diff --git a/doc/styles/PasswordBox.md b/doc/styles/PasswordBox.md
index ebfed5cb5..036712c58 100644
--- a/doc/styles/PasswordBox.md
+++ b/doc/styles/PasswordBox.md
@@ -71,10 +71,7 @@ IsDefaultStyle\*: Styles in this column will be set as the default implicit styl
 | `OutlinedPasswordBoxCharacterSpacing`                 | `Int32`           | `BodyLargeCharacterSpacing`                                                                                                                                                                                                                                                                   |
 | `OutlinedPasswordBoxCornerRadius`                     | `CornerRadius`    | 4                                                                                                                                                                                                                                                                                             |
 | `OutlinedPasswordBoxMinHeight`                        | `Double`          | 58                                                                                                                                                                                                                                                                                            |
-| `OutlinedPasswordBoxBorderPadding`                    | `Thickness`       | 1                                                                                                                                                                                                                                                                                             |
-| `OutlinedPasswordBoxBorderPaddingPointerOver`         | `Thickness`       | 0                                                                                                                                                                                                                                                                                             |
-| `OutlinedPasswordBoxBorderPaddingFocused`             | `Thickness`       | 0                                                                                                                                                                                                                                                                                             |
 | `OutlinedPasswordBoxPadding`                          | `Thickness`       | 16,4,8,4                                                                                                                                                                                                                                                                                      |
 | `OutlinedPasswordBoxBorderThickness`                  | `Thickness`       | 1                                                                                                                                                                                                                                                                                             |
-| `OutlinedPasswordBoxBorderThicknessPointerOver`       | `Thickness`       | 2                                                                                                                                                                                                                                                                                             |
+| `OutlinedPasswordBoxBorderThicknessPointerOver`       | `Thickness`       | 1                                                                                                                                                                                                                                                                                             |
 | `OutlinedPasswordBoxBorderThicknessFocused`           | `Thickness`       | 2                                                                                                                                                                                                                                                                                             |
diff --git a/src/library/Uno.Material/Styles/Controls/v2/PasswordBox.xaml b/src/library/Uno.Material/Styles/Controls/v2/PasswordBox.xaml
index 0999add20..481bbf5bf 100644
--- a/src/library/Uno.Material/Styles/Controls/v2/PasswordBox.xaml
+++ b/src/library/Uno.Material/Styles/Controls/v2/PasswordBox.xaml
@@ -89,13 +89,10 @@
 
 			<CornerRadius x:Key="OutlinedPasswordBoxCornerRadius">4</CornerRadius>
 			<x:Double x:Key="OutlinedPasswordBoxMinHeight">58</x:Double>
-			<Thickness x:Key="OutlinedPasswordBoxBorderPadding">1</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxBorderThickness">1</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxPadding">16,4,8,4</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxBorderThicknessPointerOver">1</Thickness>
-			<Thickness x:Key="OutlinedPasswordBoxBorderPaddingPointerOver">1</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxBorderThicknessFocused">2</Thickness>
-			<Thickness x:Key="OutlinedPasswordBoxBorderPaddingFocused">1</Thickness>
 
 			<CornerRadius x:Key="FilledPasswordBoxCornerRadius">4,4,0,0</CornerRadius>
 			<x:Double x:Key="FilledPasswordBoxMinHeight">56</x:Double>
@@ -183,13 +180,10 @@
 
 			<CornerRadius x:Key="OutlinedPasswordBoxCornerRadius">4</CornerRadius>
 			<x:Double x:Key="OutlinedPasswordBoxMinHeight">58</x:Double>
-			<Thickness x:Key="OutlinedPasswordBoxBorderPadding">1</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxBorderThickness">1</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxPadding">16,4,8,4</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxBorderThicknessPointerOver">1</Thickness>
-			<Thickness x:Key="OutlinedPasswordBoxBorderPaddingPointerOver">1</Thickness>
 			<Thickness x:Key="OutlinedPasswordBoxBorderThicknessFocused">2</Thickness>
-			<Thickness x:Key="OutlinedPasswordBoxBorderPaddingFocused">1</Thickness>
 
 			<CornerRadius x:Key="FilledPasswordBoxCornerRadius">4,4,0,0</CornerRadius>
 			<x:Double x:Key="FilledPasswordBoxMinHeight">56</x:Double>
@@ -478,11 +472,11 @@
 
 								<VisualState x:Name="PointerOver">
 									<VisualState.Setters>
-										<Setter Target="BorderBorder.BorderBrush" Value="{ThemeResource OutlinedPasswordBoxBorderBrushPointerOver}" />
 										<Setter Target="ContentElement.Foreground" Value="{ThemeResource OutlinedPasswordBoxForegroundPointerOver}" />
 										<Setter Target="PlaceholderElement.Foreground" Value="{ThemeResource OutlinedPasswordBoxPlaceholderForegroundPointerOver}" />
 										<Setter Target="Root.Background" Value="{ThemeResource OutlinedPasswordBoxBackgroundPointerOver}" />
 										<Setter Target="BorderBorder.BorderThickness" Value="{ThemeResource OutlinedPasswordBoxBorderThicknessPointerOver}" />
+										<Setter Target="BorderBorder.BorderBrush" Value="{ThemeResource OutlinedPasswordBoxBorderBrushPointerOver}" />
 									</VisualState.Setters>
 								</VisualState>
 
