diff --git a/community/security/src/main/java/org/neo4j/commandline/admin/security/SetPasswordCommand.java b/community/security/src/main/java/org/neo4j/commandline/admin/security/SetPasswordCommand.java
index 0aa5248c984a..b47f86cf4c63 100644
--- a/community/security/src/main/java/org/neo4j/commandline/admin/security/SetPasswordCommand.java
+++ b/community/security/src/main/java/org/neo4j/commandline/admin/security/SetPasswordCommand.java
@@ -31,6 +31,8 @@
 import org.neo4j.commandline.admin.OutsideWorld;
 import org.neo4j.dbms.DatabaseManagementSystemSettings;
 import org.neo4j.graphdb.factory.GraphDatabaseSettings;
+import org.neo4j.helpers.Args;
+import org.neo4j.kernel.api.security.exception.InvalidArgumentsException;
 import org.neo4j.kernel.configuration.Config;
 import org.neo4j.logging.NullLogProvider;
 import org.neo4j.server.configuration.ConfigLoader;
@@ -55,7 +57,7 @@ public Provider()
         @Override
         public Optional<String> arguments()
         {
-            return Optional.of( "<username> <password>" );
+            return Optional.of( "--create <username> <password>" );
         }
 
         @Override
@@ -83,12 +85,15 @@ public SetPasswordCommand( Path homeDir, Path configDir )
     @Override
     public void execute( String[] args ) throws IncorrectUsage, CommandFailed
     {
-        if ( args.length < 2 )
+        Args parsedArgs = Args.parse( args );
+        if ( parsedArgs.orphans().size() < 2 )
         {
             throw new IncorrectUsage( "Missing arguments: expected username and password" );
         }
-        String username = args[0];
-        String password = args[1];
+
+        String username = parsedArgs.orphans().get( 0 );
+        String password = parsedArgs.orphans().get( 1 );
+        boolean shouldCreate = parsedArgs.asMap().containsKey( "create" );
         try
         {
             Config config = loadNeo4jConfig( homeDir, configDir );
@@ -98,7 +103,19 @@ public void execute( String[] args ) throws IncorrectUsage, CommandFailed
             userRepository.start();
             PasswordPolicy passwordPolicy = new BasicPasswordPolicy();
             BasicAuthManager authManager = new BasicAuthManager( userRepository, passwordPolicy, systemUTC() );
-            authManager.setUserPassword( username, password );
+            try
+            {
+                authManager.setUserPassword( username, password );
+            }
+            catch ( InvalidArgumentsException e )
+            {
+                if ( shouldCreate )
+                {
+                    authManager.getUserManager().newUser( username, password, false );
+                } else {
+                    throw e;
+                }
+            }
         }
         catch ( Exception e )
         {
@@ -106,7 +123,8 @@ public void execute( String[] args ) throws IncorrectUsage, CommandFailed
         }
         catch ( Throwable t )
         {
-            throw new CommandFailed( "Failed to set password for '" + username + "': " + t.getMessage(), new RuntimeException(t.getMessage()) );
+            throw new CommandFailed( "Failed to set password for '" + username + "': " + t.getMessage(),
+                    new RuntimeException( t.getMessage() ) );
         }
     }
 
diff --git a/community/security/src/test/java/org/neo4j/commandline/admin/security/SetPasswordCommandTest.java b/community/security/src/test/java/org/neo4j/commandline/admin/security/SetPasswordCommandTest.java
index 1f8b9d1f838d..c0636be31f91 100644
--- a/community/security/src/test/java/org/neo4j/commandline/admin/security/SetPasswordCommandTest.java
+++ b/community/security/src/test/java/org/neo4j/commandline/admin/security/SetPasswordCommandTest.java
@@ -112,7 +112,7 @@ public void shouldFailWitNonExistingUser() throws Exception
     }
 
     @Test
-    public void shouldRunSetPasswordCommand() throws Throwable
+    public void shouldRunSetPasswordCommandWithExistinguser() throws Throwable
     {
         // Given - new user that requires password change
         File graphDir = testDir.graphDbDir();
@@ -128,6 +128,41 @@ public void shouldRunSetPasswordCommand() throws Throwable
         assertUserDoesNotRequirePasswordChange( "neo4j" );
     }
 
