diff --git a/docker-stacks/app-server/penpot.yml b/docker-stacks/app-server/penpot.yml
index 5112aec..cbb32e5 100644
--- a/docker-stacks/app-server/penpot.yml
+++ b/docker-stacks/app-server/penpot.yml
@@ -65,6 +65,7 @@ services:
 
       ## Telemetry & Optional settings
       PENPOT_TELEMETRY_ENABLED: "false"
+      PENPOT_FLAGS: enable-login-with-password
 
   penpot-mcp:
     image: "penpotapp/mcp:${PENPOT_VERSION:-latest}"