diff --git a/Cargo.lock b/Cargo.lock
index d5277158d..49a8c4978 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3312,6 +3312,7 @@ dependencies = [
  "headers",
  "hex",
  "hyper",
+ "icu_normalizer",
  "indexmap 2.9.0",
  "insta",
  "lettre",
diff --git a/crates/cli/src/commands/manage.rs b/crates/cli/src/commands/manage.rs
index 390897ce7..b52c56162 100644
--- a/crates/cli/src/commands/manage.rs
+++ b/crates/cli/src/commands/manage.rs
@@ -31,6 +31,7 @@ use mas_storage_pg::{DatabaseError, PgRepository};
 use rand::{RngCore, SeedableRng};
 use sqlx::{Acquire, types::Uuid};
 use tracing::{error, info, info_span, warn};
+use zeroize::Zeroizing;
 
 use crate::util::{
     database_connection_from_config, homeserver_connection_from_config,
@@ -210,7 +211,7 @@ impl Options {
                     return Ok(ExitCode::from(1));
                 }
 
-                let password = password.into_bytes().into();
+                let password = Zeroizing::new(password);
 
                 let (version, hashed_password) = password_manager.hash(&mut rng, password).await?;
 
@@ -566,7 +567,7 @@ impl Options {
 
                 // Hash the password if it's provided
                 let hashed_password = if let Some(password) = password {
-                    let password = password.into_bytes().into();
+                    let password = Zeroizing::new(password);
                     Some(password_manager.hash(&mut rng, password).await?)
                 } else {
                     None
@@ -641,7 +642,7 @@ impl Options {
                                     .interact()
                             })
                             .await??;
-                            let password = password.into_bytes().into();
+                            let password = Zeroizing::new(password);
                             req.hashed_password =
                                 Some(password_manager.hash(&mut rng, password).await?);
                         }
diff --git a/crates/cli/src/util.rs b/crates/cli/src/util.rs
index 84e94aeea..3588b6895 100644
--- a/crates/cli/src/util.rs
+++ b/crates/cli/src/util.rs
@@ -36,20 +36,24 @@ pub async fn password_manager_from_config(
         return Ok(PasswordManager::disabled());
     }
 
-    let schemes = config
-        .load()
-        .await?
-        .into_iter()
-        .map(|(version, algorithm, cost, secret)| {
+    let schemes = config.load().await?.into_iter().map(
+        |(version, algorithm, cost, secret, unicode_normalization)| {
             use mas_handlers::passwords::Hasher;
             let hasher = match algorithm {
-                mas_config::PasswordAlgorithm::Pbkdf2 => Hasher::pbkdf2(secret),
-                mas_config::PasswordAlgorithm::Bcrypt => Hasher::bcrypt(cost, secret),
-                mas_config::PasswordAlgorithm::Argon2id => Hasher::argon2id(secret),
+                mas_config::PasswordAlgorithm::Pbkdf2 => {
+                    Hasher::pbkdf2(secret, unicode_normalization)
+                }
+                mas_config::PasswordAlgorithm::Bcrypt => {
+                    Hasher::bcrypt(cost, secret, unicode_normalization)
+                }
+                mas_config::PasswordAlgorithm::Argon2id => {
+                    Hasher::argon2id(secret, unicode_normalization)
+                }
             };
 
             (version, hasher)
-        });
+        },
+    );
 
     PasswordManager::new(config.minimum_complexity(), schemes)
 }
@@ -492,7 +496,7 @@ mod tests {
     #[tokio::test]
     async fn test_password_manager_from_config() {
         let mut rng = rand_chacha::ChaChaRng::seed_from_u64(42);
-        let password = Zeroizing::new(b"hunter2".to_vec());
+        let password = Zeroizing::new("hunter2".to_owned());
 
         // Test a valid, enabled config
         let config = serde_json::from_value(serde_json::json!({
diff --git a/crates/config/src/sections/passwords.rs b/crates/config/src/sections/passwords.rs
index 07ea71b0e..a72f2efd7 100644
--- a/crates/config/src/sections/passwords.rs
+++ b/crates/config/src/sections/passwords.rs
@@ -20,6 +20,7 @@ fn default_schemes() -> Vec<HashingScheme> {
         cost: None,
         secret: None,
         secret_file: None,
+        unicode_normalization: false,
     }]
 }
 
