diff --git a/full-ai-cluster/nixos/modules/initial-password.nix b/full-ai-cluster/nixos/modules/initial-password.nix
index f7d4bf5050..407f871b42 100644
--- a/full-ai-cluster/nixos/modules/initial-password.nix
+++ b/full-ai-cluster/nixos/modules/initial-password.nix
@@ -1,35 +1,60 @@
 # full-ai-cluster/nixos/modules/initial-password.nix
 #
 # Initial password substrate for the `zeta` user on fresh installs.
-# Per `.claude/rules/human-audit-and-legal-risk-acceptance-pattern-in-settings.md`
-# Shape A: hashedPassword baked into per-host Nix module + operator
-# rotates on first login. Composes with the Touch ID + biometric
-# substrate (full-ai-cluster/tools/zflash-setup.ts) for the operator's
-# Mac side; this is the cluster-node side.
 #
-# THE INITIAL PASSWORD IS: zeta-change-me
+# iter-5.3 (B-0792 follow-on; the maintainer 2026-05-26 "also on
+# startup can it ask for me to type a password instead of having a
+# default"): the operator-chosen password set at install-time via
+# zeta-install.sh's prompt-password step (read -s + mkpasswd → hash
+# → /mnt/etc/zeta/initial-hashedpassword). This module reads that
+# file via builtins.readFile at NixOS evaluation time + uses it
+# for users.users.zeta.hashedPassword.
 #
-# zeta-install.sh prints this in big letters to the console + writes
-# zeta-initial-credentials.txt back to the boot USB before the 10s
-# auto-reboot so the operator can read it after pulling the USB.
+# Operator UX (one TYPED prompt at install time; can't avoid for
+# password since secrets shouldn't transit non-operator surfaces):
 #
-# Operator MUST rotate on first login:
+#   zeta-install.sh:
+#     [iter-5.3] Set initial password for the `zeta` user:
+#                (will be required for console login; not for SSH
+#                if iter-4.2 pubkey was injected)
+#     Password: ********
+#     Confirm:  ********
+#     [iter-5.3]   wrote hash to /mnt/etc/zeta/initial-hashedpassword
 #
-#   passwd zeta
+# Operator can still rotate later via `passwd zeta` if they want
+# to change it again.
 #
-# Hash format: sha512crypt ($6$...). Generated via:
-#   openssl passwd -6 'zeta-change-me'
+# BACKWARD-COMPAT FALLBACK: if /etc/zeta/initial-hashedpassword
+# does NOT exist (e.g., during nixos-rebuild on an already-installed
+# system where the file was never written, OR during `nix flake
+# check` in CI where the file path is meaningless), fall back to
+# the documented iter-4.x default hash of `zeta-change-me` so the
+# module still evaluates + the system still has a known-default
+# credential. Operator should rotate immediately in that case.
 #
-# Per simplest-first (per B-0786 memory): sha512crypt is the
-# universally-portable shape; promote to yescrypt or agenix/sops-nix
-# when the simple shape demonstrably can't meet a real requirement.
-# Iter-4 v1 ships sha512crypt; iter-5+ may promote to a stronger
-# secret-management substrate when (a) repo goes public OR
-# (b) multi-operator key isolation becomes load-bearing.
+# Hash format: sha512crypt ($6$...). zeta-install.sh generates via
+# mkpasswd from the nixpkgs `mkpasswd` package.
 
 { config, pkgs, lib, ... }:
 
+let
+  hashFile = "/etc/zeta/initial-hashedpassword";
+  injectedHash =
+    if builtins.pathExists hashFile
+    then
+      let
+        raw = builtins.readFile hashFile;
+        trimmed = lib.removeSuffix "\n" raw;
+      in
+      if lib.hasPrefix "$6$" trimmed then trimmed else null
+    else null;
+  # iter-4 v1 backward-compat fallback hash (= sha512crypt of
+  # "zeta-change-me"). Used when the operator-chosen hash isn't
+  # present (e.g., CI eval, nixos-rebuild without prior install).
+  fallbackHash =
+    "$6$wMTsqITU4II043Y8$DBR58Hhh.d975YkA40kwYNxQAunevJ9Cu9rYYigi9YjBYVEjlNrs.rk4hu.332sh6GkQuCb7yyLYr7lPTxySD1";
+in
 {
   users.users.zeta.hashedPassword =
-    "$6$wMTsqITU4II043Y8$DBR58Hhh.d975YkA40kwYNxQAunevJ9Cu9rYYigi9YjBYVEjlNrs.rk4hu.332sh6GkQuCb7yyLYr7lPTxySD1";
+    if injectedHash != null then injectedHash else fallbackHash;
 }
diff --git a/full-ai-cluster/usb-nixos-installer/nixos/installer/configuration.nix b/full-ai-cluster/usb-nixos-installer/nixos/installer/configuration.nix
index 4b0b5bd39b..c834303dbc 100644
--- a/full-ai-cluster/usb-nixos-installer/nixos/installer/configuration.nix
+++ b/full-ai-cluster/usb-nixos-installer/nixos/installer/configuration.nix
@@ -153,6 +153,12 @@
     nixos-install-tools
     nix-output-monitor
     nvd
+
+    # iter-5.3 prompt-password substrate (zeta-install.sh Step 6.55):
+    # mkpasswd is provided by the `mkpasswd` nixpkgs package; needed
+    # at install-time to hash the operator-typed password before
+    # writing to /mnt/etc/zeta/initial-hashedpassword.
+    mkpasswd
     nh
     # Declarative disk partitioning — used by the cookie-cutter
     # disko-shapes/ modules. Pre-staged on the ISO so installs
diff --git a/full-ai-cluster/usb-nixos-installer/zeta-install.sh b/full-ai-cluster/usb-nixos-installer/zeta-install.sh
index 7f8b134d1a..43e025ab5e 100755
--- a/full-ai-cluster/usb-nixos-installer/zeta-install.sh
+++ b/full-ai-cluster/usb-nixos-installer/zeta-install.sh
@@ -348,6 +348,74 @@ else
   echo "=============================="
 fi
 
