diff --git a/packages/fuselage/src/components/PasswordInput/PasswordInput.spec.tsx b/packages/fuselage/src/components/PasswordInput/PasswordInput.spec.tsx
index 8deb7a79bb..6aeee9b8fc 100644
--- a/packages/fuselage/src/components/PasswordInput/PasswordInput.spec.tsx
+++ b/packages/fuselage/src/components/PasswordInput/PasswordInput.spec.tsx
@@ -1,4 +1,5 @@
 import { composeStories } from '@storybook/react-webpack5';
+import userEvent from '@testing-library/user-event';
 import { axe } from 'jest-axe';
 
 import { render } from '../../testing';
@@ -19,4 +20,28 @@ describe('[PasswordInput Component]', () => {
     const results = await axe(container);
     expect(results).toHaveNoViolations();
   });
+
+  it('toggles password visibility with an accessible button', async () => {
+    const { getByLabelText, getByRole } = render(<Default />);
+    const input = getByLabelText('password');
+    const toggleButton = getByRole('button', { name: 'Show password' });
+
+    expect(input).toHaveAttribute('type', 'password');
+    expect(toggleButton).toHaveAttribute('aria-pressed', 'false');
+
+    await userEvent.click(toggleButton);
+
+    expect(input).toHaveAttribute('type', 'text');
+    const hideButton = getByRole('button', { name: 'Hide password' });
+    expect(hideButton).toHaveAttribute('aria-pressed', 'true');
+
+    hideButton.focus();
+    await userEvent.keyboard('{Enter}');
+
+    expect(input).toHaveAttribute('type', 'password');
+    expect(getByRole('button', { name: 'Show password' })).toHaveAttribute(
+      'aria-pressed',
+      'false',
+    );
+  });
 });
diff --git a/packages/fuselage/src/components/PasswordInput/PasswordInput.tsx b/packages/fuselage/src/components/PasswordInput/PasswordInput.tsx
index cd439c4af7..59d4831d5e 100644
--- a/packages/fuselage/src/components/PasswordInput/PasswordInput.tsx
+++ b/packages/fuselage/src/components/PasswordInput/PasswordInput.tsx
@@ -1,30 +1,49 @@
 import { useToggle } from '@rocket.chat/fuselage-hooks';
+import type { KeyboardEvent } from 'react';
 import { forwardRef } from 'react';
 
 import { Icon } from '../Icon';
 import { InputBox, type InputBoxProps } from '../InputBox';
 
-// TODO: fix a11y issues
-
 export type PasswordInputProps = Omit<InputBoxProps, 'type'>;
 
 const PasswordInput = forwardRef<HTMLInputElement, PasswordInputProps>(
-  function PasswordInput(props, ref) {
+  function PasswordInput({ disabled, ...props }, ref) {
     const [hidden, toggle] = useToggle(true);
     const handleAddonClick = () => {
+      if (disabled) {
+        return;
+      }
+
       toggle();
     };
+    const handleAddonKeyDown = (event: KeyboardEvent<HTMLElement>) => {
+      if (event.key !== 'Enter' && event.key !== ' ') {
+        return;
+      }
+
+      event.preventDefault();
+      handleAddonClick();
+    };
 
     return (
       <InputBox
         type={hidden ? 'password' : 'text'}
         addon={
           <Icon
+            aria-label={hidden ? 'Show password' : 'Hide password'}
+            aria-hidden={false}
+            aria-disabled={disabled || undefined}
+            aria-pressed={!hidden}
             name={hidden ? 'eye-off' : 'eye'}
+            role='button'
             size={20}
+            tabIndex={disabled ? -1 : 0}
             onClick={handleAddonClick}
+            onKeyDown={handleAddonKeyDown}
           />
         }
+        disabled={disabled}
         ref={ref}
         {...props}
       />
diff --git a/packages/fuselage/src/components/PasswordInput/__snapshots__/PasswordInput.spec.tsx.snap b/packages/fuselage/src/components/PasswordInput/__snapshots__/PasswordInput.spec.tsx.snap
index 842816429d..d286e3a31c 100644
--- a/packages/fuselage/src/components/PasswordInput/__snapshots__/PasswordInput.spec.tsx.snap
+++ b/packages/fuselage/src/components/PasswordInput/__snapshots__/PasswordInput.spec.tsx.snap
@@ -16,8 +16,12 @@ exports[`[PasswordInput Component] renders without crashing 1`] = `
         class="rcx-box rcx-box--full rcx-input-box__addon"
       >
         <i
-          aria-hidden="true"
+          aria-hidden="false"
+          aria-label="Show password"
+          aria-pressed="false"
           class="rcx-box rcx-box--full rcx-icon--name-eye-off rcx-icon rcx-css-1bepdyv"
+          role="button"
+          tabindex="0"
         >
           
         </i>