@@ -124,7 +125,7 @@ impl PasswordsConfig {
     /// not be read.
     pub async fn load(
         &self,
-    ) -> Result<Vec<(u16, Algorithm, Option<u32>, Option<Vec<u8>>)>, anyhow::Error> {
+    ) -> Result<Vec<(u16, Algorithm, Option<u32>, Option<Vec<u8>>, bool)>, anyhow::Error> {
         let mut schemes: Vec<&HashingScheme> = self.schemes.iter().collect();
         schemes.sort_unstable_by_key(|a| Reverse(a.version));
         schemes.dedup_by_key(|a| a.version);
@@ -151,13 +152,24 @@ impl PasswordsConfig {
                 (None, None) => None,
             };
 
-            mapped_result.push((scheme.version, scheme.algorithm, scheme.cost, secret));
+            mapped_result.push((
+                scheme.version,
+                scheme.algorithm,
+                scheme.cost,
+                secret,
+                scheme.unicode_normalization,
+            ));
         }
 
         Ok(mapped_result)
     }
 }
 
+#[allow(clippy::trivially_copy_pass_by_ref)]
+const fn is_default_false(value: &bool) -> bool {
+    !*value
+}
+
 /// Parameters for a password hashing scheme
 #[derive(Debug, Clone, Serialize, Deserialize, JsonSchema)]
 pub struct HashingScheme {
@@ -168,6 +180,14 @@ pub struct HashingScheme {
     /// The hashing algorithm to use
     pub algorithm: Algorithm,
 
+    /// Whether to apply Unicode normalization to the password before hashing
+    ///
+    /// Defaults to `false`, and generally recommended to stay false. This is
+    /// although recommended when importing password hashs from Synapse, as it
+    /// applies an NFKC normalization to the password before hashing it.
+    #[serde(default, skip_serializing_if = "is_default_false")]
+    pub unicode_normalization: bool,
+
     /// Cost for the bcrypt algorithm
     #[serde(skip_serializing_if = "Option::is_none")]
     #[schemars(default = "default_bcrypt_cost")]
diff --git a/crates/handlers/Cargo.toml b/crates/handlers/Cargo.toml
index 0de09fb62..37241ecef 100644
--- a/crates/handlers/Cargo.toml
+++ b/crates/handlers/Cargo.toml
@@ -74,6 +74,7 @@ chrono.workspace = true
 elliptic-curve.workspace = true
 hex.workspace = true
 governor.workspace = true
+icu_normalizer = "1.5.0"
 indexmap.workspace = true
 pkcs8.workspace = true
 psl = "2.1.111"
diff --git a/crates/handlers/src/admin/v1/users/set_password.rs b/crates/handlers/src/admin/v1/users/set_password.rs
index 2d83e39d9..06797c3f8 100644
--- a/crates/handlers/src/admin/v1/users/set_password.rs
+++ b/crates/handlers/src/admin/v1/users/set_password.rs
@@ -122,7 +122,7 @@ pub async fn handler(
         return Err(RouteError::PasswordTooWeak);
     }
 
-    let password = Zeroizing::new(params.password.into_bytes());
+    let password = Zeroizing::new(params.password);
     let (version, hashed_password) = password_manager
         .hash(&mut rng, password)
         .await
@@ -184,7 +184,7 @@ mod tests {
         // Check that the user now has a password
         let mut repo = state.repository().await.unwrap();
         let user_password = repo.user_password().active(&user).await.unwrap().unwrap();
-        let password = Zeroizing::new(b"this is a good enough password".to_vec());
+        let password = Zeroizing::new(String::from("this is a good enough password"));
         state
             .password_manager
             .verify(
@@ -243,7 +243,7 @@ mod tests {
         // Check that the user now has a password
         let mut repo = state.repository().await.unwrap();
         let user_password = repo.user_password().active(&user).await.unwrap().unwrap();
-        let password = Zeroizing::new(b"password".to_vec());
+        let password = Zeroizing::new("password".to_owned());
         state
             .password_manager
             .verify(
diff --git a/crates/handlers/src/compat/login.rs b/crates/handlers/src/compat/login.rs
index 3dbbb0d93..32bdfacd3 100644
--- a/crates/handlers/src/compat/login.rs
+++ b/crates/handlers/src/compat/login.rs
@@ -574,7 +574,7 @@ async fn user_password_login(
         .ok_or(RouteError::NoPassword)?;
 
