diff --git a/apps/web/src/lib/stores/auth.svelte.ts b/apps/web/src/lib/stores/auth.svelte.ts
index e455071..57255de 100644
--- a/apps/web/src/lib/stores/auth.svelte.ts
+++ b/apps/web/src/lib/stores/auth.svelte.ts
@@ -1,7 +1,7 @@
 // ============================================================================
-// SIMPLE AUTH STORE
+// AUTH STORE WITH PASSWORD SUPPORT
 // ============================================================================
-// Simplified Svelte 5 Runes auth store for local-only P2P app
+// Svelte 5 Runes auth store with password authentication
 // ============================================================================
 
 import type { AuthState, UserSession } from "$auth/index";
@@ -10,6 +10,51 @@ import type { AuthState, UserSession } from "$auth/index";
 let currentSession: UserSession | null = $state(null);
 let authState: AuthState = $state({ status: "unauthenticated" });
 
+// Store for user credentials (username -> password hash)
+const USER_STORAGE_KEY = "locanote_users";
+
+// ============================================================================
+// PASSWORD HASHING (Simple hash for local-only app)
+// ============================================================================
+
+async function hashPassword(password: string): Promise<string> {
+  const encoder = new TextEncoder();
+  const data = encoder.encode(password);
+  const hashBuffer = await crypto.subtle.digest("SHA-256", data);
+  const hashArray = Array.from(new Uint8Array(hashBuffer));
+  return hashArray.map((b) => b.toString(16).padStart(2, "0")).join("");
+}
+
+// ============================================================================
+// USER STORAGE
+// ============================================================================
+
+interface StoredUser {
+  username: string;
+  passwordHash: string;
+  createdAt: number;
+}
+
+function getStoredUsers(): Record<string, StoredUser> {
+  if (typeof window === "undefined") return {};
+  const stored = localStorage.getItem(USER_STORAGE_KEY);
+  return stored ? JSON.parse(stored) : {};
+}
+
+function saveUser(username: string, passwordHash: string) {
+  const users = getStoredUsers();
+  users[username.toLowerCase()] = {
+    username,
+    passwordHash,
+    createdAt: Date.now(),
+  };
+  localStorage.setItem(USER_STORAGE_KEY, JSON.stringify(users));
+}
+
+function getUser(username: string): StoredUser | undefined {
+  return getStoredUsers()[username.toLowerCase()];
+}
+
 // ============================================================================
 // METHODS
 // ============================================================================
@@ -37,8 +82,11 @@ export const auth = {
     return authState;
   },
 
-  // Login
-  login(username: string): { success: boolean; error?: string } {
+  // Login with password
+  async login(
+    username: string,
+    password: string,
+  ): Promise<{ success: boolean; error?: string }> {
     if (!username || username.trim().length < 2) {
       return {
         success: false,
@@ -46,6 +94,30 @@ export const auth = {
       };
     }
 
+    if (!password || password.length < 6) {
+      return {
+        success: false,
+        error: "Password must be at least 6 characters",
+      };
+    }
+
+    // Verify user exists and password matches
+    const user = getUser(username);
+    if (!user) {
+      return {
+        success: false,
+        error: "Invalid username or password",
+      };
+    }
+
+    const passwordHash = await hashPassword(password);
+    if (passwordHash !== user.passwordHash) {
+      return {
+        success: false,
+        error: "Invalid username or password",
+      };
+    }
+
     const userId = `${username.trim().toLowerCase().replace(/\s+/g, "_")}_${Date.now()}`;
     const session: UserSession = {
       userId,
@@ -61,9 +133,60 @@ export const auth = {
     return { success: true };
   },
 
-  // Register (same as login for MVP)
-  register(username: string): { success: boolean; error?: string } {
-    return this.login(username);
+  // Register with password
+  async register(
+    username: string,
+    password: string,
+    confirmPassword: string,
+  ): Promise<{ success: boolean; error?: string }> {
+    if (!username || username.trim().length < 2) {
+      return {
+        success: false,
+        error: "Username must be at least 2 characters",
+      };
+    }
+
+    if (!password || password.length < 6) {
+      return {
+        success: false,
+        error: "Password must be at least 6 characters",
+      };
+    }
+
+    if (password !== confirmPassword) {
+      return {
+        success: false,
+        error: "Passwords do not match",
+      };
+    }
+
+    // Check if user already exists
+    const existingUser = getUser(username);
+    if (existingUser) {
+      return {
+        success: false,
+        error: "Username already exists",
+      };
+    }
+
+    // Hash and store password
+    const passwordHash = await hashPassword(password);
+    saveUser(username, passwordHash);
+
+    // Create session
+    const userId = `${username.trim().toLowerCase().replace(/\s+/g, "_")}_${Date.now()}`;
+    const session: UserSession = {
+      userId,
+      username: username.trim(),
+      loggedInAt: Date.now(),
+      expiresAt: Date.now() + 30 * 24 * 60 * 60 * 1000,
+    };
+
+    localStorage.setItem("locanote_session", JSON.stringify(session));
+    currentSession = session;
+    authState = { status: "authenticated", session };
+
+    return { success: true };
   },
 
   // Logout
diff --git a/apps/web/src/routes/+page.svelte b/apps/web/src/routes/+page.svelte
index 4c52580..81d2966 100644
--- a/apps/web/src/routes/+page.svelte
+++ b/apps/web/src/routes/+page.svelte
@@ -5,8 +5,11 @@ LANDING PAGE - Beautiful Glass Design
 <script lang="ts">
   import { goto } from "$app/navigation";
   import { onMount } from "svelte";
+  import { auth } from "$stores/auth.svelte";
 
   let username = $state("");
+  let password = $state("");
+  let confirmPassword = $state("");
   let isLoading = $state(false);
   let error = $state("");
   let isRegister = $state(false);
@@ -43,7 +46,7 @@ LANDING PAGE - Beautiful Glass Design
     }
   });
 
-  function handleSubmit() {
+  async function handleSubmit() {
     if (!username.trim()) {
       error = "Please enter a username";
       return;
@@ -54,18 +57,28 @@ LANDING PAGE - Beautiful Glass Design
       return;
     }
 
+    if (!password || password.length < 6) {
+      error = "Password must be at least 6 characters";
+      return;
+    }
+
     isLoading = true;
     error = "";
 
-    const session = {
-      userId: username.toLowerCase().replace(/\s+/g, "_") + "_" + Date.now(),
-      username: username.trim(),
-      loggedInAt: Date.now(),
-      expiresAt: Date.now() + 30 * 24 * 60 * 60 * 1000,
-    };
+    let result;
+    if (isRegister) {
+      result = await auth.register(username.trim(), password, confirmPassword);
+    } else {
+      result = await auth.login(username.trim(), password);
+    }
+
+    isLoading = false;
 
-    localStorage.setItem("locanote_session", JSON.stringify(session));
-    goto("/app", { replaceState: true });
+    if (result.success) {
+      goto("/app", { replaceState: true });
+    } else {
+      error = result.error || "Authentication failed";
+    }
   }
 
   function handleKeydown(e: KeyboardEvent) {
@@ -128,12 +141,36 @@ LANDING PAGE - Beautiful Glass Design
             type="text"
             bind:value={username}
             onkeydown={handleKeydown}
-            placeholder="Choose a username"
+            placeholder="Username"
+            class="input"
+            autocomplete="username"
+          />
+        </div>
+
+        <div class="input-group">
+          <input
+            type="password"
+            bind:value={password}
+            onkeydown={handleKeydown}
+            placeholder="Password"
             class="input"
-            autocomplete="off"
+            autocomplete={isRegister ? "new-password" : "current-password"}
           />
         </div>
 
+        {#if isRegister}
+          <div class="input-group">
+            <input
+              type="password"
+              bind:value={confirmPassword}
+              onkeydown={handleKeydown}
+              placeholder="Confirm Password"
+              class="input"
+              autocomplete="new-password"
+            />
+          </div>
+        {/if}
+
         {#if error}
           <div class="error">{error}</div>
         {/if}
@@ -142,7 +179,7 @@ LANDING PAGE - Beautiful Glass Design
           {#if isLoading}
             <span class="spinner"></span>
           {:else}
-            {isRegister ? "Create Account" : "Continue"}
+            {isRegister ? "Create Account" : "Sign In"}
           {/if}
         </button>
       </div>