diff --git a/Changes b/Changes
index b0014d92c..95af084e2 100644
--- a/Changes
+++ b/Changes
@@ -627,3 +627,4 @@
 - Possible fixed the SJOIN kick bug (mode +Q), servers can now always kick
 - Added NEW DNS resolver (Win32 Only atm)  ... use by defining NEWDNS
 - FIXED "BUG" caused by NEWDNS *shrug*
+- Fixed the passwd NICK problem
diff --git a/src/s_user.c b/src/s_user.c
index 574de4d30..04d305050 100644
--- a/src/s_user.c
+++ b/src/s_user.c
@@ -1611,8 +1611,12 @@ int  m_nick(cptr, sptr, parc, parv)
 		 * - originally by taz, modified by Wizzu
 		 */
 		if ((parc > 2) && (strlen(parv[2]) < sizeof(sptr->passwd)))
+		{
+			if (sptr->passwd)
+				MyFree(sptr->passwd);
+			sptr->passwd = MyMalloc(strlen(parv[2]) + 1);
 			(void)strcpy(sptr->passwd, parv[2]);
-
+		}
 		/* This had to be copied here to avoid problems.. */
 		(void)strcpy(sptr->name, nick);
 		if (sptr->user && IsNotSpoof(sptr))