_player;main;4,4;1,5;]"..
 		"box[2,5;3,2;#ffff00]"..
 		"image[1,10;3,2;testformspec_item.png]"..
@@ -349,7 +349,7 @@ local pages = {
 		item_image_button[0,6;1,1;testformspec:node;rc_item_image_button_1x1;1x1]
 		item_image_button[1,6;2,2;testformspec:node;rc_item_image_button_2x2;2x2]
 		field[3,.5;3,.5;rc_field;Field;text]
-		pwdfield[6,.5;3,1;rc_pwdfield;Password Field]
+		pwdfield[6,.5;3,1;rc_pwdfield;Password Field;password]
 		field[3,1;3,1;;Read-Only Field;text]
 		textarea[3,2;3,.5;rc_textarea_small;Textarea;text]
 		textarea[6,2;3,2;rc_textarea_big;Textarea;text\nmore text]
diff --git a/src/gui/guiFormSpecMenu.cpp b/src/gui/guiFormSpecMenu.cpp
index 29ff83af44..a63e3118c2 100644
--- a/src/gui/guiFormSpecMenu.cpp
+++ b/src/gui/guiFormSpecMenu.cpp
@@ -1441,13 +1441,16 @@ void GUIFormSpecMenu::parseFieldCloseOnEnter(parserData *data, const std::string
 void GUIFormSpecMenu::parsePwdField(parserData* data, const std::string &element)
 {
 	std::vector<std::string> parts;
-	if (!precheckElement("pwdfield", element, 4, 4, parts))
+	if (!precheckElement("pwdfield", element, 4, 5, parts))
 		return;
 
 	std::vector<std::string> v_pos = split(parts[0],',');
 	std::vector<std::string> v_geom = split(parts[1],',');
 	std::string name = parts[2];
 	std::string label = parts[3];
+	std::string default_val = "";
+	if(parts.size() == 5) // If the field has a default value (for backwards compatibility)
+		default_val = parts[4];
 
 	MY_CHECKPOS("pwdfield",0);
 	MY_CHECKGEOM("pwdfield",1);
@@ -1469,6 +1472,9 @@ void GUIFormSpecMenu::parsePwdField(parserData* data, const std::string &element
 		geom.Y = m_btn_height*2;
 	}
 
+	if(m_form_src)
+		default_val = m_form_src->resolveText(default_val);
+
 	core::rect<s32> rect = core::rect<s32>(pos.X, pos.Y, pos.X+geom.X, pos.Y+geom.Y);
 
 	std::wstring wlabel = translate_string(utf8_to_wide(unescape_string(label)));
@@ -1483,7 +1489,7 @@ void GUIFormSpecMenu::parsePwdField(parserData* data, const std::string &element
 		);
 
 	spec.send = true;
-	gui::IGUIEditBox *e = Environment->addEditBox(0, rect, true,
+	gui::IGUIEditBox *e = Environment->addEditBox(utf8_to_wide(unescape_string(default_val)).c_str(), rect, true,
 			data->current_parent, spec.fid);
 
 	if (spec.fname == m_focused_element) {