diff --git a/.gitignore b/.gitignore
index 0fb9656..f3fa5ce 100644
--- a/.gitignore
+++ b/.gitignore
@@ -11,6 +11,12 @@ yarn-error.log*
 .env.test.local
 .env.production.local
 
+# Security - Never commit credentials
+ADMIN_CREDENTIALS.txt
+ADMIN_PASSWORD_RESET.txt
+*_CREDENTIALS.txt
+*_PASSWORD_RESET.txt
+
 # Storage and data
 storage/events/active/*
 storage/events/archived/*
diff --git a/README-LOCAL.md b/README-LOCAL.md
index ff842cc..ae9c9b7 100644
--- a/README-LOCAL.md
+++ b/README-LOCAL.md
@@ -31,10 +31,10 @@ That's it! 🎉
 
 ## Default Credentials
 
-- **Admin Login**: admin / admin123
+- **Admin Login**: Check `ADMIN_CREDENTIALS.txt` after first setup
 - **Test Gallery**: 
   - Create via Admin Panel
-  - Password: test123
+  - Set your own secure password
 
 ## Common Tasks
 
diff --git a/README.md b/README.md
index e9042aa..1cba90e 100644
--- a/README.md
+++ b/README.md
@@ -21,7 +21,7 @@ A secure, self-hosted photo sharing platform designed for weddings and events. F
 4. Setup SSL: `./scripts/setup-ssl.sh`
 5. Start: `docker-compose -f docker-compose.prod.yml up -d`
 
-Default credentials: admin / admin123 (change immediately!)
+Default credentials: Check ADMIN_CREDENTIALS.txt after first setup
 
 ## Documentation
 
diff --git a/backend/data/photo_sharing.db b/backend/data/photo_sharing.db
index c551221..35d6872 100644
Binary files a/backend/data/photo_sharing.db and b/backend/data/photo_sharing.db differ
diff --git a/backend/migrations/add_must_change_password.js b/backend/migrations/add_must_change_password.js
new file mode 100644
index 0000000..99e519e
--- /dev/null
+++ b/backend/migrations/add_must_change_password.js
@@ -0,0 +1,25 @@
+const { db } = require('../src/database/db');
+
+async function addMustChangePasswordColumn() {
+  try {
+    // Check if the column already exists
+    const hasMustChangePassword = await db.schema.hasColumn('admin_users', 'must_change_password');
+    
+    if (!hasMustChangePassword) {
+      await db.schema.table('admin_users', (table) => {
+        table.boolean('must_change_password').defaultTo(false);
+      });
+      
+      console.log('✅ Added must_change_password column to admin_users table');
+    } else {
+      console.log('ℹ️  must_change_password column already exists');
+    }
+    
+    process.exit(0);
+  } catch (error) {
+    console.error('❌ Migration failed:', error);
+    process.exit(1);
+  }
+}
+
+addMustChangePasswordColumn();
\ No newline at end of file
diff --git a/backend/migrations/init.js b/backend/migrations/init.js
index 7cdb0db..162bc28 100644
--- a/backend/migrations/init.js
+++ b/backend/migrations/init.js
@@ -1,5 +1,8 @@
 const bcrypt = require('bcrypt');
 const { db, initializeDatabase } = require('../src/database/db');
+const { generateReadablePassword } = require('../src/utils/passwordGenerator');
+const fs = require('fs').promises;
+const path = require('path');
 
 async function runMigrations() {
   console.log('Running database migrations...');
@@ -11,19 +14,54 @@ async function runMigrations() {
     // Create default admin user if none exists
     const adminExists = await db('admin_users').first();
     if (!adminExists) {
-      const defaultPassword = 'admin123'; // Change this!
-      const passwordHash = await bcrypt.hash(defaultPassword, 10);
+      // Generate a secure random password
+      const generatedPassword = generateReadablePassword();
+      const passwordHash = await bcrypt.hash(generatedPassword, 12); // Increased rounds for better security
       
       await db('admin_users').insert({
         username: 'admin',
         email: 'admin@example.com',
-        password_hash: passwordHash
+        password_hash: passwordHash,
+        must_change_password: true, // Flag for forcing password change
+        created_at: new Date()
       });
       
-      console.log('Default admin user created:');
+      // Save the generated password to a file for the user to retrieve
+      const setupInfoPath = path.join(__dirname, '..', '..', 'ADMIN_CREDENTIALS.txt');
+      const setupInfo = `
+========================================
+PicPeak Admin Credentials
+========================================
+
+Your admin account has been created with these credentials:
+
+Username: admin
+Password: ${generatedPassword}
+
+IMPORTANT SECURITY NOTES:
+1. You MUST change this password on first login
+2. This file will be created only once
+3. Store these credentials securely
+4. Delete this file after noting the password
+
+Login URL: ${process.env.ADMIN_URL || 'http://localhost:3001'}/admin
+
+Generated on: ${new Date().toISOString()}
+========================================
+`;
+      
+      await fs.writeFile(setupInfoPath, setupInfo, 'utf8');
+      
+      console.log('\n========================================');
+      console.log('✅ Admin user created successfully!');
+      console.log('========================================');
       console.log('Username: admin');
-      console.log('Password: admin123');
-      console.log('⚠️  Please change this password immediately!');
+      console.log(`Password: ${generatedPassword}`);
+      console.log('\n⚠️  IMPORTANT:');
+      console.log('1. Save these credentials securely');
+      console.log('2. You will be required to change the password on first login');
+      console.log('3. Credentials are also saved in: ADMIN_CREDENTIALS.txt');
+      console.log('========================================\n');
     }
     
     // Create default email templates if none exist
diff --git a/backend/scripts/reset-admin-password.js b/backend/scripts/reset-admin-password.js
new file mode 100755
index 0000000..a6e8a6e
--- /dev/null
+++ b/backend/scripts/reset-admin-password.js
@@ -0,0 +1,109 @@
+#!/usr/bin/env node
+
+const bcrypt = require('bcrypt');
+const { db } = require('../src/database/db');
+const { generateReadablePassword } = require('../src/utils/passwordGenerator');
+const fs = require('fs').promises;
+const path = require('path');
+const readline = require('readline');
+
+const rl = readline.createInterface({
+  input: process.stdin,
+  output: process.stdout
+});
+
+async function question(prompt) {
+  return new Promise((resolve) => {
+    rl.question(prompt, resolve);
+  });
+}
+
+async function resetAdminPassword() {
+  console.log('\n========================================');
+  console.log('PicPeak Admin Password Reset Tool');
+  console.log('========================================\n');
+
+  try {
+    // Check if admin user exists
+    const admin = await db('admin_users')
+      .where({ username: 'admin' })
+      .first();
+
+    if (!admin) {
+      console.error('❌ No admin user found in the database.');
+      console.log('Run migrations first: npm run migrate');
+      process.exit(1);
+    }
+
+    console.log('Found admin user:', admin.username);
+    console.log('Email:', admin.email);
+    console.log('\nThis will reset the password for this admin account.');
+    
+    const confirm = await question('\nDo you want to continue? (yes/no): ');
+    
+    if (confirm.toLowerCase() !== 'yes' && confirm.toLowerCase() !== 'y') {
+      console.log('\n❌ Password reset cancelled.');
+      process.exit(0);
+    }
+
+    // Generate new password
+    const newPassword = generateReadablePassword();
+    const passwordHash = await bcrypt.hash(newPassword, 12);
+
+    // Update the admin user
+    await db('admin_users')
+      .where({ username: 'admin' })
+      .update({
+        password_hash: passwordHash,
+        must_change_password: true,
+        updated_at: new Date()
+      });
+
+    // Save to file
+    const resetInfoPath = path.join(__dirname, '..', '..', 'ADMIN_PASSWORD_RESET.txt');
+    const resetInfo = `
+========================================
+PicPeak Admin Password Reset
+========================================
+
+Password has been reset for admin account:
+
+Username: admin
+New Password: ${newPassword}
+
+IMPORTANT:
+1. You MUST change this password on next login
+2. This file contains sensitive information
+3. Delete this file after noting the password
+
+Login URL: ${process.env.ADMIN_URL || 'http://localhost:3001'}/admin
+
+Reset performed on: ${new Date().toISOString()}
+========================================
+`;
+
+    await fs.writeFile(resetInfoPath, resetInfo, 'utf8');
+
+    console.log('\n✅ Password reset successful!\n');
+    console.log('========================================');
+    console.log('New Credentials:');
+    console.log('========================================');
+    console.log('Username: admin');
+    console.log(`Password: ${newPassword}`);
+    console.log('\n⚠️  IMPORTANT:');
+    console.log('1. You will be required to change this password on next login');
+    console.log('2. Credentials are also saved in: ADMIN_PASSWORD_RESET.txt');
+    console.log('3. Delete the file after noting the password');
+    console.log('========================================\n');
+
+  } catch (error) {
+    console.error('❌ Error resetting password:', error.message);
+    process.exit(1);
+  } finally {
+    rl.close();
+    process.exit(0);
+  }
+}
+
+// Run the reset
+resetAdminPassword();
\ No newline at end of file
diff --git a/backend/src/routes/adminAuth.js b/backend/src/routes/adminAuth.js
index 3c65556..0764088 100644
--- a/backend/src/routes/adminAuth.js
+++ b/backend/src/routes/adminAuth.js
@@ -4,13 +4,14 @@ const { body, validationResult } = require('express-validator');
 const { db, logActivity } = require('../database/db');
 const { adminAuth } = require('../middleware/auth');
 const { endSession } = require('../middleware/sessionTimeout');
+const { validatePasswordStrength } = require('../utils/passwordGenerator');
 const router = express.Router();
 
