diff --git a/.changeset/silly-rivers-compete.md b/.changeset/silly-rivers-compete.md
new file mode 100644
index 00000000000..766607ce12a
--- /dev/null
+++ b/.changeset/silly-rivers-compete.md
@@ -0,0 +1,5 @@
+---
+"@wso2is/myaccount": patch
+---
+
+Handle passwords containing special characters when updating password via my account.
diff --git a/apps/myaccount/src/api/change-password.ts b/apps/myaccount/src/api/change-password.ts
index 73b5843804c..1908fe512d9 100644
--- a/apps/myaccount/src/api/change-password.ts
+++ b/apps/myaccount/src/api/change-password.ts
@@ -45,12 +45,16 @@ export const updatePassword = (currentPassword: string, newPassword: string): Pr
     // See https://github.com/asgardio/asgardio-js-oidc-sdk/issues/45 for progress.
     // httpRequest.disableHandler();
 
+    const username: string = [
+        store.getState().authenticationInformation?.profileInfo.userName,
+        "@",
+        store.getState().authenticationInformation.tenantDomain
+    ].join("");
+    // In case the password contains non-ascii characters, converting to valid ascii format.
+    const encoder: TextEncoder = new TextEncoder();
+    const encodedPassword: string = String.fromCharCode(...encoder.encode(currentPassword));
+
     const requestConfig: AxiosRequestConfig = {
-        auth: {
-            password: currentPassword,
-            username: [ store.getState().authenticationInformation?.profileInfo.userName, "@",
-                store.getState().authenticationInformation.tenantDomain ].join("")
-        },
         data: {
             Operations: [
                 {
@@ -63,6 +67,7 @@ export const updatePassword = (currentPassword: string, newPassword: string): Pr
             schemas: [ "urn:ietf:params:scim:api:messages:2.0:PatchOp" ]
         },
         headers: {
+            "Authorization": `Basic ${btoa(username + ":" + encodedPassword)}`,
             "Content-Type": "application/json"
         },
         method: HttpMethods.PATCH,