@@ -490,23 +484,23 @@
 
 								<VisualState x:Name="Disabled">
 									<VisualState.Setters>
-										<Setter Target="BorderBorder.BorderBrush" Value="{ThemeResource OutlinedPasswordBoxBorderBrushDisabled}" />
 										<!-- In this case the opacity is not applied to the brush directly - known issue for ContentElement -->
 										<Setter Target="ContentElement.Foreground" Value="{ThemeResource OutlinedPasswordBoxForegroundDisabled}" />
 										<Setter Target="ContentElement.Opacity" Value="{ThemeResource OutlinedPasswordBoxForegroundOpacityDisabled}" />
 										<Setter Target="PlaceholderElement.Foreground" Value="{ThemeResource OutlinedPasswordBoxPlaceholderForegroundDisabled}" />
 										<Setter Target="Root.Background" Value="{ThemeResource OutlinedPasswordBoxBackgroundDisabled}" />
 										<Setter Target="IconPresenter.Foreground" Value="{ThemeResource PasswordBoxLeadingIconForegroundDisabled}" />
+										<Setter Target="BorderBorder.BorderBrush" Value="{ThemeResource OutlinedPasswordBoxBorderBrushDisabled}" />
 									</VisualState.Setters>
 								</VisualState>
 
 								<VisualState x:Name="Focused">
 									<VisualState.Setters>
-										<Setter Target="BorderBorder.BorderBrush" Value="{ThemeResource OutlinedPasswordBoxBorderBrushFocused}" />
 										<Setter Target="ContentElement.Foreground" Value="{ThemeResource OutlinedPasswordBoxForegroundFocused}" />
 										<Setter Target="PlaceholderElement.Foreground" Value="{ThemeResource OutlinedPasswordBoxPlaceholderForegroundFocused}" />
 										<Setter Target="Root.Background" Value="{ThemeResource OutlinedPasswordBoxBackgroundFocused}" />
 										<Setter Target="BorderBorder.BorderThickness" Value="{ThemeResource OutlinedPasswordBoxBorderThicknessFocused}" />
+										<Setter Target="BorderBorder.BorderBrush" Value="{ThemeResource OutlinedPasswordBoxBorderBrushFocused}" />
 									</VisualState.Setters>
 								</VisualState>
 							</VisualStateGroup>
@@ -628,7 +622,10 @@
 									Style="{StaticResource MaterialRevealButtonStyle}"
 									Visibility="Collapsed" />
 						</Grid>
-
+						<!--
+							In Figma design, border thickness doesn't push its inner content like on xaml.
+							So we are putting the border as an overlay here. To keep the rest of the measurements/values identical to Figma.
+						-->
 						<Border x:Name="BorderBorder"
 								BorderBrush="{TemplateBinding BorderBrush}"
 								BorderThickness="{TemplateBinding BorderThickness}"
diff --git a/src/library/Uno.Themes.WinUI.Markup/Theme/PasswordBox.cs b/src/library/Uno.Themes.WinUI.Markup/Theme/PasswordBox.cs
index d8deda060..a8f62d781 100644
--- a/src/library/Uno.Themes.WinUI.Markup/Theme/PasswordBox.cs
+++ b/src/library/Uno.Themes.WinUI.Markup/Theme/PasswordBox.cs
@@ -155,18 +155,6 @@ public static partial class BorderBrush
 					public static ThemeResourceKey<Brush> Focused => new("OutlinedPasswordBoxBorderBrushFocused");
 				}
 
-				public static partial class BorderPadding
-				{
-					[ResourceKeyDefinition(typeof(Thickness), "OutlinedPasswordBoxBorderPadding")]
-					public static ThemeResourceKey<Thickness> Default => new("OutlinedPasswordBoxBorderPadding");
-
-					[ResourceKeyDefinition(typeof(Thickness), "OutlinedPasswordBoxBorderPaddingPointerOver")]
-					public static ThemeResourceKey<Thickness> PointerOver => new("OutlinedPasswordBoxBorderPaddingPointerOver");
-
-					[ResourceKeyDefinition(typeof(Thickness), "OutlinedPasswordBoxBorderPaddingFocused")]
-					public static ThemeResourceKey<Thickness> Focused => new("OutlinedPasswordBoxBorderPaddingFocused");
-				}
-
 				public static partial class BorderThickness
 				{
 					[ResourceKeyDefinition(typeof(Thickness), "OutlinedPasswordBoxBorderThickness")]