diff --git a/common/models/user.js b/common/models/user.js
index 8a5fdc97..34978af0 100644
--- a/common/models/user.js
+++ b/common/models/user.js
@@ -79,12 +79,26 @@ module.exports = function(User) {
    * Create access token for the logged in user. This method can be overridden to
    * customize how access tokens are generated
    *
-   * @param {Number} ttl The requested ttl
-   * @param {Object} [options] The options for access token, such as scope, appId
+   * Supported flavours:
+   *
+   * ```js
+   * createAccessToken(ttl, cb)
+   * createAccessToken(ttl, options, cb);
+   * createAccessToken(options, cb);
+   * // recent addition:
+   * createAccessToken(data, options, cb);
+   * ```
+   *
+   * @options {Number|Object} [ttl|data] Either the requested ttl,
+   * or an object with token properties to set (see below).
+   * @property {Number} [ttl] The requested ttl
+   * @property {String[]} [scopes] The access scopes granted to the token.
+   * @param {Object} [options] Additional options including remoting context
    * @callback {Function} cb The callback function
    * @param {String|Error} err The error string or object
    * @param {AccessToken} token The generated access token object
    * @promise
+   *
    */
   User.prototype.createAccessToken = function(ttl, options, cb) {
     if (cb === undefined && typeof options === 'function') {
@@ -95,17 +109,21 @@ module.exports = function(User) {
 
     cb = cb || utils.createPromiseCallback();
 
-    if (typeof ttl === 'object' && !options) {
-      // createAccessToken(options, cb)
-      options = ttl;
-      ttl = options.ttl;
+    let tokenData;
+    if (typeof ttl !== 'object') {
+      // createAccessToken(ttl[, options], cb)
+      tokenData = {ttl};
+    } else if (options) {
+      // createAccessToken(data, options, cb)
+      tokenData = ttl;
+    } else {
+      // createAccessToken(options, cb);
+      tokenData = {};
     }
-    options = options || {};
-    var userModel = this.constructor;
-    ttl = Math.min(ttl || userModel.settings.ttl, userModel.settings.maxTTL);
-    this.accessTokens.create({
-      ttl: ttl,
-    }, cb);
+
+    var userSettings = this.constructor.settings;
+    tokenData.ttl = Math.min(tokenData.ttl || userSettings.ttl, userSettings.maxTTL);
+    this.accessTokens.create(tokenData, options, cb);
     return cb.promise;
   };
 
@@ -421,15 +439,90 @@ module.exports = function(User) {
         return cb(err);
       }
 
-      try {
-        User.validatePassword(newPassword);
-      } catch (err) {
+      this.setPassword(newPassword, options, cb);
+    });
+    return cb.promise;
+  };
+
+  /**
+   * Set this user's password after a password-reset request was made.
+   *
+   * @param {*} userId Id of the user changing the password
+   * @param {string} newPassword The new password to use.
+   * @param {Object} [options] Additional options including remoting context
+   * @callback {Function} callback
+   * @param {Error} err Error object
+   * @promise
+   */
+  User.setPassword = function(userId, newPassword, options, cb) {
+    assert(userId != null && userId !== '', 'userId is a required argument');
+    assert(!!newPassword, 'newPassword is a required argument');
+
+    if (cb === undefined && typeof options === 'function') {
+      cb = options;
+      options = undefined;
+    }
+    cb = cb || utils.createPromiseCallback();
+
+    // Make sure to use the constructor of the (sub)class
+    // where the method is invoked from (`this` instead of `User`)
+    this.findById(userId, options, (err, inst) => {
+      if (err) return cb(err);
+
+      if (!inst) {
+        const err = new Error(`User ${userId} not found`);
+        Object.assign(err, {
+          code: 'USER_NOT_FOUND',
+          statusCode: 401,
+        });
         return cb(err);
       }
 
-      const delta = {password: newPassword};
-      this.patchAttributes(delta, options, (err, updated) => cb(err));
+      inst.setPassword(newPassword, options, cb);
     });
+
+    return cb.promise;
+  };
+
+  /**
+   * Set this user's password. The callers of this method
+   * must ensure the client making the request is authorized
+   * to change the password, typically by providing the correct
+   * current password or a password-reset token.
+   *
+   * @param {string} newPassword The new password to use.
+   * @param {Object} [options] Additional options including remoting context
+   * @callback {Function} callback
+   * @param {Error} err Error object
+   * @promise
+   */
+  User.prototype.setPassword = function(newPassword, options, cb) {
+    assert(!!newPassword, 'newPassword is a required argument');
+
+    if (cb === undefined && typeof options === 'function') {
+      cb = options;
+      options = undefined;
+    }
+    cb = cb || utils.createPromiseCallback();
+
+    try {
+      this.constructor.validatePassword(newPassword);
+    } catch (err) {
+      cb(err);
+      return cb.promise;
+    }
+
+    // We need to modify options passed to patchAttributes, but we don't want
+    // to modify the original options object passed to us by setPassword caller
+    options = Object.assign({}, options);
+
+    // patchAttributes() does not allow callers to modify the password property
+    // unless "options.setPassword" is set.
+    options.setPassword = true;
+
+    const delta = {password: newPassword};
+    this.patchAttributes(delta, options, (err, updated) => cb(err));
+
     return cb.promise;
   };
 
@@ -739,7 +832,21 @@ module.exports = function(User) {
         return cb(err);
       }
 
-      user.createAccessToken(ttl, function(err, accessToken) {
+      if (UserModel.settings.restrictResetPasswordTokenScope) {
+        const tokenData = {
+          ttl: ttl,
+          scopes: ['reset-password'],
+        };
+        user.createAccessToken(tokenData, options, onTokenCreated);
+      } else {
+        // We need to preserve backwards-compatibility with
+        // user-supplied implementations of "createAccessToken"
+        // that may not support "options" argument (we have such
+        // examples in our test suite).
+        user.createAccessToken(ttl, onTokenCreated);
+      }
+
+      function onTokenCreated(err, accessToken) {
         if (err) {
           return cb(err);
         }
@@ -750,7 +857,7 @@ module.exports = function(User) {
           user: user,
           options: options,
         });
-      });
+      }
     });
 
     return cb.promise;
@@ -936,6 +1043,25 @@ module.exports = function(User) {
       }
     );
 
+    const setPasswordScopes = UserModel.settings.restrictResetPasswordTokenScope ?
+      ['reset-password'] : undefined;
+
+    UserModel.remoteMethod(
+      'setPassword',
+      {
+        description: 'Reset user\'s password via a password-reset token.',
+        accepts: [
+          {arg: 'id', type: 'any',
+            http: ctx => ctx.req.accessToken && ctx.req.accessToken.userId,
+          },
+          {arg: 'newPassword', type: 'string', required: true, http: {source: 'form'}},
+          {arg: 'options', type: 'object', http: 'optionsFromRequest'},
+        ],
+        accessScopes: setPasswordScopes,
+        http: {verb: 'POST', path: '/reset-password'},
+      }
+    );
+
     UserModel.afterRemote('confirm', function(ctx, inst, next) {
       if (ctx.args.redirect !== undefined) {
         if (!ctx.res) {
@@ -997,6 +1123,46 @@ module.exports = function(User) {
     next();
   });
 
