diff --git a/awx/ui_next/src/components/FormField/PasswordField.jsx b/awx/ui_next/src/components/FormField/PasswordField.jsx
index fcba330c8c..44ebe5f889 100644
--- a/awx/ui_next/src/components/FormField/PasswordField.jsx
+++ b/awx/ui_next/src/components/FormField/PasswordField.jsx
@@ -8,7 +8,7 @@ import PasswordInput from './PasswordInput';
 function PasswordField(props) {
   const { id, name, label, validate, isRequired, helperText } = props;
   const [, meta] = useField({ name, validate });
-  const isValid = !meta.touched || (meta.value && meta.value !== '');
+  const isValid = !(meta.touched && meta.error);
 
   return (
     <FormGroup