+    @Test
+    public void shouldRunSetPasswordCommandWithoutExistingUser() throws Throwable
+    {
+        // Given - no user
+        File graphDir = testDir.graphDbDir();
+
+        // When - the admin command sets the password
+        File confDir = new File( graphDir, "conf" );
+        SetPasswordCommand setPasswordCommand = new SetPasswordCommand( graphDir.toPath(), confDir.toPath() );
+        setPasswordCommand.execute( new String[]{"neo4j", "abc", "--create"} );
+
+        // Then - the new user no longer requires a password change
+        assertUserDoesNotRequirePasswordChange( "neo4j" );
+    }
+
+    @Test
+    public void shouldFailToRunSetPasswordCommandWithoutExistingUser() throws Throwable
+    {
+        // Given - no user
+        File graphDir = testDir.graphDbDir();
+
+        // When - the admin command sets the password
+        try
+        {
+            File confDir = new File( graphDir, "conf" );
+            SetPasswordCommand setPasswordCommand = new SetPasswordCommand( graphDir.toPath(), confDir.toPath() );
+            setPasswordCommand.execute( new String[]{"neo4j", "abc"} );
+        }
+        catch ( CommandFailed e )
+        {
+            // Then we get an error
+            assertThat( e.getMessage(), containsString( "does not exist" ) );
+        }
+    }
+
     @Test
     public void shouldRunAdminToolWithSetPasswordCommandAndNoArgs() throws Throwable
     {
@@ -144,7 +179,7 @@ public void shouldRunAdminToolWithSetPasswordCommandAndNoArgs() throws Throwable
 
         // Then we get error output and user still requires password change
         verify( out, times( 0 ) ).stdOutLine( anyString() );
-        verify( out ).stdErrLine( "neo4j-admin set-password <username> <password>" );
+        verify( out ).stdErrLine( "neo4j-admin set-password --create <username> <password>" );
         verify( out ).stdErrLine( "    Sets the password for the specified user and removes the password change " );
         verify( out ).stdErrLine( "    requirement" );
         verify( out ).stdErrLine( "Missing arguments: expected username and password" );
@@ -152,7 +187,24 @@ public void shouldRunAdminToolWithSetPasswordCommandAndNoArgs() throws Throwable
     }
 
     @Test
-    public void shouldRunAdminToolWithSetPasswordCommandAndCorrectArgs() throws Throwable
+    public void shouldRunAdminToolWithSetPasswordCommandAndArgsButNoUser() throws Throwable
+    {
+        // Given no existing user
+
+        // When running the neo4j-admin tool without --create parameter
+        Path homeDir = testDir.graphDbDir().toPath();
+        Path configDir = testDir.directory( "conf" ).toPath();
+        OutsideWorld out = mock( OutsideWorld.class );
+        AdminTool tool = new AdminTool( CommandLocator.fromServiceLocator(), out, true );
+        tool.execute( homeDir, configDir, "set-password", "neo4j", "abc" );
+
+        // Then we get error output and user still requires password change
+        verify( out, times( 0 ) ).stdOutLine( anyString() );
+        verify( out ).stdErrLine( "command failed: Failed to set password for 'neo4j': User 'neo4j' does not exist" );
+    }
+
+    @Test
+    public void shouldRunAdminToolWithSetPasswordCommandAndExistingUser() throws Throwable
     {
         // Given a user that requires password change
         createTestUser("neo4j", "neo4j");
@@ -172,6 +224,26 @@ public void shouldRunAdminToolWithSetPasswordCommandAndCorrectArgs() throws Thro
         assertUserDoesNotRequirePasswordChange( "neo4j" );
     }
 
+    @Test
+    public void shouldRunAdminToolWithSetPasswordCommandAndNoExistingUser() throws Throwable
+    {
+        // Given no previously existing user
+
+        // When running the neo4j-admin tool with correct parameters
+        Path homeDir = testDir.graphDbDir().toPath();
+        Path configDir = testDir.directory( "conf" ).toPath();
+        OutsideWorld out = mock( OutsideWorld.class );
+        AdminTool tool = new AdminTool( CommandLocator.fromServiceLocator(), out, true );
+        tool.execute( homeDir, configDir, "set-password", "--create=true", "neo4j", "abc" );
+
+        // Then we get no error output and the user no longer requires password change
+        verify( out, times( 0 ) ).stdOutLine( anyString() );
+        verify( out, times( 0 ) ).stdOutLine( anyString() );
+        verify( out, times( 0 ) ).stdErrLine( anyString() );
+        verify( out ).exit(0);
+        assertUserDoesNotRequirePasswordChange( "neo4j" );
+    }
+
     private File authFile()
     {
         return new File( new File( new File( testDir.graphDbDir(), "data" ), "dbms" ), "auth.db" );