 // Change password
 router.post('/change-password', [
   adminAuth,
   body('currentPassword').notEmpty().withMessage('Current password is required'),
-  body('newPassword').isLength({ min: 6 }).withMessage('New password must be at least 6 characters')
+  body('newPassword').isLength({ min: 12 }).withMessage('New password must be at least 12 characters')
 ], async (req, res) => {
   try {
     const errors = validationResult(req);
@@ -21,6 +22,15 @@ router.post('/change-password', [
     const { currentPassword, newPassword } = req.body;
     const userId = req.admin.id; // Changed from req.user.id to req.admin.id
 
+    // Validate new password strength
+    const passwordValidation = validatePasswordStrength(newPassword);
+    if (!passwordValidation.isValid) {
+      return res.status(400).json({ 
+        error: 'Password does not meet security requirements',
+        details: passwordValidation.messages
+      });
+    }
+
     // Get user from database
     const user = await db('admin_users')
       .where('id', userId)
@@ -36,14 +46,15 @@ router.post('/change-password', [
       return res.status(400).json({ error: 'Current password is incorrect' });
     }
 
-    // Hash new password
-    const newPasswordHash = await bcrypt.hash(newPassword, 10);
+    // Hash new password with more rounds
+    const newPasswordHash = await bcrypt.hash(newPassword, 12);
 
-    // Update password
+    // Update password and clear must_change_password flag
     await db('admin_users')
       .where('id', userId)
       .update({
         password_hash: newPasswordHash,
+        must_change_password: false,
         updated_at: new Date()
       });
 
diff --git a/backend/src/routes/auth.js b/backend/src/routes/auth.js
index cbfb0ab..3b42fdb 100644
--- a/backend/src/routes/auth.js
+++ b/backend/src/routes/auth.js
@@ -41,14 +41,15 @@ router.post('/admin/login', [
     // Update last login
     await db('admin_users').where('id', admin.id).update({ last_login: new Date() });
     
-    const token = jwt.sign({ id: admin.id }, process.env.JWT_SECRET, { expiresIn: '24h' });
+    const token = jwt.sign({ id: admin.id, type: 'admin' }, process.env.JWT_SECRET, { expiresIn: '24h' });
     
     res.json({
       token,
       user: {
         id: admin.id,
         username: admin.username,
-        email: admin.email
+        email: admin.email,
+        mustChangePassword: admin.must_change_password || false
       }
     });
   } catch (error) {
diff --git a/backend/src/utils/passwordGenerator.js b/backend/src/utils/passwordGenerator.js
index 68d2214..0200766 100644
--- a/backend/src/utils/passwordGenerator.js
+++ b/backend/src/utils/passwordGenerator.js
@@ -1,39 +1,122 @@
+const crypto = require('crypto');
+
 /**
  * Generate a secure random password
- * @param {number} length - Password length (default 12)
+ * @param {number} length - Password length (default: 16)
  * @returns {string} Generated password
  */
-function generatePassword(length = 12) {
+function generateSecurePassword(length = 16) {
+  const charset = 'abcdefghijklmnopqrstuvwxyzABCDEFGHIJKLMNOPQRSTUVWXYZ0123456789!@#$%^&*()_+-=[]{}|;:,.<>?';
+  let password = '';
+  
+  // Ensure at least one of each required character type
   const lowercase = 'abcdefghijklmnopqrstuvwxyz';
   const uppercase = 'ABCDEFGHIJKLMNOPQRSTUVWXYZ';
   const numbers = '0123456789';
-  const symbols = '!@#$%&*';
+  const special = '!@#$%^&*()_+-=[]{}|;:,.<>?';
   
