diff --git a/app/boot_levels.go b/app/boot_levels.go
index 02113d94b..56bad08c9 100644
--- a/app/boot_levels.go
+++ b/app/boot_levels.go
@@ -521,6 +521,7 @@ func updateAuthSettings(svc authServicer, current *types.AppSettings) {
 		SignupEnabled:             current.Auth.Internal.Signup.Enabled,
 		EmailConfirmationRequired: current.Auth.Internal.Signup.EmailConfirmationRequired,
 		PasswordResetEnabled:      current.Auth.Internal.PasswordReset.Enabled,
+		SplitCredentialsCheck:     current.Auth.Internal.SplitCredentialsCheck,
 		ExternalEnabled:           current.Auth.External.Enabled,
 		MultiFactor: authSettings.MultiFactor{
 			TOTP: authSettings.TOTP{
diff --git a/auth/assets/templates/login.html.tpl b/auth/assets/templates/login.html.tpl
index f8498ebd2..f8b7f5803 100644
--- a/auth/assets/templates/login.html.tpl
+++ b/auth/assets/templates/login.html.tpl
@@ -27,6 +27,7 @@
 				autocomplete="username"
 				aria-label="Email">
 		</div>
+		{{ if not .form.splitCredentialsCheck }}
 		<div class="mb-3">
             <label>
                 Password *
@@ -58,6 +59,20 @@
 				</button>
 			</div>
 		</div>
+		{{ else }}
+		<div class="row">
+			<div class="col text-right">
+				<button
+					class="btn btn-primary btn-block btn-lg"
+					name="keep-session"
+					value="true"
+					type="submit"
+				>
+					Continue
+				</button>
+			</div>
+		</div>
+		{{ end }}
 	</form>
 	<div class="row text-center">
         {{ if .settings.PasswordResetEnabled }}
diff --git a/auth/assets/templates/scenarios.yaml b/auth/assets/templates/scenarios.yaml
index b814bd75b..e682b81a9 100644
--- a/auth/assets/templates/scenarios.yaml
+++ b/auth/assets/templates/scenarios.yaml
@@ -39,6 +39,11 @@ login:
       SignupEnabled: false
       PasswordResetEnabled: false
 
+  With Split credentials check / username:
+    form:
+      splitCredentialsCheck: true
+    settings:
+      LocalEnabled: true
 
   With errors after submit:
     settings:
diff --git a/auth/auth.go b/auth/auth.go
index 590e48797..412790fbf 100644
--- a/auth/auth.go
+++ b/auth/auth.go
@@ -301,6 +301,10 @@ func (svc *service) UpdateSettings(s *settings.Settings) {
 		svc.log.Debug("setting changed", zap.Bool("passwordResetEnabled", s.PasswordResetEnabled))
 	}
 
+	if svc.settings.SplitCredentialsCheck != s.SplitCredentialsCheck {
+		svc.log.Debug("setting changed", zap.Bool("splitCredentialsCheck", s.SplitCredentialsCheck))
+	}
+
 	if svc.settings.ExternalEnabled != s.ExternalEnabled {
 		svc.log.Debug("setting changed", zap.Bool("externalEnabled", s.ExternalEnabled))
 	}
diff --git a/auth/handlers/handle_login.go b/auth/handlers/handle_login.go
index 423a48835..7b9b9016c 100644
--- a/auth/handlers/handle_login.go
+++ b/auth/handlers/handle_login.go
@@ -1,6 +1,8 @@
 package handlers
 
 import (
+	"fmt"
+
 	"github.com/cortezaproject/corteza-server/auth/request"
 	"github.com/cortezaproject/corteza-server/pkg/auth"
 	"github.com/cortezaproject/corteza-server/pkg/errors"
@@ -17,26 +19,66 @@ type (
 
 func (h *AuthHandlers) loginForm(req *request.AuthReq) error {
 	req.Template = TmplLogin
-	req.Data["form"] = req.PopKV()
+	kv := req.PopKV()
+
+	if kv == nil && h.Settings.SplitCredentialsCheck {
+		// Force login form to show only email input
+		//
+		// KV is nil (means that this is first load of the form)
+		// and credentials check is split into two parts (email first then credentials)
+		kv = map[string]string{
+			"splitCredentialsCheck": "split",
+		}
+	}
+
+	req.Data["form"] = kv
 	return nil
 }
 
 func (h *AuthHandlers) loginProc(req *request.AuthReq) (err error) {
+	// In most cases, we want to redirect back to login
 	req.RedirectTo = GetLinks().Login
 	req.SetKV(nil)
 
 	var (
-		user  *types.User
-		email = req.Request.PostFormValue("email")
+		user     *types.User
+		email    = req.Request.PostFormValue("email")
+		password = req.Request.PostFormValue("password")
 	)
 
