Index: wp-admin/admin-ajax.php
===================================================================
--- wp-admin/admin-ajax.php	(revision 26748)
+++ wp-admin/admin-ajax.php	(working copy)
@@ -58,7 +58,7 @@
 	'wp-remove-post-lock', 'dismiss-wp-pointer', 'upload-attachment', 'get-attachment',
 	'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',
+	'save-user-color-scheme', 'generate_password',
 );
 
 // Register core Ajax calls.
Index: wp-admin/includes/ajax-actions.php
===================================================================
--- wp-admin/includes/ajax-actions.php	(revision 26748)
+++ wp-admin/includes/ajax-actions.php	(working copy)
@@ -2260,3 +2260,7 @@
 	update_user_meta( get_current_user_id(), 'admin_color', $color_scheme );
 	wp_send_json_success();
 }
+
+function wp_ajax_generate_password() {
+	die( wp_generate_password() );
+}
Index: wp-admin/includes/user.php
===================================================================
--- wp-admin/includes/user.php	(revision 26748)
+++ 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: wp-admin/js/user-profile.js
===================================================================
--- wp-admin/js/user-profile.js	(revision 26748)
+++ wp-admin/js/user-profile.js	(working copy)
@@ -33,10 +33,61 @@
 	$(document).ready( function() {
 		var $colorpicker, $stylesheet, user_id, current_user_id,
 			select = $( '#display_name' );
+			
+	    var show_password = $('#show-password');
+	    var hide_password = $('#hide-password');
+	    var pass1 = $('#pass1');
+	    var pass2 = $('#pass2');
+	    var password_repeat = $('#password-repeat');
 
-		$('#pass1').val('').keyup( check_pass_strength );
-		$('#pass2').val('').keyup( check_pass_strength );
+		/* Passwords */
+		pass1.val('').keyup(function(e) {
+			if( ! pass1.is(':focus') || 'text' == pass1.attr('type') ){
+			     return;
+			}
+			check_pass_strength();
+			changed = true;
+			password_repeat.show();
+		});
+		pass2.val('').keyup( check_pass_strength );
+
+		$('#generate-password').on('click', function() {
+			if( 'profile' == pagenow ) {
+				// User's own password
+				$(pass1,pass2).attr('type', 'text');
+			} else {
+				$(pass1,pass2).attr('type', 'password');
+			}
+			$.post( ajaxurl, { action: 'generate_password' }, function( response ) {
+				$(pass1,pass2).val( response ).trigger('keyup');
+				if( 'profile' == pagenow ) {
+					// User's own password
+					hide_password.show();
+				} else {
+					hide_password.hide();
+					show_password.show();
+				}
+				pass1.focus();
+			});
+		});
+		show_password.on('click', function(e) {
+			show_password.hide();
+			hide_password.show();
+			e.preventDefault();
+			$(pass1,pass2).attr('type', 'text');
+		});
+		hide_password.on('click', function(e) {
+			hide_password.hide();
+			show_password.show();
+			e.preventDefault();
+			$(pass1,pass2).attr('type', 'password');
+		});
+
+
 		$('#pass-strength-result').show();
+
+		/* End Passwords */
+
 		$('.color-palette').click( function() {
 			$(this).siblings('input[name="admin_color"]').prop('checked', true);
 		});
Index: wp-admin/user-edit.php
===================================================================
--- wp-admin/user-edit.php	(revision 26748)
+++ wp-admin/user-edit.php	(working copy)
@@ -459,20 +459,32 @@
 	<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" /><br />
+        <input type="password" name="pass1" id="pass1" size="16" value="" autocomplete="off" />
+		<input type="button" name="generate-password" id="generate-password" value="<?php _e( 'Generate Password' ); ?>" class="button hide-if-no-js" />
+		<a href="#" id="show-password" class="hidden"><?php _e( 'Show Password' ); ?></a>
+		<a href="#" id="hide-password" class="hidden"><?php _e( 'Hide Password' ); ?></a>
+		<div id="password-repeat" class="hidden">
+			<input name="pass2" type="password" id="pass2" size="16" value="" autocomplete="off" />
+			<label for="pass2"><?php _e( 'Repeat New Password' ); ?></label>
+			<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" /> <?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" /> <?php _e( 'Encourage the user to change their password, once logged in.' ); ?>
+			</label>
+		</p>
+		<?php } ?>
 		<span class="description"><?php _e( 'If you would like to change the password type a new one. Otherwise leave this blank.' ); ?></span>
 	</td>
 </tr>
-<tr>
-	<th scope="row"><label 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" /><br />
-	<span class="description" for="pass2"><?php _e( 'Type your new password again.' ); ?></span>
-	<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>
-	</td>
-</tr>
 <?php endif; ?>
 </table>