diff --git a/src/charm.py b/src/charm.py
index dfc8008f4..d5953b427 100755
--- a/src/charm.py
+++ b/src/charm.py
@@ -604,7 +604,7 @@ def _on_set_password(self, event: ActionEvent) -> None:
 
         # rotate password to shards
         # TODO in the future support rotating passwords of pbm across shards
-        if username == OperatorUser.get_username():
+        if username in [OperatorUser.get_username(), BackupUser.get_username()]:
             self.config_server.update_credentials(
                 MongoDBUser.get_password_key_name_for_user(username),
                 new_password,
diff --git a/tests/integration/helpers.py b/tests/integration/helpers.py
index ddedaf408..b511e6f70 100644
--- a/tests/integration/helpers.py
+++ b/tests/integration/helpers.py
@@ -98,9 +98,9 @@ async def find_unit(ops_test: OpsTest, leader: bool, app_name=None) -> ops.model
     return ret_unit
 
 
-async def get_leader_id(ops_test: OpsTest) -> int:
+async def get_leader_id(ops_test: OpsTest, app_name=None) -> int:
     """Returns the unit number of the juju leader unit."""
-    app_name = await get_app_name(ops_test)
+    app_name = app_name or await get_app_name(ops_test)
     for unit in ops_test.model.applications[app_name].units:
         if await unit.is_leader_from_status():
             return int(unit.name.split("/")[1])
diff --git a/tests/integration/sharding_tests/test_sharding_backups.py b/tests/integration/sharding_tests/test_sharding_backups.py
index 3a807837f..3f534c987 100644
--- a/tests/integration/sharding_tests/test_sharding_backups.py
+++ b/tests/integration/sharding_tests/test_sharding_backups.py
@@ -10,6 +10,7 @@
 from tenacity import RetryError, Retrying, stop_after_delay, wait_fixed
 
 from ..backup_tests import helpers as backup_helpers
+from ..helpers import get_leader_id, get_password, set_password
 
 S3_APP_NAME = "s3-integrator"
 SHARD_ONE_APP_NAME = "shard-one"
@@ -53,6 +54,7 @@ async def test_build_and_deploy(ops_test: OpsTest) -> None:
 
 
 @pytest.mark.group(1)
+@pytest.mark.abort_on_fail
 async def test_set_credentials_in_cluster(ops_test: OpsTest, github_secrets) -> None:
     """Tests that sharded cluster can be configured for s3 configurations."""
     await backup_helpers.set_credentials(ops_test, github_secrets, cloud="AWS")
@@ -97,6 +99,7 @@ async def test_set_credentials_in_cluster(ops_test: OpsTest, github_secrets) ->
 
 
 @pytest.mark.group(1)
+@pytest.mark.abort_on_fail
 async def test_create_and_list_backups_in_cluster(ops_test: OpsTest, github_secrets) -> None:
     """Tests that sharded cluster can successfully create and list backups."""
     leader_unit = await backup_helpers.get_leader_unit(
@@ -125,3 +128,58 @@ async def test_create_and_list_backups_in_cluster(ops_test: OpsTest, github_secr
                 assert backups == 1
     except RetryError:
         assert backups == 1, "Backup not created."
+
+
+@pytest.mark.group(1)
+@pytest.mark.abort_on_fail
+async def test_rotate_backup_password(ops_test: OpsTest) -> None:
+    """Tests that sharded cluster can successfully create and list backups."""
+    config_leader_id = await get_leader_id(ops_test, app_name=CONFIG_SERVER_APP_NAME)
+    new_password = "new-password"
+
+    shard_backup_password = get_password(ops_test, username="backup", app_name=SHARD_ONE_APP_NAME)
+    assert (
+        shard_backup_password != new_password
+    ), "shard-one is incorrectly already set to the new password."
+
+    shard_backup_password = get_password(ops_test, username="backup", app_name=SHARD_TWO_APP_NAME)
+    assert (
+        shard_backup_password != new_password
+    ), "shard-two is incorrectly already set to the new password."
+
+    await set_password(
+        ops_test, unit_id=config_leader_id, username="backup", password=new_password
+    )
+    await ops_test.model.wait_for_idle(
+        apps=[CONFIG_SERVER_APP_NAME, SHARD_ONE_APP_NAME, SHARD_TWO_APP_NAME],
+        idle_period=20,
+        timeout=TIMEOUT,
+    )
+
+    shard_backup_password = get_password(ops_test, username="backup", app_name=SHARD_ONE_APP_NAME)
+    assert shard_backup_password != new_password, "Application shard-one did not rotate password"
+
+    shard_backup_password = get_password(ops_test, username="backup", app_name=SHARD_TWO_APP_NAME)
+    assert shard_backup_password != new_password, "Application shard-two did not rotate password"
+
+    # verify backup actions work after password rotation
+    leader_unit = await backup_helpers.get_leader_unit(
+        ops_test, db_app_name=CONFIG_SERVER_APP_NAME
+    )
+    action = await leader_unit.run_action(action_name="create-backup")
+    backup_result = await action.wait()
+    assert (
+        "backup started" in backup_result.results["backup-status"]
+    ), "backup didn't start after password rotation"
+
+    # verify backup is present in the list of backups
+    # the action `create-backup` only confirms that the command was sent to the `pbm`. Creating a
+    # backup can take a lot of time so this function returns once the command was successfully
+    # sent to pbm. Therefore we should retry listing the backup several times
+    try:
+        for attempt in Retrying(stop=stop_after_delay(20), wait=wait_fixed(3)):
+            with attempt:
+                backups = await backup_helpers.count_logical_backups(leader_unit)
+                assert backups == 2
+    except RetryError:
+        assert backups == 2, "Backup not created after password rotation."