-	user, err = h.AuthService.InternalLogin(
-		req.Context(),
-		email,
-		req.Request.PostFormValue("password"),
-	)
+	err = func() (err error) {
+		if len(email) > 0 && len(password) == 0 && h.Settings.SplitCredentialsCheck {
+			// Email provided but no password and the
+			// split credentials check enabled
+			//
+			// SetKV w/ email will prevent the login form to show only email input
+			req.SetKV(map[string]string{"email": email})
+
+			// If user does not have password set (or in case there is no user with such email)
+			// and there is exactly one IdP we redirect user to that IdP
+			if !h.AuthService.PasswordSet(req.Context(), email) && len(h.Settings.Providers) == 1 {
+				// User w/o the password
+				// In case there is one single IdP automatically redirect user there
+				req.RedirectTo = fmt.Sprintf("%s/%s", GetLinks().External, h.Settings.Providers[0].Handle)
+
+				// for the clarity of the flow
+				// keeping this optional return here
+				return
+			}
+
+			// This user has existing password credentials or with more than one IdP
+			//
+			// Take user back to the login form and ask for the password
+			// or any other kind of login
+			return
+		}
+
+		user, err = h.AuthService.InternalLogin(req.Context(), email, password)
+
+		if err != nil {
+			return
+		}
 
-	if err == nil {
 		var (
 			isPerm   = len(req.Request.PostFormValue("keep-session")) > 0
 			lifetime = h.Opt.SessionLifetime
@@ -69,8 +111,8 @@ func (h *AuthHandlers) loginProc(req *request.AuthReq) (err error) {
 
 		handleSuccessfulAuth(req)
 
-		return nil
-	}
+		return
+	}()
 
 	switch {
 	case service.AuthErrInternalLoginDisabledByConfig().Is(err):
diff --git a/auth/handlers/handle_login_test.go b/auth/handlers/handle_login_test.go
index cd2d120d4..56d8e30bb 100644
--- a/auth/handlers/handle_login_test.go
+++ b/auth/handlers/handle_login_test.go
@@ -152,6 +152,41 @@ func Test_loginProc(t *testing.T) {
 				}
 			},
 		},
+		{
+			name:    "split credentials check",
+			payload: map[string]string{"email": "mockuser@example.tld"},
+			alerts:  []request.Alert(nil),
+			link:    GetLinks().Login,
+			fn: func(authSettings *settings.Settings) {
+				req.PostForm.Add("email", "mockuser@example.tld")
+				authSettings.SplitCredentialsCheck = true
+
+				authService = &authServiceMocked{
+					passwordSet: func(ctx context.Context, email string) bool {
+						return false
+					},
+				}
+			},
+		},
+		{
+			name:    "split credentials check with providers",
+			payload: map[string]string{"email": "mockuser@example.tld"},
+			alerts:  []request.Alert(nil),
+			link:    GetLinks().External + "/test-idp",
+			fn: func(authSettings *settings.Settings) {
+				req.PostForm.Add("email", "mockuser@example.tld")
+				authSettings.SplitCredentialsCheck = true
+				authSettings.Providers = []settings.Provider{
+					{Handle: "test-idp"},
+				}
+
+				authService = &authServiceMocked{
+					passwordSet: func(ctx context.Context, email string) bool {
+						return false
+					},
+				}
+			},
+		},
 	}
 
 	for _, tc := range tcc {
diff --git a/auth/handlers/handler.go b/auth/handlers/handler.go
index e355d2e95..db650dab9 100644
--- a/auth/handlers/handler.go
+++ b/auth/handlers/handler.go
@@ -35,7 +35,7 @@ type (
 		SendEmailAddressConfirmationToken(ctx context.Context, u *types.User) (err error)
 		SendPasswordResetToken(ctx context.Context, email string) (err error)
 		GetProviders() types.ExternalAuthProviderSet
-
+		PasswordSet(ctx context.Context, email string) (is bool)
 		ValidateTOTP(ctx context.Context, code string) (err error)
 		ConfigureTOTP(ctx context.Context, secret string, code string) (u *types.User, err error)
 		RemoveTOTP(ctx context.Context, userID uint64, code string) (u *types.User, err error)
diff --git a/auth/settings/settings.go b/auth/settings/settings.go
index e417b5895..ace7474b0 100644
--- a/auth/settings/settings.go
+++ b/auth/settings/settings.go
@@ -7,6 +7,7 @@ type (
 		EmailConfirmationRequired bool
 		PasswordResetEnabled      bool
 		ExternalEnabled           bool
+		SplitCredentialsCheck     bool
 		Providers                 []Provider
 		Saml                      SAML
 		MultiFactor               MultiFactor
diff --git a/system/rest.yaml b/system/rest.yaml
index c4032b328..dd3d91656 100644
--- a/system/rest.yaml
+++ b/system/rest.yaml
@@ -595,9 +595,8 @@ endpoints:
       post:
       - name: password
         type: string
-        required: true
         sensitive: true
-        title: New password
+        title: New password or empty to unset
 