+  User.observe('before save', function rejectInsecurePasswordChange(ctx, next) {
+    const UserModel = ctx.Model;
+    if (!UserModel.settings.rejectPasswordChangesViaPatchOrReplace) {
+      // In legacy password flow, any DAO method can change the password
+      return next();
+    }
+
+    if (ctx.isNewInstance) {
+      // The password can be always set when creating a new User instance
+      return next();
+    }
+    const data = ctx.data || ctx.instance;
+    const isPasswordChange = 'password' in data;
+
+    // This is the option set by `setPassword()` API
+    // when calling `this.patchAttritubes()` to change user's password
+    if (ctx.options.setPassword) {
+      // Verify that only the password is changed and nothing more or less.
+      if (Object.keys(data).length > 1 || !isPasswordChange) {
+        // This is a programmer's error, use the default status code 500
+        return next(new Error(
+          'Invalid use of "options.setPassword". Only "password" can be ' +
+          'changed when using this option.'));
+      }
+
+      return next();
+    }
+
+    if (!isPasswordChange) {
+      return next();
+    }
+
+    const err = new Error(
+      'Changing user password via patch/replace API is not allowed. ' +
+      'Use changePassword() or setPassword() instead.');
+    err.statusCode = 401;
+    err.code = 'PASSWORD_CHANGE_NOT_ALLOWED';
+    next(err);
+  });
+
   User.observe('before save', function prepareForTokenInvalidation(ctx, next) {
     if (ctx.isNewInstance) return next();
     if (!ctx.where && !ctx.instance) return next();
diff --git a/common/models/user.json b/common/models/user.json
index 230fe7e8..c0e4d66b 100644
--- a/common/models/user.json
+++ b/common/models/user.json
@@ -89,6 +89,13 @@
       "permission": "ALLOW",
       "property": "changePassword",
       "accessType": "EXECUTE"
+    },
+    {
+      "principalType": "ROLE",
+      "principalId": "$authenticated",
+      "permission": "ALLOW",
+      "property": "setPassword",
+      "accessType": "EXECUTE"
     }
   ],
   "relations": {
diff --git a/test/authorization-scopes.test.js b/test/authorization-scopes.test.js
index 797cbd48..6d80dd57 100644
--- a/test/authorization-scopes.test.js
+++ b/test/authorization-scopes.test.js
@@ -82,6 +82,10 @@ describe('Authorization scopes', () => {
   }
 
