diff --git a/selfservice/flow/settings/hook.go b/selfservice/flow/settings/hook.go
index 0f5c40e6b05f..dcbdbdf6e8f2 100644
--- a/selfservice/flow/settings/hook.go
+++ b/selfservice/flow/settings/hook.go
@@ -122,6 +122,10 @@ func (e *HookExecutor) PostSettingsHook(w http.ResponseWriter, r *http.Request,
 		}
 	}
 
+	if method, ok := ctxUpdate.Request.Methods[settingsType]; ok {
+		method.Config.ResetErrors()
+	}
+
 	if err := e.d.SettingsRequestPersister().UpdateSettingsRequest(r.Context(), ctxUpdate.Request); err != nil {
 		return err
 	}
diff --git a/selfservice/strategy/password/settings_test.go b/selfservice/strategy/password/settings_test.go
index 013460e76556..1e2034a786ac 100644
--- a/selfservice/strategy/password/settings_test.go
+++ b/selfservice/strategy/password/settings_test.go
@@ -57,49 +57,50 @@ func TestSettings(t *testing.T) {
 	secondaryUser := clients["secondary"]
 	adminClient := testhelpers.NewSDKClient(adminTS)
 
-	t.Run("description=should fail if password violates policy", func(t *testing.T) {
-		var run = func(t *testing.T) {
-			rs := testhelpers.GetSettingsRequest(t, primaryUser, publicTS)
-			form := rs.Payload.Methods[string(identity.CredentialsTypePassword)].Config
-			values := testhelpers.SDKFormFieldsToURLValues(form.Fields)
-			values.Set("password", "123456")
-			actual, _ := testhelpers.SettingsSubmitForm(t, form, primaryUser, values)
+	t.Run("description=should update the password and clear errors after input error occurred", func(t *testing.T) {
+		rs := testhelpers.GetSettingsRequest(t, primaryUser, publicTS)
+
+		form := rs.Payload.Methods[string(identity.CredentialsTypePassword)].Config
+		values := testhelpers.SDKFormFieldsToURLValues(form.Fields)
+
+		t.Run("description=should fail if password violates policy", func(t *testing.T) {
+			var run = func(t *testing.T) {
+				values.Set("password", "123456")
+				actual, _ := testhelpers.SettingsSubmitForm(t, form, primaryUser, values)
 
-			assert.Equal(t, *form.Action, gjson.Get(actual, "methods.password.config.action").String(), "%s", actual)
-			assert.Empty(t, gjson.Get(actual, "methods.password.config.fields.#(name==password).value").String(), "%s", actual)
-			assert.NotEmpty(t, gjson.Get(actual, "methods.password.config.fields.#(name==csrf_token).value").String(), "%s", actual)
-			assert.Contains(t, gjson.Get(actual, "methods.password.config.fields.#(name==password).errors.0.message").String(), "the password does not fulfill the password policy because", "%s", actual)
-		}
+				assert.Equal(t, *form.Action, gjson.Get(actual, "methods.password.config.action").String(), "%s", actual)
+				assert.Empty(t, gjson.Get(actual, "methods.password.config.fields.#(name==password).value").String(), "%s", actual)
+				assert.NotEmpty(t, gjson.Get(actual, "methods.password.config.fields.#(name==csrf_token).value").String(), "%s", actual)
+				assert.Contains(t, gjson.Get(actual, "methods.password.config.fields.#(name==password).errors.0.message").String(), "the password does not fulfill the password policy because", "%s", actual)
+			}
 
-		t.Run("session=with privileged session", run)
+			t.Run("session=with privileged session", run)
 
-		t.Run("session=needs reauthentication", func(t *testing.T) {
-			viper.Set(configuration.ViperKeySelfServicePrivilegedAuthenticationAfter, "1ns")
+			t.Run("session=needs reauthentication", func(t *testing.T) {
+				viper.Set(configuration.ViperKeySelfServicePrivilegedAuthenticationAfter, "1ns")
 
-			_ = testhelpers.NewSettingsLoginAcceptAPIServer(t, adminClient)
-			t.Cleanup(func() {
-				viper.Set(configuration.ViperKeySelfServicePrivilegedAuthenticationAfter, "5m")
+				_ = testhelpers.NewSettingsLoginAcceptAPIServer(t, adminClient)
+				t.Cleanup(func() {
+					viper.Set(configuration.ViperKeySelfServicePrivilegedAuthenticationAfter, "5m")
+				})
+				run(t)
 			})
-			run(t)
 		})
-	})
-
-	t.Run("description=should update the password if everything is ok", func(t *testing.T) {
-		rs := testhelpers.GetSettingsRequest(t, primaryUser, publicTS)
 
-		form := rs.Payload.Methods[string(identity.CredentialsTypePassword)].Config
-		values := testhelpers.SDKFormFieldsToURLValues(form.Fields)
-		values.Set("password", uuid.New().String())
-		actual, _ := testhelpers.SettingsSubmitForm(t, form, primaryUser, values)
+		t.Run("description=should update the password and clear errors if everything is ok", func(t *testing.T) {
+			values.Set("password", uuid.New().String())
+			actual, _ := testhelpers.SettingsSubmitForm(t, form, primaryUser, values)
 
-		assert.Equal(t, true, gjson.Get(actual, "update_successful").Bool(), "%s", actual)
-		assert.Empty(t, gjson.Get(actual, "methods.password.fields.#(name==password).value").String(), "%s", actual)
+			assert.Equal(t, true, gjson.Get(actual, "update_successful").Bool(), "%s", actual)
+			assert.Empty(t, gjson.Get(actual, "methods.password.fields.#(name==password).value").String(), "%s", actual)
+			assert.Empty(t, gjson.Get(actual, "methods.password.config.fields.#(name==password).errors.0.message").String(), actual)
 
-		actualIdentity, err := reg.PrivilegedIdentityPool().GetIdentityConfidential(context.Background(), primaryIdentity.ID)
-		require.NoError(t, err)
-		cfg := string(actualIdentity.Credentials[identity.CredentialsTypePassword].Config)
-		assert.NotContains(t, cfg, "foo")
-		assert.NotEqual(t, `{"hashed_password":"foo"}`, cfg)
+			actualIdentity, err := reg.PrivilegedIdentityPool().GetIdentityConfidential(context.Background(), primaryIdentity.ID)
+			require.NoError(t, err)
+			cfg := string(actualIdentity.Credentials[identity.CredentialsTypePassword].Config)
+			assert.NotContains(t, cfg, "foo")
+			assert.NotEqual(t, `{"hashed_password":"foo"}`, cfg)
+		})
 	})
 
 	t.Run("description=should update the password even if no password was set before", func(t *testing.T) {
diff --git a/test/e2e/cypress/integration/profiles/email/settings/success.spec.js b/test/e2e/cypress/integration/profiles/email/settings/success.spec.js
index 49214590cf27..67782d07c376 100644
--- a/test/e2e/cypress/integration/profiles/email/settings/success.spec.js
+++ b/test/e2e/cypress/integration/profiles/email/settings/success.spec.js
@@ -34,6 +34,19 @@ context('Settings', () => {
 
   describe('password', () => {
     it('modifies the password with privileged session', () => {
+      // Once input weak password to test which error message is cleared after updating successfully
+      cy.get('#user-password input[name="password"]').clear().type('123')
+      cy.get('#user-password button[type="submit"]').click()
+      cy.get('.container').should(
+        'not.contain.text',
+        'Your changes have been saved!'
+      )
+      cy.get('.container').should(
+        'contain.text',
+        'the password does not fulfill the password policy because: password length must be at least 6 characters but only got 3'
+      )
+      cy.get('#user-password input[name="password"]').should('be.empty')
+
       password = up(password)
       cy.get('#user-password input[name="password"]').clear().type(password)
       cy.get('#user-password button[type="submit"]').click()
@@ -41,6 +54,10 @@ context('Settings', () => {
         'contain.text',
         'Your changes have been saved!'
       )
+      cy.get('.container').should(
+        'not.contain.text',
+        'the password does not fulfill the password policy because: password length must be at least 6 characters but only got 3'
+      )
       cy.get('#user-password input[name="password"]').should('be.empty')
     })