Index: src/wp-admin/admin-ajax.php
===================================================================
--- src/wp-admin/admin-ajax.php	(revision 30041)
+++ src/wp-admin/admin-ajax.php	(working copy)
@@ -61,7 +61,7 @@
 	'query-attachments', 'save-attachment', 'save-attachment-compat', 'send-link-to-editor',
 	'send-attachment-to-editor', 'save-attachment-order', 'heartbeat', 'get-revision-diffs',
 	'save-user-color-scheme', 'update-widget', 'query-themes', 'parse-embed', 'set-attachment-thumbnail',
-	'parse-media-shortcode'
+	'parse-media-shortcode', 'generate_password',
 );
 
 // Register core Ajax calls.
Index: src/wp-admin/css/forms.css
===================================================================
--- src/wp-admin/css/forms.css	(revision 30041)
+++ src/wp-admin/css/forms.css	(working copy)
@@ -462,8 +462,8 @@
 	border-color: #8dff1c;
 }
 
-.indicator-hint {
-	padding-top: 8px;
+#password2 .indicator-hint {
+	padding: 4px 0 0 220px;
 }
 
 p.search-box {
@@ -666,6 +666,15 @@
 	cursor: pointer;
 }
 
+.form-table tr#password td,
+.form-table tr#password2 td {
+	padding: 0 10px;
+}
+.form-table tr#password2 th,
+.form-table tr#password th {
+	padding: 0 10px 20px 0px;
+}
+
 /*------------------------------------------------------------------------------
   19.0 - Tools
 ------------------------------------------------------------------------------*/
@@ -963,6 +972,10 @@
 		padding: 0;
 		line-height: 2;
 	}
+
+	#password2 .indicator-hint {
+		padding-left: 0;
+	}
 }
 
 @media only screen and (max-width: 768px) {
Index: src/wp-admin/includes/ajax-actions.php
===================================================================
--- src/wp-admin/includes/ajax-actions.php	(revision 30041)
+++ src/wp-admin/includes/ajax-actions.php	(working copy)
@@ -2760,3 +2760,12 @@
 		'body' => ob_get_clean()
 	) );
 }
+
+/**
+ * Generates a password via ajax
+ *
+ * @since 4.1.0
+ */
+function wp_ajax_generate_password() {
+	wp_die( wp_generate_password( 30 ) );
+}
Index: src/wp-admin/includes/user.php
===================================================================
--- src/wp-admin/includes/user.php	(revision 30041)
+++ src/wp-admin/includes/user.php	(working copy)
@@ -174,6 +174,22 @@
 
 	if ( $update ) {
 		$user_id = wp_update_user( $user );
+
+		// Encourage the user to reset their password
+		if( ! empty( $_POST['reset_password'] ) ) {
+			update_user_option( $user_id, 'default_password_nag', true, true );
+		}
+
+		// Send the new, plaintext password to the user
+		if( ! empty( $_POST['send_password'] ) ) {
+			$blogname = wp_specialchars_decode( get_option( 'blogname' ), ENT_QUOTES );
+			$message  = sprintf( __( 'Username: %s' ), $user->user_login ) . "\r\n";
+			$message .= sprintf( __( 'Password: %s' ), $pass1 ) . "\r\n";
+			$message .= wp_login_url() . "\r\n";
+
+			wp_mail( $user->user_email, sprintf( __( '[%s] Your username and password' ), $blogname ), $message );
+		}
+
 	} else {
 		$user_id = wp_insert_user( $user );
 		wp_new_user_notification( $user_id, isset( $_POST['send_password'] ) ? wp_unslash( $pass1 ) : '' );
Index: src/wp-admin/js/user-profile.js
===================================================================
--- src/wp-admin/js/user-profile.js	(revision 30041)
+++ src/wp-admin/js/user-profile.js	(working copy)
@@ -32,11 +32,50 @@
 
 	$(document).ready( function() {
 		var $colorpicker, $stylesheet, user_id, current_user_id,
-			select = $( '#display_name' );
+			select = $( '#display_name' ),
 
-		$('#pass1').val('').keyup( check_pass_strength );
-		$('#pass2').val('').keyup( check_pass_strength );
+		/* Passwords */
+
+		/**
+		 * Add a Generate Password button
+		 * Add a show password icon to view password when editing own profile
+		 * @since 4.1.0
+		 */
+		$pass1 = $( '#pass1' ),
+		$pass2 = $( '#pass2' ),
+		password_repeat = $( '.password-repeat' );
+
+		$pass2.val('').keyup( check_pass_strength );
+
+		// Handle user entering password
+		$pass1.val('').on( 'blur', function() {
+			check_pass_strength();
+			// Ensure fireld type is password
+			if ( 'text' === $pass1.attr( 'type' ) ) {
+				$pass1.attr( 'type', 'password' );
+			}
+			if ( 'text' === $pass2.attr( 'type' ) ) {
+				$pass2.attr( 'type', 'password' );
+			}
+		});
+
+		// Handle the Generate Password button
+		$( '#generate-password' ).on('click', function() {
+			// Send an ajax request to the server to get a new password
+			$.post( ajaxurl, { action: 'generate_password' }, function(response) {
+				$pass1.val( response ).trigger( 'keyup' );
+				$pass2.val( response );
+				check_pass_strength();
+				$pass1.attr( 'type', 'text' );
+				$pass2.attr( 'type', 'text' );
+				$pass1.focus().select();
+			});
+		});
+
 		$('#pass-strength-result').show();
+
+		/* End Passwords */
+
 		$('.color-palette').click( function() {
 			$(this).siblings('input[name="admin_color"]').prop('checked', true);
 		});
Index: src/wp-admin/user-edit.php
===================================================================
--- src/wp-admin/user-edit.php	(revision 30041)
+++ src/wp-admin/user-edit.php	(working copy)
@@ -458,19 +458,31 @@
 <tr id="password" class="user-pass1-wrap">
 	<th><label for="pass1"><?php _e( 'New Password' ); ?></label></th>
 	<td>
-		<input class="hidden" value=" " /><!-- #24364 workaround -->
-		<input type="password" name="pass1" id="pass1" class="regular-text" size="16" value="" autocomplete="off" />
-		<p class="description"><?php _e( 'If you would like to change the password type a new one. Otherwise leave this blank.' ); ?></p>
+		<input type="password" name="pass1" id="pass1" class="regular-text" value="" autocomplete="off" />
+		<input type="button" name="generate-password" id="generate-password" value="<?php _e( 'Generate Password' ); ?>" class="button hide-if-no-js" />
 	</td>
 </tr>
-<tr class="user-pass2-wrap">
-	<th scope="row"><label for="pass2"><?php _e( 'Repeat New Password' ); ?></label></th>
+<tr id="password2" class="user-pass2-wrap">
+	<th><label class="password-repeat" for="pass2"><?php _e( 'Repeat New Password' ); ?></label></th>
 	<td>
-	<input name="pass2" type="password" id="pass2" class="regular-text" size="16" value="" autocomplete="off" />
-	<p class="description"><?php _e( 'Type your new password again.' ); ?></p>
-	<br />
-	<div id="pass-strength-result"><?php _e( 'Strength indicator' ); ?></div>
-	<p class="description indicator-hint"><?php echo _wp_get_password_hint(); ?></p>
+		<div class="password-repeat">
+			<input name="pass2" type="password" id="pass2" class="regular-text" value="" autocomplete="off" />
+			<br />
+			<div id="pass-strength-result"><?php _e( 'Strength indicator' ); ?></div>
+			<p class="description indicator-hint"><?php _e( 'Hint: The password should be at least seven characters long. To make it stronger, use upper and lower case letters, numbers and symbols like ! " ? $ % ^ &amp; ).' ); ?></p>
+		</div>
+		<p class="description"><?php _e( 'If you would like to change the password type or generate a new one. Otherwise leave this blank.' ); ?></p>
+		<?php if( ! IS_PROFILE_PAGE ) { ?>
+		<p class="hide-if-no-js">
+			<label for="send_password">
+				<input type="checkbox" name="send_password" id="send_password" value="1" /> <?php _e( 'Send this password to the user by email.' ); ?>
+			</label>
+			<br />
+			<label for="reset_password">
+				<input type="checkbox" name="reset_password" id="reset_password" value="1" /> <?php _e( 'Encourage the user to change their password, once logged in.' ); ?>
+			</label>
+		</p>
+		<?php } ?>
 	</td>
 </tr>
 <?php endif; ?>