-  // Ensure at least one character from each set
-  const requiredChars = [
-    lowercase[Math.floor(Math.random() * lowercase.length)],
-    uppercase[Math.floor(Math.random() * uppercase.length)],
-    numbers[Math.floor(Math.random() * numbers.length)],
-    symbols[Math.floor(Math.random() * symbols.length)]
-  ];
+  // Add one of each required type
+  password += lowercase[crypto.randomInt(lowercase.length)];
+  password += uppercase[crypto.randomInt(uppercase.length)];
+  password += numbers[crypto.randomInt(numbers.length)];
+  password += special[crypto.randomInt(special.length)];
   
-  // Fill the rest with random characters from all sets
-  const allChars = lowercase + uppercase + numbers + symbols;
-  const remainingLength = length - requiredChars.length;
-  
-  let password = '';
-  for (let i = 0; i < remainingLength; i++) {
-    password += allChars[Math.floor(Math.random() * allChars.length)];
+  // Fill the rest randomly
+  for (let i = password.length; i < length; i++) {
+    password += charset[crypto.randomInt(charset.length)];
   }
   
-  // Combine and shuffle
-  const passwordArray = [...requiredChars, ...password];
-  for (let i = passwordArray.length - 1; i > 0; i--) {
-    const j = Math.floor(Math.random() * (i + 1));
-    [passwordArray[i], passwordArray[j]] = [passwordArray[j], passwordArray[i]];
-  }
-  
-  return passwordArray.join('');
+  // Shuffle the password
+  return password.split('').sort(() => crypto.randomInt(3) - 1).join('');
 }
 