+# ── Step 6.55: iter-5.3 prompt-for-initial-password (B-0792) ────
+#
+# Per the maintainer 2026-05-26: "also on startup can it ask for
+# me to type a password instead of having a default" — replaces
+# the iter-4.x hardcoded `zeta-change-me` default with an
+# operator-chosen password set at install time.
+#
+# Operator types password ONCE on cluster console (read -s; hidden);
+# script hashes via mkpasswd ($6$ = sha512crypt); writes hash to
+# /mnt/etc/zeta/initial-hashedpassword. The
+# nixos/modules/initial-password.nix module reads that file via
+# builtins.readFile at NixOS evaluation time + sets
+# users.users.zeta.hashedPassword.
+#
+# Fallback: if operator presses Enter to skip (no password typed),
+# the module's BACKWARD-COMPAT fallback hash (= sha512crypt of
+# "zeta-change-me") stays in effect so the system still boots
+# with a known credential.
+#
+# Why type-on-console (one exception to typing-avoidance discipline):
+# secrets shouldn't transit non-operator surfaces (USB ESP, Aaron's
+# Mac keychain, etc.); operator-typed at install time is the
+# safest path. This composes with the wifi nmtui exception in
+# zeta-first-boot.sh — both are operator-typed-once-on-cluster.
+echo
+echo "[iter-5.3] ── prompt for initial password (instead of default) ──"
+echo "[iter-5.3] Set initial password for the 'zeta' user (used for"
+echo "[iter-5.3] console login; SSH uses the iter-4.2-injected pubkey)."
+echo "[iter-5.3] Operator can rotate later via 'passwd zeta' on the"
+echo "[iter-5.3] installed system. Press Enter to skip + keep the"
+echo "[iter-5.3] iter-4.x default ('zeta-change-me')."
+echo
+INJECTED_PW=""
+INJECTED_PW_CONFIRM=""
+# -s = silent (hidden); -p = inline prompt
+read -r -s -p "[iter-5.3] Password (or Enter to skip): " INJECTED_PW
+echo
+if [ -n "$INJECTED_PW" ]; then
+  read -r -s -p "[iter-5.3] Confirm:                       " INJECTED_PW_CONFIRM
+  echo
+  if [ "$INJECTED_PW" != "$INJECTED_PW_CONFIRM" ]; then
+    echo "[iter-5.3]   WARN: passwords don't match; skipping (keeps default)"
+    INJECTED_PW=""
+  fi
+fi
+if [ -n "$INJECTED_PW" ]; then
+  # mkpasswd from nixpkgs `mkpasswd` package. -m sha-512 selects
+  # sha512crypt; -s reads password from stdin (avoids exposing it
+  # in argv via ps).
+  INJECTED_HASH=$(echo "$INJECTED_PW" | mkpasswd -m sha-512 -s 2>/dev/null || echo "")
+  unset INJECTED_PW
+  unset INJECTED_PW_CONFIRM
+  if [ -n "$INJECTED_HASH" ] && echo "$INJECTED_HASH" | grep -Eq '^\$6\$'; then
+    sudo mkdir -p /mnt/etc/zeta
+    echo "$INJECTED_HASH" | sudo tee /mnt/etc/zeta/initial-hashedpassword >/dev/null
+    sudo chmod 0600 /mnt/etc/zeta/initial-hashedpassword
+    sudo chown root:root /mnt/etc/zeta/initial-hashedpassword
+    echo "[iter-5.3]   operator-chosen password hash written + chmod 0600"
+    unset INJECTED_HASH
+  else
+    echo "[iter-5.3]   WARN: mkpasswd produced invalid hash; falling back to default"
+  fi
+else
+  echo "[iter-5.3]   no password entered; iter-4.x default 'zeta-change-me' stays"
+  echo "[iter-5.3]   in effect (rotate via 'passwd zeta' after first SSH login)"
+fi
+echo
+
 # ── Step 6.6: iter-5.2 hostname injection (B-0792) ──────────────
 #
 # Per the maintainer 2026-05-26: "since our different roles are