   function givenRemoteMethodWithCustomScope() {
+    // Delete any previously registered instance of the method "scoped"
+    User.sharedClass._methods = User.sharedClass._methods
+      .filter(m => m.name !== 'scoped');
+
     const accessScopes = arguments[0] || [CUSTOM_SCOPE];
     User.scoped = function(cb) { cb(); };
     User.remoteMethod('scoped', {
diff --git a/test/helpers/wait-for-event.js b/test/helpers/wait-for-event.js
new file mode 100644
index 00000000..3405f3c5
--- /dev/null
+++ b/test/helpers/wait-for-event.js
@@ -0,0 +1,17 @@
+// Copyright IBM Corp. 2013,2016. All Rights Reserved.
+// Node module: loopback
+// This file is licensed under the MIT License.
+// License text available at https://opensource.org/licenses/MIT
+
+'use strict';
+
+const Promise = require('bluebird');
+
+function waitForEvent(emitter, event) {
+  return new Promise((resolve, reject) => {
+    emitter.on(event, resolve);
+  });
+}
+
+module.exports = waitForEvent;
+
diff --git a/test/user-password.test.js b/test/user-password.test.js
new file mode 100644
index 00000000..d4b35799
--- /dev/null
+++ b/test/user-password.test.js
@@ -0,0 +1,242 @@
+// Copyright IBM Corp. 2013,2017. All Rights Reserved.
+// Node module: loopback
+// This file is licensed under the MIT License.
+// License text available at https://opensource.org/licenses/MIT
+
+'use strict';
+
+const expect = require('./helpers/expect');
+const errorHandler = require('strong-error-handler');
+const loopback = require('../');
+const Promise = require('bluebird');
+const request = require('supertest');
+const waitForEvent = require('./helpers/wait-for-event');
+
+describe('User.password', () => {
+  const credentials = {email: 'test@example.com', password: 'pass'};
+
+  let app, User, testUser, regularToken, resetToken;
+
+  context('restrict reset password token scope', () => {
+    beforeEach(givenAppWithRestrictionEnabled);
+
+    context('using regular access token', () => {
+      beforeEach(givenRegularAccessToken);
+
+      it('allows patching user name', () => {
+        return changeName(regularToken).expect(200);
+      });
+
+      it('allows patching user password', () => {
+        return patchPassword(regularToken).expect(200);
+      });
+
+      it('allows changing user password', () => {
+        return changePassword(regularToken).expect(204);
+      });
+
+      it('denies resetting user password', () => {
+        return resetPassword(regularToken).expect(401);
+      });
+    });
+
+    context('using password-reset token', () => {
+      beforeEach(givenResetPasswordToken);
+
+      it('denies patching user name', () => {
+        return changeName(resetToken).expect(401);
+      });
+
+      it('denies patching user password', () => {
+        return patchPassword(resetToken).expect(401);
+      });
+
+      it('denies changing user password', () => {
+        return changePassword(resetToken).expect(401);
+      });
+
+      it('allows resetting user password', () => {
+        return resetPassword(resetToken).expect(204);
+      });
+    });
+
+    function givenAppWithRestrictionEnabled() {
+      return givenAppWithUser({restrictResetPasswordTokenScope: true});
+    }
+  });
+
+  context('reject password changes via patch or replace', () => {
+    beforeEach(givenAppWithRejectionEnabled);
+    beforeEach(givenRegularAccessToken);
+
+    it('allows patching user name', () => {
+      return changeName(regularToken).expect(200);
+    });
+
+    it('denies patching user password', () => {
+      return patchPassword(regularToken).expect(401);
+    });
+
+    it('allows changing user password', () => {
+      return changePassword(regularToken).expect(204);
+    });
+
+    it('denies setPassword-like call with non-password changes', () => {
+      return patchNameAndPasswordDirectly().then(
+        function onSuccess() {
+          throw new Error('patchAttributes() should have failed');
+        },
+        function onError(err) {
+          expect(err.message).to.match(/Invalid use.*options.setPassword/);
+        });
+    });
+
+    function givenAppWithRejectionEnabled() {
+      return givenAppWithUser({rejectPasswordChangesViaPatchOrReplace: true});
+    }
+  });
+
+  context('all feature flags disabled', () => {
+    beforeEach(givenAppWithNoRestrictions);
+
+    context('using regular access token', () => {
+      beforeEach(givenRegularAccessToken);
+
+      it('allows changing user name', () => {
+        return changeName(regularToken).expect(200);
