diff --git a/packages/core/test/prompts/password.test.ts b/packages/core/test/prompts/password.test.ts
new file mode 100644
index 00000000..3ae4ad89
--- /dev/null
+++ b/packages/core/test/prompts/password.test.ts
@@ -0,0 +1,98 @@
+import color from 'picocolors';
+import { cursor } from 'sisteransi';
+import { afterEach, beforeEach, describe, expect, test, vi } from 'vitest';
+import { default as PasswordPrompt } from '../../src/prompts/password.js';
+import { MockReadable } from '../mock-readable.js';
+import { MockWritable } from '../mock-writable.js';
+
+describe('PasswordPrompt', () => {
+	let input: MockReadable;
+	let output: MockWritable;
+
+	beforeEach(() => {
+		input = new MockReadable();
+		output = new MockWritable();
+	});
+
+	afterEach(() => {
+		vi.restoreAllMocks();
+	});
+
+	test('renders render() result', () => {
+		const instance = new PasswordPrompt({
+			input,
+			output,
+			render: () => 'foo',
+		});
+		// leave the promise hanging since we don't want to submit in this test
+		instance.prompt();
+		expect(output.buffer).to.deep.equal([cursor.hide, 'foo']);
+	});
+
+	describe('cursor', () => {
+		test('can get cursor', () => {
+			const instance = new PasswordPrompt({
+				input,
+				output,
+				render: () => 'foo',
+			});
+
+			expect(instance.cursor).to.equal(0);
+		});
+	});
+
+	describe('valueWithCursor', () => {
+		test('returns masked value on submit', () => {
+			const instance = new PasswordPrompt({
+				input,
+				output,
+				render: () => 'foo',
+			});
+			instance.prompt();
+			const keys = 'foo';
+			for (let i = 0; i < keys.length; i++) {
+				input.emit('keypress', keys[i], { name: keys[i] });
+			}
+			input.emit('keypress', '', { name: 'return' });
+			expect(instance.valueWithCursor).to.equal('•••');
+		});
+
+		test('renders marker at end', () => {
+			const instance = new PasswordPrompt({
+				input,
+				output,
+				render: () => 'foo',
+			});
+			instance.prompt();
+			input.emit('keypress', 'x', { name: 'x' });
+			expect(instance.valueWithCursor).to.equal(`•${color.inverse(color.hidden('_'))}`);
+		});
+
+		test('renders cursor inside value', () => {
+			const instance = new PasswordPrompt({
+				input,
+				output,
+				render: () => 'foo',
+			});
+			instance.prompt();
+			input.emit('keypress', 'x', { name: 'x' });
+			input.emit('keypress', 'y', { name: 'y' });
+			input.emit('keypress', 'z', { name: 'z' });
+			input.emit('keypress', 'left', { name: 'left' });
+			input.emit('keypress', 'left', { name: 'left' });
+			expect(instance.valueWithCursor).to.equal(`•${color.inverse('•')}•`);
+		});
+
+		test('renders custom mask', () => {
+			const instance = new PasswordPrompt({
+				input,
+				output,
+				render: () => 'foo',
+				mask: 'X',
+			});
+			instance.prompt();
+			input.emit('keypress', 'x', { name: 'x' });
+			expect(instance.valueWithCursor).to.equal(`X${color.inverse(color.hidden('_'))}`);
+		});
+	});
+});