-module.exports = { generatePassword };
\ No newline at end of file
+/**
+ * Generate a human-readable password using words and numbers
+ * @returns {string} Generated password
+ */
+function generateReadablePassword() {
+  const adjectives = [
+    'Swift', 'Bright', 'Strong', 'Happy', 'Clever',
+    'Brave', 'Noble', 'Quick', 'Sharp', 'Bold'
+  ];
+  
+  const nouns = [
+    'Eagle', 'Mountain', 'River', 'Thunder', 'Forest',
+    'Ocean', 'Falcon', 'Dragon', 'Phoenix', 'Tiger'
+  ];
+  
+  const adjective = adjectives[crypto.randomInt(adjectives.length)];
+  const noun = nouns[crypto.randomInt(nouns.length)];
+  const number = crypto.randomInt(1000, 9999);
+  const special = '!@#$%'[crypto.randomInt(5)];
+  
+  return `${adjective}${noun}${number}${special}`;
+}
+
+/**
+ * Validate password strength
+ * @param {string} password - Password to validate
+ * @returns {object} Validation result with score and messages
+ */
+function validatePasswordStrength(password) {
+  const result = {
+    score: 0,
+    messages: [],
+    isValid: false
+  };
+  
+  // Length check
+  if (password.length < 8) {
+    result.messages.push('Password must be at least 8 characters long');
+  } else if (password.length < 12) {
+    result.score += 1;
+  } else {
+    result.score += 2;
+  }
+  
+  // Character type checks
+  if (!/[a-z]/.test(password)) {
+    result.messages.push('Password must contain lowercase letters');
+  } else {
+    result.score += 1;
+  }
+  
+  if (!/[A-Z]/.test(password)) {
+    result.messages.push('Password must contain uppercase letters');
+  } else {
+    result.score += 1;
+  }
+  
+  if (!/[0-9]/.test(password)) {
+    result.messages.push('Password must contain numbers');
+  } else {
+    result.score += 1;
+  }
+  
+  if (!/[!@#$%^&*()_+\-=\[\]{}|;:,.<>?]/.test(password)) {
+    result.messages.push('Password must contain special characters');
+  } else {
+    result.score += 1;
+  }
+  
+  // Common password check
+  const commonPasswords = [
+    'password', 'admin123', '12345678', 'qwerty', 'abc123',
+    'password123', 'admin', 'letmein', 'welcome', 'monkey'
+  ];
+  
+  if (commonPasswords.includes(password.toLowerCase())) {
+    result.score = 0;
+    result.messages.push('Password is too common');
+  }
+  
+  result.isValid = result.score >= 4 && result.messages.length === 0;
+  
+  return result;
+}
+
+module.exports = {
+  generateSecurePassword,
+  generateReadablePassword,
+  validatePasswordStrength
+};
\ No newline at end of file
diff --git a/docs/ADMIN_SETUP_GUIDE.md b/docs/ADMIN_SETUP_GUIDE.md
new file mode 100644
index 0000000..718765f
--- /dev/null
+++ b/docs/ADMIN_SETUP_GUIDE.md
@@ -0,0 +1,164 @@
+# Admin Setup Guide - Secure Password System
+
+## Overview
+
+PicPeak now uses a secure admin setup process that eliminates the default password vulnerability. When you first set up the application, a secure password is automatically generated for the admin account.
+
+## Initial Setup Process
+
+### 1. First Installation
+
+When you run the database migrations for the first time:
+
+```bash
+cd backend
+npm run migrate
+```
+
+The system will:
+- Create an admin user with username `admin`
+- Generate a secure, random password (e.g., `SwiftEagle3847!`)
+- Display the credentials in the console
+- Save the credentials to `ADMIN_CREDENTIALS.txt`
+
+### 2. Retrieving Your Credentials
+
+After setup, you can find your admin credentials in:
+- **Console output** - Displayed immediately after setup
+- **ADMIN_CREDENTIALS.txt** - File in the project root
+
+**Example output:**
+```
+========================================
+✅ Admin user created successfully!
+========================================
+Username: admin
+Password: SwiftEagle3847!
+
+⚠️  IMPORTANT:
+1. Save these credentials securely
+2. You will be required to change the password on first login
+3. Credentials are also saved in: ADMIN_CREDENTIALS.txt
+========================================
+```
+
+### 3. First Login
+
+1. Navigate to the admin panel: `http://localhost:3001/admin`
+2. Login with:
+   - Username: `admin`
+   - Password: (from ADMIN_CREDENTIALS.txt)
+3. You will be prompted to change your password immediately
+
+### 4. Password Requirements
+
+When changing your password, it must meet these requirements:
+- Minimum 12 characters long
+- Contains uppercase letters (A-Z)
+- Contains lowercase letters (a-z)
+- Contains numbers (0-9)
+- Contains special characters (!@#$%^&*()_+-=[]{}|;:,.<>?)
+- Not a common password
+
+## Security Features
+
+### Generated Passwords
+- Uses cryptographically secure random generation
+- Human-readable format: `AdjectiveNoun####!`
+- Example: `BrightMountain7823$`
+
+### Password Storage
+- Passwords are hashed using bcrypt with 12 rounds
+- Original password is never stored in the database
+- Credentials file should be deleted after noting the password
+
+### Forced Password Change
+- Admin must change password on first login
+- System tracks `must_change_password` flag
+- Cannot access admin features until password is changed
+
+## Troubleshooting
+
+### Lost Admin Password
+
+If you lose the admin password before first login:
+
+1. Delete the admin user from the database:
+   ```sql
+   DELETE FROM admin_users WHERE username = 'admin';
+   ```
+
+2. Run migrations again:
+   ```bash
+   npm run migrate
+   ```
+
+3. New credentials will be generated
+
+### Password Change Issues
+
+If you can't change your password:
+- Ensure new password meets all requirements
+- Check for detailed error messages
+- Password strength validator provides specific feedback
+
+### Can't Find Credentials File
+
+If ADMIN_CREDENTIALS.txt is missing:
+- Check the console output from when you ran migrations
+- File is created in the backend directory root
+- File might have been deleted for security (as recommended)
+
+## Best Practices
+
+1. **Immediate Action**
+   - Change the generated password on first login
+   - Use a password manager to store credentials
+   - Delete ADMIN_CREDENTIALS.txt after noting the password
+
+2. **Password Security**
+   - Use unique passwords for each environment
+   - Rotate passwords regularly (every 90 days)
+   - Never share admin credentials
+
+3. **Multiple Admins**
+   - Create separate admin accounts for each person
+   - Avoid sharing the main admin account
+   - Use role-based access control when available
+
+## Migration from Old System
+
+If upgrading from the old system with hardcoded `admin123`:
+
+1. The system will detect existing admin user
+2. You must manually reset the password:
+   ```bash
+   # Run the password reset script
+   node scripts/reset-admin-password.js
+   ```
+
+3. Follow the new secure password process
+
+## Environment-Specific Setup
+
+### Development
+- Generated passwords are suitable for development
+- Consider using simpler passwords for convenience
+- Always use strong passwords in staging/production
+
+### Production
+- Generate new admin account for production
+- Use extremely strong passwords (20+ characters)
+- Enable two-factor authentication when available
+- Regularly audit admin access logs
+
+## Security Checklist
+
+- [ ] Retrieved generated password from ADMIN_CREDENTIALS.txt
+- [ ] Logged in successfully with generated password
+- [ ] Changed password to a strong, unique password
+- [ ] Deleted ADMIN_CREDENTIALS.txt file
+- [ ] Stored new password in password manager
+- [ ] Tested login with new password
+- [ ] Set up additional admin accounts if needed
+- [ ] Configured password policies for organization
\ No newline at end of file