+      });
+
+      it('allows patching user password', () => {
+        return patchPassword(regularToken).expect(200);
+      });
+
+      it('allows changing user password', () => {
+        return changePassword(regularToken).expect(204);
+      });
+
+      it('allows resetting user password', () => {
+        return resetPassword(regularToken).expect(204);
+      });
+    });
+
+    context('using password-reset token', () => {
+      beforeEach(givenResetPasswordToken);
+
+      it('allows changing user name', () => {
+        return changeName(resetToken).expect(200);
+      });
+
+      it('allows patching user password', () => {
+        return patchPassword(resetToken).expect(200);
+      });
+
+      it('allows changing user password', () => {
+        return changePassword(resetToken).expect(204);
+      });
+
+      it('allows resetting user password', () => {
+        return resetPassword(resetToken).expect(204);
+      });
+    });
+
+    it('allows setPassword-like call with non-password changes', () => {
+      return patchNameAndPasswordDirectly().then(() => {
+        // test passed
+      });
+    });
+
+    function givenAppWithNoRestrictions() {
+      return givenAppWithUser({
+        rejectPasswordChangesViaPatchOrReplace: false,
+        restrictResetPasswordTokenScope: false,
+      });
+    }
+  });
+
+  function givenAppWithUser(userSettings) {
+    app = loopback({localRegistry: true, loadBuiltinModels: true});
+    app.set('remoting', {rest: {handleErrors: false}});
+    app.dataSource('db', {connector: 'memory'});
+
+    userSettings = Object.assign({
+      name: 'PwdUser',
+      base: 'User',
+      properties: {
+        name: 'string',
+      },
+
+      // Speed up the password hashing algorithm for tests
+      saltWorkFactor: 4,
+
+      http: {path: '/users'},
+    }, userSettings);
+
+    User = app.registry.createModel(userSettings);
+    app.model(User, {dataSource: 'db'});
+
+    const AccessToken = app.registry.getModel('AccessToken');
+    AccessToken.settings.relations.user.model = User.modelName;
+
+    app.enableAuth({dataSource: 'db'});
+
+    app.use(loopback.token());
+    app.use(loopback.rest());
+    app.use(function logUnexpectedError(err, req, res, next) {
+      const statusCode = err.statusCode || err.status;
+      if (statusCode > 400 && statusCode !== 401) {
+        console.log('Unexpected error for %s %s: %s %s',
+          req.method, req.path, statusCode, err.stack || err);
+      }
+      next(err);
+    });
+    app.use(errorHandler({debug: true, log: false}));
+
+    return User.create(credentials)
+      .then(u => {
+        testUser = u;
+        return u.setAttribute('emailVerified', true);
+      });
+  }
+
+  function givenRegularAccessToken() {
+    return User.login(credentials).then(t => regularToken = t);
+  }
+
+  function givenResetPasswordToken() {
+    return Promise.all([
+      User.resetPassword({email: credentials.email}),
+      waitForEvent(User, 'resetPasswordRequest'),
+    ])
+    .spread((reset, info) => resetToken = info.accessToken);
+  }
+
+  function changeName(token) {
+    return request(app).patch(`/users/${testUser.id}`)
+      .set('Authorization', token.id)
+      .send({name: 'New Name'});
+  }
+
+  function patchPassword(token) {
+    return request(app).patch(`/users/${testUser.id}`)
+      .set('Authorization', token.id)
+      .send({password: 'new-pass'});
+  }
+
+  function changePassword(token) {
+    return request(app).post('/users/change-password')
+      .set('Authorization', token.id)
+      .send({oldPassword: credentials.password, newPassword: 'new-pass'});
+  }
+
+  function resetPassword(token) {
+    return request(app).post('/users/reset-password')
+      .set('Authorization', token.id)
+      .send({newPassword: 'new-pass'});
+  }
+
+  function patchNameAndPasswordDirectly() {
+    return testUser.patchAttributes(
+      {password: 'new-pass', name: 'New Name'},
+      {setPassword: true});
+  }
+});
diff --git a/test/user.integration.js b/test/user.integration.js
index 39372c19..e669bfb8 100644
--- a/test/user.integration.js
+++ b/test/user.integration.js
@@ -10,6 +10,8 @@ var path = require('path');
 var SIMPLE_APP = path.join(__dirname, 'fixtures', 'user-integration-app');
 var app = require(path.join(SIMPLE_APP, 'server/server.js'));
 var expect = require('./helpers/expect');
+const Promise = require('bluebird');
+const waitForEvent = require('./helpers/wait-for-event');
 
 describe('users - integration', function() {
   lt.beforeEach.withApp(app);
@@ -153,13 +155,13 @@ describe('users - integration', function() {
         .expect(401);
     });
 
-    it('injects change password options from remoting context', function() {
+    it('uses change password options provided by the remoting context', function() {
       const User = app.models.User;
       const credentials = {email: 'inject@example.com', password: 'pass'};
 
-      let injectedOptions;
+      let observedOptions;
       User.observe('before save', (ctx, next) => {
-        injectedOptions = ctx.options;
+        observedOptions = ctx.options;
         next();
       });
 
@@ -175,7 +177,65 @@ describe('users - integration', function() {
             .expect(204);
         })
         .then(() => {
-          expect(injectedOptions).to.have.property('accessToken');
+          expect(observedOptions).to.have.property('accessToken');
+        });
+    });
+
+    it('resets the user\'s password', function() {
+      const User = app.models.User;
+      const credentials = {email: 'reset@example.com', password: 'pass'};
+      return User.create(credentials)
+        .then(u => {
+          this.user = u;
+          return triggerPasswordReset(credentials.email);
+        })
+        .then(info => {
+          return this.post('/api/users/reset-password')
+            .set('Authorization', info.accessToken.id)
+            .send({
+              newPassword: 'new password',
+            })
+            .expect(204);
+        })
+        .then(() => {
+          return User.findById(this.user.id);
+        })
+        .then(user => {
+          return user.hasPassword('new password');
+        })
+        .then(isMatch => expect(isMatch, 'user has new password').to.be.true());
+    });
+
+    it('rejects unauthenticated reset password requests', function() {
+      return this.post('/api/users/reset-password')
+        .send({
+          newPassword: 'new password',
+        })
+        .expect(401);
+    });
+
+    it('uses password reset options provided by the remoting context', function() {
+      const User = app.models.User;
+      const credentials = {email: 'inject-reset@example.com', password: 'pass'};
+
+      let observedOptions;
+      User.observe('before save', (ctx, next) => {
+        observedOptions = ctx.options;
+        next();
+      });
+
+      return User.create(credentials)
+        .then(u => triggerPasswordReset(credentials.email))
+        .then(info => {
+          return this.post('/api/users/reset-password')
+            .set('Authorization', info.accessToken.id)
+            .send({
+              newPassword: 'new password',
+            })
+            .expect(204);
+        })
+        .then(() => {
+          expect(observedOptions).to.have.property('accessToken');
         });
     });
   });
@@ -246,4 +306,13 @@ describe('users - integration', function() {
         });
     });
   });
+
+  function triggerPasswordReset(email) {
+    const User = app.models.User;
+    return Promise.all([
+      User.resetPassword({email: email}),
+      waitForEvent(app.models.User, 'resetPasswordRequest'),
+    ])
+    .spread((reset, info) => info);
+  }
 });
diff --git a/test/user.test.js b/test/user.test.js
index 0592b2d3..bb2375c1 100644
--- a/test/user.test.js
+++ b/test/user.test.js
@@ -11,7 +11,8 @@ var loopback = require('../');
 var async = require('async');
 var url = require('url');
 var extend = require('util')._extend;
-var Promise = require('bluebird');
+const Promise = require('bluebird');
+const waitForEvent = require('./helpers/wait-for-event');
 
 var User, AccessToken;
 
@@ -470,6 +471,25 @@ describe('User', function() {
             });
           });
     });
+
+    it('rejects setPassword when new password is longer than 72 chars', function() {
+      return User.create({email: 'test@example.com', password: pass72Char})
+        .then(u => u.setPassword(pass73Char))
+        .then(
+          success => { throw new Error('setPassword should have failed'); },
+          err => {
+            expect(err.message).to.match(/Password too long/);
+
+            // workaround for chai problem
+            //   object tested must be an array, an object, or a string,
+            //   but error given
+            const props = Object.assign({}, err);
+            expect(props).to.contain({
+              code: 'PASSWORD_TOO_LONG',
+              statusCode: 422,
+            });
+          });
+    });
   });
 
   describe('Access-hook for queries with email NOT case-sensitive', function() {
@@ -1382,13 +1402,13 @@ describe('User', function() {
           {hook: 'access', testFlag: true},
 
           // "before save" hook prepareForTokenInvalidation
-          {hook: 'access', testFlag: true},
+          {hook: 'access', setPassword: true, testFlag: true},
 
           // updateAttributes
-          {hook: 'before save', testFlag: true},
+          {hook: 'before save', setPassword: true, testFlag: true},
 
           // validate uniqueness of User.email
-          {hook: 'access', testFlag: true},
+          {hook: 'access', setPassword: true, testFlag: true},
         ]));
 
       function saveObservedOptionsForHook(name) {
@@ -1405,6 +1425,92 @@ describe('User', function() {
     }
   });
 
+  describe('User.setPassword()', () => {
+    let userId;
+    beforeEach(givenUserId);
+
+    it('changes the password - callback-style', done => {
+      User.setPassword(userId, 'new password', (err) => {
+        if (err) return done(err);
+        expect(arguments.length, 'changePassword callback arguments length')
+          .to.be.at.most(1);
+
+        User.findById(userId, (err, user) => {
+          if (err) return done(err);
+          user.hasPassword('new password', (err, isMatch) => {
+            if (err) return done(err);
+            expect(isMatch, 'user has new password').to.be.true();
+            done();
+          });
+        });
+      });
+    });
+
+    it('changes the password - Promise-style', () => {
+      return User.setPassword(userId, 'new password')
+        .then(() => {
+          expect(arguments.length, 'changePassword promise resolution')
+            .to.equal(0);
+          return User.findById(userId);
+        })
+        .then(user => {
+          return user.hasPassword('new password');
+        })
+        .then(isMatch => {
+          expect(isMatch, 'user has new password').to.be.true();
+        });
+    });
+
+    it('fails with 401 for unknown users', () => {
+      return User.setPassword('unknown-id', 'pass').then(
+        success => { throw new Error('setPassword should have failed'); },
+        err => {
+          // workaround for chai problem
+          //   object tested must be an array, an object, or a string,
+          //   but error given
+          const props = Object.assign({}, err);
+          expect(props).to.contain({
+            code: 'USER_NOT_FOUND',
+            statusCode: 401,
+          });
+        });
+    });
+
+    it('forwards the "options" argument', () => {
+      const options = {testFlag: true};
+      const observedOptions = [];
+
+      saveObservedOptionsForHook('access');
+      saveObservedOptionsForHook('before save');
+
+      return User.setPassword(userId, 'new', options)
+        .then(() => expect(observedOptions).to.eql([
+          // findById
+          {hook: 'access', testFlag: true},
+
+          // "before save" hook prepareForTokenInvalidation
+          {hook: 'access', setPassword: true, testFlag: true},
+
+          // updateAttributes
+          {hook: 'before save', setPassword: true, testFlag: true},
+
+          // validate uniqueness of User.email
+          {hook: 'access', setPassword: true, testFlag: true},
+        ]));
+
+      function saveObservedOptionsForHook(name) {
+        User.observe(name, (ctx, next) => {
+          observedOptions.push(Object.assign({hook: name}, ctx.options));
+          next();
+        });
+      }
+    });
+
+    function givenUserId() {
+      userId = validCredentialsUser.id;
+    }
+  });
+
   describe('Verification', function() {
     describe('user.verify(verifyOptions, options, cb)', function() {
       const ctxOptions = {testFlag: true};
@@ -2165,6 +2271,44 @@ describe('User', function() {
           });
       });
 
+      it('creates token that allows patching User with new password', () => {
+        return triggerPasswordReset(options.email)
+          .then(info => {
+            // Make a REST request to change the password
+            return request(app)
+              .patch(`/test-users/${info.user.id}`)
+              .set('Authorization', info.accessToken.id)
+              .send({password: 'new-pass'})
+              .expect(200);
+          })
+          .then(() => {
+            // Call login to verify the password was changed
+            const credentials = {email: options.email, password: 'new-pass'};
+            return User.login(credentials);
+          });
+      });
+
+      it('creates token that allows calling other endpoints too', () => {
+        // Setup a test method that can be executed by $owner only
+        User.prototype.testMethod = function(cb) { cb(null, 'ok'); };
+        User.remoteMethod('prototype.testMethod', {
+          returns: {arg: 'status', type: 'string'},
+          http: {verb: 'get', path: '/test'},
+        });
+        User.settings.acls.push({
+          principalType: 'ROLE',
+          principalId: '$owner',
+          permission: 'ALLOW',
+          property: 'testMethod',
+        });
+
+        return triggerPasswordReset(options.email)
+          .then(info => request(app)
+            .get(`/test-users/${info.user.id}/test`)
+            .set('Authorization', info.accessToken.id)
+            .expect(200));
+      });
+
       describe('User.resetPassword(options, cb) requiring realm', function() {
         var realmUser;
 
@@ -2788,4 +2932,12 @@ describe('User', function() {
       expect(User2.settings.ttl).to.equal(10);
     });
   });
+
+  function triggerPasswordReset(email) {
+    return Promise.all([
+      User.resetPassword({email: email}),
+      waitForEvent(User, 'resetPasswordRequest'),
+    ])
+    .spread((reset, info) => info);
+  }
 });