diff --git a/jupyter_server/auth/identity.py b/jupyter_server/auth/identity.py
index fc4b02992..19801ac57 100644
--- a/jupyter_server/auth/identity.py
+++ b/jupyter_server/auth/identity.py
@@ -10,6 +10,7 @@
 
 import binascii
 import datetime
+import hmac
 import json
 import os
 import re
@@ -28,6 +29,9 @@
 from .security import passwd_check, set_password
 from .utils import get_anonymous_username
 
+if t.TYPE_CHECKING:
+    import hmac
+
 _non_alphanum = re.compile(r"[^A-Za-z0-9]")
 
 
@@ -610,6 +614,18 @@ def logout_available(self):
         """Whether a LogoutHandler is needed."""
         return True
 
+    def cookie_secret_hook(self, h: hmac.HMAC) -> hmac.HMAC:
+        """Update cookie secret input
+
+        Subclasses may call `h.update()` with any credentials that,
+        when changed, should invalidate existing cookies, such as a
+        password.
+
+        The updated hashlib object should be returned.
+
+        """
+        return h
+
 
 class PasswordIdentityProvider(IdentityProvider):
     """A password identity provider."""
@@ -740,6 +756,14 @@ def validate_security(
             self.log.critical(_i18n("\t$ python -m jupyter_server.auth password"))
             sys.exit(1)
 
+    def cookie_secret_hook(self, h: hmac.HMAC) -> hmac.HMAC:
+        """Include password in cookie secret.
+
+        This makes it so changing the password invalidates cookies.
+        """
+        h.update(self.hashed_password.encode())
+        return h
+
 
 class LegacyIdentityProvider(PasswordIdentityProvider):
     """Legacy IdentityProvider for use with custom LoginHandlers
diff --git a/jupyter_server/serverapp.py b/jupyter_server/serverapp.py
index 1afbef4d0..045c3c324 100644
--- a/jupyter_server/serverapp.py
+++ b/jupyter_server/serverapp.py
@@ -1169,6 +1169,7 @@ def _default_cookie_secret(self) -> bytes:
             self._write_cookie_secret_file(key)
         h = hmac.new(key, digestmod=hashlib.sha256)
         h.update(self.password.encode())
+        h = self.identity_provider.cookie_secret_hook(h)
         return h.digest()
 
     def _write_cookie_secret_file(self, secret: bytes) -> None: