diff --git a/lib/Froxlor/Database/Manager/DbManagerMySQL.php b/lib/Froxlor/Database/Manager/DbManagerMySQL.php
index fa1b2a5c..b194631f 100644
--- a/lib/Froxlor/Database/Manager/DbManagerMySQL.php
+++ b/lib/Froxlor/Database/Manager/DbManagerMySQL.php
@@ -81,9 +81,15 @@ class DbManagerMySQL
 			// mysql8 compatibility
 			if (version_compare(Database::getAttribute(\PDO::ATTR_SERVER_VERSION), '8.0.11', '>=')) {
 				// create user
-				$stmt = Database::prepare("
-					CREATE USER '" . $username . "'@'" . $access_host . "' IDENTIFIED BY :password
-				");
+				if ($p_encrypted) {
+					$stmt = Database::prepare("
+						CREATE USER '" . $username . "'@'" . $access_host . "' IDENTIFIED WITH mysql_native_password AS :password
+					");
+				} else {
+					$stmt = Database::prepare("
+						CREATE USER '" . $username . "'@'" . $access_host . "' IDENTIFIED BY :password
+					");
+				}
 				Database::pexecute($stmt, array(
 					"password" => $password
 				));
@@ -97,9 +103,15 @@ class DbManagerMySQL
 				));
 			} else {
 				// grant privileges
-				$stmt = Database::prepare("
-					GRANT ALL PRIVILEGES ON `" . $username . "`.* TO :username@:host IDENTIFIED BY :password
-				");
+				if ($p_encrypted) {
+					$stmt = Database::prepare("
+						GRANT ALL PRIVILEGES ON `" . $username . "`.* TO :username@:host IDENTIFIED WITH mysql_native_password AS :password
+					");
+				} else {
+					$stmt = Database::prepare("
+						GRANT ALL PRIVILEGES ON `" . $username . "`.* TO :username@:host IDENTIFIED BY :password
+					");
+				}
 				Database::pexecute($stmt, array(
 					"username" => $username,
 					"host" => $access_host,
@@ -115,7 +127,11 @@ class DbManagerMySQL
 					$stmt = Database::prepare("SET PASSWORD FOR :username@:host = PASSWORD(:password)");
 				}
 			} else {
-				$stmt = Database::prepare("ALTER USER :username@:host IDENTIFIED BY :password");
+				if ($p_encrypted) {
+					$stmt = Database::prepare("ALTER USER :username@:host IDENTIFIED WITH mysql_native_password AS :password");
+				} else {
+					$stmt = Database::prepare("ALTER USER :username@:host IDENTIFIED BY :password");
+				}
 			}
 			Database::pexecute($stmt, array(
 				"username" => $username,
diff --git a/tests/Mysqls/MysqlsTest.php b/tests/Mysqls/MysqlsTest.php
index 45989ec9..6bd4d300 100644
--- a/tests/Mysqls/MysqlsTest.php
+++ b/tests/Mysqls/MysqlsTest.php
@@ -4,6 +4,7 @@ use PHPUnit\Framework\TestCase;
 use Froxlor\Api\Commands\Admins;
 use Froxlor\Api\Commands\Customers;
 use Froxlor\Api\Commands\Mysqls;
+use Froxlor\Database\Database;
 
 /**
  *
@@ -181,5 +182,18 @@ class MysqlsTest extends TestCase
 		foreach ($users as $user => $data) {
 			$this->assertNotEmpty($data['password'], 'No password for user "' . $user . '"');
 		}
+
+		// grant privileges to another host
+		$testdata = $users['froxlor010'];
+		$dbm->getManager()->grantPrivilegesTo('froxlor010', $testdata['password'], '10.0.0.10', true);
+
+		// select all entries from mysql.user for froxlor010 to compare password-hashes
+		$sel_stmt = Database::prepare("SELECT * FROM mysql.user WHERE `User` = :usr");
+		Database::pexecute($sel_stmt, ['usr' => 'froxlor010']);
+		$results = $sel_stmt->fetchAll(\PDO::FETCH_ASSOC);
+		foreach ($results as $user) {
+			$passwd = $user['Password'] ?? $user['authentication_string'];
+			$this->assertEquals($testdata['password'], $passwd);
+		}
 	}
 }