diff --git a/packages/password-field/src/vaadin-password-field.js b/packages/password-field/src/vaadin-password-field.js
index 34156abd989..ddbd856b35c 100644
--- a/packages/password-field/src/vaadin-password-field.js
+++ b/packages/password-field/src/vaadin-password-field.js
@@ -125,7 +125,8 @@ export class PasswordField extends TextField {
     super();
     this._setType('password');
     this.__boundRevealButtonClick = this._onRevealButtonClick.bind(this);
-    this.__boundRevealButtonTouchend = this._onRevealButtonTouchend.bind(this);
+    this.__boundRevealButtonMouseDown = this._onRevealButtonMouseDown.bind(this);
+    this.__lastChange = '';
   }
 
   /** @protected */
@@ -157,7 +158,7 @@ export class PasswordField extends TextField {
         btn.disabled = this.disabled;
 
         btn.addEventListener('click', this.__boundRevealButtonClick);
-        btn.addEventListener('touchend', this.__boundRevealButtonTouchend);
+        btn.addEventListener('mousedown', this.__boundRevealButtonMouseDown);
       },
     });
     this.addController(this._revealButtonController);
@@ -172,6 +173,19 @@ export class PasswordField extends TextField {
     }
   }
 
+  /**
+   * Override an event listener inherited from `InputControlMixin`
+   * to store the value at the moment of the native `change` event.
+   * @param {Event} event
+   * @protected
+   * @override
+   */
+  _onChange(event) {
+    super._onChange(event);
+
+    this.__lastChange = this.inputElement.value;
+  }
+
   /**
    * Override method inherited from `FocusMixin` to mark field as focused
    * when focus moves to the reveal button using Shift Tab.
@@ -208,6 +222,12 @@ export class PasswordField extends TextField {
 
     if (!focused) {
       this._setPasswordVisible(false);
+
+      // Detect if `focusout` was prevented and if so, dispatch `change` event manually.
+      if (this.__lastChange !== this.inputElement.value) {
+        this.__lastChange = this.inputElement.value;
+        this.dispatchEvent(new CustomEvent('change', { bubbles: true }));
+      }
     } else {
       const isButtonFocused = this.getRootNode().activeElement === this._revealNode;
       // Remove focus-ring from the field when the reveal button gets focused
@@ -243,10 +263,10 @@ export class PasswordField extends TextField {
   }
 
   /** @private */
-  _onRevealButtonTouchend(e) {
-    // Cancel the following click event
+  _onRevealButtonMouseDown(e) {
+    // Cancel the following focusout event
     e.preventDefault();
-    this._togglePasswordVisibility();
+
     // Focus the input to avoid problem with password still visible
     // when user clicks the reveal button and then clicks outside.
     this.inputElement.focus();
diff --git a/packages/password-field/test/password-field.test.js b/packages/password-field/test/password-field.test.js
index 40ab0c719cc..b0c2949ff86 100644
--- a/packages/password-field/test/password-field.test.js
+++ b/packages/password-field/test/password-field.test.js
@@ -1,5 +1,5 @@
 import { expect } from '@esm-bundle/chai';
-import { fixtureSync, focusout, makeSoloTouchEvent, mousedown, nextRender } from '@vaadin/testing-helpers';
+import { fire, fixtureSync, focusout, makeSoloTouchEvent, mousedown, nextRender } from '@vaadin/testing-helpers';
 import { sendKeys } from '@web/test-runner-commands';
 import sinon from 'sinon';
 import '../src/vaadin-password-field.js';
@@ -46,24 +46,53 @@ describe('password-field', () => {
     expect(input.type).to.equal('text');
   });
 
-  it('should prevent touchend event on reveal button', () => {
-    const event1 = makeSoloTouchEvent('touchend', null, revealButton);
-    expect(event1.defaultPrevented).to.be.true;
-    expect(input.type).to.equal('text');
-
-    const event2 = makeSoloTouchEvent('touchend', null, revealButton);
-    expect(event2.defaultPrevented).to.be.true;
-    expect(input.type).to.equal('password');
+  it('should prevent mousedown event on reveal button', () => {
+    const event = fire(revealButton, 'mousedown');
+    expect(event.defaultPrevented).to.be.true;
   });
 
-  it('should focus the input on reveal button touchend', () => {
+  it('should focus the input on reveal button mousedown', () => {
     const spy = sinon.spy(input, 'focus');
 
-    makeSoloTouchEvent('touchend', null, revealButton);
+    fire(revealButton, 'mousedown');
+
+    expect(spy.calledOnce).to.be.true;
+  });
+
+  it('should dispatch change event on focusout after changing the value', () => {
+    const spy = sinon.spy();
+    passwordField.addEventListener('change', spy);
+
+    input.value = 'test';
+
+    focusout(input);
 
     expect(spy.calledOnce).to.be.true;
   });
 
+  it('should not dispatch change event on focusout if value is the same', () => {
+    const spy = sinon.spy();
+    passwordField.addEventListener('change', spy);
+
+    focusout(input);
+
+    expect(spy.called).to.be.false;
+  });
+
+  it('should not dispatch change event on focusout after native change', () => {
+    const spy = sinon.spy();
+    passwordField.addEventListener('change', spy);
+
+    input.value = 'test';
+    fire(input, 'change');
+
+    spy.resetHistory();
+
+    focusout(input);
+
+    expect(spy.called).to.be.false;
+  });
+
   it('should toggle aria-pressed attribute on reveal button click', () => {
     revealButton.click();
     expect(revealButton.getAttribute('aria-pressed')).to.equal('true');