diff --git a/backend/src/entities/table/utils/hash-passwords-in-row.util.ts b/backend/src/entities/table/utils/hash-passwords-in-row.util.ts
index 64538ced9..ffeab9d11 100644
--- a/backend/src/entities/table/utils/hash-passwords-in-row.util.ts
+++ b/backend/src/entities/table/utils/hash-passwords-in-row.util.ts
@@ -2,6 +2,7 @@ import { TableWidgetEntity } from '../../widget/table-widget.entity.js';
 import { WidgetTypeEnum } from '../../../enums/index.js';
 import { IPasswordWidgetParams } from '../../widget/table-widget.interface.js';
 import { Encryptor } from '../../../helpers/encryption/encryptor.js';
+import { Constants } from '../../../helpers/constants/constants.js';
 import JSON5 from 'json5';
 
 export async function hashPasswordsInRowUtil(
@@ -15,6 +16,12 @@ export async function hashPasswordsInRowUtil(
       const widgetParams = JSON5.parse(widget.widget_params) as unknown as IPasswordWidgetParams;
       const fieldValue = row[widget.field_name];
 
+      // Skip processing if the field value is the removed password placeholder
+      if (fieldValue === Constants.REMOVED_PASSWORD_VALUE) {
+        delete row[widget.field_name];
+        continue;
+      }
+
       if (fieldValue !== undefined && fieldValue !== null && fieldValue !== '' && widgetParams.encrypt) {
         row[widget.field_name] = await Encryptor.processDataWithAlgorithm(fieldValue as any, widgetParams.algorithm);
       }