   - name: membershipList
     method: GET
diff --git a/system/rest/request/user.go b/system/rest/request/user.go
index b1e93d52e..6990fe59b 100644
--- a/system/rest/request/user.go
+++ b/system/rest/request/user.go
@@ -221,7 +221,7 @@ type (
 
 		// Password POST parameter
 		//
-		// New password
+		// New password or empty to unset
 		Password string
 	}
 
diff --git a/system/service/auth.go b/system/service/auth.go
index 259afaf15..1d3323f1e 100644
--- a/system/service/auth.go
+++ b/system/service/auth.go
@@ -617,26 +617,13 @@ func (svc auth) CheckPasswordStrength(password string) bool {
 func (svc auth) SetPasswordCredentials(ctx context.Context, userID uint64, password string) (err error) {
 	var (
 		hash []byte
-		cc   types.CredentialsSet
-		f    = types.CredentialsFilter{Kind: credentialsTypePassword, OwnerID: userID}
 	)
 
 	if hash, err = svc.hashPassword(password); err != nil {
 		return
 	}
 
-	if cc, _, err = store.SearchCredentials(ctx, svc.store, f); err != nil {
-		return nil
-	}
-
-	// Mark all credentials as deleted
-	_ = cc.Walk(func(c *types.Credentials) error {
-		c.DeletedAt = now()
-		return nil
-	})
-
-	// Do a partial update and soft-delete all
-	if err = store.UpdateCredentials(ctx, svc.store, cc...); err != nil {
+	if err = svc.removePasswordCredentials(ctx, userID); err != nil {
 		return
 	}
 
@@ -652,6 +639,33 @@ func (svc auth) SetPasswordCredentials(ctx context.Context, userID uint64, passw
 	return store.CreateCredentials(ctx, svc.store, c)
 }
 
+// RemovePasswordCredentials (soft) deletes old password entry
+func (svc auth) RemovePasswordCredentials(ctx context.Context, userID uint64) (err error) {
+	// Do a partial update and soft-delete all
+	return svc.removePasswordCredentials(ctx, userID)
+}
+
+// RemovePasswordCredentials (soft) deletes old password entry
+func (svc auth) removePasswordCredentials(ctx context.Context, userID uint64) (err error) {
+	var (
+		cc types.CredentialsSet
+		f  = types.CredentialsFilter{Kind: credentialsTypePassword, OwnerID: userID}
+	)
+
+	if cc, _, err = store.SearchCredentials(ctx, svc.store, f); err != nil {
+		return nil
+	}
+
+	// Mark all credentials as deleted
+	_ = cc.Walk(func(c *types.Credentials) error {
+		c.DeletedAt = now()
+		return nil
+	})
+
+	// Do a partial update and soft-delete all
+	return store.UpdateCredentials(ctx, svc.store, cc...)
+}
+
 // ValidateEmailConfirmationToken issues a validation token that can be used for
 func (svc auth) ValidateEmailConfirmationToken(ctx context.Context, token string) (user *types.User, err error) {
 	return svc.loadFromTokenAndConfirmEmail(ctx, token, credentialsTypeEmailAuthToken)
@@ -662,6 +676,31 @@ func (svc auth) ValidatePasswordResetToken(ctx context.Context, token string) (u
 	return svc.loadFromTokenAndConfirmEmail(ctx, token, credentialsTypeResetPasswordToken)
 }
 
