diff --git a/changes/1787.fix.md b/changes/1787.fix.md
new file mode 100644
index 0000000000..06ff6a0b25
--- /dev/null
+++ b/changes/1787.fix.md
@@ -0,0 +1 @@
+Fix `modify_user` mutation not working
diff --git a/src/ai/backend/manager/models/user.py b/src/ai/backend/manager/models/user.py
index 46f316fb71..59e53c6e54 100644
--- a/src/ai/backend/manager/models/user.py
+++ b/src/ai/backend/manager/models/user.py
@@ -716,6 +716,8 @@ async def mutate(
         set_if_set(props, data, "resource_policy")
         set_if_set(props, data, "sudo_session_enabled")
         set_if_set(props, data, "main_access_key")
+        if data.get("password") is None:
+            data.pop("password", None)
         if not data and not props.group_ids:
             return cls(ok=False, msg="nothing to update", user=None)
         if data.get("status") is None and props.is_active is not None: