diff --git a/apps/e2e/tests/authentication/auth.po.ts b/apps/e2e/tests/authentication/auth.po.ts
index 21c3a6176..6d1f98430 100644
--- a/apps/e2e/tests/authentication/auth.po.ts
+++ b/apps/e2e/tests/authentication/auth.po.ts
@@ -80,4 +80,10 @@ export class AuthPageObject {
 
     await this.visitConfirmEmailLink(email);
   }
+
+  async updatePassword(password: string) {
+    await this.page.fill('[name="password"]', password);
+    await this.page.fill('[name="repeatPassword"]', password);
+    await this.page.click('[type="submit"]');
+  }
 }
diff --git a/apps/e2e/tests/authentication/password-reset.spec.ts b/apps/e2e/tests/authentication/password-reset.spec.ts
new file mode 100644
index 000000000..037f4c581
--- /dev/null
+++ b/apps/e2e/tests/authentication/password-reset.spec.ts
@@ -0,0 +1,48 @@
+import { expect, test } from '@playwright/test';
+
+import { AuthPageObject } from './auth.po';
+
+const email = 'owner@makerkit.dev';
+const newPassword = (Math.random() * 10000).toString();
+
+test.describe('Password Reset Flow', () => {
+  test.describe.configure({ mode: 'serial' });
+
+  test('will reset the password and sign in with new one', async ({ page }) => {
+    const auth = new AuthPageObject(page);
+
+    await page.goto('/auth/password-reset');
+
+    await page.fill('[name="email"]', email);
+    await page.click('[type="submit"]');
+
+    await auth.visitConfirmEmailLink(email);
+
+    await page.waitForURL('/update-password');
+
+    await auth.updatePassword(newPassword);
+
+    await page
+      .locator('a', {
+        hasText: 'Back to Home Page',
+      })
+      .click();
+
+    await page.waitForURL('/home');
+
+    await auth.signOut();
+
+    await page
+      .locator('a', {
+        hasText: 'Sign in',
+      })
+      .click();
+
+    await auth.signIn({
+      email,
+      password: newPassword,
+    });
+
+    await page.waitForURL('/home');
+  });
+});
diff --git a/apps/web/app/update-password/page.tsx b/apps/web/app/update-password/page.tsx
index fea8e33d5..a06007608 100644
--- a/apps/web/app/update-password/page.tsx
+++ b/apps/web/app/update-password/page.tsx
@@ -15,11 +15,13 @@ export const generateMetadata = async () => {
   };
 };
 
+const Logo = () => <AppLogo href={''} />;
+
 async function UpdatePasswordPage() {
   await requireUserInServerComponent();
 
   return (
-    <AuthLayoutShell Logo={AppLogo}>
+    <AuthLayoutShell Logo={Logo}>
       <UpdatePasswordForm redirectTo={pathsConfig.app.home} />
     </AuthLayoutShell>
   );
diff --git a/packages/features/auth/src/components/password-reset-request-container.tsx b/packages/features/auth/src/components/password-reset-request-container.tsx
index f3adb6e40..23a5ec47e 100644
--- a/packages/features/auth/src/components/password-reset-request-container.tsx
+++ b/packages/features/auth/src/components/password-reset-request-container.tsx
@@ -20,6 +20,7 @@ import { If } from '@kit/ui/if';
 import { Input } from '@kit/ui/input';
 import { Trans } from '@kit/ui/trans';
 
+import { useCaptchaToken } from '../captcha/client';
 import { AuthErrorAlert } from './auth-error-alert';
 
 const PasswordResetSchema = z.object({
@@ -31,6 +32,8 @@ export function PasswordResetRequestContainer(params: {
 }) {
   const { t } = useTranslation('auth');
   const resetPasswordMutation = useRequestResetPassword();
+  const { captchaToken, resetCaptchaToken } = useCaptchaToken();
+
   const error = resetPasswordMutation.error;
   const success = resetPasswordMutation.data;
 
@@ -55,11 +58,20 @@ export function PasswordResetRequestContainer(params: {
         <Form {...form}>
           <form
             onSubmit={form.handleSubmit(({ email }) => {
-              return resetPasswordMutation.mutateAsync({
-                email,
-                redirectTo: new URL(params.redirectPath, window.location.origin)
-                  .href,
-              });
+              const redirectTo = new URL(
+                params.redirectPath,
+                window.location.origin,
+              ).href;
+
+              return resetPasswordMutation
+                .mutateAsync({
+                  email,
+                  redirectTo,
+                  captchaToken,
+                })
+                .catch(() => {
+                  resetCaptchaToken();
+                });
             })}
             className={'w-full'}
           >
diff --git a/packages/supabase/src/auth-callback.service.ts b/packages/supabase/src/auth-callback.service.ts
index 490542029..c68fdd6e7 100644
--- a/packages/supabase/src/auth-callback.service.ts
+++ b/packages/supabase/src/auth-callback.service.ts
@@ -48,11 +48,12 @@ class AuthCallbackService {
 
     const token_hash = searchParams.get('token_hash');
     const type = searchParams.get('type') as EmailOtpType | null;
-    const callbackParam = searchParams.get('callback');
+    const callbackParam = searchParams.get('next') ?? searchParams.get('callback');
 
     let nextPath: string | null = null;
     const callbackUrl = callbackParam ? new URL(callbackParam) : null;
 
+    // if we have a callback url, we check if it has a next path
     if (callbackUrl) {
       // if we have a callback url, we check if it has a next path
       const callbackNextPath = callbackUrl.searchParams.get('next');
diff --git a/packages/supabase/src/hooks/use-request-reset-password.ts b/packages/supabase/src/hooks/use-request-reset-password.ts
index a4a4b2fa8..113782d92 100644
--- a/packages/supabase/src/hooks/use-request-reset-password.ts
+++ b/packages/supabase/src/hooks/use-request-reset-password.ts
@@ -2,9 +2,10 @@ import { useMutation } from '@tanstack/react-query';
 
 import { useSupabase } from './use-supabase';
 
-interface Params {
+interface RequestPasswordResetMutationParams {
   email: string;
   redirectTo: string;
+  captchaToken?: string;
 }
 
 /**
@@ -18,11 +19,12 @@ export function useRequestResetPassword() {
   const client = useSupabase();
   const mutationKey = ['auth', 'reset-password'];
 
-  const mutationFn = async (params: Params) => {
+  const mutationFn = async (params: RequestPasswordResetMutationParams) => {
     const { error, data } = await client.auth.resetPasswordForEmail(
       params.email,
       {
         redirectTo: params.redirectTo,
+        captchaToken: params.captchaToken,
       },
     );