     // Verify the password
-    let password = Zeroizing::new(password.into_bytes());
+    let password = Zeroizing::new(password);
 
     let new_password_hash = password_manager
         .verify_and_upgrade(
@@ -787,7 +787,7 @@ mod tests {
             .unwrap();
         let (version, hash) = state
             .password_manager
-            .hash(&mut rng, Zeroizing::new(password.as_bytes().to_vec()))
+            .hash(&mut rng, Zeroizing::new(password.to_owned()))
             .await
             .unwrap();
 
diff --git a/crates/handlers/src/graphql/mutations/mod.rs b/crates/handlers/src/graphql/mutations/mod.rs
index 66bb5766c..21fca3d6c 100644
--- a/crates/handlers/src/graphql/mutations/mod.rs
+++ b/crates/handlers/src/graphql/mutations/mod.rs
@@ -76,7 +76,7 @@ async fn verify_password_if_needed(
         return Ok(false);
     };
 
-    let password = Zeroizing::new(password.into_bytes());
+    let password = Zeroizing::new(password);
 
     let res = password_manager
         .verify(
diff --git a/crates/handlers/src/graphql/mutations/user.rs b/crates/handlers/src/graphql/mutations/user.rs
index 301307d96..f4ae549b9 100644
--- a/crates/handlers/src/graphql/mutations/user.rs
+++ b/crates/handlers/src/graphql/mutations/user.rs
@@ -742,7 +742,7 @@ impl UserMutations {
             if let Err(_err) = password_manager
                 .verify(
                     active_password.version,
-                    Zeroizing::new(current_password_attempt.into_bytes()),
+                    Zeroizing::new(current_password_attempt),
                     active_password.hashed_password,
                 )
                 .await
@@ -754,7 +754,7 @@ impl UserMutations {
         }
 
         let (new_password_version, new_password_hash) = password_manager
-            .hash(state.rng(), Zeroizing::new(input.new_password.into_bytes()))
+            .hash(state.rng(), Zeroizing::new(input.new_password))
             .await?;
 
         repo.user_password()
@@ -849,7 +849,7 @@ impl UserMutations {
         }
 
         let (new_password_version, new_password_hash) = password_manager
-            .hash(state.rng(), Zeroizing::new(input.new_password.into_bytes()))
+            .hash(state.rng(), Zeroizing::new(input.new_password))
             .await?;
 
         repo.user_password()
diff --git a/crates/handlers/src/oauth2/introspection.rs b/crates/handlers/src/oauth2/introspection.rs
index 9b3e50e7c..3ae4a3a1c 100644
--- a/crates/handlers/src/oauth2/introspection.rs
+++ b/crates/handlers/src/oauth2/introspection.rs
@@ -844,7 +844,7 @@ mod tests {
 
         let (version, hashed_password) = state
             .password_manager
-            .hash(&mut state.rng(), Zeroizing::new(b"password".to_vec()))
+            .hash(&mut state.rng(), Zeroizing::new("password".to_owned()))
             .await
             .unwrap();
 
diff --git a/crates/handlers/src/passwords.rs b/crates/handlers/src/passwords.rs
index eba028661..f4ce10adb 100644
--- a/crates/handlers/src/passwords.rs
+++ b/crates/handlers/src/passwords.rs
@@ -1,4 +1,4 @@
-// Copyright 2024 New Vector Ltd.
+// Copyright 2024, 2025 New Vector Ltd.
 // Copyright 2022-2024 The Matrix.org Foundation C.I.C.
 //
 // SPDX-License-Identifier: AGPL-3.0-only
@@ -116,7 +116,7 @@ impl PasswordManager {
     pub async fn hash<R: CryptoRng + RngCore + Send>(
         &self,
         rng: R,
-        password: Zeroizing<Vec<u8>>,
+        password: Zeroizing<String>,
     ) -> Result<(SchemeVersion, String), anyhow::Error> {
         let inner = self.get_inner()?;
 
