diff --git a/server/src/com/cloud/server/ConfigurationServerImpl.java b/server/src/com/cloud/server/ConfigurationServerImpl.java
index 926d9a747d4..16e4ff05902 100644
--- a/server/src/com/cloud/server/ConfigurationServerImpl.java
+++ b/server/src/com/cloud/server/ConfigurationServerImpl.java
@@ -155,6 +155,8 @@ public class ConfigurationServerImpl extends ManagerBase implements Configuratio
     protected ConfigDepot _configDepot;
     @Inject
     protected ConfigurationManager _configMgr;
+    @Inject
+    protected ManagementService _mgrService;
 
 
     public ConfigurationServerImpl() {
@@ -668,7 +670,7 @@ public class ConfigurationServerImpl extends ManagerBase implements Configuratio
         if (already == null) {
             TransactionLegacy txn = TransactionLegacy.currentTxn();
             try {
-                String rpassword = PasswordGenerator.generatePresharedKey(8);
+                String rpassword = _mgrService.generateRandomPassword();
                 String wSql = "INSERT INTO `cloud`.`configuration` (category, instance, component, name, value, description) "
                 + "VALUES ('Secure','DEFAULT', 'management-server','system.vm.password', ?,'randmon password generated each management server starts for system vm')";
                 PreparedStatement stmt = txn.prepareAutoCloseStatement(wSql);
diff --git a/server/test/com/cloud/server/ConfigurationServerImplTest.java b/server/test/com/cloud/server/ConfigurationServerImplTest.java
index 38dc1bc0e09..b64f3f72aa2 100644
--- a/server/test/com/cloud/server/ConfigurationServerImplTest.java
+++ b/server/test/com/cloud/server/ConfigurationServerImplTest.java
@@ -19,14 +19,74 @@ package com.cloud.server;
 import java.io.File;
 import java.io.IOException;
 
+import com.cloud.configuration.ConfigurationManager;
+import com.cloud.configuration.dao.ResourceCountDao;
+import com.cloud.dc.dao.DataCenterDao;
+import com.cloud.dc.dao.HostPodDao;
+import com.cloud.dc.dao.VlanDao;
+import com.cloud.domain.dao.DomainDao;
+import com.cloud.network.dao.NetworkDao;
+import com.cloud.offerings.dao.NetworkOfferingDao;
+import com.cloud.offerings.dao.NetworkOfferingServiceMapDao;
+import com.cloud.service.dao.ServiceOfferingDao;
+import com.cloud.storage.dao.DiskOfferingDao;
+import com.cloud.user.dao.AccountDao;
+import com.cloud.utils.db.TransactionLegacy;
+import org.apache.cloudstack.framework.config.ConfigDepot;
+import org.apache.cloudstack.framework.config.ConfigDepotAdmin;
+import org.apache.cloudstack.framework.config.dao.ConfigurationDao;
 import org.apache.commons.codec.binary.Base64;
 import org.apache.commons.io.FileUtils;
 import org.junit.Assert;
 import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mockito.InjectMocks;
+import org.mockito.Mock;
+import org.mockito.Mockito;
 import org.mockito.Spy;
+import org.mockito.runners.MockitoJUnitRunner;
 
+@RunWith(MockitoJUnitRunner.class)
 public class ConfigurationServerImplTest {
 
+    @Mock
+    private ConfigurationDao _configDao;
+    @Mock
+    private DataCenterDao _zoneDao;
+    @Mock
+    private HostPodDao _podDao;
+    @Mock
+    private DiskOfferingDao _diskOfferingDao;
+    @Mock
+    private ServiceOfferingDao _serviceOfferingDao;
+    @Mock
+    private NetworkOfferingDao _networkOfferingDao;
+    @Mock
+    private DataCenterDao _dataCenterDao;
+    @Mock
+    private NetworkDao _networkDao;
+    @Mock
+    private VlanDao _vlanDao;
+    @Mock
+    private DomainDao _domainDao;
+    @Mock
+    private AccountDao _accountDao;
+    @Mock
+    private ResourceCountDao _resourceCountDao;
+    @Mock
+    private NetworkOfferingServiceMapDao _ntwkOfferingServiceMapDao;
+    @Mock
+    private ConfigDepotAdmin _configDepotAdmin;
+    @Mock
+    private ConfigDepot _configDepot;
+    @Mock
+    private ConfigurationManager _configMgr;
+    @Mock
+    private ManagementService _mgrService;
+
+    @InjectMocks
+    private ConfigurationServerImpl configurationServer;
+
     @Spy
     ConfigurationServerImpl windowsImpl = new ConfigurationServerImpl() {
       protected boolean isOnWindows() {
@@ -84,4 +144,22 @@ public class ConfigurationServerImplTest {
       Assert.assertFalse(linuxImpl.isOnWindows());
       Assert.assertEquals("scripts/vm/systemvm/injectkeys.sh", linuxImpl.getInjectScript());
     }
+
+    @Test
+    public void testUpdateSystemvmPassword() {
+        //setup
+        String realusername = System.getProperty("user.name");
+        System.setProperty("user.name", "cloud");
+        Mockito.when(_configDao.getValue("system.vm.random.password")).thenReturn(String.valueOf(true));
+        TransactionLegacy.open("cloud");
+        Mockito.when(_mgrService.generateRandomPassword()).thenReturn("randomPassword");
+
+        //call the method to test
+        configurationServer.updateSystemvmPassword();
+
+        //verify that generateRandomPassword() is called
+        Mockito.verify(_mgrService, Mockito.times(1)).generateRandomPassword();
+        //teardown
+        System.setProperty("user.name", realusername);
+    }
 }