diff --git a/packages/react/src/components/password-creation-input/password-creation-input.tsx b/packages/react/src/components/password-creation-input/password-creation-input.tsx
index 1fe62deadd..6f0219ddc3 100644
--- a/packages/react/src/components/password-creation-input/password-creation-input.tsx
+++ b/packages/react/src/components/password-creation-input/password-creation-input.tsx
@@ -20,14 +20,19 @@ const StyledUl = styled.ul`
 `;
 
 const PasswordInputContainer = styled.div`
+    align-items: center;
     display: flex;
     margin-bottom: var(--spacing-1x);
     position: relative;
 `;
 
+const StyledInput = styled(Input)`
+    padding-right: var(--size-2x);
+`;
+
 const ShowPasswordButton = styled.div`
     position: absolute;
-    right: 0;
+    right: 0.25rem;
 `;
 
 interface PasswordCreationInputProps {
@@ -93,7 +98,7 @@ export const PasswordCreationInput: VoidFunctionComponent<PasswordCreationInputP
                 </StyledUl>
             </div>
             <PasswordInputContainer>
-                <Input
+                <StyledInput
                     id={id}
                     name={name ?? 'password'}
                     autoComplete="new-password"
@@ -118,6 +123,7 @@ export const PasswordCreationInput: VoidFunctionComponent<PasswordCreationInputP
                             data-testid="show-password-button"
                             type="button"
                             onClick={handleShowPassword}
+                            size="small"
                         />
                     </Tooltip>
                 </ShowPasswordButton>
diff --git a/packages/react/src/components/password-input/password-input.test.tsx.snap b/packages/react/src/components/password-input/password-input.test.tsx.snap
index 2333de853c..1076144eff 100644
--- a/packages/react/src/components/password-input/password-input.test.tsx.snap
+++ b/packages/react/src/components/password-input/password-input.test.tsx.snap
@@ -30,10 +30,10 @@ exports[`PasswordInput matches the snapshot (Disabled) 1`] = `
   -ms-letter-spacing: 0.025rem;
   letter-spacing: 0.025rem;
   line-height: 1rem;
-  min-height: var(--size-2x);
+  min-height: var(--size-1halfx);
   min-width: 2rem;
   outline: none;
-  padding: 0 var(--spacing-2x);
+  padding: 0 var(--spacing-1halfx);
   text-transform: uppercase;
   -webkit-user-select: none;
   -moz-user-select: none;
@@ -62,8 +62,9 @@ exports[`PasswordInput matches the snapshot (Disabled) 1`] = `
   background-color: transparent;
   border-color: transparent;
   color: #60666E;
+  min-width: var(--size-1halfx);
   padding: 0;
-  width: var(--size-2x);
+  width: var(--size-1halfx);
 }
 
 .c7 {
@@ -349,6 +350,10 @@ exports[`PasswordInput matches the snapshot (Disabled) 1`] = `
 }
 
 .c1 {
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
   display: -webkit-box;
   display: -webkit-flex;
   display: -ms-flexbox;
@@ -362,7 +367,7 @@ exports[`PasswordInput matches the snapshot (Disabled) 1`] = `
 
 .c4 {
   position: absolute;
-  right: 0;
+  right: 0.25rem;
 }
 
 <div
@@ -464,10 +469,10 @@ exports[`PasswordInput matches the snapshot (Invalid) 1`] = `
   -ms-letter-spacing: 0.025rem;
   letter-spacing: 0.025rem;
   line-height: 1rem;
-  min-height: var(--size-2x);
+  min-height: var(--size-1halfx);
   min-width: 2rem;
   outline: none;
-  padding: 0 var(--spacing-2x);
+  padding: 0 var(--spacing-1halfx);
   text-transform: uppercase;
   -webkit-user-select: none;
   -moz-user-select: none;
@@ -496,8 +501,9 @@ exports[`PasswordInput matches the snapshot (Invalid) 1`] = `
   background-color: transparent;
   border-color: transparent;
   color: #60666E;
+  min-width: var(--size-1halfx);
   padding: 0;
-  width: var(--size-2x);
+  width: var(--size-1halfx);
 }
 
 .c9 {
@@ -809,6 +815,10 @@ exports[`PasswordInput matches the snapshot (Invalid) 1`] = `
 }
 
 .c3 {
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
   display: -webkit-box;
   display: -webkit-flex;
   display: -ms-flexbox;
@@ -822,7 +832,7 @@ exports[`PasswordInput matches the snapshot (Invalid) 1`] = `
 
 .c6 {
   position: absolute;
-  right: 0;
+  right: 0.25rem;
 }
 
 <div
@@ -938,10 +948,10 @@ exports[`PasswordInput matches the snapshot (Normal) 1`] = `
   -ms-letter-spacing: 0.025rem;
   letter-spacing: 0.025rem;
   line-height: 1rem;
-  min-height: var(--size-2x);
+  min-height: var(--size-1halfx);
   min-width: 2rem;
   outline: none;
-  padding: 0 var(--spacing-2x);
+  padding: 0 var(--spacing-1halfx);
   text-transform: uppercase;
   -webkit-user-select: none;
   -moz-user-select: none;
@@ -970,8 +980,9 @@ exports[`PasswordInput matches the snapshot (Normal) 1`] = `
   background-color: transparent;
   border-color: transparent;
   color: #60666E;
+  min-width: var(--size-1halfx);
   padding: 0;
-  width: var(--size-2x);
+  width: var(--size-1halfx);
 }
 
 .c7 {
@@ -1257,6 +1268,10 @@ exports[`PasswordInput matches the snapshot (Normal) 1`] = `
 }
 
 .c1 {
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
   display: -webkit-box;
   display: -webkit-flex;
   display: -ms-flexbox;
@@ -1270,7 +1285,7 @@ exports[`PasswordInput matches the snapshot (Normal) 1`] = `
 
 .c4 {
   position: absolute;
-  right: 0;
+  right: 0.25rem;
 }
 
 <div
diff --git a/packages/react/src/components/password-input/password-input.tsx b/packages/react/src/components/password-input/password-input.tsx
index 642b77a578..483adb9c03 100644
--- a/packages/react/src/components/password-input/password-input.tsx
+++ b/packages/react/src/components/password-input/password-input.tsx
@@ -32,6 +32,7 @@ interface PasswordInputProps {
 }
 
 const PasswordInputContainer = styled.div`
+    align-items: center;
     display: flex;
     position: relative;
 `;
@@ -42,7 +43,7 @@ const StyledInput = styled(Input)`
 
 export const ShowPasswordButton = styled.div`
     position: absolute;
-    right: 0;
+    right: 0.25rem;
 `;
 
 export const PasswordInput: VoidFunctionComponent<PasswordInputProps> = ({
@@ -116,6 +117,7 @@ export const PasswordInput: VoidFunctionComponent<PasswordInputProps> = ({
                             data-testid="show-password-button"
                             type="button"
                             onClick={handleShowPassword}
+                            size="small"
                         />
                     </Tooltip>
                 </ShowPasswordButton>