@@ -130,7 +130,7 @@ impl PasswordManager {
         let version = inner.current_version;
 
         let hashed = tokio::task::spawn_blocking(move || {
-            span.in_scope(move || inner.current_hasher.hash_blocking(rng, &password))
+            span.in_scope(move || inner.current_hasher.hash_blocking(rng, password))
         })
         .await??;
 
@@ -147,7 +147,7 @@ impl PasswordManager {
     pub async fn verify(
         &self,
         scheme: SchemeVersion,
-        password: Zeroizing<Vec<u8>>,
+        password: Zeroizing<String>,
         hashed_password: String,
     ) -> Result<(), anyhow::Error> {
         let inner = self.get_inner()?;
@@ -164,7 +164,7 @@ impl PasswordManager {
                         .context("Hashing scheme not found")?
                 };
 
-                hasher.verify_blocking(&hashed_password, &password)
+                hasher.verify_blocking(&hashed_password, password)
             })
         })
         .await??;
@@ -184,7 +184,7 @@ impl PasswordManager {
         &self,
         rng: R,
         scheme: SchemeVersion,
-        password: Zeroizing<Vec<u8>>,
+        password: Zeroizing<String>,
         hashed_password: String,
     ) -> Result<Option<(SchemeVersion, String)>, anyhow::Error> {
         let inner = self.get_inner()?;
@@ -209,43 +209,78 @@ impl PasswordManager {
 /// A hashing scheme, with an optional pepper
 pub struct Hasher {
     algorithm: Algorithm,
+    unicode_normalization: bool,
     pepper: Option<Vec<u8>>,
 }
 
 impl Hasher {
     /// Creates a new hashing scheme based on the bcrypt algorithm
     #[must_use]
-    pub const fn bcrypt(cost: Option<u32>, pepper: Option<Vec<u8>>) -> Self {
+    pub const fn bcrypt(
+        cost: Option<u32>,
+        pepper: Option<Vec<u8>>,
+        unicode_normalization: bool,
+    ) -> Self {
         let algorithm = Algorithm::Bcrypt { cost };
-        Self { algorithm, pepper }
+        Self {
+            algorithm,
+            unicode_normalization,
+            pepper,
+        }
     }
 
     /// Creates a new hashing scheme based on the argon2id algorithm
     #[must_use]
-    pub const fn argon2id(pepper: Option<Vec<u8>>) -> Self {
+    pub const fn argon2id(pepper: Option<Vec<u8>>, unicode_normalization: bool) -> Self {
         let algorithm = Algorithm::Argon2id;
-        Self { algorithm, pepper }
+        Self {
+            algorithm,
+            unicode_normalization,
+            pepper,
+        }
     }
 
     /// Creates a new hashing scheme based on the pbkdf2 algorithm
     #[must_use]
-    pub const fn pbkdf2(pepper: Option<Vec<u8>>) -> Self {
+    pub const fn pbkdf2(pepper: Option<Vec<u8>>, unicode_normalization: bool) -> Self {
         let algorithm = Algorithm::Pbkdf2;
-        Self { algorithm, pepper }
+        Self {
+            algorithm,
+            unicode_normalization,
+            pepper,
+        }
+    }
+
+    fn normalize_password(&self, password: Zeroizing<String>) -> Zeroizing<String> {
+        if self.unicode_normalization {
+            // This is the normalization method used by Synapse
+            let normalizer = icu_normalizer::ComposingNormalizer::new_nfkc();
+            Zeroizing::new(normalizer.normalize(&password))
+        } else {
+            password
+        }
     }
 
     fn hash_blocking<R: CryptoRng + RngCore>(
         &self,
         rng: R,
-        password: &[u8],
+        password: Zeroizing<String>,
     ) -> Result<String, anyhow::Error> {
+        let password = self.normalize_password(password);
+
         self.algorithm
-            .hash_blocking(rng, password, self.pepper.as_deref())
+            .hash_blocking(rng, password.as_bytes(), self.pepper.as_deref())
     }
 
-    fn verify_blocking(&self, hashed_password: &str, password: &[u8]) -> Result<(), anyhow::Error> {
+    fn verify_blocking(
+        &self,
+        hashed_password: &str,
+        password: Zeroizing<String>,
+    ) -> Result<(), anyhow::Error> {
+        let password = self.normalize_password(password);
+
         self.algorithm
-            .verify_blocking(hashed_password, password, self.pepper.as_deref())
+            .verify_blocking(hashed_password, password.as_bytes(), self.pepper.as_deref())
     }
 }
 
@@ -461,8 +496,8 @@ mod tests {
         // after changing the hashing schemes. The salt generation is done with a seeded
         // RNG, so that we can do stable snapshots of hashed passwords
         let mut rng = rand_chacha::ChaChaRng::seed_from_u64(42);
-        let password = Zeroizing::new(b"hunter2".to_vec());
-        let wrong_password = Zeroizing::new(b"wrong-password".to_vec());
+        let password = Zeroizing::new("hunter2".to_owned());
+        let wrong_password = Zeroizing::new("wrong-password".to_owned());
 
         let manager = PasswordManager::new(
             0,
@@ -470,7 +505,7 @@ mod tests {
                 // Start with one hashing scheme: the one used by synapse, bcrypt + pepper
                 (
                     1,
-                    Hasher::bcrypt(Some(10), Some(b"a-secret-pepper".to_vec())),
+                    Hasher::bcrypt(Some(10), Some(b"a-secret-pepper".to_vec()), false),
                 ),
             ],
         )
@@ -519,10 +554,10 @@ mod tests {
         let manager = PasswordManager::new(
             0,
             [
-                (2, Hasher::argon2id(None)),
+                (2, Hasher::argon2id(None, false)),
                 (
                     1,
-                    Hasher::bcrypt(Some(10), Some(b"a-secret-pepper".to_vec())),
+                    Hasher::bcrypt(Some(10), Some(b"a-secret-pepper".to_vec()), false),
                 ),
             ],
         )
@@ -575,11 +610,14 @@ mod tests {
         let manager = PasswordManager::new(
             0,
             [
-                (3, Hasher::argon2id(Some(b"a-secret-pepper".to_vec()))),
-                (2, Hasher::argon2id(None)),
+                (
+                    3,
+                    Hasher::argon2id(Some(b"a-secret-pepper".to_vec()), false),
+                ),
+                (2, Hasher::argon2id(None, false)),
                 (
                     1,
-                    Hasher::bcrypt(Some(10), Some(b"a-secret-pepper".to_vec())),
+                    Hasher::bcrypt(Some(10), Some(b"a-secret-pepper".to_vec()), false),
                 ),
             ],
         )
diff --git a/crates/handlers/src/test_utils.rs b/crates/handlers/src/test_utils.rs
index d69bda190..cdbc981d1 100644
--- a/crates/handlers/src/test_utils.rs
+++ b/crates/handlers/src/test_utils.rs
@@ -194,7 +194,7 @@ impl TestState {
         let password_manager = if site_config.password_login_enabled {
             PasswordManager::new(
                 site_config.minimum_password_complexity,
-                [(1, Hasher::argon2id(None))],
+                [(1, Hasher::argon2id(None, false))],
             )?
         } else {
             PasswordManager::disabled()
diff --git a/crates/handlers/src/views/login.rs b/crates/handlers/src/views/login.rs
index 87884ddba..1db44285a 100644
--- a/crates/handlers/src/views/login.rs
+++ b/crates/handlers/src/views/login.rs
@@ -244,7 +244,7 @@ pub(crate) async fn post(
         .await;
     };
 
-    let password = Zeroizing::new(form.password.as_bytes().to_vec());
+    let password = Zeroizing::new(form.password);
 
     // Verify the password, and upgrade it on-the-fly if needed
     let user_password = match password_manager
@@ -581,7 +581,7 @@ mod test {
             .unwrap();
         let (version, hash) = state
             .password_manager
-            .hash(&mut rng, Zeroizing::new(password.as_bytes().to_vec()))
+            .hash(&mut rng, Zeroizing::new(password.to_owned()))
             .await
             .unwrap();
         repo.user_password()
diff --git a/crates/handlers/src/views/register/password.rs b/crates/handlers/src/views/register/password.rs
index 8c2925505..0745567a9 100644
--- a/crates/handlers/src/views/register/password.rs
+++ b/crates/handlers/src/views/register/password.rs
@@ -364,7 +364,7 @@ pub(crate) async fn post(
         .await?;
 
