diff --git a/app/Http/Controllers/Admin/UserController.php b/app/Http/Controllers/Admin/UserController.php
index 5656ae124..e0474fa5b 100644
--- a/app/Http/Controllers/Admin/UserController.php
+++ b/app/Http/Controllers/Admin/UserController.php
@@ -161,7 +161,6 @@ class UserController extends Controller
      *
      * @throws \Pterodactyl\Exceptions\Model\DataValidationException
      * @throws \Pterodactyl\Exceptions\Repository\RecordNotFoundException
-     * @throws \Pterodactyl\Exceptions\Http\Connection\DaemonConnectionException
      */
     public function update(UserFormRequest $request, User $user)
     {
diff --git a/app/Services/Users/UserUpdateService.php b/app/Services/Users/UserUpdateService.php
index 1a767ae1a..440ab57ce 100644
--- a/app/Services/Users/UserUpdateService.php
+++ b/app/Services/Users/UserUpdateService.php
@@ -58,8 +58,10 @@ class UserUpdateService
      */
     public function handle(User $user, array $data): Collection
     {
-        if (array_has($data, 'password')) {
+        if (! empty(array_get($data, 'password'))) {
             $data['password'] = $this->hasher->make($data['password']);
+        } else {
+            unset($data['password']);
         }
 
         if ($this->isUserLevel(User::USER_LEVEL_ADMIN)) {
diff --git a/tests/Unit/Services/Users/UserUpdateServiceTest.php b/tests/Unit/Services/Users/UserUpdateServiceTest.php
index 9d794c69f..a686abefa 100644
--- a/tests/Unit/Services/Users/UserUpdateServiceTest.php
+++ b/tests/Unit/Services/Users/UserUpdateServiceTest.php
@@ -41,20 +41,38 @@ class UserUpdateServiceTest extends TestCase
     }
 
     /**
-     * Test that the handle function does not attempt to hash a password if no password is passed.
+     * Test that the handle function does not attempt to hash a password if no
+     * password is provided or the password is null.
+     *
+     * @dataProvider badPasswordDataProvider
      */
-    public function testUpdateUserWithoutTouchingHasherIfNoPasswordPassed()
+    public function testUpdateUserWithoutTouchingHasherIfNoPasswordPassed(array $data)
     {
         $user = factory(User::class)->make();
         $this->revocationService->shouldReceive('getExceptions')->withNoArgs()->once()->andReturn([]);
         $this->repository->shouldReceive('update')->with($user->id, ['test-data' => 'value'])->once()->andReturnNull();
 
-        $response = $this->getService()->handle($user, ['test-data' => 'value']);
+        $response = $this->getService()->handle($user, $data);
         $this->assertInstanceOf(Collection::class, $response);
         $this->assertTrue($response->has('model'));
         $this->assertTrue($response->has('exceptions'));
     }
 
+    /**
+     * Provide a test data set with passwords that should not be hashed.
+     *
+     * @return array
+     */
+    public function badPasswordDataProvider(): array
+    {
+        return [
+            [['test-data' => 'value']],
+            [['test-data' => 'value', 'password' => null]],
+            [['test-data' => 'value', 'password' => '']],
+            [['test-data' => 'value', 'password' => 0]],
+        ];
+    }
+
     /**
      * Test that the handle function hashes a password if passed in the data array.
      */