+// PasswordSet checks and returns true if user's password is set
+// False is also returned in case user does not exist.
+func (svc *auth) PasswordSet(ctx context.Context, email string) (is bool) {
+
+	//svc.settings.Auth.External.Enabled
+	u, err := store.LookupUserByEmail(ctx, svc.store, email)
+	if err != nil {
+		return
+	}
+
+	cc, _, err := store.SearchCredentials(ctx, svc.store, types.CredentialsFilter{
+		OwnerID: u.ID,
+		Kind:    credentialsTypePassword,
+	})
+	if err != nil {
+		return
+	}
+
+	if len(cc) > 0 && svc.settings.Auth.Internal.Enabled {
+		return true
+	}
+
+	return
+}
+
 // loadFromTokenAndConfirmEmail loads token, confirms user's
 func (svc auth) loadFromTokenAndConfirmEmail(ctx context.Context, token, tokenType string) (u *types.User, err error) {
 	var (
diff --git a/system/service/user.go b/system/service/user.go
index 45d926aa7..e8e412e92 100644
--- a/system/service/user.go
+++ b/system/service/user.go
@@ -47,6 +47,7 @@ type (
 	userAuth interface {
 		CheckPasswordStrength(string) bool
 		SetPasswordCredentials(context.Context, uint64, string) error
+		RemovePasswordCredentials(context.Context, uint64) error
 	}
 
 	userAccessController interface {
@@ -674,11 +675,12 @@ func (svc user) Unsuspend(ctx context.Context, userID uint64) (err error) {
 
 // SetPassword sets new password for a user
 //
-// Expecting setter to have permissions to update modify users and internal authentication enabled
+// Expecting setter to have permissions to update users
 func (svc user) SetPassword(ctx context.Context, userID uint64, newPassword string) (err error) {
 	var (
 		u       *types.User
 		uaProps = &userActionProps{user: &types.User{ID: userID}}
+		a       = UserActionSetPassword
 	)
 
 	err = func() error {
@@ -696,6 +698,11 @@ func (svc user) SetPassword(ctx context.Context, userID uint64, newPassword stri
 			return UserErrNotAllowedToUpdate()
 		}
 
+		if newPassword == "" {
+			a = UserActionRemovePassword
+			return svc.auth.RemovePasswordCredentials(ctx, userID)
+		}
+
 		if !svc.auth.CheckPasswordStrength(newPassword) {
 			return UserErrPasswordNotSecure()
 		}
@@ -707,7 +714,7 @@ func (svc user) SetPassword(ctx context.Context, userID uint64, newPassword stri
 		return nil
 	}()
 
-	return svc.recordAction(ctx, uaProps, UserActionSetPassword, err)
+	return svc.recordAction(ctx, uaProps, a, err)
 
 }
 
diff --git a/system/service/user_actions.gen.go b/system/service/user_actions.gen.go
index 05f01e45e..de43c94b8 100644
--- a/system/service/user_actions.gen.go
+++ b/system/service/user_actions.gen.go
@@ -506,6 +506,26 @@ func UserActionSetPassword(props ...*userActionProps) *userAction {
 	return a
 }
 
+// UserActionRemovePassword returns "system:user.removePassword" action
+//
+// This function is auto-generated.
+//
+func UserActionRemovePassword(props ...*userActionProps) *userAction {
+	a := &userAction{
+		timestamp: time.Now(),
+		resource:  "system:user",
+		action:    "removePassword",
+		log:       "password removed for {user}",
+		severity:  actionlog.Notice,
+	}
+
+	if len(props) > 0 {
+		a.props = props[0]
+	}
+
+	return a
+}
+
 // UserActionDeleteAuthTokens returns "system:user.deleteAuthTokens" action
 //
 // This function is auto-generated.
diff --git a/system/service/user_actions.yaml b/system/service/user_actions.yaml
index 35a2824da..23d1d84db 100644
--- a/system/service/user_actions.yaml
+++ b/system/service/user_actions.yaml
@@ -59,6 +59,9 @@ actions:
   - action: setPassword
     log: "password changed for {user}"
 
+  - action: removePassword
+    log: "password removed for {user}"
+
   - action: deleteAuthTokens
     log: "deleted auth tokens of {user}"
 
diff --git a/system/types/app_settings.go b/system/types/app_settings.go
index 6ab9602f9..4b14d62fb 100644
--- a/system/types/app_settings.go
+++ b/system/types/app_settings.go
@@ -49,6 +49,12 @@ type (
 
 				// Can users reset their passwords
 				PasswordReset struct{ Enabled bool } `kv:"password-reset"`
+
+				// Splits credentials check into 2 parts
+				// If user has password credentials it offers him to enter the password
+				// Otherwise we offer the user to choose among the enabled external providers
+				// If only one ext. provider is enabled, user is automatically redirected there
+				SplitCredentialsCheck bool `kv:"split-credentials-check"`
 			}
 
 			External struct {