     // Hash the password
-    let password = Zeroizing::new(form.password.into_bytes());
+    let password = Zeroizing::new(form.password);
     let (version, hashed_password) = password_manager
         .hash(&mut rng, password)
         .await
diff --git a/crates/syn2mas/src/synapse_reader/checks.rs b/crates/syn2mas/src/synapse_reader/checks.rs
index 0969d3787..a78f18b1d 100644
--- a/crates/syn2mas/src/synapse_reader/checks.rs
+++ b/crates/syn2mas/src/synapse_reader/checks.rs
@@ -199,9 +199,9 @@ pub async fn synapse_config_check_against_mas_config(
     // Look for the MAS password hashing scheme that will be used for imported
     // Synapse passwords, then check the configuration matches so that Synapse
     // passwords will be compatible with MAS.
-    if let Some((_, algorithm, _, secret)) = mas_password_schemes
+    if let Some((_, algorithm, _, secret, _)) = mas_password_schemes
         .iter()
-        .find(|(version, _, _, _)| *version == MIGRATED_PASSWORD_VERSION)
+        .find(|(version, _, _, _, _)| *version == MIGRATED_PASSWORD_VERSION)
     {
         if algorithm != &PasswordAlgorithm::Bcrypt {
             errors.push(CheckError::PasswordSchemeNotBcrypt);
diff --git a/crates/syn2mas/src/synapse_reader/config/mod.rs b/crates/syn2mas/src/synapse_reader/config/mod.rs
index 3abf2e567..25a4c0d93 100644
--- a/crates/syn2mas/src/synapse_reader/config/mod.rs
+++ b/crates/syn2mas/src/synapse_reader/config/mod.rs
@@ -179,6 +179,7 @@ impl Config {
                     cost: self.bcrypt_rounds,
                     secret: self.password_config.pepper,
                     secret_file: None,
+                    unicode_normalization: true,
                 },
                 // Use the default algorithm MAS uses as a second hashing scheme, so that users
                 // will get their password hash upgraded to a more modern algorithm over time
@@ -188,6 +189,7 @@ impl Config {
                     cost: None,
                     secret: None,
                     secret_file: None,
+                    unicode_normalization: false,
                 },
             ];
 
diff --git a/docs/config.schema.json b/docs/config.schema.json
index def447302..3bc0f407d 100644
--- a/docs/config.schema.json
+++ b/docs/config.schema.json
@@ -1613,6 +1613,10 @@
             }
           ]
         },
+        "unicode_normalization": {
+          "description": "Whether to apply Unicode normalization to the password before hashing\n\nDefaults to `false`, and generally recommended to stay false. This is although recommended when importing password hashs from Synapse, as it applies an NFKC normalization to the password before hashing it.",
+          "type": "boolean"
+        },
         "cost": {
           "description": "Cost for the bcrypt algorithm",
           "default": 12,
diff --git a/docs/setup/migration.md b/docs/setup/migration.md
index a10a9bbd1..6cd8ce98a 100644
--- a/docs/setup/migration.md
+++ b/docs/setup/migration.md
@@ -47,7 +47,7 @@ When using this tool, be careful to examine the log output for any warnings abou
 #### Local passwords
 
 Synapse uses bcrypt as its password hashing scheme, while MAS defaults to using the newer argon2id.
-You will have to configure the version 1 scheme as bcrypt for migrated passwords to work.
+You will have to configure the version 1 scheme as bcrypt with `unicode_normalization: true` for migrated passwords to work.
 It is also recommended that you keep argon2id as version 2 so that once users log in, their hashes will be updated to the newer, recommended scheme.
 
 Example passwords configuration:
@@ -57,6 +57,7 @@ passwords:
   schemes:
   - version: 1
     algorithm: bcrypt
+    unicode_normalization: true
     # Optional, must match the `password_config.pepper` in the Synapse config
     #secret: secretPepperValue
   - version: 2